Strauss Group Posts 4.8% Organic Growth in First Quarter of 2014 Excluding the FX Effect, Thanks to the Operations of Strauss Israel and Most International Growth Drivers
PETACH TIKVA, Israel, May 27, 2014 /PRNewswire/ --
Gadi Lesin, President and Chief Executive Officer of Strauss Group (TASE: STRS), said today (May 27, 2014): "Faced with a challenging quarter in our home market and the international arena, the Group posts sound results that attest to significant capabilities in coping with a changing geopolitical (Russia, Ukraine) and economic reality. Strauss Israel has displayed solid performance despite softness in consumption in Israel thanks to effective marketing effort and product innovation, as well as the beneficial effect of the timing of Passover this year. Tres Coracoes (1) (our JV in Brazil) and Sabra (our JV in the USA and Canada) have continued to post strong operating results and consolidate their competitive position."
Q1'14 results conference call today at 17:30 local time / 15:30 UK time / 10:30 a.m. EDT
Q1 2014 highlights (2)
- Organic sales growth, excluding the FX impact, was 4.8%. Sales were c. NIS 2.0 billion (similar to last year), a decrease of 2.0%, reflecting c. NIS 131 million negative translation differences as a result of continued strengthening of the NIS versus other operational currencies of the Group.
- Gross profit was c. NIS 790 million (40.0% of sales), an increase of 3.0% compared to the corresponding quarter. Gross margins were up 1.9%.
- Operating profit (EBIT) totaled c. NIS 204 million (10.3% of sales), a decrease of 4.8% compared to the corresponding quarter. EBIT margins were down 0.3%.
- Earnings per share were c. NIS 0.93, a decrease of 3.9% compared to the corresponding quarter.
- Cash flows from operating activities were c. NIS 15 million, compared to 0 in the corresponding quarter.
- Net debt as at March 31, 2014 totaled NIS 1,598 million, compared to NIS 1,521 million on March 31, 2013 and NIS 1,475 million on December 31, 2013.
(1) Tres Coracoes (3C) – a company jointly held by the Group (50%) and by a local holding company, Sao Miguel Holding e Investimentos S.A. (50%) (data reflect Strauss Coffee's share (50%) unless stated otherwise).
(2) Based on non-GAAP data, according to management reports, 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 (2) |
||||||
| First Quarter |
||||||
| 2014 |
2013 |
Change |
Organic Growth excluding FX |
|||
| Total Group Sales (NIS mm) |
1,973 |
2,013 |
-2.0% |
4.8% |
||
| Gross Profit (NIS mm) |
790 |
767 |
3.0% |
|||
| Gross Margins (%) |
40.0% |
38.1% |
+190 bps |
|||
| EBITDA (NIS mm) |
258 |
270 |
-4.5% |
|||
| EBITDA Margins (%) |
13.1% |
13.4% |
-30 bps |
|||
| EBIT (NIS mm) |
204 |
214 |
-4.8% |
|||
| EBIT Margins (%) |
10.3% |
10.6% |
-30 bps |
|||
| Net Income Attributable to the Company's Shareholders (NIS mm) |
99 |
103 |
-3.3% |
|||
| Net Income Margin (Attributable to the Company's Shareholders) (%) |
5.0% |
5.1% |
-10 bps |
|||
| EPS (NIS) |
0.93 |
0.97 |
-3.9% |
|||
| Operating Cash Flow (NIS mm) |
15 |
0 |
0.0% |
|||
| Capex (NIS mm) (3) |
(130) |
(65) |
100.0% |
|||
| Net debt (as of December 31; NIS mm) |
1,598 |
1,521 |
5.1% |
|||
| Net debt / annual EBITDA |
6.2x |
5.6x |
0.6x |
|||
| (2) Based on non-GAAP data, according to management reports, 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. |
||||||
| (3) Investments include the acquisition of fixed assets and investment in intangibles and deferred expenses. |
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| Note: Financial data were rounded off to NIS millions. Percentages change were calculated on the basis of the exact figures in NIS thousands. |
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| Non GAAP Adjusted Figures (2) |
||||||||
| First Quarter |
||||||||
| Sales (NIS mm) |
Sales Growth vs. Last Year |
Organic Sales Growth excluding FX |
EBIT (NIS mm) |
NIS Change in EBIT |
% Change in EBIT vs. Q1'13 |
EBIT margins |
Change in EBIT margins vs. 2012 |
|
| Sales and EBIT by Operating Segments and Activities |
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| Strauss Israel: |
||||||||
| Health & Wellness |
479 |
5.4% |
5.4% |
49 |
10 |
25.8% |
10.2% |
+160 bps |
| Fun & Indulgence (3) |
311 |
2.9% |
2.9% |
49 |
(6) |
-11.0% |
15.8% |
-250 bps |
| Total Strauss Israel |
790 |
4.4% |
4.4% |
98 |
4 |
4.2% |
12.4% |
-10 bps |
| Strauss Coffee: |
||||||||
| Israel Coffee |
205 |
-0.9% |
-0.9% |
41 |
3 |
6.0% |
19.9% |
+130 bps |
| International Coffee (3) |
661 |
-15.4% |
0.2% |
49 |
(24) |
-32.5% |
7.5% |
-180 bps |
| Total Strauss Coffee |
866 |
-12.4% |
-0.2% |
90 |
(21) |
-19.2% |
10.4% |
-90 bps |
| International Dips & Spreads: |
||||||||
| Sabra (50%) (3) |
142 |
14.5% |
21.4% |
19 |
8 |
65.6% |
13.3% |
+410 bps |
| Obela (50%) (3) |
7 |
-22.6% |
-5.2% |
(5) |
(1) |
-6.1% |
NM |
NM |
| Total International Dips & Spreads |
150 |
11.9% |
19.8% |
14 |
7 |
104.3% |
9.5% |
+430 bps |
| Other (3) |
167 |
24.6% |
26.5% |
2 |
0 |
12.4% |
0.8% |
-30 bps |
| Total Group |
1,973 |
-2.0% |
4.8% |
204 |
(10) |
-4.8% |
10.3% |
-30 bps |
| (2) Based on non-GAAP data, according to management reports, 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. |
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| (4) Fun & Indulgence figures include Strauss 50% share in the salty snacks business. International Coffee figures include Strauss 50% share in 3C. 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 change were calculated on the basis of the exact figures in NIS thousands. The total figures for international dips and spreads were calculated on the basis of the exact figures of Sabra and Obela in NIS thousands. |
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Appendix
| Reconciliations of GAAP to Non GAAP Adjusted Figures |
||
| First Quarter |
||
| 2014 |
2013 |
|
| GAAP sales |
1,370 |
1,418 |
| Add back JV sales (accounted for under the equity method) |
603 |
595 |
| Non GAAP sales |
1,973 |
2,013 |
| GAAP EBIT |
213 |
217 |
| Minus: Share in income of equity-accounted investees |
(56) |
(31) |
| Plus: JV EBIT (accounted for under the equity method) |
69 |
44 |
| Additional adjustments: |
||
| Plus: Non cash equity based compensation |
4 |
5 |
| Plus (Minus): Loss (Profit) from accounting mark-to-market of commodity hedging transactions as at the end of period |
(38) |
(18) |
| Plus (Minus): Other expenses (income) |
12 |
(3) |
| Non GAAP Adjusted EBIT according to management reports |
204 |
214 |
| Non GAAP financing expenses, net (including JVs) |
(18) |
(26) |
| Non GAAP taxes on income (including JVs) |
(65) |
(64) |
| Taxes on income in respect of the additional adjustments above |
4 |
8 |
| Non GAAP income for the period |
125 |
132 |
| Attributable to the Company's shareholders |
99 |
103 |
| Non controlling interests |
26 |
29 |
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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