Tnuva revenue up

Revenue rose 4.5% over the corresponding quarter to NIS 1.83 billion for the second quarter.

Tnuva Food Industries Ltd., controlled by Apax Partners and Mivtach Shamir Holdings Ltd. (TASE:MISH), today published its financial report for the second quarter of 2013. Revenue rose 4.5% to NIS 1.83 billion for the second quarter from NIS 1.75 billion for the corresponding quarter of 2012.

Gross profit rose to NIS 511 million for the second quarter from NIS 508 million for the corresponding quarter. Operating profit fell 14% from NIS 165 million for the corresponding quarter to NIS 141 million for the second quarter, due to marketing activity and new launches. Net profit was NIS 127 million.

Net profit excluding other income and expenses (mostly profits from the real estate sales and the taxes on them) fell to NIS 100 million for the second quarter from NIS 110 million for the corresponding quarter.

Tnuva's revenue rose 5.1% to NIS 3.58 billion in the first half from NIS 3.41 billion for the corresponding half. The growth was mainly due to higher sales of goods (mostly milk, eggs, and poultry).

Operating profit fell to NIS 273 million in the first half from NIS 304 million in the corresponding half. The drop in operating profit was due to a lower gross profit margin and higher expenses for marketing and new launches.

Tnuva's financial reports are published as part of the results of Mivtach Shamir, which announced the distribution of a cash dividend of NIS 30 million.

"Tnuva's sales rose 5.1% in the first half. Most of the increase in sales was due to higher sales of goods, especially milk, eggs, and poultry. The drop in profits was mainly due to the pricing of dairy products in a way that did not cover the rise in the target price and production costs," said Tnuva CEO Arik Schor.

Schor added, "Tnuva is dealing with competition all its operating channels by launching new products with added value, such as reduced sugar chocolate milk."

Published by Globes [online], Israel business news - www.globes-online.com - on August 29, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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