Strauss Group Announces Results For Third Quarter And First Nine Months Of 2013
- POSTS 21.4% OPERATING PROFIT GROWTH IN THIRD QUARTER 2013, MAINLY THANKS TO THE GROUP'S INTERNATIONAL OPERATIONS(1)
- Excluding currency effects, organic growth was 5 .7%. The Group's shekel sales in the third quarter of 2013 were impacted as the shekel continued to gain strength versus the Group's other operating currencies and fell 1.9%.
TEL AVIV, Israel, Nov. 27, 2013 /PRNewswire/ -- Gadi Lesin, President and Chief Executive Officer of the Strauss Group, said today, "The Group's strong performance in the quarter reflects continued strong operating results by Strauss international operations, alongside growth in Strauss Israel and smart cost management. Accelerated investment in innovation and marketing effort in all activity segments aims to build and anchor the Group's growth drivers and deliver a better, more diverse product portfolio to our consumers in Israel and abroad."
Key data on the third quarter of 2013 and as at September 30, 2013(1)
- Excluding the effect of changes in exchange rates, organic sales grew by 5.7% over last year. Non-GAAP sales totaled NIS 2.0 billion (NIS 2.1 billion last year), a decrease of 1.9%.
- Non-GAAP gross profit totaled NIS 798 million (39.1% of sales) compared to NIS 737 million in the corresponding quarter last year (35.5% of sales), an increase of 8.1%.
- Non-GAAP operating profit (EBIT) totaled NIS 212 million (10.4% of sales) compared to NIS 175 million in the corresponding quarter last year (8.4% of sales), an increase of 21.4%, primarily due to the significant growth in the profits of the Group's international operations.
- Non-GAAP net income attributable to the Company's shareholders totaled NIS 81 million (4.0% of sales) compared to NIS 69 million in the corresponding quarter last year (3.3% of sales), an increase of 17.1%.
- Cash flows from operating activities (including partnerships) amounted to a positive cash flow of NIS 205 million compared to a positive cash flow of NIS 171 million in the corresponding quarter last year.
- Net credit (including partnerships) as at September 30, 2013 totaled NIS 1,357 million, compared to NIS 1,623 million on September 30, 2012 and NIS 1,422 million on December 31, 2012.
Key data on the first nine months of 2013(1)
- Sales totaled approximately NIS 6.1 billion (approximately NIS 6.1 billion in the corresponding period last year), a decrease of 0.2%; excluding the currency effect, organic sales grew by 4.7%.
- Non-GAAP gross profit totaled NIS 2,316 million (38.2% of sales) compared to NIS 2,133 million in the corresponding period last year (35.1% of sales), an increase of 8.6%.
- Non-GAAP operating profit (EBIT) totaled NIS 611 million (10.1% of sales) compared to NIS 468 million in the corresponding period last year (7.7% of sales), an increase of 30.7%, primarily as a result of the significant growth in the profits of the Group's international operations.
- Non-GAAP net income attributable to the Company's shareholders totaled NIS 259 million (4.3% of sales) compared to NIS 170 million in the corresponding period last year (2.8% of sales), an increase of 53.0%.
- Cash flows from operating activities (including partnerships) amounted to a positive cash flow of NIS 439 million compared to a positive cash flow of NIS 404 million in the corresponding period last year.
(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 |
|
Following are the condensed results of business operations (based on the Company's non-GAAP management reports) for the quarter and nine months ended September 30, 2013 and 2012 (in NIS millions)*: |
|||||||
First Nine Months |
Third Quarter |
||||||
2013 |
2012 |
% Chg |
2013 |
2012 |
% Chg |
||
Sales |
6,069 |
6,079 |
(0.2) |
2,040 |
2,078 |
(1.9) |
|
Cost of sales |
3,753 |
3,946 |
(4.9) |
1,242 |
1,341 |
(7.4) |
|
Gross profit – non-GAAP |
2,316 |
2,133 |
8.6 |
798 |
737 |
8.1 |
|
% of sales |
38.2% |
35.1% |
39.1% |
35.5% |
|||
Selling and marketing expenses |
1,383 |
1,346 |
2.7 |
475 |
449 |
5.6 |
|
General and administrative expenses |
322 |
319 |
0.8 |
111 |
113 |
(2.4) |
|
Operating profit – non-GAAP |
611 |
468 |
30.7 |
212 |
175 |
21.4 |
|
% of sales |
10.1% |
7.7% |
10.4% |
8.4% |
|||
Financing expenses, net |
(102) |
(102) |
0.4 |
(40) |
(34) |
19.3 |
|
Income before taxes on income |
509 |
366 |
39.1 |
172 |
141 |
21.9 |
|
Taxes on income |
(164) |
(129) |
26.2 |
(61) |
(46) |
31.1 |
|
Effective tax rate |
32.1% |
35.1% |
34.8% |
31.7% |
|||
Income for the period – non-GAAP |
345 |
237 |
45.6 |
111 |
95 |
16.3 |
|
Attributable to: The Company's shareholders |
259 |
170 |
53.0 |
81 |
69 |
17.1 |
|
Non-controlling interests |
86 |
67 |
29.1 |
30 |
26 |
18.5 |
|
Following are the condensed results of business operations (based on non-GAAP management reports) of the major business sectors for the quarter and nine months ended September 30, 2013 and 2012 (in NIS millions)*: |
|||||||
First Nine Months |
Third Quarter |
||||||
2013 |
2012 |
% Chg |
2013 |
2012 |
% Chg |
||
Israel |
|||||||
Net sales |
2,254 |
2,198 |
2.6 |
771 |
743 |
3.9 |
|
Operating profit |
248 |
231 |
7.3 |
86 |
76 |
13.5 |
|
Coffee |
|||||||
Net sales |
2,935 |
3,081 |
(4.7) |
954 |
1,049 |
(9.0) |
|
Operating profit |
318 |
221 |
43.6 |
108 |
86 |
24.0 |
|
International Dips and Spreads |
|||||||
Net sales |
452 |
383 |
18.0 |
159 |
140 |
13.5 |
|
Operating profit |
46 |
35 |
31.8 |
22 |
18 |
20.8 |
|
Other |
|||||||
Net sales |
428 |
417 |
2.3 |
156 |
146 |
7.1 |
|
Operating loss |
(1) |
(19) |
(4) |
(5) |
|||
Total |
|||||||
Net sales |
6,069 |
6,079 |
(0.2) |
2,040 |
2,078 |
(1.9) |
|
Operating profit |
611 |
468 |
30.7 |
212 |
175 |
21.4 |
|
* 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 condensed financial accounting statements of income (GAAP) for the quarter and nine months ended September 30, 2013 and 2012 (in NIS millions)*: |
|||||||
First Nine Months |
Third Quarter |
||||||
2013 |
2012 |
% Chg |
2013 |
2012 |
% Chg |
||
Sales |
4,154 |
4,266 |
(2.6) |
1,402 |
1,455 |
(3.6) |
|
Cost of sales excluding impact of hedging transactions |
2,514 |
2,639 |
(4.7) |
839 |
900 |
(6.7) |
|
Valuation of balance of commodity hedging transactions as at end of period |
8 |
(20) |
(9) |
(5) |
|||
Cost of sales |
2,522 |
2,619 |
(3.7) |
830 |
895 |
(7.2) |
|
Gross profit |
1,632 |
1,647 |
(0.9) |
572 |
560 |
2.2 |
|
% of sales |
39.3% |
38.6% |
40.8% |
38.5% |
|||
Selling and marketing expenses |
986 |
985 |
0.2 |
336 |
327 |
2.7 |
|
General and administrative expenses |
244 |
247 |
(1.2) |
85 |
89 |
(4.6) |
|
Operating profit before other income (expenses) |
402 |
415 |
(3.2) |
151 |
144 |
5.4 |
|
% of sales |
9.7% |
9.7% |
10.8% |
9.8% |
|||
Other income (expenses), net |
(17) |
51 |
(15) |
59 |
|||
Operating profit after other income (expenses) |
385 |
466 |
(17.5) |
136 |
203 |
(33.3) |
|
Financing expenses, net |
(87) |
(86) |
1.1 |
(37) |
(30) |
23.8 |
|
Share in income of equity-accounted investees |
136 |
28 |
49 |
21 |
|||
Income before taxes on income |
434 |
408 |
6.4 |
148 |
194 |
(24.1) |
|
Taxes on income |
(149) |
(139) |
7.7 |
(63) |
(65) |
(3.0) |
|
Effective tax rate |
34.5% |
34.0% |
42.7% |
33.4% |
|||
Income for the period |
285 |
269 |
5.7 |
85 |
129 |
(34.3) |
|
Attributable to: The Company's shareholders |
209 |
203 |
2.9 |
58 |
105 |
(43.7) |
|
Non-controlling interests |
76 |
66 |
14.7 |
27 |
24 |
6.9 |
|
* 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)*: |
|||||||||||||
- Adjustments for IFRS 11 – change from the equity method in the GAAP report to the proportionate consolidation method (according to the segmental information based on the Group's management accounting (non-GAAP) and internal reports): |
|||||||||||||
First Nine Months 2013 |
First Nine Months 2012 |
Third Quarter 2013 |
Third Quarter 2012 |
||||||||||
Equity method |
Change |
Proportionate consolidation method (applied to date) |
Equity method |
Change |
Proportioate consolidation method (as published before IFRS 11 took effect) |
Equity method |
Change |
Proportionate consolidation method (applied to date) |
Equity method |
Change |
Proportionate consolidation method (as published before IFRS 11 took effect) |
||
Sales |
4,154 |
1,915 |
6,069 |
4,266 |
1,813 |
6,079 |
1,402 |
638 |
2,040 |
1,455 |
623 |
2,078 |
|
Cost of sales excluding impact of hedging transactions |
2,514 |
1,239 |
3,753 |
2,639 |
1,307 |
3,946 |
839 |
403 |
1,242 |
900 |
441 |
1,341 |
|
Valuation of balance of commodity hedging transactions as at end of period |
8 |
- |
8 |
(20) |
(2) |
(22) |
(9) |
- |
(9) |
(5) |
(1) |
(6) |
|
Cost of sales |
2,522 |
1,239 |
3,761 |
2,619 |
1,305 |
3,924 |
830 |
403 |
1,233 |
895 |
440 |
1,335 |
|
Gross profit |
1,632 |
676 |
2,308 |
1,647 |
508 |
2,155 |
572 |
235 |
807 |
560 |
183 |
743 |
|
% of sales |
39.3% |
38.0% |
38.6% |
35.5% |
40.8% |
39.6% |
38.5% |
35.8% |
|||||
Selling and marketing expenses |
986 |
397 |
1,383 |
985 |
361 |
1,346 |
336 |
139 |
475 |
327 |
122 |
449 |
|
General and administrative expenses |
244 |
92 |
336 |
247 |
85 |
332 |
85 |
30 |
115 |
89 |
28 |
117 |
|
Operating profit before other income (expenses) |
402 |
187 |
589 |
415 |
62 |
477 |
151 |
66 |
217 |
144 |
33 |
177 |
|
% of sales |
9.7% |
9.7% |
9.7% |
7.8% |
10.8% |
10.6% |
9.8% |
8.5% |
|||||
Other income (expenses), net |
(17) |
(2) |
(19) |
51 |
- |
51 |
(15) |
(1) |
(16) |
59 |
- |
59 |
|
Operating profit after other income (expenses) |
385 |
185 |
570 |
466 |
62 |
528 |
136 |
65 |
201 |
203 |
33 |
236 |
|
Financing expenses, net |
(87) |
(15) |
(102) |
(86) |
(16) |
(102) |
(37) |
(3) |
(40) |
(30) |
(4) |
(34) |
|
Share in income of equity-accounted investees |
136 |
(136) |
- |
28 |
(28) |
- |
49 |
(49) |
- |
21 |
(21) |
- |
|
Income before taxes on income |
434 |
34 |
468 |
408 |
18 |
426 |
148 |
13 |
161 |
194 |
8 |
202 |
|
Taxes on income |
(149) |
(34) |
(183) |
(139) |
(18) |
(157) |
(63) |
(13) |
(76) |
(65) |
(8) |
(73) |
|
Effective tax rate |
34.5% |
39.1% |
34.0% |
36.8% |
42.7% |
46.9% |
33.4% |
35.8% |
|||||
Income for the period |
285 |
- |
285 |
269 |
- |
269 |
85 |
- |
85 |
129 |
- |
129 |
|
Attributable to: The Company's shareholders |
209 |
- |
209 |
203 |
- |
203 |
58 |
- |
58 |
105 |
- |
105 |
|
Non-controlling interests |
76 |
- |
76 |
66 |
- |
66 |
27 |
- |
27 |
24 |
- |
24 |
|
Income for the period |
285 |
- |
285 |
269 |
- |
269 |
85 |
- |
85 |
129 |
- |
129 |
|
* Financial data were rounded off to NIS millions. The percentages change were calculated on the basis of the exact figures in NIS thousands |
|||||||||||||
Additional adjustments to the non-GAAP management reports (share-based payment, valuation of hedging transactions, other expenses and taxes referring to these adjustments)*: |
||||||||||
First Nine Months |
Third Quarter |
|||||||||
2013 |
2012 |
% Chg |
2013 |
2012 |
% Chg |
|||||
Operating profit – according to proportionate consolidation method – after other income (expenses) |
570 |
528 |
8.1 |
201 |
236 |
(14.9) |
||||
Share-based payment |
14 |
13 |
4 |
4 |
||||||
Valuation of balance of commodity hedging transactions as at end of period |
8 |
(22) |
(9) |
(6) |
||||||
Other expenses (income) |
19 |
(51) |
16 |
(59) |
||||||
Operating profit – non-GAAP management reports |
611 |
468 |
30.7 |
212 |
175 |
21.4 |
||||
Financing expenses, net |
(102) |
(102) |
(40) |
(34) |
||||||
Taxes on income |
(183) |
(157) |
(76) |
(73) |
||||||
Taxes in respect of adjustments to the above non-GAAP operating profit |
**19 |
28 |
**15 |
27 |
||||||
Income for the period – non-GAAP |
345 |
237 |
45.6 |
111 |
95 |
16.3 |
||||
Attributable to: The Company's shareholders |
259 |
170 |
53.0 |
81 |
69 |
17.1 |
||||
Non-controlling interests |
86 |
67 |
29.1 |
30 |
26 |
18.5 |
||||
* Financial data were rounded off to NIS millions. The percentages change were calculated on the basis of the exact figures in NIS thousands ** In 2013, includes mainly tax expenses in respect of unfrozen "trapped" corporate profits. For further information, see Note 4.8 to the financial statements. |
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For further information: |
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Talia Sessler |
Osnat Golan |
|
Investor Relations Director |
VP Communications & Digital, Spokesperson |
|
Strauss Group Ltd. |
Strauss Group Ltd. |
|
972-54-577-2195 |
972-52-828-8111 |
|
972-3-675-2545 |
972-3-675-2281 |
|
Gil Messing |
||
External Communications Director |
||
Strauss Group Ltd. |
||
972-54-252-5272 |
||
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