Israeli food manufacturer Strauss Group Ltd. (TASE:STRS) released its second quarter 2018 financials this morning, showing 14% growth in profit to NIS 112 million and 3% growth in sales.
Organic sales growth, after discounting foreign exchange effects, was 6.4%. In shekel terms, sales totaled NIS 2.1 billion, compared with NIS 2 billion in the corresponding quarter of 2017. Currency translation differences amounted to a negative NIS 53 million, mainly because of depreciation of the Brazilian real against the shekel.
Gross profit in the quarter was NIS 813 million (38.7% of sales), 8% more than in the corresponding quarter. The gross profit margin rose 1.8%.
Operating profit (EBIT) was NIS 207 million (9.9% of sales), 11.2% higher than in the corresponding quarter. The operating profit margin rose 0.8%.
Earnings per share for Strauss Group shareholders were NIS 0.97, 10.6% higher than in the corresponding quarter.
The company had positive cash flow of in the quarter of NIS 190mn, which compares with NIS 199 million in the corresponding quarter.
The figures are on a non-GAAP basis. On a GAAP basis, Strauss Group posted a net profit attributable to shareholders of NIS 110 million in the second quarter of 2018, up 51.4% from NIS 73 million in the corresponding quarter.
Strauss Group interim CEO Giora Bardea said, "Strauss Group delivers another quarter of solid growth, following the trend of previous quarters. The Group reports a strong set of results in Q2 2018 with sales and earnings growth in Strauss Israel and in its global operations.
"The results of the Group's operations in Israel reflect continued outperformance versus the domestic food and beverage market, taking the company's market share in Israel to 12% of the food and beverage sector. Most of this revenue growth was achieved thanks to product innovation and diversification, which will be maintained in the future.
"Strauss's global operations post another excellent quarter across all businesses: coffee margins expand, the water business in China continues to gain momentum, sales at Sabra in North America are growing and Obela is strengthening its position in Australia and New Zealand. The Group's international activity, which accounts for around half of its revenue, continues to expand, and we plan to maintain this strategy going forward."
Published by Globes [online], Israel business news - www.globes-online.com - on August 7, 2018
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