Tnuva Food Industries Ltd. CEO Arik Schor told “IDF Radio" (Galei Zahal) this morning, "Tnuva's sales reached NIS 7.5 billion this year, with a net profit margin on revenue of 6-7%. These are normal numbers, with profit margins that are not outside the normal range."
Schor's remarks imply that Tnuva will achieve a net profit of NIS 450-525 million for 2010.
Schor's remarks belie media reports from this morning, which state that Tnuva's annual profit is much less than NIS 500 million. Mivtach Shamir Holdings Ltd. (TASE:MISH), which owns 20.7% of Tnuva, stated in its financial report, before it was suspended from trading, that Tnuva's annual profit was around NIS 500 million.
Strauss Group Ltd. (TASE:STRS), by contrast, had sales of NIS 6.85 billion and net profit of NIS 302 million, giving a profit margin of 4%, which is smaller than the number estimated for Tnuva. Strauss's financial report is based on International Financial Reporting Standards (IFRS), whereas Tnuva's financial report is not, and yet Tnuva's numbers are still much higher than Strauss's.
In addition, these numbers reflect revenue and profit from food sales only, and do not include one-time real estate earnings. If these earnings are included, Tnuva's net profit is likely to be significantly higher.
Published by Globes [online], Israel business news - www.globes-online.com - on October 3, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011