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Strauss Group Reports Its Third Quarter & First Nine Month 2011 Results And Reports Sales Growth With Profit And Margin Erosion

TEL AVIV, Israel, November 16, 2011 /PRNewswire/ --

OPERATING PROFITS AND MARGINS ERODED FOLLOWING THE CONTINUED INCREASE IN RAW MATERIAL AND INPUT COSTS, AND INVESTMENTS IN GLOBAL EXPANSION;

STRAUSS GROUP SALES TOTAL NIS 5.6 B, UP 11.5%, SALES GROWTH IS EVIDENT IN ALL ACTIVITIES AND ALL GEOGRAPHIES.

Strauss Group (STRS.TA) today reported its results for the third quarter and first nine month of 2011.  

Ofra Strauss, Chairperson of Strauss Group, said today: "Strauss continued with its strategic plans of international expansion, while emphasizing the adjustments necessary in Israel as a result of public dialogue and the social protest that has erupted over the high cost of living in the country.  While investing in international markets and the company's growth engine, Strauss continues to review all work plans to provide appropriate solutions to the new reality."

Gadi Lesin, President & CEO of Strauss Group, said today: "Strauss Group reports Third Quarter results with a 13.8% growth in sales, with growth evident in all activities and geographies. In Israel, the Group home base, we continue to grow in volume and value with continued investment in innovation."

"While Group sales experienced growth, operating income and profitability eroded due to the increase in raw material, input costs and energy prices. Net profit increased by 7% following the decrease in finance expenses. The Group continues to invest in developing its international activities, emphasizing investment in water and refrigerated dips and spreads through strategic international partnerships."

Third Quarter Financial Highlights [1] :
  • Sales totaled NIS 2.0 billion ( NIS 1.8 billion last year), up 13.8%; Organic sales growth net of exchange rates effect totaled 12.2%.
  • Gross profit totaled NIS 688 million (34.1% of sales), compared to NIS 642 million last year (36.3% of sales), up 7.3%.
  • Operating profit totaled NIS 139 million (6.9% of sales), compared to NIS 161 million last year (9.1% of sales), down 13.6%.
  • Net profit to shareholders totaled NIS 61 million, compared to NIS 54 million last year, up 13.7%.

Nine Months financial Highlights [2] :
  • Sales totaled NIS 5.6 billion ( NIS 5.0 billion last year), up 11.5%; Organic sales growth net of exchange rates effect totaled 10.2%.
  • Gross profit totaled NIS 2.0 billion (35.8% of sales), compared to NIS 1.9 billion last year (38.5% of sales), up 4.0%.
  • Operating profit totaled NIS 418 million (7.4% of sales), compared to NIS 479 million last year (9.5% of sales), down 12.7%.
  • Net profit to shareholders totaled NIS 170 million, compared to NIS 209 million last year, down 18.7%.

Main pro-forma data (in NIS million):

                        Nine Month       Third Quarter
                 2011  2010  % Chg  2011  2010  % Chg
          Sales 5,629 5,047   11.5 2,015 1,771   13.8
          Gross
         Profit 2,017 1,941    4.0   688   642    7.3
      Operating
     Profit (1)   418   479  (12.7)  139   161  (13.6)
     Profit for
     the Period   237   286  (17.0)   86    81    7.9
     Net Profit
            (2)   170   209  (18.7)   61    54   13.7

(1) Before other income (expenses)

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