Israeli food company Strauss Group Ltd. (TASE:STRS) saw a 2.6% drop in sales in the first quarter of 2016 to NIS 1.88 billion, compared with NIS 1.93 billion in the corresponding quarter of 2015. Excluding currency effects, Strauss's sales grew 4.7% in comparison with the corresponding quarter.
Strauss's nevertheless posted a 5.1% higher quarterly net profit of NIS 107 million.
The company's gross profit was NIS 726 million, 0.5% down in comparison with the corresponding quarter, although its gross margin rose from 37.8% to 38.6%. Operating profit rose 7.7% to NIS 213 million.
Strauss continues to record negative net cash flow. Cash flow was minus NIS 26 million in the first quarter of 2016, an improvement on the minus NIS 150 million in the corresponding quarter.
Strauss Group president and CEO Gadi Lesin said, “The first quarter of the year shows positive trends and strong results that have yielded growth in our shareholders’ earnings. Innovation and efficiency enhancing moves have enabled Strauss Israel to post positive growth in contrast to the trend in the market. Strauss Water and Sabra also contributed to the ongoing improvement in the group’s operating profit.
"Although the coffee company has continued to post growth in local currency in Brazil and in the CIS countries, the foreign currency effect on translation into shekels remains significant. We believe that the measures we are applying in our key countries of operations, including Brazil, the US, Russia, China and Israel will continue to contribute to the bottom line despite the challenges we face in a tough competitive environment.”
Published by Globes [online], Israel business news - www.globes-online.com - on May 23, 2016
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