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Strauss Group announces yet another strong quarter with 10.8% top line growth and net profits up by 8.1%

from news and media, Israel
29/05/17

The stellar results were driven by continued strong performance at Strauss Israel and Strauss Coffee and improvement in the results of Strauss Water; The Group focused on the active optimization of its portfolio during the quarter

 

Gadi Lesin, President and CEO of Strauss Group (May 29, 2017): “Strauss-Group continues to actively manage its portfolio in order to optimize performance; during the past few months we have completed the acquisition of the full ownership of Strauss Coffee and Strauss Water, the sale of the Max Brenner chain to the local franchisee and have expanded our investment in China by exercising our option to acquire an additional 15% stake in the Haier Strauss Water Joint Venture ; these strategic moves were carried out along with the continued improvement of the group’s financial results. Strauss Israel delivered an especially strong quarter, and our core businesses in coffee and water have continued to post consistent growth. We continue to implement our strategy and believe that it will deliver value to our shareholders, employees, partners and, of course, to our consumers all over the world.”

Q1 2017 highlights (1)

  • Organic sales growth, excluding foreign exchange effects, was c7.4%. Shekel sales were NIS c2.1 billion compared to NIS 1.9 billion in the corresponding period in 2016; sales were impacted by a positive currency translation amounting to NIS c51 million as a result of the continued strengthening of the BRL against the NIS compared to last year.
  • Gross profit was NIS c780 million (c37.4% of sales), up c7.4% compared to the corresponding period last year. Gross margins were down c1.2%.
  • Operating profit (EBIT) was NIS c223 million (c10.7% of sales), up c5.0% compared to the corresponding period last year. EBIT margins were down c0.6%.
  • EPS for shareholders of the Company was NIS c1.08, up c8.1% compared to the corresponding period.
  • Negative cash flows from operating activities totaled NIS c86 million, compared to NIS c26 million in 2016.

 

(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.

 

Table of financial statements for the first quarter

 

(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) 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.

(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) 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.

(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’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 figures include Strauss’s 34% share in the joint venture in China, Haier Strauss Water (HSW).

 

Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands. Total figures for International Dips & Spreads were calculated on the basis of the exact figures for Sabra and Obela in NIS thousands.

 

Table of financial statements for the first quarter

 

Investor Conference Calls

Strauss Group will host an Investor Conference call in Hebrew on Monday, May 29, 2017 at 14:00 (Israel time) to review the Financial Statements of the Company for the first quarter.

To participate please dial: 03-918-0685

Strauss Group will also host an Investor Conference call in English on Monday, May 29, 2017 at 17:30 local Israel time (15:30 UK, 10:30 Eastern time) to review the Financial Statements of the Company for the first quarter.

To participate in the live call please dial one of the following numbers:

From the UK: 0-800-051-8913

From the US: 1-888-281-1167

From Israel: 03-918-0610

The Financial Statements 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

 

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