Osem Investments Ltd. (TASE: OSEM) today reported improved revenue and profits for 2013, belying media reports about falling food sales.
Full-year net profit rose 5.5% to NIS 376.4 million from NIS 357.3 million in 2012, while revenue rose 2.4% to NIS 4.19 billion from NIS 4.09 billion.
Fourth quarter revenue rose to NIS 1.03 billion from NIS 1.01 billion for the corresponding quarter of 2012, and net profit rose 19% to NIS 90 million. In addition to the improvement in operating profits, the company's financing expenses fell sharply as it repaid loans and non-recurring expenses declined.
Domestic sales rose 4% to NIS 3.56 billion in 2013 from NIS 3.42 billion in 2012. The improvement in Osem's domestic results were partly offset by lower foreign sales, which fell 6% to NIS 629.8 million in 2013 from NIS 668.5 million in 2012, due to the strong shekel and the termination of loss-making products that were not sold under the Osem brand.
Osem announced the distribution of a NIS 150 million dividend. The share price has risen 23% in the past 12 months, to give a current market cap of NIS 8.8 billion.
"Government decisions that hurt Israeli households' disposable income have also affected the food industry. There has been a drop in food consumption in early 2014, a trend that began in the second half of 2013. It is our job to continue to grow the categories with new products and marketing innovation to overcome the market trend," said Osem CEO Itzik Tzaig.
Published by Globes [online], Israel business news - www.globes-online.com - on March 17, 2014
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