Market Overview

Strauss Group Delivers Yet Another Stellar Quarter

Share:

Strauss Group Delivers Yet Another Stellar Quarter

All Companies in the Group Posted Top and Bottom Line Growth;

3% Sales Growth in the Second Quarter or 6.4% Organic Growth Excluding Foreign Currency Effects;

Net Income Rises 14% to NIS 112 Million(1)

PR Newswire

PETACH TIKVA, Israel, Aug. 7, 2018 /PRNewswire/ -- Giora Bardea, Interim CEO of Strauss Group (TASE: STRS): "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."

Q2 2018 highlights(1)

  • Organic sales growth, excluding foreign exchange effects, was c6.4%. Shekel sales were NIS c2.1 billion compared to NIS 2 billion in the corresponding period in 2017; sales were impacted by a negative currency translation amounting to NIS c53 million, mainly as a result of the depreciation of the BRL against the NIS compared to last year.
  • Gross profit was NIS c813 million (c38.7% of sales), up c8% compared to the corresponding period last year. Gross margins were up c1.8%.
  • Operating profit (EBIT) was NIS c207 million (c9.9% of sales), up c11.2% compared to the corresponding period last year. EBIT margins were up c0.8%.
  • EPS for shareholders of the Company was NIS c0.97, up c10.6% compared to the corresponding period.
  • Positive cash flows from operating activities totaled NIS c190 million, compared to NIS c199 million in the corresponding period last year.

(1) Data represent the Company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses (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, including adjustments required for deferral of profit or loss from commodity derivatives until the inventory is sold to external parties, and other income and expenses, net, unless stated otherwise       

H1 2018 highlights(1)

  • Organic sales growth, excluding foreign exchange effects, was c7.1%. Shekel sales were NIS c4.3 billion compared to NIS 4.1 billion in the corresponding period in 2017; sales were impacted by a negative currency translation amounting to NIS c104 million, mainly as a result of the depreciation of the BRL against the NIS compared to last year.
  • Gross profit was NIS c1,646 million (c38.5% of sales), up c7.4% compared to the corresponding period last year. Gross margins were up c1.3%.
  • Operating profit (EBIT) was NIS c461 million (c10.8% of sales), up c12.7% compared to the corresponding period last year. EBIT margins were up c0.9%.
  • EPS for shareholders of the Company was NIS c2.25, up c15.3% compared to the corresponding period.
  • Positive cash flows from operating activities totaled NIS c296 million, compared to NIS c113 million in the corresponding period last year.

(1) Data represent the Company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses (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, including adjustments required for deferral of profit or loss from commodity derivatives until the inventory is sold to external parties, and other income and expenses, net, unless stated otherwise

 

Non GAAP Figures (1)





Second Quarter


2018

2017

Change

Total Group Sales (NIS mm)

2,103

2,042

3.0%

Organic Sales Growth excluding FX



6.4%

Gross Profit (NIS mm)

813

753

8.0%

Gross Margins (%)

38.7%

36.9%

+180 bps

EBITDA (NIS mm)

264

243

9.2%

EBITDA Margins (%)

12.6%

11.9%

+70 bps

EBIT (NIS mm)

207

187

11.2%

EBIT Margins (%)

9.9%

9.1%

+80 bps

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

112

97

14.0%

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

5.3%

4.8%

+50 bps

EPS (NIS)

0.97

0.88

10.6%

Operating Cash Flow (NIS mm)

190

199

-4.7%

Capex (NIS mm) (2)

-76

-71

7.0%

Net debt (NIS mm)

2,143

2,138

0.3%

Net debt / annual EBITDA

2.0x

2.2x

(0.2x)

 

(1)    Data represent the Company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses (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, including adjustments required for deferral of profit or loss from commodity derivatives until the inventory is sold to external parties, and other income and expenses, net, unless stated otherwise.

(2)    Investments include the acquisition of fixed assets and investment in intangible assets.

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

 

Non GAAP Figures (1)











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.
2017

Sales and EBIT by Operating
Segments and Activities









Strauss Israel:









Health & Wellness

536

3.9%

3.9%

56

1

1.9%

10.4%

 -20 bps

Fun & Indulgence (2)

242

View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com