Tnuva Food Industries Ltd. today capitulated to public pressure and published its financial report - but only disclosed partial figures. As a private company, Tnuva is not required to publish financial reports like a public company.
Tnuva posted a net profit of NIS 517 million on NIS 7.2 billion revenue in 2010. Revenue was 1.7% higher than in 2009 and the net profit rose 19%.
Earlier this week, Tnuva CEO Arik Schor said that the company would publish its financial report "to show the public that we are not stealing from anybody". The financial report, however, fails to disclose many details. Not only is it impossible to print the 55-page PDF file, the promised transparency is sorely lacking. The financial report only covers 2010, and provides no figure for 2011 and makes no mention of the consumer boycott, which is believed to have greatly hurt sales.
Tnuva also failed to disclose executive pay, as mandated by public companies. The company also did not break down its sales by products, such as cottage cheese - the symbol of this summer's consumer boycott.
Tnuva's sole mention of developments in 2011 was the sale of the Tel Aviv wholesale market lot, which generated a one-time profit NIS 443 million that will be recorded in 2011 and 2012. It also mentioned the NIS 500 million dividend distributed early this year and the repayment of NIS 800 million in capital notes to its owners, which "Globes" reported in November 2010.
Apax Partners Israel owns 56.1% of Tnuva, Mivtach Shamir Holdings Ltd. (TASE:MISH) owns 20.7%, and kibbutzim and moshavim own the rest.
Tnuva disclosed that its operating profit was NIS 710 million in 2010, 17% more than in 2009, giving an operating profit margin of 9.8%; administrative, sales and marketing costs were unchanged at NIS 300 million; and it paid NIS 104 million in taxes, 16% less than in 2009.
Tnuva had NIS 1.4 billion in cash at the end of 2010, up from NIS 485 million a year earlier, and its shareholders' equity rose 31% to NIS 2.1 billion.
Tnuva told "Globes" in response, "Tnuva published all the financial reports it has."
Published by Globes [online], Israel business news - www.globes-online.com - on October 4, 2011
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