The placing of products under price controls has hit food company Tnuva Food Industries Ltd.. The group's third quarter financials released this morning show a fall in revenue from NIS 1.8 billion in the third quarter of 2013 to NIS 1.7 billion in the third quarter of this year. The company explains the decline by the placement of white cheese and sweet cream under price controls in January 2014, the fall in prices of products subject to price controls, the effect of Operation Protective Edge which led to a drop in sales, and a fall in sales of eggs and frozen meat.
Gross profit fell 10.2% to NIS 451 million, and operating profit plunged 28% to NIS 114 million. Tnuva did post a higher net profit of NIS 104 million, which compares with NIS 79 million in the corresponding quarter, but a substantial part of the profit in the third quarter of this year derives from real estate revenue.
Tnuva CEO Arik Shor said, "The group has had to sope with growing competition, the placement of additional products under price controls, and a rise in the price of raw milk. The food market continues to decline, and Operation Protection Edge also affected the group's results. Tnuva continues to act to improve its results through significant streamlining measures. The third quarter results reflect the challenges that the group faces in bringing added value to consumers in its products while adjusting its expenses to the competitive environment, price controls, and changing consumer habits in the food market."
Published by Globes [online], Israel business news - www.globes-online.com - on November 30, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014
Published by Globes [online], Israel business news - www.globes-online.com - on November 30, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014