Tempo Beverages Ltd. (TASE: TMPO), headed by Jacques Beer, has bought a beverages company in Cyprus, it emerges from the company's second quarter financials. Through its Tempo Cyprus subsidiary, Tempo paid €2.6 million (NIS 10 million) for all the shares in Fereos Fourpoint Distribution, which imports, markets and distributes beverages. The deal was completed in May.
Tempo's revenue grew 7% in the first half of 2019, in comparison with the first half of 2018, to NIS 711 million. The company's gross profit margin fell from 39.5% to 37.3%, and its net profit fell 4% to NIS 34.5 million, among other things because of the implementation of the IFRS 16 accounting standard.
Of the three segments of Tempo's business, alcoholic drinks, soft drinks, and the Barkan winery, the alcoholic drinks segment generates the highest operating profit. Sales in this segment, which includes brands such as Goldstar, Maccabi and Heineken beers, grew 9% to NIS 280 million. Beer accounts for 54% of revenue in the segment.
Sales on non-alcoholic soft drinks, including brands such as Pepsi, Nestea, and S. Pellegrino, totaled NIS 327 million in the first half of 2019, which represents growth of 5% in comparison with the corresponding period last year. Profit in this segment rose 15% to NIS 27 million.
Sales by the Barkan winery rose 3% to NIS 103 million. First half profit in this segment was nearly NIS 20 million, 2% less than in the corresponding period of 2018.
Tempo is 60% controlled by Jacques Beer, with the remaining 40% owned by Dutch brewing company Heineken N.V.
Published by Globes, Israel business news - en.globes.co.il - on September 1, 2019
© Copyright of Globes Publisher Itonut (1983) Ltd. 2019