Osem's 2014 profit up 5.3%

Dan Propper

Food company Osem said the rise was thanks to a higher operating profit and muchlower finance expenses.

Food company Osem Investments Ltd. (controlled by Nestlé SA (SWX:NESN)) (TASE: OSEM) reported its 2014 results this morning. Osem's revenue rose 1.6% in 2014, to NIS 4.25 billion from NIS 4.19 billion in 2013.

Sales in the Israeli domestic market grew 0.6%, from NIS 3.56 billion in 2013 to NIS 3.58 billion in 2014. The group's overseas sales grew by 7.4%, from NIS 629.8 billion in 2013 to NIS 676.2 billion in 2014.

In the fourth quarter of 2014, sales turnover totaled NIS 1.03 billion, down 0.3% in comparison with in the corresponding quarter of 2013. The company explained that this decline was due to the timing of the Jewish holiday season last year: third quarter sales rose 4.2%. Osem's overseas sales in the fourth quarter last year rose by 16.6%.

Osem's operating profit totaled NIS 542.3 million in 2014, compared with NIS 528.5 million in 2013, representing a rise of 2.6%. In the fourth quarter, the company made an operating profit of NIS 133 million, 3% more than in in the corresponding quarter.

Osem made a net profit of NIS 396.5 million in 2014, 5.3% more than in 2013. In the fourth quarter, the company's net profit rose 7.1% in comparison with the corresponding quarter of 2013. Osem said the profit growth mainly stemmed from the improvement in operating profit and a substantial decline in its finance expense.

The financial statements show that Osem's seven top paid executives had a salary cost totaling NIS 17 million last year. Chairman Dan Propper's salary cost was NIS 3.85 million for a part-time position. NIS 1.1 million of this was a bonus. In November last year, Propper sold most of his stake in the company to controlling shareholderNestlé SA. CEO Itzik Zaig's salary cost was NIS 3.7 million, of which NIS 700,000 was a bonus.

Published by Globes [online], Israel business news - www.globes-online.com - on March 29, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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