Net profit rose 47% largely due to foreign exchange hedging deals.
Food and coffee manufacturer Strauss Group Ltd. (TASE:STRS) reported a 4.8% growth in revenue in the third quarter to NIS 2.1 billion.
Operating profit (EBIT) was NIS 227 million (10.6% of sales), up 6.8% from the corresponding period last year. EBIT margins were up 0.2%. Net profit rose 47.2% to NIS 119 million from NIS 81 million in the corresponding quarter largely due to foreign exchange hedging deals. Cash flows from operating activities amounted to NIS 146 million, compared with NIS 211 million in the corresponding period.
Strauss Group President and CEO Gadi Lesin saisd, “We have concluded a positive quarter that reflects sales growth in all of the Group’s major business areas. The forex challenges that were typical of the last three quarters were met with the right financial response, leading to an improved net profit. We are persevering in the strategy aimed at deepening our international operations, doubling production by Sabra in the US and further expanding our coffee businesses in Brazil and in Romania. In parallel, in light of the challenges posed by the slowdown in the Israeli food market our product innovation efforts continue, coupled with the appropriate operational deployment."
Published by Globes [online], Israel business news - www.globes-online.com - on November 26, 2014
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