The group's revenues totaled c2.6 billion
shekels, the operating profit was c204 million shekels, and the net
profit was c159 million shekels
President and CEO of the Group, Shai Babad: "We continue to implement the
group's strategic plan, focusing on core activities and investing
in the development of strategic growth engines that will drive the
group forward in the coming years; as well as ongoing
organizational efficiency and addressing the rise in raw material
prices"
PETAH TIKVA, Israel,
May 27,
2024 /PRNewswire/ -- This morning, Strauss Group
(TASE: STRS) released its financial reports for the first quarter
of 2024, showing an increase in revenue, which totaled
approximately 2.6 billion shekels, a
rise of about 1.4% compared to the same quarter last year. The
operating profit for the quarter amounted to approximately
204 million shekels, representing
about 7.8% of total sales. The operating profit was impacted, among
other things, by the significant rise in raw material prices, which
led to a decrease of about 2.4% in operating profit compared to the
same quarter last year. The net profit for the group in the quarter
was approximately 159 million
shekels, compared to a net profit of approximately
134 million shekels in the same
quarter last year. During the first quarter, and as part of
implementing the group's strategy, the group completed the sale of
the coffee company in Serbia for a sum of 38.8 million euros. Simultaneously, the group's
confectionery operations continue to recover with growth and an
increase in market share. Additionally, in recent months, the
credit rating agency 'Maalot S&P' announced an update to
Strauss Group's outlook from negative to stable and reaffirmed the
'ilAA+' rating assigned to the group.
Results
|
Q1
2024
|
Q1
2023
|
Sales
|
NIS 2,589M
|
NIS 2,554M
|
%
change
|
+1.4 %
|
|
Operating
profit
|
NIS 204M
|
NIS 208M
|
%
change
|
-2.4 %
|
|
% of
sales
|
7.8 %
|
8.1 %
|
Net
profit
|
NIS 159M
|
NIS 134M
|
%
change
|
+18.7 %
|
|
First Quarter Summary by Business Segment:
Strauss Israel - Increase in
Revenue and Operating Profit; Market Share Growth
Strauss Israel concluded the
first quarter with revenues of 1,309 million
shekels, a growth rate of about 1.7% compared to the
corresponding quarter last year. The operating profit of Strauss
Israel was 151 million shekels, an
increase of about 2.3% from the previous year. Strauss Israel's operating profit margin was 11.6%.
Following the announced reorganization and as part of the company's
strategy, Strauss Israel now also includes coffee operations in
Israel, which were previously part
of the coffee segment. The sales in the Health and Wellness segment
for the quarter were 731 million
shekels, a decline of about 1.6%, with an operating profit
of 74 million shekels, a decrease of
about 12.2% from the same quarter last year. This decline reflects
a reclassification of the energy snacks category, which, as part of
the changes, was reclassified from the Health & Wellness
segment to the Fun & Indulgence segment under the Snacks and
Sweets category. Excluding this reclassification, the Health &
Wellness segment grew 0.7%.
Sales in the Fun & Indulgence segment for the quarter were
361 million shekels, an increase of
about 18.1%, with an operating profit of 42
million shekels, an increase of about 70.9% from the
corresponding quarter. The confectionery category market share
reached 26.6% in the quarter, a slight increase from the previous
quarter. The Israel Coffee segment ended the quarter with net sales
of 217 million shekels, a decrease of
8.7% from the corresponding quarter, and an operating profit of
35 million shekels, a decrease of
about 8.7%.
Strauss Coffee International – Increase in Revenue and
Market Share Growth in Brazil
Strauss Coffee International concluded the quarter with revenues
of 954 million shekels, an increase
of about 0.3% from the corresponding quarter last year. The
international coffee operations ended the quarter with an operating
profit of 38 million shekels, a
decrease of about 36.3% from the corresponding quarter, among
others, due to a significant rise in raw material prices. The
operating profit margin from coffee international sales was
4.0%.
The coffee operations in Brazil
concluded the quarter with sales of 645
million shekels, an increase of about 3.8%, and an operating
profit of 13 million shekels, a
decrease of about 56.3% from the corresponding quarter. Coffee
operations in Russia and
Ukraine concluded the quarter with
sales of 129 million shekels, coffee
operations in Romania with sales
of 45 million shekels and coffee
operations in Poland with sales of
103 million shekels. The average
market share of Três Corações (value) in the roast and ground
(R&G) coffee sector in 2024 reached about 33.1% compared to
about 33.7% in the same period last year.
Strauss Water – Improvement in Tope line
Strauss Water concluded the quarter with revenues of
193 million shekels, an increase of
about 3% from the corresponding quarter, and an operating profit of
24 million shekels, an increase of
about 10.2% from the corresponding quarter last year. The operating
profit margin was 12.3%. The water operations in China concluded with good results and revenues
of 216 million shekels for the
quarter (in 100% terms), a growth of about 12.9% from the
corresponding quarter last year, and a net profit of 27 million shekels, up 10.1% from the
corresponding quarter last year.
Sabra and Obela – Market Share Increase in the US and Continued
Growth Trend
The International Dips and Spreads segment continued its
gradual recovery with an improvement in market share in the US and
continued revenue growth. Sabra sales for the quarter totaled
110 million shekels (in 50% terms), a
growth of about 4.8% from the corresponding quarter last year, and
an operating profit of 6 million
shekels. The operating profit margin from total sales was
5.0%. Obela sales totaled 20 million
shekels, with an operating profit of 1 million shekels.
Non GAAP Figures
(1)
|
|
|
|
|
First
Quarter
|
|
2024
|
2023
|
Change
|
Total Group Sales (NIS
mm)
|
2,589
|
2,554
|
1.4 %
|
Organic Sales Growth
excluding FX
|
-0.7 %
|
7.9 %
|
|
Gross Profit (NIS
mm)
|
874
|
837
|
4.3 %
|
Gross Margins
(%)
|
33.7 %
|
32.8 %
|
+90 bps
|
EBITDA (NIS
mm)
|
318
|
310
|
2.6 %
|
EBITDA Margins
(%)
|
12.3 %
|
12.1 %
|
+20 bps
|
EBIT (NIS
mm)
|
204
|
208
|
-2.4 %
|
EBIT Margins
(%)
|
7.8 %
|
8.1 %
|
-30
bps
|
Net Income Attributable
to the Company's Shareholders (NIS mm)
|
159
|
134
|
18.7 %
|
Net Income Margin
Attributable to the Company's Shareholders (%)
|
6.2 %
|
5.3 %
|
+90 bps
|
EPS (NIS)
|
1.37
|
1.15
|
18.6 %
|
Operating Cash Flow
(NIS mm)
|
-115
|
-226
|
50.9 %
|
Capex (NIS mm)
(2)
|
-163
|
-74
|
120.3 %
|
Net debt (NIS
mm)
|
2,789
|
2,787
|
0.1 %
|
Net debt / annual
EBITDA
|
2.3x
|
3.1x
|
(0.8x)
|
(1) The data in
this document are based on the company's non-GAAP figures, which
include the proportionate consolidation of jointly
controlled businesses and do
not include share-based payment, mark-to-market at end-of-period of
open positions in the Group in respect of financial
derivatives used to hedge commodity
prices and all adjustments necessary to delay recognition of gains
and losses arising from commodity derivatives until the date when the inventory is sold
to outside parties, other income and expenses, net, and the tax
effect of excluding those items, unless stated otherwise.
|
(2) Investments
include the acquisition of fixed assets, investment in intangible
assets and proceeds from the sale of fixed assets.
|
Note: Financial
data were rounded to NIS millions. Percentages changes were
calculated on the basis of the exact figures in NIS
thousands.
|
Non GAAP Figures
(1)
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
Sales and EBIT by
Operating
Segments and Activities
|
Sales
(NIS
mm)
|
Sales
Growth vs. Last
Year
|
Organic
Sales
Growth
excluding FX
|
EBIT
(NIS
mm)
|
NIS
Change in
EBIT
|
%
Change
in EBIT
|
EBIT
margins
|
Change in
EBIT margins vs.
2023
|
Strauss
Israel:
|
|
|
|
|
|
|
|
|
Health &
Wellness
|
731
|
-1.6 %
|
-1.6 %
|
74
|
-11
|
-12.2 %
|
10.2 %
|
-120
bps
|
Fun & Indulgence
Snacks and
sweets (2)
|
361
|
18.1 %
|
18.1 %
|
42
|
18
|
70.9 %
|
11.5 %
|
+360 bps
|
Fun & Indulgence
Coffee Israel
|
217
|
-8.7 %
|
-8.7 %
|
35
|
-4
|
-8.7 %
|
16.3 %
|
NM
|
Total Strauss
Israel
|
1,309
|
1.7 %
|
1.7 %
|
151
|
3
|
2.3 %
|
11.6 %
|
+10
bps
|
|
|
|
|
|
|
|
|
|
Strauss Coffee International
(2)
|
954
|
0.3 %
|
-4.5 %
|
38
|
922
|
-36.3 %
|
4.0 %
|
-230
bps
|
Strauss
Water
|
193
|
3.0 %
|
2.8 %
|
24
|
3
|
10.2 %
|
12.3 %
|
+80
bps
|
Other
(2)(3)
|
133
|
3.0 %
|
3.0 %
|
-9
|
12
|
-51.9 %
|
-6.8 %
|
-4510
bps
|
Total
Group
|
2,589
|
1.4 %
|
-0.7 %
|
204
|
-4
|
-2.4 %
|
7.8 %
|
-30
bps
|
(1) The data in this
document are based on the company's non-GAAP figures, which include
the proportionate consolidation of jointly controlled businesses and do not include
share-based payment, mark-to-market at end-of-period of open
positions in the Group in respect of financial derivatives used to hedge commodity
prices and all adjustments necessary to delay recognition of gains
and losses arising from
commodity derivatives until the date when the inventory is sold to
outside parties, other income and expenses, net, and the tax
effect of excluding those
items, unless stated otherwise.
(2) Fun & Indulgence figures include Strauss's 50% share in the
salty snacks business. International Coffee figures include
Strauss's 50%
share in the Três Corações joint venture (3C) – Brazil – a company
jointly held by the Group (50%) and by the local São Miguel
Group
(50%). International Dips & Spreads figures reflect Strauss's
50% share in Sabra and Obela. Strauss Water EBIT figures include
Strauss's
share in Haier Strauss Water (HSW) in China (49%)
Note: Financial data were rounded to NIS millions.
Percentages changes were calculated on the basis of the exact
figures in NIS thousands.
Total figures for International Dips & Spreads were calculated
on the basis of the exact figures for Sabra and Obela in NIS
thousands.
|
Condensed financial
accounting (GAAP)
|
First
Quarter
|
|
2024
|
2023
|
Change
|
Sales
|
1,726
|
1,713
|
0.8 %
|
Cost of sales excluding
impact of commodity hedges
|
1,090
|
1,106
|
-1.4 %
|
Adjustments for
commodity hedges
|
71
|
-53
|
|
Cost of
sales
|
1,161
|
1,053
|
10.3 %
|
Gross
profit
|
565
|
660
|
-14.5 %
|
% of sales
|
32.7 %
|
38.6 %
|
|
Selling and marketing
expenses
|
353
|
330
|
7.0 %
|
General and
administrative expenses
|
129
|
121
|
6.8 %
|
Total
expenses
|
482
|
451
|
6.9 %
|
Share of profit of
equity-accounted investees
|
36
|
45
|
-19.6 %
|
Share of profit (loss)
of equity-accounted incubator investees
|
-2
|
-8
|
-70.1 %
|
Operating profit
before other expenses
|
117
|
246
|
-52.7 %
|
% of sales
|
6.8 %
|
14.4 %
|
|
Other expenses,
net
|
-50
|
70
|
|
Operating profit
after other expenses
|
67
|
316
|
-78.7 %
|
Financing expenses,
net
|
-17
|
-11
|
62.9 %
|
Income before taxes
on income
|
50
|
305
|
-83.6 %
|
Taxes on
income
|
21
|
-59
|
-134.7 %
|
Effective tax
rate
|
-41.4 %
|
19.5 %
|
|
Income for the period
|
71
|
246
|
-71.3 %
|
Attributable to the
Company's shareholders
|
51
|
231
|
-77.9 %
|
Attributable to
non-controlling interests
|
20
|
15
|
34.1 %
|
Conference Call
Strauss Group to Report Q1 2023 Results; Online Conference
Call to be held Monday, May
27th, 2024 at 15:30 local Israel time / 13:30 UK / 08:30 am ET
Strauss Group (TASE: STRS) will host an online conference call
to discuss Q1 2024 results on Monday, May
27th, 2024 at 15:30 local Israel time / 13:30 UK / 08:30 am Eastern time.
The conference call will be hosted by company management and
will be followed by a question and answers session.
To participate in the online call please use the following
link:
https://strauss-group.zoom.us/j/93795628461?pwd=Q29iZGxDMEpYcVVBVWk0ZjJ1aHBjQT09
Passcode: 641169
The conference call will be accompanied by a presentation
which will be available on the Investor Relations section of our
website on Monday, May 27th, 2024:
https://ir.strauss-group.com/company-presentations/quarterly-presentations/
Strauss Group's Q1 2024 earnings press release and financial
statements will be available on Monday, May
27th, 2024 following the release, on the
Company's website:
https://ir.strauss-group.com/financial/
https://ir.strauss-group.com/earning-releases/
A recording of the call will be available on the company's
website.
For further information, please contact:
Liron Ben
Yaakov
Director of
Communications and PR
972-54-609-1600
972-3-675-2584
liron.ben-yaakov@Strauss-Group.com
|
Daniella
Finn
Director of Investor
Relations
972-54-577-2195
972-3-675-2545
Daniella.Finn@Strauss-Group.com
|
Telem
Yahav
Director of
External Communications
972-52-257-9939
972-3-675-6713
Telem.Yahav@Strauss-Group.com
|
View original
content:https://www.prnewswire.com/news-releases/strauss-groups-reports-first-quarter-2024-results-302155862.html
SOURCE Strauss Group Ltd