Welcome!

News Feed Item

Strauss Group concluded the first half of 2014 with approximately 3.3% organic growth (excluding the foreign currency effect)

Thanks to an improvement in the results of our international growth drivers, in the second quarter the gross profit grew by 2.7%, and the currency effect on sales was estimated at approximately NIS 95 million

PETACH TIKVA, Israel, Aug. 20, 2014 /PRNewswire/ -- Gadi Lesin, President and Chief Executive Officer of Strauss Group, said today (August 19, 2014): "Strauss posted stable growth excluding the FX effect. The Group is contending with economic challenges in Eastern European markets, notably Russian and Ukraine, while posting continued growth in the international dips and spreads operation and in Strauss Water."

H1 2014 highlights (1)

  • Although lower than 2013, which was a record year, taking a multi-year perspective the Company's business results have continued their growth trend.
  • Organic sales growth, excluding the impact of foreign exchange, was 3.3%. Sales amounted to NIS 3.9 billion, a decrease of 2.7%, reflecting by NIS 228 million negative translation differences as a result of the continued strengthening of the NIS versus other functional currencies of the Group.
  • Gross profit amounted to NIS 1,558 million (39.7% of sales), an increase of 2.7% compared to the corresponding period last year. Gross margins were up 2.0%.
  • Operating profit (EBIT) amounted to NIS 376 million (9.6% of sales), a decrease of 5.5% compared to the corresponding period last year. EBIT margins were down 0.3%.
  • Earnings per share amounted to NIS 1.57, a decrease of 6.0% compared to the corresponding period last year.
  • Cash flows from operating activities amounted to NIS 128 million, compared to NIS 240 million in the corresponding period.
  • Net debt as at June 30, 2014 amounted to NIS 1,720 million, compared to NIS 1,403 million on June 30, 2013 and NIS 1,475 million on December 31, 2013.

(1)  

Based on non-GAAP data, which include the proportionate consolidation of jointly-held partnerships (without implementation of IFRS 11) and do not include share-based payment, valuation of the balance of commodity hedging transactions as at end-of-period and other income and expenses, unless stated otherwise.

 

Non GAAP Adjusted Figures (2)







First Half


2014

2013

Change

Organic
Growth
excluding FX

Total Group Sales (NIS mm)

3,922

4,029

-2.7%

3.3%

Gross Profit (NIS mm)

1,558

1,518

2.7%


Gross Margins (%)

39.7%

37.7%

+200 bps


EBITDA (NIS mm)

485

509

-4.9%


EBITDA Margins (%)

12.4%

12.7%

 -30 bps


EBIT (NIS mm)

376

399

-5.5%


EBIT Margins (%)

9.6%

9.9%

 -30 bps


Net Income Attributable to the
Company's Shareholders (NIS mm)

168

178

-5.6%


Net Income Margin Attributable to
the Company's Shareholders (%)

4.3%

4.4%

 -10 bps


EPS (NIS)

1.57

1.67

-6.0%


Operating Cash Flow (NIS mm)

128

240



Capex (NIS mm) (3)

(257)

(201)

27.9%


Net debt (NIS mm)

1,720

1,403

22.6%


Net debt / annual EBITDA

1.7x

1.6x

0.1x


 

(2)

Based on non-GAAP data, which include the proportionate consolidation of jointly-held partnerships (without implementation of IFRS 11) and do not include share-based payment, valuation of the balance of commodity hedging transactions as at end-of-period and other income and expenses, unless stated otherwise.



(3)

Investments include the acquisition of fixed assets and investment in intangibles and deferred expenses.

Note: Financial data were rounded off to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.

 

Non GAAP Adjusted Figures (4)











First Half


Sales (NIS mm)

Sales Growth vs. Last Year

Organic Sales Growth excluding FX

EBIT (NIS mm)

NIS Change in EBIT

% Change in EBIT 

EBIT margins

Change in EBIT margins vs. 2013

Sales and EBIT by Operating
Segments and Activities









Strauss Israel:









Health & Wellness

979

2.2%

2.2%

100

14

15.5%

10.1%

+110 bps

Fun & Indulgence (5)

524

-0.1%

-0.1%

66

(10)

-12.2%

12.6%

 -180 bps

Total Strauss Israel

1,503

1.4%

1.4%

166

4

2.5%

11.0%

+10 bps










Strauss Coffee:









Coffee Israel 

356

-1.7%

-1.7%

54

0

-1.3%

15.0%

--

International Coffee (5)

1,418

-12.4%

0.9%

125

(31)

-19.1%

8.9%

 -70 bps

Total Strauss Coffee

1,774

-10.4%

0.1%

179

(31)

-14.5%

10.1%

 -50 bps










International Dips & Spreads:









Sabra (50%) (5)

304

9.9%

15.7%

42

8

24.2%

13.8%

+160 bps

Obela (50%) (5)

16

-1.4%

15.4%

(10)

(1)

6.8%

NM

NM

Total International Dips & Spreads

320

9.3%

15.7%

32

8

30.9%

10.0%

+160 bps










Other (5)

325

19.0%

22.1%

(1)

(4)

-122.8%

-0.2%

 -120 bps

Total Group

3,922

-2.7%

3.3%

376

(23)

-5.5%

9.6%

 -30 bps

 

(4)

Based on non-GAAP data, which include the proportionate consolidation of jointly-held partnerships (without implementation of IFRS 11) and do not include share-based payment, valuation of the balance of commodity hedging transactions as at end-of-period and other income and expenses, unless stated otherwise.



(5)

Fun & Indulgence figures include Strauss 50% share in the salty snacks business. International Coffee figures include Strauss 50% share in Tres Coracoes (3C) – a company jointly held by the Group (50%) and by a local Sao Miguel Group (50%). International D&S figures reflect Strauss 50% share in Sabra and Obela. Other includes Strauss share in Strauss Water China.

Note: Financial data were rounded off to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.

Q2 2014 highlights (1)

  • Although lower than 2013, which was a record year, taking a multi-year perspective the Company's business results have continued their growth trend.
  • Organic sales growth, excluding the impact of foreign exchange, was 1.7%. Sales amounted to NIS 1.9 billion, a decrease of 3.3%, reflecting by NIS 95 million negative translation differences as a result of the continued strengthening of the NIS versus other functional currencies of the Group.
  • Gross profit amounted to NIS 768 million (39.4% of sales), an increase of 2.3% compared to the corresponding period last year. Gross margins were up 2.2%.
  • Operating profit (EBIT) amounted to NIS 172 million (8.9% of sales), a decrease of 6.3% compared to the corresponding period last year. EBIT margins were down 0.2%.
  • Earnings per share amounted to NIS 0.64, a decrease of 8.8% compared to the corresponding period last year.
  • Cash flows from operating activities amounted to NIS 113 million, compared to NIS 240 million in the corresponding period.

(1)

Based on non-GAAP data, which include the proportionate consolidation of jointly-held partnerships (without implementation of IFRS 11) and do not include share-based payment, valuation of the balance of commodity hedging transactions as at end-of-period and other income and expenses, unless stated otherwise.

 

Non GAAP Adjusted Figures (2)







Second Quarter


2014

2013

Change

Organic
Growth
excluding FX

Total Group Sales (NIS mm)

1,949

2,016

-3.3%

1.7%

Gross Profit (NIS mm)

768

751

2.3%


Gross Margins (%)

39.4%

37.2%

+220 bps


EBITDA (NIS mm)

227

239

-5.4%


EBITDA Margins (%)

11.6%

11.9%

 -30 bps


EBIT (NIS mm)

172

185

-6.3%


EBIT Margins (%)

8.9%

9.1%

 -20 bps


Net Income Attributable to the Company's Shareholders (NIS mm)

69

75

-8.7%


Net Income Margin (Attributable to the Company's Shareholders) (%)

3.5%

3.7%

 -20 bps


EPS (NIS)

0.64

0.70

-8.8%


Operating Cash Flow (NIS mm)

113

240

-52.9%


Capex (NIS mm) (3)

(125)

(109)

14.7%


Net debt (NIS mm)

1,720

1,403

22.6%


Net debt / annual EBITDA

1.7x

1.6x

0.1x


 

(2)

Based on non-GAAP data, which include the proportionate consolidation of jointly-held partnerships (without implementation of IFRS 11) and do not include share-based payment, valuation of the balance of commodity hedging transactions as at end-of-period and other income and expenses, unless stated otherwise.



(3)

Investments include the acquisition of fixed assets and investment in intangibles and deferred expenses.

Note: Financial data were rounded off to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.

 

Non GAAP Adjusted Figures (4)











Second Quarter


Sales (NIS mm)

Sales Growth vs. Last Year

Organic Sales Growth excluding FX

EBIT (NIS mm)

NIS Change in EBIT

% Change in EBIT 

EBIT margins

Change in EBIT margins vs. 2013

Sales and EBIT by Operating Segments and Activities









Strauss Israel:









Health & Wellness

500

-0.7%

-0.7%

51

4

7.0%

10.1%

+70 bps

Fun & Indulgence (5)

213

-4.2%

-4.2%

17

(4)

-15.5%

8.0%

 -100 bps

Total Strauss Israel

713

-1.8%

-1.8%

68

0

0.2%

9.5%

+20 bps










Strauss Coffee:









Israel Coffee 

151

-2.8%

-2.8%

13

(3)

-19.1%

8.4%

 -170 bps

International Coffee (5)

757

-9.6%

1.1%

76

(7)

-7.2%

10.1%

+20 bps

Total Strauss Coffee

908

-8.5%

0.2%

89

(10)

-9.1%

9.8%

 -10 bps










International Dips & Spreads:









Sabra (50%) (5)

162

6.1%

11.1%

23

1

3.1%

14.3%

 -40 bps

Obela (50%) (5)

9

27.6%

41.9%

(5)

--

-7.5%

NM

NM

Total International Dips & Spreads

170

7.0%

12.3%

18

1

1.9%

10.5%

 -50 bps










Other (5)

158

13.7%

17.8%

(3)

(4)

260.7%

NM

NM

Total Group

1,949

-3.3%

1.7%

172

(13)

-6.3%

8.9%

 -20 bps

 

(4)

Based on non-GAAP data, which include the proportionate consolidation of jointly-held partnerships (without implementation of IFRS 11) and do not include share-based payment, valuation of the balance of commodity hedging transactions as at end-of-period and other income and expenses, unless stated otherwise.



(5)

Fun & Indulgence figures include Strauss 50% share in the salty snacks business. International Coffee figures include Strauss 50% share in Tres Coracoes (3C) – a company jointly held by the Group (50%) and by a local Sao Miguel Group (50%). International D&S figures reflect Strauss 50% share in Sabra and Obela. Other includes Strauss share in Strauss Water China.

Note: Financial data were rounded off to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.

Appendix

 

Reconciliations of GAAP to Non GAAP Adjusted Figures

First Half


2014

2013

GAAP sales

2,636

2,752

Add back JV sales (accounted for under the equity method)

1,286

1,277

Non GAAP sales

3,922

4,029




GAAP EBIT

334

336

Minus: Share in income of equity-accounted investees

(104)

(87)

Plus: JV EBIT (accounted for under the equity method)

126

120

Additional adjustments:



Non cash equity based compensation 

10

10

Loss (Profit) from accounting mark-to-market of commodity hedging transactions as at the end of period

(9)

17

Other expenses

19

3

Non GAAP Adjusted EBIT according to management reports

376

399




Non GAAP financing expenses, net (including JVs)

(56)

(62)

Non GAAP taxes on income (including JVs)

(106)

(107)

Taxes on income in respect of the additional adjustments above

7

4

Non GAAP income for the period

221

234

Attributable to the Company's shareholders

168

178

Non controlling interests

53

56







Reconciliations of GAAP to Non GAAP Adjusted Figures

Second Quarter


2014

2013

GAAP sales

1,266

1,334

Add back JV sales (accounted for under the equity method)

683

682

Non GAAP sales

1,949

2,016




GAAP EBIT

121

119

Minus: Share in income of equity-accounted investees

(48)

(56)

Plus: JV EBIT (accounted for under the equity method)

57

76

Additional adjustments:



Non cash equity based compensation 

6

5

Loss from accounting mark-to-market of commodity hedging transactions as at the end of period

29

35

Other expenses 

7

6

Non GAAP Adjusted EBIT according to management reports

172

185




Non GAAP financing expenses, net (including JVs)

(38)

(36)

Non GAAP taxes on income (including JVs)

(41)

(43)

Taxes on income in respect of the additional adjustments above

3

(4)

Non GAAP income for the period

96

102

Attributable to the Company's shareholders

69

75

Non controlling interests

27

27

 

For further information please contact:

 

SOURCE Strauss Group

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
SYS-CON Events announced today Object Management Group® has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today the Docker Meets Kubernetes – Intro into the Kubernetes World, being held June 9, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Register for 'Docker Meets Kubernetes Workshop' Here! This workshop led by Sebastian Scheele, co-founder of Loodse, introduces participants to Kubernetes (container orchestration). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, participants learn ...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
In his session at 18th Cloud Expo, Andrew Cole, Director of Solutions Engineering at Peak 10, will discuss how the newest technology advances are reducing the cost and complexity of traditional business continuity and disaster recovery solutions. Attendees will: Learn why having a full disaster recovery strategy is more important now than ever before Explore the key drivers of a successful disaster recovery solution Achieve measurable operational and business value from a disaster recovery ...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
SYS-CON Events announced today that Hanu Software will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Leveraging best-in-class people, processes, and technologies, Hanu provides high-quality, high-value software development and business process outsourcing services to independent software vendors (ISVs) and enterprises.
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...