Strauss Group Posts Strong Annual Results, Sales Up 6.9%
Source Strauss Group
PETACH TIKVA, Israel, March 14, 2018 -- Gadi Lesin, President and CEO of Strauss Group "Strauss Group continues to present solid results in all key parameters. In the fourth quarter of 2017 sales grew a stellar 10.2% excluding FX translation, and net income rose by 34%. These excellent results were attained, among other things, by implementing strategic moves which enhanced the Group's operational and managerial flexibility whilst focusing on core assets, by increasing our investment in innovation, signing new distribution agreements and expanding our geographical reach. Alongside the strong performance of Strauss Israel, Strauss Coffee and Strauss Water, 2017 was a challenging year for Sabra, our dips and spreads business in North America, which nevertheless succeeded in returning to close to pre-recall selling and market share levels."
2017 highlights (1)
- Organic sales growth, excluding foreign currency effects, was c8%. Shekel sales were NIS c8.5 billion compared to NIS 7.9 billion in the corresponding period last year; sales were impacted by a negative currency translation amounting to NIS c49 million as a result of the continued appreciation of the NIS in comparison to other currencies.
- Gross profit was NIS c3,116 million (c36.7% of sales), up c4.6% compared to the corresponding period last year. Gross margins were down c0.8%.
- Operating profit (EBIT) was NIS c780 million (c9.2% of sales), up c4.8% compared to the corresponding period last year. EBIT margins were down c0.2%.
- EPS for shareholders of the Company was NIS c3.7, up c18.8% compared to the corresponding period.
- Cash flow from operating activities totalled NIS c622 million, compared to NIS c762 million last year.
(1) Based on 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, including adjustments required for deferral of profit or loss from commodity derivatives until the inventory is sold to external parties, and other income and expenses, net, unless stated otherwise.
