Israel food giant Tnuva Food Industries Ltd., controlled by the Apax Fund and Mivtach Shamir, which is shortly about to pass to the control of China's Bright Food, saw its second quarter net profit fall by 33%, to NIS 85 million. In the first half, Tnuva posted a net profit of NIS 170 million, 21% than in the corresponding quarter. Revenue fell by 4% to NIS 3.45 billion as a result of "a fall in sales of meat and eggs".
Group CEO Arik Shor said, "The placing of products under price controls and the slowdown in the economy have had their effects on the group's results. The second quarter results reflect the challenges facing the group in providing added value for its customers while adjusting expenses to a competitive environment, price controls, and consumption habits that have developed in the food markets."
As completion of the sale to Bright Food nears, Tnuva reports that it had NIS 241 million in cash and cash equivalents at the end of the second quarter, compared with NIS 844 million at the end of 2013.
Published by Globes [online], Israel business news - www.globes-online.com - on August 28, 2014
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