Even the debts of Clubmarket Marketing Chains Ltd. probably won’t be enough to keep Strauss-Elite (TASE: STEL) from smiling today. The concern’s revenue totaled NIS 1.11 billion in the third quarter of 2005, up 13.7%, compared with NIS 980.4 million in the corresponding quarter last year.
After provision for doubtful debts owed by Clubmarket, Strauss-Elite’s third quarter operating profit totaled NIS 115.8 million, up 38.4%, and its net profit was NIS 56.5 million, up 50.3%.
The Strauss-Elite’s consolidated net profit totaled NIS 52.7 million, 40.2% more than its NIS 37.6 million net profit in the third quarter of 2004. Sales in Israel increased by 9.1%, while sales of Elite International grew 28% to NIS 303.8 million. Net of exchange rate changes, international sales grew 21%. Strauss-Elite said that Elite International’s sales had risen rapidly in most of the countries in which the company operated, and had been affected by the full consolidation of the results of Doncafe, starting in the second quarter of this year.
Strauss-Elite made a NIS 41 million provision for doubtful debts owed by Clubmarket in the second quarter. The company reduced this provision to NIS 34.3 million at the end of the third quarter, which it believes will cover the outstanding debt. The company accordingly reported revenue of NIS 6.7 million for this item in the third quarter. Net of taxes and the minority share of the provision, this item cut the company’s net profit by NIS 20.8 million in January-September 2005, and increased it by NIS 3.8 million in the third quarter.
Strauss-Elite’s operating profit totaled NIS 115.8 million in the third quarter, 10.4% of sales, 38.4% more than the company’s NIS 83.7 million operating profit (8.5% of sales) in the third quarter of 2004.
Published by Globes [online] - www.globes.co.il - on November 21, 2005