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Osnat Golan
Osnat Golan
VP Corp Communications, Digital, Sustainability & Spokesperson
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Gil Messing
Gil Messing
Dir. External Communications & Government Relations
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Anat Lev-Confortes
Anat Lev-Confortes
Public Relations Manager
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Financial Reports  2016 and Q4
28/03/2017

Financial Reports 2016 and Q4

Strauss Group Reports Fourth Quarter and Full Year 2016 Results; A strong set of results with 3.9% annual sales growth and 12.8% EBIT growth (1)   Excellent results delivered by Strauss Coffee and significant achievements at Strauss Israel, together with continued improvement in Strauss Water, lead to positive results across all metrics     Gadi Lesin, President and CEO of Strauss Group (March 28, 2017): “2016 was a strong year for the Group and its businesses, which have posted an improvement across all metrics and strong cash flows. Strauss Israel continued to exceed market growth rates in our home base in Israel and Strauss Coffee posted as set of excellent results for 2016. Sabra's recall from November is being responsibly managed to ensure a return to solid performance. We will continue to invest in innovation, in efficiency enhancement and in delivering genuine added value to our consumers around the world.”   2016 highlights (1) Organic sales growth, excluding foreign exchange effects, was c6.2%. Shekel sales were NIS c7.9 billion compared to NIS 7.6 billion in 2015; sales were impacted by a negative currency translation amounting to NIS c176 million as a result of the continued strengthening of the NIS in comparison to other currencies.   Gross profit was NIS c2,980 million (c37.5% of sales), up c5.4% compared to the corresponding period last year. Gross margins were up c0.5%.   Operating profit (EBIT) was NIS c744 million (c9.4% of sales), up c12.8% compared to the corresponding period last year. EBIT margins were up c0.8%.   EPS for shareholders of the Company were NIS c3.12, up c14.2% compared to the corresponding period.   Cash flow from operating activities totaled NIS c762 million, compared to NIS c516 million in 2015.   (1) Data represent the Company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses (without implementation of IFRS 11) and do not include share-based payment, valuation of the balance of commodity hedging transactions as at end-of-period and other income and expenses, unless stated otherwise.   (1) Data represents the Company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses (without implementation of IFRS 11) and do not include share-based payment, valuation of the balance of commodity hedging transactions as at end-of-period and other income and expenses, unless stated otherwise. (2) Investments include the acquisition of fixed assets and investment in intangibles. Note: Financial data were rounded off to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.     (1) Data represent the Company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses (without implementation of IFRS 11) and do not include share-based payment, valuation of the balance of commodity hedging transactions as at end-of-period and other income and expenses, unless stated otherwise. (2) Fun & Indulgence figures include Strauss 50% share in the salty snacks business. International Coffee figures include Strauss 50% share in Três Corações Joint Venture (3C) – Brazil - a company jointly held by the Group (50%) and by the São Miguel Group (50%). International D&S figures reflect Strauss 50% share in Sabra and Obela. Other Operations includes Strauss's share in Strauss Water China (50%) until June 30, 2015. Note: Financial data were rounded off to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.   Q4 2016 highlights(1)   Organic sales growth, excluding foreign exchange effects, was c4.2%. Shekel sales were NIS c2 billion compared to NIS 1.9 billion in the corresponding quarter last year, and includes a NIS c42 million positive translation effect as a result of the strengthening of the Brazilian Real versus NIS during the fourth quarter. Gross profit was NIS c717 million (c35.3% of sales), up c2.6% compared to the corresponding period last year. Gross margins were down c1.5%. Operating profit (EBIT) was NIS c135 million (c6.6% of sales), down c14.4% compared to the corresponding quarter last year. EBIT margins were down c1.7%. EPS for shareholders of the company were NIS c0.53, down c22.1% compared to the corresponding period. Cash flows from operating activities totaled NIS c360 million, compared to NIS c426 million last year.    (1) Based on non-GAAP data, which include the proportionate consolidation of jointly-held partnerships (without implementation of IFRS 11) and do not include share-based payment, valuation of the balance of commodity hedging transactions as at end-of-period and other income and expenses, unless stated otherwise.    (1) Data represent the Company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses (without implementation of IFRS 11) and do not include share-based payment, valuation of the balance of commodity hedging transactions as at end-of-period and other income and expenses, unless stated otherwise. (2) Investments include the acquisition of fixed assets and investment in intangibles. Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.     (1) Based on non-GAAP data, which include the proportionate consolidation of jointly-held partnerships (without implementation of IFRS 11) and do not include share-based payment, valuation of the balance of commodity hedging transactions as at end-of-period and other income and expenses, unless stated otherwise. (2) Fun & Indulgence figures include Strauss's 50% share in the salty snacks business. International Coffee figures include Strauss's 50% share in the Três Corações joint venture (3C) – Brazil – a company jointly held by the Group (50%) and by the local São Miguel Group (50%). International D&S figures reflect Strauss's 50% share in Sabra and Obela. Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands. The figures for total International D&S were calculated on the basis of the exact Sabra and Obela figures in NIS thousands.   Appendix:       Investor Conference Call   Strauss Group will host an Annual and Fourth Quarter 2016 Investor Conference Call at the offices of the company in Petach Tikva on Tuesday, March 28, 2017 at 17:30 (Israel time) to review the Financial Statements of the Company for the year and quarter.   The Financial Statements for the fourth quarter and full-year of 2016 and Investors Presentation are posted on the Group’s Investor Relations website at: http://ir.strauss-group.com/phoenix.zhtml?c=92539&p=irol-irhome   For further information please contact:   Daniella Finn Director of Investor Relations Strauss Group Ltd. 972-54-577-2195 972-3-675-2545 Daniella.Finn@Strauss-Group.com       Osnat Golan VP Communications & Digital, Spokesperson Strauss Group Ltd. 972-52-828-8111 972-3-675-2281 Or Gil Messing External Communications Director Strauss Group Ltd. 972-54-252-5272       For PDF version press here>    
Strauss Group announces that Strauss Coffee has entered into an agreement with TPG to purchase its entire holding (25.1%) in Strauss Coffee
28/03/2017

Strauss Group announces that Strauss Coffee has entered into an agreement with TPG to purchase its entire holding (25.1%) in Strauss Coffee

Strauss Coffee to buy TPG’s holding for €257 million. The transaction is expected to be accretive. Strauss Group Ltd. announced today (March 28, 2017) that its subsidiary (74.9%) Strauss Coffee B.V. has acquired the entire holding (25.1%) of Robusta Coöperatif, held by TPG Capital, in Strauss Coffee, resulting in Strauss Group regaining full ownership (100%) of Strauss Coffee.   Gadi Lesin, Group President & CEO, said: “This is an important day of celebration for Strauss Group and Strauss Coffee. The acquisition of the outstanding shares in our coffee company is yet another confirmation of our long-term strategy and of the growing dominance of Strauss Coffee’s global status and its impact on Strauss Group, in realization of our commitment to be active in areas that improve people’s lives all over the world. Coffee is a core business for Strauss Group, and the transaction reflects our belief in the coffee category, in the global coffee market as attractive, growing and resilient and, of course, in the coffee company and its employees."   “This acquisition by Strauss Coffee is a significant strategic, financial and organizational step and will create strategic and operational value for the company. We believe in Strauss Coffee’s future ability to continue to grow and to increase the shareholder value it creates in both the immediate and the longer term."   "On behalf of Strauss Group, I would like to thank TPG for their partnership during the past eight years and for their contribution to Strauss Coffee.”   Tomer Harpaz, Strauss Coffee CEO, said: “The world of coffee represents a fascinating opportunity for us. The global coffee culture is spreading exponentially, and we expect to see more coffee consumers and more high-quality coffee becoming accessible. The deep connection between people and their cup of coffee makes the category more resilient, expressed by stable demand even in times of an economic down cycle, an important stabilizing factor in a volatile world. Strauss Coffee is well positioned to address these trends and is committed to promoting the coffee culture among its consumers around the world, fuelled by our genuine passion for coffee and coffee products. I am certain that the transaction will support the company’s ability to realize its strategy, to strengthen its position as a leading international coffee company, and to fully exploit the significant opportunities we see in the global category.”   About the transaction: The consideration will be paid in two installments: €172 million was paid at the signing and share transfer, and the remainder of €85 million will be paid by August 15, 2017. . In addition, Strauss Coffee will redeem stock options granted to Strauss Coffee managers totaling €17 million and will either redeem or convert to Strauss Group Options an additional €2 million.   The transaction will deliver strategic, operational and managerial flexibility to Strauss Coffee and Strauss Group, is accretive, and creates shareholder value in both the immediate and the longer term.   World coffee sales currently amount to approximately $74 billion, with a cumulative average annual growth rate of 5%-6%. Strauss’s coffee business accounts for approximately 50% of the Group’s sales volumes.   TPG is a leading global alternative asset firm founded in 1992 with more than $74 billion of assets under management and offices in Austin, Beijing, Boston, Dallas, Fort Worth, Hong Kong, Houston, Istanbul, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, San Francisco, São Paulo, and Singapore. TPG’s investment platforms are across a wide range of asset classes, including private equity, growth venture, real estate, credit, and public equity. TPG aims to build dynamic products and options for its investors while also instituting discipline and operational excellence across the investment strategy and performance of its portfolio. For more information, visit http://www.tpg.com/.   About Strauss Coffee   Strauss Coffee is an international coffee company, amongst the ten largest coffee companies in the world (Euromonitor, retail sales value) with a turnover in excess of one billion dollars p.a. The company invests in and develops local coffee brands that are leaders in diverse markets – Brazil, Poland, Romania, Serbia, Russia, Ukraine and Israel. The company has 14 production sites worldwide and employs some 7,500 people. Strauss Coffee is committed to promoting the global coffee culture among its consumers around the world, fuelled by a genuine passion for coffee and coffee products.