Strauss Group posts 1.8% organic sales growth excluding foreign currency effects(1) and 2.4% net profit growth (2)
PETACH TIKVA, Israel, May 28, 2015 /PRNewswire/ -- Gadi Lesin, President and Chief Executive Officer of Strauss Group (TASE: STRS), said today (May 28, 2015): "Thanks to the Group's international strategy and the robustness of the companies in the various countries of operation, Strauss Group has posted stable results of operations and has even improved the net profit despite dealing with complex economic challenges and political crises. Strauss Coffee's companies in Russia and Ukraine, which drew considerable attention in prior quarters, are coping successfully and according to plan with the crisis in those countries while other global growth drivers continue to develop. Against the backdrop of increasingly fierce competition between market players, Strauss Israel's operating profit was down by only NIS 6 million. We are investing considerable efforts in product innovation and continue to apply streamlining measures throughout the length of our value chain, which will contribute to Strauss's ability to contend with the challenges that the market in Israel will continue to pose this year."
Q1'15 results conference call today at 17:30 local time / 15:30 UK time / 10:30 p.m. EDT
Q1 2015 highlights (2)
- Organic sales growth, excluding the foreign exchange effects, was 1.8%. Shekel sales were NIS 1.9 billion compared to NIS 2.0 billion in the corresponding quarter last year, and reflected NIS 67 million negative translation differences as a result of the continued strengthening of the NIS versus other functional currencies of the Group.
- Gross profit was NIS 729 million (37.8% of sales), down 7.6% compared to the corresponding period last year. Gross margins were down 2.2%.
- Operating profit (EBIT) was NIS 197 million (10.2% of sales), down 3.1% compared to the corresponding quarter last year. EBIT margins were down 0.1%.
- EPS for shareholders of the company was NIS 0.95 per share, up 2.3% compared to the corresponding period.
- Negative cash flows from operating activities totaled NIS 150 million, compared to positive cash flows of NIS 15 million last year.
| (1) |
Also excluding the impact of classification of costs following the introduction of the Food Law, as explained in the Board of Directors Report. |
| (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. |
| Non GAAP Adjusted Figures (1) |
||||
| First Quarter |
||||
| 2015 |
2014 |
Change |
Organic Sales |
|
| Total Group Sales (NIS mm) |
1,930 |
1,973 |
-2.1% |
1.8% |
| Gross Profit (NIS mm) |
729 |
790 |
-7.6% |
|
| Gross Margins (%) |
37.8% |
40.0% |
-220 bps |
|
| EBITDA (NIS mm) |
252 |
258 |
-2.5% |
|
| EBITDA Margins (%) |
13.0% |
13.1% |
-10 bps |
|
| EBIT (NIS mm) |
197 |
204 |
-3.1% |
|
| EBIT Margins (%) |
10.2% |
10.3% |
-10 bps |
|
| Net Income Attributable to the Company's Shareholders (NIS mm) |
102 |
99 |
2.4% |
|
| Net Income Margin Attributable to the Company's Shareholders (%) |
5.3% |
5.0% |
+30 bps |
|
| EPS (NIS) |
0.95 |
0.93 |
2.3% |
|
| Operating Cash Flow (NIS mm) |
(150) |
15 |
NM |
|
| Capex (NIS mm) (2) |
(87) |
(132) |
-34.1% |
|
| Net debt (NIS mm) |
1,906 |
1,598 |
19.3% |
|
| Net debt / annual EBITDA |
2.0x |
1.6x |
0.4x |
|
| (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. |
| (2) |
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 (1) |
||||||||
| First Quarter |
||||||||
| Sales (NIS |
Sales |
Organic |
EBIT (NIS mm) |
NIS |
% Change |
EBIT |
Change in |
|
| Sales and EBIT by Operating Segments and Activities |
||||||||
| Strauss Israel: |
||||||||
| Health & Wellness |
454 |
-5.2% |
-3.2% |
45 |
(4) |
-8.0% |
9.9% |
-30 bps |
| Fun & Indulgence (2) |
299 |
-3.8% |
-1.7% |
47 |
(2) |
-4.5% |
15.7% |
-10 bps |
| Total Strauss Israel |
753 |
-4.6% |
-2.6% |
92 |
(6) |
-6.2% |
12.2% |
-20 bps |
| Strauss Coffee: |
||||||||
| Coffee Israel |
196 |
-4.3% |
-1.7% |
39 |
(2) |
-4.6% |
19.8% |
-10 bps |
| International Coffee (2) |
650 |
-1.8% |
11.6% |
47 |
(2) |
-4.5% |
7.2% |
-30 bps |
| Total Strauss Coffee |
846 |
-2.4% |
8.2% |
86 |
(4) |
-4.6% |
10.2% |
-20 bps |
| International Dips & Spreads: |
||||||||
| Sabra (50%) (2) |
174 |
22.1% |
8.1% |
20 |
1 |
5.3% |
11.5% |
-180 bps |
| Obela (50%) (2) |
9 |
23.2% |
24.6% |
(6) |
(1) |
NM |
NM |
NM |
| Total International Dips & Spreads |
182 |
22.2% |
8.8% |
14 |
0 |
0.1% |
7.8% |
-170 bps |
| Other (2) |
149 |
-10.9% |
-13.1% |
5 |
3 |
292.2% |
3.5% |
+270 bps |
| Total Group |
1,930 |
-2.1% |
1.8% |
197 |
(7) |
-3.1% |
10.2% |
-10 bps |
| (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. |
||||
| (2) |
Fun & Indulgence figures include Strauss 50% share in the salty snacks business. International Coffee figures include Strauss 50% share in Tres Coracoes Joint Venture (3C) – Brazil - a company jointly held by the Group (50%) and by the 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. |
|||||
| Reconciliations of GAAP to Non GAAP Adjusted Figures |
||
| First Quarter |
||
| 2015 |
2014 |
|
| GAAP sales |
1,308 |
1,370 |
| Add back JV sales (accounted for under the equity method) |
622 |
603 |
| Non GAAP sales |
1,930 |
1,973 |
| GAAP EBIT |
138 |
213 |
| Minus: Share in income of equity-accounted investees |
(49) |
(56) |
| Plus: JV EBIT (accounted for under the equity method) |
62 |
69 |
| Additional adjustments: |
||
| Plus: Non cash equity based compensation |
4 |
4 |
| Plus (Minus): Loss (Profit) from accounting mark-to-market of commodity hedging transactions as at the end of period |
39 |
(38) |
| Plus (Minus): Other expenses (income) |
3 |
12 |
| Non GAAP EBIT according to management reports |
197 |
204 |
| Non GAAP financing expenses, net (including JVs) |
(18) |
(18) |
| Non GAAP taxes on income (including JVs) |
(42) |
(65) |
| Taxes on income in respect of the additional adjustments above |
(8) |
4 |
| Non GAAP income for the period |
129 |
125 |
| Attributable to the Company's shareholders |
102 |
99 |
| Non controlling interests |
27 |
26 |
Strauss Group will host a conference call to discuss Q1 2015 results today, at 17:30 pm local Israel time / 15:30 pm UK / 10:30 am Eastern time.
The conference will be hosted by Gadi Lesin, CEO, Shahar Florence, CFO and Talia Sessler, Director of Investor Relations, and will be followed by a question and answer session.
To participate in the live call please dial one of the following numbers:
From the UK: 0-800-917-5108
From the US: 1-888-668-9141
From Israel: 03- 918-0650
For further information please contact:
| Talia Sessler Investor Relations Director Strauss Group Ltd. 972-54-577-2195 972-3-675-2545 talia.sessler@strauss-group.com
|
Osnat Golan VP Communications & Digital, Spokesperson Strauss Group Ltd. 972-52-828-8111 972-3-675-2281 Or Gil Messing External Communications Director Strauss Group Ltd. 972-54-252-5272 |
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