Strauss Group Posts Improved Business Results in 2013, Thanks Primarily to the Operations of Tres Coracoes (3C) (1) in Brazil and Sabra in the U.S.
PETACH TIKVA, Israel, March 26, 2014 /PRNewswire/ -- Gadi Lesin, President and Chief Executive Officer of Strauss Group (TASE: STRS.TA), said today (March 26, 2014): "Strauss Group concludes a good year across all segments in the Group, particularly in the operations of the coffee company Tres Coracoes (3C) in Brazil and Sabra's dips and spreads operations in the U.S. In 2013 the Group focused on smart cost management and growth while increasing investments in streamlining the supply chain and in innovation. This approach has consolidated the Group's strength and has improved our ability to continue to successfully contend with the challenges that lie ahead in 2014."
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2013 highlights (2)
- Organic sales growth, excluding the FX impact, was 4.8%. Sales were c. NIS 8.1 billion (similar to last year), a decrease of 0.5%, reflecting negative translation differences as a result of continued strengthening of the NIS versus other operating currencies of the Group.
- Gross profit was c. NIS 3.1 billion (38.2% of sales), an increase of 8.5% compared to 2012. Gross margins were up 310 basis points compared to 2012.
- Operating profit (EBIT) totaled c. NIS 769 million (9.4% of sales), an increase of 23.0% compared to 2012. EBIT margins were up 180 basis points compared to 2012.
- Earnings per share were c. NIS 3.09, an increase of 38.8% compared to 2012.
- Cash flows from operating activities were c. NIS 716 million, an increase of 6.9% compared to 2012.
- Net debt as at December 31, 2013 totaled NIS 1,475 million, compared to NIS 1,357 million on September 30, 2013 and NIS 1,422 million on December 31, 2012.
(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.
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 Gil Messing External Communications Director Strauss Group Ltd. 972-54-252-5272 | ||||
Non GAAP Adjusted Figures (2) | ||||||
Fiscal Year | ||||||
2013 | 2012 | Change | Organic | |||
Total Group Sales (NIS mm) | 8,143 | 8,182 | -0.5% | 4.8% | ||
Gross Profit (NIS mm) | 3,114 | 2,871 | 8.5% | |||
Gross Margins (%) | 38.2% | 35.1% | +310 bps | |||
EBITDA (NIS mm) | 993 | 853 | 16.3% | |||
EBITDA Margins (%) | 12.2% | 10.4% | +180 bps | |||
EBIT (NIS mm) | 769 | 625 | 23.0% | |||
EBIT Margins (%) | 9.4% | 7.6% | +180 bps | |||
Net Income Attributable to the Company's Shareholders (NIS mm) | 329 | 238 | 39.1% | |||
Net Income Margin (Attributable to the Company's Shareholders) (%) | 4.0% | 2.9% | +110 bps | |||
EPS (NIS) | 3.09 | 2.23 | 38.8% | |||
Operating Cash Flow (NIS mm) | 716 | 670 | 6.9% | |||
Capex (NIS mm) (3) | (482) | (415) | 16.1% | |||
Net debt (as of December 31; NIS mm) | 1,475 | 1,422 | 3.7% | |||
Net debt / annual EBITDA | 1.5x | 1.7x | (0.2x) | |||
(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. Note: Financial data were rounded off to NIS millions. Percentages change were calculated on the basis of the exact figures in NIS thousands. | ||||||
Non GAAP Adjusted Figures (2) | |||||||
Full Year 2013 | |||||||
Sales (NIS mm) | Sales Growth vs. Last Year | Organic Sales Growth excluding FX | EBIT (NIS mm) | EBIT margins | Change in EBIT margins vs. 2012 | ||
Sales and EBIT by Operating | |||||||
Strauss Israel: | |||||||
Health & Wellness | 1,987 | 3.5% | 3.5% | 200 | 10.1% | +40 bps | |
Fun & Indulgence (3) | 1,013 | 3.2% | 3.2% | 115 | 11.4% | +20 bps | |
Total Strauss Israel | 3,000 | 3.4% | 3.4% | 315 | 10.5% | +30 bps | |
Strauss Coffee: | |||||||
Israel Coffee | 715 | 0.9% | 0.9% | 80 | 11.1% | +20 bps | |
International Coffee (3) | 3,229 | -7.7% | 3.2% | 323 | 10.0% | +330 bps | |
Total Strauss Coffee | 3,944 | -6.2% | 2.7% | 403 | 10.2% | +280 bps | |
International Dips & Spreads: | |||||||
Sabra (50%) (3) | 565 | 12.3% | 20.3% | 74 | 13.0% | +20 bps | |
Obela (50%) (3) | 34 | 82.6% | 17.2% | (17) | NM | NM | |
Total International Dips & Spreads | 600 | 14.9% | 20.0% | 57 | 9.5% | +110 bps | |
Other (3) | 599 | 8.3% | 13.3% | (6) | NM | NM | |
Total Group | 8,143 | -0.5% | 4.8% | 769 | 9.4% | +180 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. (3) 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 UK and 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. | |||||||
Q4 2013 highlights (2)
- Organic sales growth, excluding the FX impact, was 5.4%. Sales were c. NIS 2.1 billion (similar to last year), a decrease of 1.4%, reflecting negative translation differences as a result of the continued strengthening of the NIS versus other operating currencies of the Group.
- Gross profit was c. NIS 798 million (38.5% of sales), an increase of 8.2% compared to the corresponding period last year. Gross margins were up 340 basis points.
- Operating profit (EBIT) totaled c. NIS 158 million (7.6% of sales), an increase of 0.2% compared to the corresponding period last year. Operating margins were up 10 basis points.
- Earnings per share were c. NIS 0.66, an increase of 4.0% compared to the corresponding period last year.
- Cash flows from operating activities totaled NIS 266 million, an increase of 2.3% compared to the corresponding period last year.
(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) | |||||
Q4 | |||||
2013 | 2012 | Change | Organic | ||
Total Group Sales (NIS mm) | 2,074 | 2,103 | -1.4% | 5.4% | |
Gross Profit (NIS mm) | 798 | 738 | 8.2% | ||
Gross Margins (%) | 38.5% | 35.1% | +340 bps | ||
EBITDA (NIS mm) | 215 | 216 | -1.3% | ||
EBITDA Margins (%) | 10.4% | 10.3% | +10 bps | ||
EBIT (NIS mm) | 158 | 157 | 0.2% | ||
EBIT Margins (%) | 7.6% | 7.5% | +10 bps | ||
Net Income Attributable to the Company's Shareholders (NIS mm) | 70 | 68 | 4.4% | ||
Net Income Margin (Attributable to the Company's Shareholders) (%) | 3.4% | 3.2% | +20 bps | ||
EPS (NIS) | 0.66 | 0.64 | 4.0% | ||
Operating Cash Flow (NIS mm) | 266 | 260 | 2.3% | ||
Capex (NIS mm) (3) | (153) | (93) | 64.5% | ||
Net debt (as of December 31; NIS mm) | 1,475 | 1,422 | 3.7% | ||
Net debt / annual EBITDA | 1.5x | 1.7x | (0.2x) | ||
(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. Note: Financial data were rounded off to NIS millions. Percentages change were calculated on the basis of the exact figures in NIS thousands. | |||||
Non GAAP Adjusted Figures (2) | |||||||
Q4 2013 | |||||||
Sales (NIS mm) | Sales Growth vs. Last Year | Organic Sales Growth excluding FX | EBIT (NIS mm) | EBIT margins | Change in EBIT margins vs. 2012 | ||
Sales and EBIT by Operating | |||||||
Strauss Israel: | |||||||
Health & Wellness | 499 | 6.9% | 6.9% | 51 | 10.2% | +60 bps | |
Fun & Indulgence (3) | 247 | 4.4% | 4.4% | 16 | 6.6% | -230 bps | |
Total Strauss Israel | 746 | 6.0% | 6.0% | 67 | 9.0% | -40 bps | |
Strauss Coffee: | |||||||
Israel Coffee | 185 | 8.4% | 8.4% | 4 | 2.0% | -580 bps | |
International Coffee (3) | 824 | -13.6% | -1.3% | 81 | 10.0% | +190 bps | |
Total Strauss Coffee | 1,009 | -10.3% | 0.3% | 85 | 8.5% | +40 bps | |
International Dips & Spreads: | |||||||
Sabra (50%) (3) | 137 | 7.2% | 16.9% | 14 | 10.4% | -160 bps | |
Obela (50%) (3) | 11 | -3.9% | 14.1% | (3) | NM | NM | |
Total International Dips & Spreads | 148 | 6.3% | 15.9% | 11 | 7.4% | +110 bps | |
Other (3) | 171 | 26.9% | 28.7% | (5) | NM | NM | |
Total Group | 2,074 | -1.4% | 5.4% | 158 | 7.6% | +10 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. (3) 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 UK and 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. | |||||||
Appendix | |||
Reconciliations of GAAP to Non GAAP Adjusted Figures | |||
Full Year | |||
2013 | 2012 | ||
GAAP sales | 5,605 | 5,699 | |
Add back JV sales (accounted for under the equity method) | 2,538 | 2,483 | |
Non GAAP sales | 8,143 | 8,182 | |
GAAP EBIT | 610 | 601 | |
Minus: Share in income of equity-accounted investees | (175) | (63) | |
Plus: JV EBIT (accounted for under the equity method) | 228 | 107 | |
Additional adjustments: | |||
Plus: Non cash equity based compensation | 18 | 19 | |
Plus (Minus): Loss (Profit) from accounting mark-to-market of commodity hedging transactions as at the end of period | (12) | 5 | |
Plus (Minus): Other expenses (income) | 100 | (44) | |
Non GAAP Adjusted EBIT according to management reports | 769 | 625 | |
Non GAAP financing expenses, net (including JVs) | (134) | (135) | |
Non GAAP taxes on income (including JVs) | (198) | (185) | |
Taxes on income in respect of the additional adjustments above | 8 | 22 | |
Non GAAP income for the period | 445 | 327 | |
Attributable to the Company's shareholders | 329 | 238 | |
Non controlling interests | 116 | 89 | |
Reconciliations of GAAP to Non GAAP Adjusted Figures | |||
Q4 | |||
2013 | 2012 | ||
GAAP sales | 1,451 | 1,433 | |
Add back JV sales (accounted for under the equity method) | 623 | 670 | |
Non GAAP sales | 2,074 | 2,103 | |
GAAP EBIT | 89 | 107 | |
Minus: Share in income of equity-accounted investees | (39) | (35) | |
Plus: JV EBIT (accounted for under the equity method) | 43 | 45 | |
Additional adjustments: | |||
Plus: Non cash equity based compensation | 4 | 6 | |
Plus (Minus): Loss (Profit) from accounting mark-to-market of commodity hedging transactions as at the end of period | (20) | 27 | |
Plus (Minus): Other expenses (income) | 81 | 7 | |
Non GAAP Adjusted EBIT according to management reports | 158 | 157 | |
Non GAAP financing expenses, net (including JVs) | (32) | (33) | |
Non GAAP taxes on income (including JVs) | (15) | (28) | |
Taxes on income in respect of the additional adjustments above | (11) | (6) | |
Non GAAP income for the period | 100 | 90 | |
Attributable to the Company's shareholders | 70 | 68 | |
Non controlling interests | 30 | 22 | |
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