Food company Strauss Group Ltd. (TASE:STRS) today published its financial statements for the fourth quarter of 2017 and the full year. The company reported NIS 8.5 billion in sales in 2017, a 6.9% increase, compared with NIS 7.9 billion in 2016, or 8%, excluding the negative NIS 49 million effect of the strengthening of the shekel against other currencies in which the group is active. New profit grew 23.7% in 2017 as a result of excellent results for Strauss Coffee, Strauss Israel, and Strauss Water.
Strauss also announced the appointment of Prof. Shuki Shemer as a director in the group.
Strauss Group president and CEO Gadi Lesin said today, "Strauss Group continues to present solid results in all key parameters. In the fourth quarter of 2017, sales grew a stellar 10.2% excluding foreign exchange translation, and net income rose by 34%. These excellent results were attained, among other things, by implementing strategic moves that enhanced the Group's operational and managerial flexibility, whilst focusing on core assets, by increasing our investment in innovation, signing new distribution agreements and expanding our geographical reach. Alongside the strong performance of Strauss Israel, Strauss Coffee and Strauss Water, 2017 was a challenging year for Sabra, our dips and spreads business in North America, which nevertheless succeeded in returning to close to pre-recall selling and market share levels."
Gross profit totaled NIS 3.116 billion, 36.7% of sales, up 4.6%, compared with 2017. Strauss's gross profit margin dipped 0.8%, compared with 2016. Operating profit reached NIS 780 million, 9.2% of sales and 4.8% more than in 2016. The group's operating profit margin fell by 0.2%.
Strauss's profit per share was NIS 3.70, 18.8% more than in 2016. The group's cash flow from current activity amounted to NIS 622 million, compared with NIS 762 million in 2016.
Published by Globes [online], Israel Business News - www.globes-online.com - on March 14, 2018
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