Food company Strauss Group had revenue of NIS 1.4 billion in the first quarter of 2017, which compares with NIS 1.3 billion in the corresponding quarter of 2016. The group's operating profit was NIS 208 million, which compares with NIS 204 million in the corresponding quarter.
Strauss Group posted a net profit of NIS 149 million in the first quarter of 2017, up from NIS 132 million in the corresponding quarter.
The company said that organic sales growth excluding foreign exchange effects was 7.4%. Gross profit was NIS 780 million (37.4% of sales), up 7.4% compared with the corresponding period of 2016. Gross margins were down 1.2%.
Strauss's coffee business continues to be extremely important to the group. Revenue in this segment totaled NIS 961 million in the first quarter of 2017, compared with NIS 780 million in the corresponding quarter of 2016, and operating profit in the segment was NIS 91 million, compared with NIS 80 million in the corresponding quarter.
Strauss Group CEO Gadi Lesin said, "Strauss-Group continues to actively manage its portfolio in order to optimize performance; during the past few months we have completed the acquisition of the full ownership of Strauss Coffee and Strauss Water, the sale of the Max Brenner chain to the local franchisee and have expanded our investment in China by exercising our option to acquire an additional 15% stake in the Haier Strauss Water Joint Venture ; these strategic moves were carried out along with the continued improvement of the group's financial results.
"Strauss Israel delivered an especially strong quarter, and our core businesses in coffee and water have continued to post consistent growth. We continue to implement our strategy and believe that it will deliver value to our shareholders, employees, partners and, of course, to our consumers all over the world."
Published by Globes [online], Israel business news - www.globes-online.com - on May 29, 2017
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