STRAUSS GROUP LTD. PETACH TIKVA, Israel, May 29, 2017 /PRNewswire/ --
The stellar results were driven by continued strong performance at Strauss Israel and Strauss Coffee and improvement in the results of Strauss Water; The Group focused on the active optimization of its portfolio during the quarter
Gadi Lesin, President and CEO of Strauss Group (TASE: STRS) (May 29, 2017): "Strauss-Group continues to actively manage its portfolio in order to optimize performance; during the past few months we have completed the acquisition of the full ownership of Strauss Coffee and Strauss Water, the sale of the Max Brenner chain to the local franchisee and have expanded our investment in China by exercising our option to acquire an additional 15% stake in the Haier Strauss Water Joint Venture ; these strategic moves were carried out along with the continued improvement of the group's financial results. Strauss Israel delivered an especially strong quarter, and our core businesses in coffee and water have continued to post consistent growth. We continue to implement our strategy and believe that it will deliver value to our shareholders, employees, partners and, of course, to our consumers all over the world."
Q1 2017 highlights(1)
-- Organic sales growth, excluding foreign exchange effects, was c7.4%.
Shekel sales were NIS c2.1 billion compared to NIS 1.9 billion in the
corresponding period in 2016; sales were impacted by a positive currency
translation amounting to NIS c51 million as a result of the continued
strengthening of the BRL against the NIS compared to last year.
-- Gross profit was NIS c780 million (c37.4% of sales), up c7.4% compared
to the corresponding period last year. Gross margins were down c1.2%.
-- Operating profit (EBIT) was NIS c223 million (c10.7% of sales), up c5.0%
compared to the corresponding period last year. EBIT margins were down
c0.6%.
-- EPS for shareholders of the Company was NIS c1.08, up c8.1% compared to
the corresponding period.
-- Negative cash flows from operating activities totaled NIS c86 million,
compared to NIS c26 million in 2016.
(1) Data represent the Company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses (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 Figures (1)
First Quarter
-------------
2017 2016 Change
---- ---- ------
Total Group Sales (NIS mm) 2,083 1,880 10.8%
------------------------- ----- ----- ----
Organic Sales Growth excluding FX 7.4%
--------------------------------- ---
Gross Profit (NIS mm) 780 726 7.4%
-------------------- --- --- ---
Gross Margins (%) 37.4% 38.6% -120 bps
---------------- ---- ---- --------
EBITDA (NIS mm) 278 269 3.5%
-------------- --- --- ---
EBITDA Margins (%) 13.4% 14.3% -90 bps
----------------- ---- ---- -------
EBIT (NIS mm) 223 213 5.0%
------------ --- --- ---
EBIT Margins (%) 10.7% 11.3% -60 bps
--------------- ---- ---- -------
Net Income Attributable to the Company's Shareholders (NIS mm) 116 107 8.1%
------------------------------------------------------------- --- --- ---
Net Income Margin Attributable to the Company's Shareholders (%) 5.5% 5.7% -20 bps
--------------------------------------------------------------- --- --- -------
EPS (NIS) 1.08 1.00 26.4%
Operating Cash Flow (NIS mm) -86 -26 331.8%
Capex (NIS mm) (2) -61 -56 8.9%
Net debt (NIS mm) 2,689 1,748 53.9%
Net debt / annual EBITDA 2.7x 1.9x 0.8x
------------------------ ---- ---- ----
(1) Data represent the Company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses (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.
(1) Investments include the acquisition of fixed assets and investment in intangibles and deferred expenses.
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 (NIS mm) Sales Growth vs. Last Organic Sales Growth EBIT (NIS mm) NIS Change in EBIT % Change in EBIT EBIT margins Change in EBIT margins
Year excluding FX vs. 2016
------------- --------------------- -------------------- ------------ ------------------ ---------------- ------------ ----------------------
Sales and EBIT by Operating Segments and Activities
Strauss Israel:
Health & Wellness 486 2.6% 2.6% 53 2 4.4% 10.9% +20 bps
----------------- --- --- --- --- --- --- ---- -------
Fun & Indulgence (2) 332 10.0% 10.0% 52 5 10.8% 15.8% +10 bps
------------------- --- ---- ---- --- --- ---- ---- -------
Total Strauss Israel 818 5.5% 5.5% 105 7 7.5% 12.9% +20 bps
-------------------- --- --- --- --- --- --- ---- -------
Strauss Coffee:
Coffee Israel 212 9.1% 9.1% 40 5 13.6% 18.9% +80 bps
------------- --- --- --- --- --- ---- ---- -------
International Coffee (2) 749 28.0% 14.4% 51 6 15.2% 6.8% -80 bps
----------------------- --- ---- ---- --- --- ---- --- -------
Total Strauss Coffee 961 23.3% 13.2% 91 11 14.5% 9.5% -70 bps
-------------------- --- ---- ---- --- --- ---- --- -------
International Dips & Spreads:
Sabra (50%) (2) 144 -17.7% -13.6% 19 -11 -38.3% 13.0% -440 bps
-------------- --- ----- ----- --- --- ----- ---- --------
Obela (50%) (2) 16 54.2% 22.4% -2 1 NM NM NM
-------------- --- ---- ---- --- --- --- --- ---
Total International Dips & Spreads 160 -13.7% -11.0% 17 -10 -39.9% 10.2% -440 bps
---------------------------------- --- ----- ----- --- --- ----- ---- --------
Other (2) 144 3.3% 5.7% 10 2 30.6% 7.1% +150 bps
-------- --- --- --- --- --- ---- --- --------
Total Group 2,083 10.8% 7.4% 223 10 5.0% 10.7% -60 bps
----------- ----- ---- --- --- --- --- ---- -------
(1) Data represent the Company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses (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'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 D&S figures reflect Strauss's 50% share in Sabra and Obela. Other Operations figures include Strauss's 34% share in the joint venture in China, Haier Strauss Water (HSW).
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.
Appendix
Condensed financial accounting (GAAP)
First Quarter
2017 2016 Change
---- ---- ------
Sales 1,408 1,321 6.6%
-----
Cost of sales excluding impact of valuation of balance of commodity hedging transactions 831 793 5.0%
----------------------------------------------------------------------------------------
Valuation of balance of commodity hedging transactions as at end of period 9 -6
--------------------------------------------------------------------------
Cost of sales 840 787 6.8%
-------------
Gross profit 568 534 6.3%
------------
% of sales 40.3% 40.4%
----------
Selling and marketing expenses 318 292 8.9%
------------------------------
General and administrative expenses 93 87 6.6%
-----------------------------------
Total expenses 411 379
--------------
Share of profit of equity-accounted investees 44 51 -12.2%
---------------------------------------------
Operating profit before other expenses 201 206 -2.1%
--------------------------------------
% of sales 14.3% 15.6%
----------
Other expenses, net 7 -2
-------------------
Operating profit after other expenses 208 204 2.4%
-------------------------------------
Financing expenses, net -29 -30 -1.8%
-----------------------
Income before taxes on income 179 174 3.1%
-----------------------------
Taxes on income -30 -42 -28.5%
---------------
Effective tax rate 16.7% 24.1%
------------------
Income for the period 149 132 13.2%
---------------------
Attributable to the Company's shareholders 107 104 3.4%
------------------------------------------
Attributable to non-controlling interests 42 28 48.9%
----------------------------------------- --- --- ----
Investor Conference Calls
Strauss Group will host an Investor Conference call in Hebrew on Monday, May 29, 2017 at 14:00 (Israel time) to review the Financial Statements of the Company for the first quarter.
To participate please dial: 03-918-0685
Strauss Group will also host an Investor Conference call in English on Monday, May 29, 2017 at 17:30 local Israel time (15:30 UK, 10:30 Eastern time) to review the Financial Statements of the Company for the first quarter.
To participate in the live call please dial one of the following numbers:
From the UK: 0-800-051-8913
From the US: 1-888-281-1167
From Israel: 03-918-0610
The Financial Statements and Investors Presentation are posted on the Group's Investor Relations website at:
http://ir.strauss-group.com/phoenix.zhtml?c=92539&p=irol-irhome
For further information please contact:
Daniella Finn
Director of Investor Relations
Strauss Group Ltd.
972-54-577-2195
972-3-675-2545
Daniella.Finn@Strauss-Group.com
Osnat Golan
VP Communications & Digital, Spokesperson
Strauss Group Ltd.
972-52-828-8111
972-3-675-2281
Osnat.Golan@Strauss-Group.com
Or
Gil Messing
External Communications Director
Strauss Group Ltd.
972-54-252-5272
Gil.Messing@Strauss-Group.com
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SOURCE Strauss Group
