Food manufacturer Osem Investments Ltd. (TASE: OSEM) continues to grow. The company included the results of infant formula maker Materna Ltd. for the first time in the financial report for the first quarter of 2010.
Osem's revenue rose 11.1% to NIS 940.9 million for the first quarter from NIS 847.1 million for the corresponding quarter of 2009. Improvement came in both the company's room temperature foods and chilled and frozen food segments.
Sales in Israel account for the bulk of Osem's revenue. Domestic sales rose 13.4% to NIS 767.7 million for the first quarter from NIS 676.8 million for the corresponding quarter. Materna contributed 9.5% out of Osem's domestic sales growth.
In December 2009, Osem and its parent company, Nestle (SWX:NESN), completed the acquisition of 51% of Materna from Maabarot Products Ltd. (TASE: MABR) for NIS 269 million.
Osem's international sales suffered from the shekel's weakness against the dollar and euro, rising only 1.7% to NIS 173.2 million for the first quarter from NIS 170.2 million for the corresponding quarter. Excluding changes in exchange rates, international sales rose 6.4% in real terms.
Nestle owns 53.8% of Osem. Osem's share price rose 2.2% by mid-afternoon today to NIS 57.20, giving a market cap of NIS 6.19 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 30, 2010
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