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Financial Reports Q3 2015

from news and media, Israel ,Strauss Israel
24/11/15

Strauss Group reports third quarter results: 3.2% organic sales growth excluding foreign currency effects([1]) and improved operating results by a number of international growth drivers, as Strauss Coffee’s results are impacted primarily by significant exchange rate effects in Brazil and Russia([2])

Board of Directors approves NIS 100 million dividend (approximately NIS 0.93 per share (3)), to be paid to shareholders on December 10, 2015

Gadi Lesin, President and Chief Executive Officer of Strauss Group, said today (November 24, 2015): “All of the Group’s businesses have posted an improvement in operating profit in the quarter, except for the coffee company. The Group continues to operate in a dynamic, challenging environment and to implement its global growth strategy. The results of operations of Strauss Coffee – a leading player in a number of emerging markets, including Brazil(4) (the world’s second-largest coffee market) – primarily reflect the weakening of the Brazilian real and Russian ruble despite over 12% organic growth in domestic currency sales by the coffee company(5).

In Israel, continued price reductions, innovation efforts and streamlining measures throughout the length of the value chain have led to a slight improvement in EBIT for the quarter.”

 

 First nine months 2015 highlights(1)

  • Organic sales growth, excluding foreign exchange effects, was 1.9%(2). Shekel sales were NIS 5.7 billion compared to NIS 6.1 billion in the corresponding period last year, and reflected NIS 396 million negative translation differences as a result of the continued strengthening of the NIS versus other functional currencies of the Group.
  • Gross profit was NIS 2,129 million (37.1% of sales), down 10.1% compared to the corresponding period last year. Gross margins were down 2.0%.
  • Operating profit (EBIT) was NIS 501 million (8.7% of sales), down 17.0% compared to the corresponding period last year. EBIT margins were down 1.3%.
  • EPS for shareholders of the Company were NIS 2.05, down 24.1% compared to the corresponding period.
  • Cash flows from operating activities totaled NIS 90 million, compared to NIS 247 million last year.
  • 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.
  • Also excluding the impact of classification of costs following the introduction of the Food Law, as explained in the Board of Directors Report.

 

([1])             Also excluding the impact of classification of costs following the introduction of the Food Law, as explained in the Board of Directors Report.

(2)                    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.

(3)                    The dividend per share (DPS) is calculated as at the declaration date and is subject to change as a result of the exercise of options, if any are exercised.

(4)             Operations in Brazil are carried out by the Três Corações joint venture (3C) – Brazil – a company held by the Group (50%) and by the local holding company, São Miguel Holding e Investimentos S.A. (50%). (Data reflect Strauss Coffee’s share (50%) unless expressly stated otherwise).

(5)             Organic sales growth excluding exchange rate effects, the impact of the Food Law and green coffee export sales by the Três Corações joint venture in Brazil.

 

Financial report Q3 2015

 

  • 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.
  • Investments include the acquisition of fixed assets and investment in intangibles and deferred expenses.

 

Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.

Financial report Q3 2015

  • 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.

 

  • 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. Other Operations includes Strauss’s share in Strauss Water China (50%) until June 30, 2015.

 

Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.

 Q3 2015 highlights(1)

  • Organic sales growth, excluding foreign exchange effects, was 3.2%(2). Shekel sales were NIS 2.0 billion compared to NIS 2.1 billion in the corresponding quarter last year, and reflected NIS 210 million negative translation differences as a result of the continued strengthening of the NIS versus other functional currencies of the Group.
  • Gross profit was NIS 711 million (36.0% of sales), down 12.2% compared to the corresponding period last year. Gross margins were down 1.9%.
  • Operating profit (EBIT) was NIS 192 million (9.7% of sales), down 15.4% compared to the corresponding quarter last year. EBIT margins were down 0.9%.
  • EPS for shareholders of the company were NIS 0.80, down 28.3% compared to the corresponding period.
  • Cash flows from operating activities totaled NIS 60 million, compared to NIS 146 million last year.
  • 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.
  • Also excluding the impact of classification of costs following the introduction of the Food Law, as explained in the Board of Directors Report.

Financial report Q3 2015

  • 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.
  • Investments include the acquisition of fixed assets and investment in intangibles and deferred expenses.

 

Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.

 

  • 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.

 

  • 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

 

Financial report Q3 2015

For further information please contact:

Talia Sessler

Investor Relations Director

Strauss Group Ltd.

972-54-577-2195

972-3-675-2545

talia.sessler@strauss-group.com

Osnat Golan

VP Communications & Digital, Spokesperson

Strauss Group Ltd.

972-52-828-8111

972-3-675-2281

Gil Messing

External Communications Director

Strauss Group Ltd.

972-54-252-5272

 

 

 

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