The strengthening of the shekel against the dollar in the second quarter eroded Strauss Group Ltd. (TASE:STRS) revenue by 3.3%, to NIS 1.95 billion, according to the company’s financial report published today. Discounting the effects of foreign currency rates, revenue was up 1.7%.
Strauss has shown an improvement in gross profit, which was up 2.3% to NIS 768 million in the second quarter, and in profitability, which was up 2.2%. However, a number of other key measures in the report indicated poorer performance: net profit was down 8.7% to NIS 69 million, operating profit was down 6.3% to NIS 172 million, and EBITDA was down 5.4% to NIS 229.
Cash flow from ongoing operations totaled NIS 113 million, compared with NIS 240 million in the corresponding quarter of 2013.
“Strauss is showing steady growth, discounting foreign currency fluctuations,” said Strauss CEO Gadi Lesin. “The group is facing economic challenges in the Eastern European markets, primarily in Russia and Ukraine, alongside continued growth in the international dips and spreads market, and Strauss Water operations.”
Strauss sales in Israel dropped 1.8% in the second quarter, to NIS 713 million, while the dips and spreads activity abroad improved significantly: Sabra brand sales were up 6.1%, to NIS 162 million, and Obela sales were up 27% to NIS 9 million. Coffee activity, however, dropped 2.8% in Israel sales, to NIS 151 million, and a drop of close to 10% in coffee sales abroad, to NIS 757 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 20, 2014
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