Strauss Group Ltd. (TASE:STRS) today reported 57% growth in net profit to NIS 103 million for the first quarter of 2013 from NIS 65 million for the second quarter of 2012.
The jump in profit came despite a 2.5% drop in revenue to NIS 2 billion for the first quarter from NIS 2.5 billion for the corresponding quarter. The fall in revenue was due to lower export sales of green coffee by Três Corações in Brazil, and the appreciation of the shekel against the Brazilian real. Excluding these two factors, sales rose 18%.
Non-GAAP gross profit rose 4.9% to NIS 767 million for the first quarter from NIS 731 million for the corresponding quarter, and non-GAAP operating profit (EBIT) rose 27.5% to NIS 214 million from NIS 168 million. The growth was mainly due to strong profit growth in Strauss international coffee and dips and spreads businesses.
"Strauss's international activity continued to prove its strength in the quarter, expanding profit despite a significant negative impact from changes in relevant currency exchange rates," said Strauss president and CEO Gadi Lesin. "Our home market in Israel also maintained its positive performance. Overall, the group posted strong operating results thanks mainly to the improvement in the international coffee business as well as the dips and spreads segment, and as a result of the continued implementation of streamlining processes across all of the group's businesses. At the same time, we are continuing to invest in the group's future growth drivers and in innovation in all areas of our activity. Our goal remains to continue to deliver real added value to consumers, while enhancing our strength as a leading group."
Strauss also announced the appointment of former Bank Leumi CEO Galia Maor as a director.
Published by Globes [online], Israel business news - www.globes-online.com - on May 28, 2013
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