Strauss Group: announces Q2-2018 financial results

Petach Tikva / IL. (sg) Israel’s Strauss Group Limited delivers another quarter of solid growth, following the trend of previous quarters. The Group reports a strong set of results in Q2 2018 with sales and earnings growth in Strauss Israel and in its global operations.

The results of the Group’s operations in Israel reflect continued outperformance versus the domestic food and beverage market, taking the company’s market share in Israel to 12 percent of the food and beverage sector. Most of this revenue growth was achieved thanks to product innovation and diversification, which will be maintained in the future.

Strauss’s global operations post another excellent quarter across all businesses: coffee margins expand, the water business in China continues to gain momentum, sales at Sabra in North America are growing and Obela is strengthening its position in Australia and New Zealand. The Group’s international activity, which accounts for around half of its revenue, continues to expand, and we plan to maintain this strategy going forward.”

Second Quarter 2018 Highlights

• Organic sales growth, excluding foreign exchange effects, was approximately 6.4 percent. Shekel sales were NIS approximately 2.1 billion compared to NIS 2 billion in the corresponding period in 2017; sales were impacted by a negative currency translation amounting to NIS approximately 53 million, mainly as a result of the depreciation of the BRL against the NIS compared to last year.
• Gross profit was NIS approximately 813 million (approximately 38.7 percent of sales), up approximately 8 percent compared to the corresponding period last year. Gross margins were up approximately 1.8 percent.
• Operating profit (Ebit) was NIS approximately 207 million (approximately 9.9 percent of sales), up approximately 11.2 percent compared to the corresponding period last year. Ebit margins were up approximately 0.8 percent.
• EPS for shareholders of the Company was NIS approximately 0.97, up approximately 10.6 percent compared to the corresponding period.
• Positive cash flows from operating activities totalled NIS approximately 190 million, compared to NIS approximately 199 million in the corresponding period last year.

First Half 2018 Highlights

• Organic sales growth, excluding foreign exchange effects, was approximately 7.1 percent. Shekel sales were NIS approximately 4.3 billion compared to NIS 4.1 billion in the corresponding period in 2017; sales were impacted by a negative currency translation amounting to NIS approximately 104 million, mainly as a result of the depreciation of the BRL against the NIS compared to last year.
• Gross profit was NIS approximately 1,646 million (approximately 38.5 percent of sales), up approximately 7.4 percent compared to the corresponding period last year. Gross margins were up approximately 1.3 percent.
• Operating profit (Ebit) was NIS approximately 461 million (approximately 10.8 percent of sales), up approximately 12.7 percent compared to the corresponding period last year. Ebit margins were up approximately 0.9 percent.
• EPS for shareholders of the Company was NIS approximately 2.25, up approximately 15.3 percent compared to the corresponding period.
• Positive cash flows from operating activities totalled NIS approximately 296 million, compared to NIS approximately 113 million in the corresponding period last year.