Last summer's social protest cut the profit of Tnuva Food Industries Ltd., although its revenue rose, according to its financial report, published by Mivtach Shamir Holdings Ltd. (TASE:MISH), which owns 20.7% of the company. Net profit fell almost 90% to NIS 50.5 million in 2011 from NIS 493.9 million in 2010, and operating profit fell 37% to NIS 485.4 million in 2011 from NIS 764.9 million in 2010, but revenue rose 5% to NIS 7.51 billion from NIS 7.16 billion. Tnuva's revenue in 2010 was 9% lower than in 2009, even though there was no social protest that year.
The fall in Tnuva's operating profit was due to a 35% jump in its administrative and general expenses, including salaries, to NIS 392.8 million in 2011 from NIS 290.1 million in 2010.
Net profit from continuing operations was more than halved to NIS 262.4 million from NIS 571.9 million in 2010, while the net loss from discontinued operations (specifically the closing of its dairy in Romania) almost tripled to NIS 211.9 million from NIS 78 million.
Tnuva's cash and short-term investments totaled NIS 827.2 million at the end of 2011, 29.3% of its balance sheet total. The company distributed NIS 501.8 million in dividends during the year, and will distribute a further dividend of NIS 280 million.
Tnuva's share of the food and beverages market fell to 17.4% in 2011 from 17.9% in 2010 and 18.6% in 2009.
The company's workforce totaled 7,194 persons at the end of 2011, a net increase of 90 employees during the year.
Published by Globes [online], Israel business news - www.globes-online.com - on March 29, 2012
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