Strauss Group Announces Fourth Quarter and Fiscal Year 2012 Results, Posting Strong Performance in Sales and EBIT, Primarily Driven by International Coffee and International Dips and Spreads
TEL AVIV, Israel, March 20, 2013 /PRNewswire/ --
The Group's sales in 2012 and its non-GAAP EBIT totaled a record NIS 8.2 billion and NIS 625 million, respectively - 6.3% sales growth and 9.2% growth in non-GAAP EBIT.
The Group's sales and EBIT hit a record fourth quarter high as sales in the fourth quarter totaled NIS 2.1 billion and non-GAAP EBIT, NIS 157 million.
Ofra Strauss, Chairperson of the Strauss Group, said today (March 20, 2013): "Strauss Group has concluded a year of growth in all segments, particularly in two key international growth drivers - the coffee company and the international dips and spreads operation. The strong results in 2012 reflect the diverse capabilities of the Group, which operates in different regions and manages a broad business portfolio in the food industry based on a long-term strategy designed to create value for all stakeholders of the Group."
Gadi Lesin, President and Chief Executive Officer of the Strauss Group, said today: "The Group's strong performance in the past year is the outcome of long-term processes executed outside Israel in the last decade in the international coffee segment and in the international dips and spreads operation, whose sales in the past year grew by 35%. The Group continues to realize its global growth and expansion strategy while continuing to invest in its home base in Israel. The Israeli market continues to pose a challenge, and accordingly, we have persevered with innovation and the delivery of value to the consumer while executing dozens of internal streamlining processes."
Key data on 2012 and as at December 31, 2012 [1]
- Sales totaled NIS 8.2 billion (NIS 7.7 billion last year), an increase of 6.3%; organic sales excluding the effect of changes in exchange rates grew by 7.1%.
- Non-GAAP gross profit totaled NIS 2.9 billion (35.1% of sales) compared to NIS 2.7 billion last year (35.1% of sales), an increase of 6.1%.
- Non-GAAP operating profit (EBIT) totaled NIS 625 million (7.6% of sales) compared to NIS 572 million last year (7.4% of sales), an increase of 9.2%.
- Non-GAAP net income attributable to the Company's shareholders totaled NIS 238 million (2.9% of sales) compared to NIS 237 million last year (3.1% of sales), an increase of 0.5%.
- Cash flows from operating activities totaled NIS 663 million compared to NIS 298 million last year.
- The net debt as at December 31, 2012 totaled NIS 1,422 million, compared to NIS 1,476 million on December 31, 2011.
Key data on the fourth quarter [1]
- Sales totaled NIS 2.1 billion (NIS 2.1 billion last year), an increase of 1.6%; organic sales excluding the effect of changes in exchange rates grew by 3.6%.
- Non-GAAP gross profit totaled NIS 738 million (35.1% of sales) compared to NIS 688 million last year (33.3% of sales), an increase of 7.1%.
- Non-GAAP operating profit (EBIT) totaled NIS 157 million (7.5% of sales) compared to NIS 154 million last year (7.5% of sales), an increase of 1.8%.
- Non-GAAP net income attributable to the Company's shareholders totaled NIS 68 million (3.2% of sales) in the fourth quarter, compared to NIS 67 million last year (3.2% of sales), an increase of 2.0%.
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1. Based on non-GAAP data, which do not include share-based payment, valuation of the balance of commodities hedging transactions as at end-of-period, and other income and expenses.
ANALYSIS OF FINANCIAL RESULTS *
Following are the condensed financial accounting statements of income (GAAP) for the years and quarters ended December 31, 2012 and 2011 (in NIS millions):
For the Fourth
For the Years Quarter
2012 2011 % Chg 2012 2011 % Chg
Sales 8,182 7,699 6.3 2,103 2,070 1.6
Cost of sales excluding impact
of hedging transactions 5,311 4,994 6.4 1,365 1,382 (1.2)
Valuation of balance of
commodities hedging
transactions as at end of
period 5 28 27 2
Cost of sales 5,316 5,022 5.9 1,392 1,384 0.7
Gross profit 2,866 2,677 7.0 711 686 3.5
% of sales 35.0% 34.8% 33.8% 33.2%
Selling and marketing expenses 1,808 1,727 4.7 462 432 6.7
General and administrative
expenses 457 427 6.9 125 100 24.3
Operating profit before other
income (expenses) 601 523 15.0 124 154 (18.7)
% of sales 7.4% 6.8% 6.0% 7.5%
Other income (expenses), net 44 (60) (173.4) (7) (53) (85.9)
Operating profit 645 463 39.2 117 101 15.9
Financing expenses, net (135) (103) 30.4 (33) (16) 101.0
Income before taxes on income 510 360 41.7 84 85 (0.6)
Taxes on income (185) (127) 46.4 (28) (39) (26.1)
Effective tax rate 36.3% 35.1% 33.7% 45.4%
Income for the period 325 233 39.2 56 46 20.7
Attributable to:
The Company's shareholders 244 161 51.3 41 33 20.6
Non-controlling interests 81 72 12.2 15 13 21.0
* Financial data were rounded off to NIS millions. The percentages change were calculated on the basis of the exact figures in NIS thousands
Following are the adjustments to the Company's non-GAAP management reports (NIS millions):
For the Fourth
For the Years Quarter
2012 2011 % Chg 2012 2011 % Chg
Operating profit - GAAP - after
other income (expenses) 645 463 39.2 117 101 15.9
Share-based payment 19 21 6 (2)
Valuation of balance of
commodities hedging
transactions as at end of
period 5 28 27 2
Other expenses (income), net (44) 60 7 53
Operating profit - non-GAAP 625 572 9.2 157 154 1.8
Financing expenses, net (135) (103) (33) (16)
Taxes on income (185) (127) (28) (39)
Taxes in respect of adjustments
to the above non-GAAP operating
profit 22 (8) (6) (2)
Income for the period -
non-GAAP management reports 327 334 (2.2) 90 97 (7.9)
Attributable to:
The Company's shareholders 238 237 0.5 68 67 2.0
Non-controlling interests 89 97 (8.8) 22 30 (29.3)
Following are the condensed results of business operations (based on non-GAAP management reports) for the years and quarters ended December 31, 2012 and 2011 (in NIS millions):
For the Fourth
For the Years Quarter
2012 2011 % Chg 2012 2011 % Chg
Sales 8,182 7,699 6.3 2,103 2,070 1.6
Cost of sales 5,311 4,994 6.4 1,365 1,382 (1.2)
Gross profit - non-GAAP 2,871 2,705 6.1 738 688 7.1
% of sales 35.1% 35.1% 35.1% 33.3%
Selling and marketing expenses 1,808 1,727 4.7 462 432 6.7
General and administrative
expenses 438 406 7.9 119 102 17.3
Operating profit - non-GAAP
management reports 625 572 9.2 157 154 1.8
% of sales 7.6% 7.4% 7.5% 7.5%
Financing expenses, net (135) (103) 30.4 (33) (16) 101.0
Income before taxes on income 490 469 4.5 124 138 (10.0)
Taxes on income (163) (135) 21.2 (34) (41) (14.8)
Income for the period -
non-GAAP management reports 327 334 (2.2) 90 97 (7.9)
Attributable to:
The Company's shareholders 238 237 0.5 68 67 2.0
Non-controlling interests 89 97 (8.8) 22 30 (29.3)
Following are the condensed results of business operations (based on non-GAAP management reports) of the major business sectors for the years and quarters ended December 31, 2012 and 2011 (in NIS millions):
For the Years For the Fourth Quarter
2012 2011 % Chg 2012 2011 % Chg
Israel
Net sales 2,901 2,840 2.1 703 679 3.5
Operating profit 297 302 (1.5) 66 63 3.6
EBITDA 372 374 (0.4) 79 79 (0.5)
Coffee
Net sales 4,206 3,926 7.1 1,125 1,150 (2.2)
Operating profit 312 260 20.2 91 82 11.2
EBITDA 389 334 16.6 110 101 9.7
International Dips and Spreads
Net sales 522 388 34.6 139 100 39.2
Operating profit 44 20 123.6 9 5 64.8
EBITDA 64 37 76.7 14 11 47.8
Other
Net sales 553 545 1.4 136 141 (4.1)
Operating profit (loss) (28) (10) (9) 4
EBITDA 28 46 (40.0) 13 17 (24.5)
Total
Net sales 8,182 7,699 6.3 2,103 2,070 1.6
Operating profit 625 572 9.2 157 154 1.8
EBITDA 853 791 8.0 216 208 4.6
For further information:
Talia Sessler
Director of Investor Relations
Strauss Group Ltd.
+972-54-5772195
+972-3-6752545
talia.sessler@strauss-group.com
Osnat Golan
VP Communications & Digital, Spokesperson
Strauss Group Ltd.
+972-52-8288111
+972-3-6752281
Or
Gil Messing
External Communications Director
Strauss Group Ltd.
+972-54-2525272
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