PETACH TIKVA, Israel, Nov. 24, 2015 /PRNewswire/ -- Gadi Lesin, President and Chief Executive Officer of Strauss Group (STRS.TA), said today (November 24, 2015): "All of the Group's businesses have posted an improvement in operating profit in the quarter, except for the coffee company. The Group continues to operate in a dynamic, challenging environment and to implement its global growth strategy. The results of operations of Strauss Coffee – a leading player in a number of emerging markets, including Brazil(4) (the world's second-largest coffee market) – primarily reflect the weakening of the Brazilian real and Russian ruble despite over 12% organic growth in domestic currency sales by the coffee company(5).
In Israel, continued price reductions, innovation efforts and streamlining measures throughout the length of the value chain have led to a slight improvement in EBIT for the quarter."
Link to MD&A report
Link to Analyst Presentation
Link to Q3 '15 conference call details
________________________________
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(1)
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Also excluding the impact of classification of costs following the introduction of the Food Law, as explained in the Board of Directors Report.
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|
(2)
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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.
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(3)
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The dividend per share (DPS) is calculated as at the declaration date and is subject to change as a result of the exercise of options, if any are exercised.
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(4)
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Operations in Brazil are carried out by the Tres Coracnes joint venture (3C) – Brazil – a company held by the Group (50%) and by the local holding company, Sao Miguel Holding e Investimentos S.A. (50%). (Data reflect Strauss Coffee's share (50%) unless expressly stated otherwise).
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(5)
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Organic sales growth excluding exchange rate effects, the impact of the Food Law and green coffee export sales by the Tres Coracoes joint venture in Brazil.
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First nine months 2015 highlights(1)
- Organic sales growth, excluding foreign exchange effects, was 1.9%(2). Shekel sales were NIS 5.7 billion compared to NIS 6.1 billion in the corresponding period last year, and reflected NIS 396 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 2,129 million (37.1% of sales), down 10.1% compared to the corresponding period last year. Gross margins were down 2.0%.
- Operating profit (EBIT) was NIS 501 million (8.7% of sales), down 17.0% compared to the corresponding period last year. EBIT margins were down 1.3%.
- EPS for shareholders of the Company were NIS 2.05, down 24.1% compared to the corresponding period.
- Cash flows from operating activities totaled NIS 90 million, compared to NIS 247 million last year.
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(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.
|
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(2)
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Also excluding the impact of classification of costs following the introduction of the Food Law, as explained in the Board of Directors Report.
|
|
Non GAAP Adjusted Figures (1)
|
|
|
|
|
|
|
First Nine months
|
|
2015
|
2014
|
Change
|
Organic
Sales
Growth
excluding
FX and
Food Law
|
|
Total Group Sales (NIS mm)
|
5,743
|
6,060
|
-5.2%
|
1.9%
|
|
Gross Profit (NIS mm)
|
2,129
|
2,369
|
-10.1%
|
|
|
Gross Margins (%)
|
37.1%
|
39.1%
|
-200 bps
|
|
|
EBITDA (NIS mm)
|
671
|
765
|
-12.2%
|
|
|
EBITDA Margins (%)
|
11.7%
|
12.6%
|
-90 bps
|
|
|
EBIT (NIS mm)
|
501
|
603
|
-17.0%
|
|
|
EBIT Margins (%)
|
8.7%
|
10.0%
|
-130 bps
|
|
|
Net Income Attributable to the Company's Shareholders (NIS mm)
|
219
|
287
|
-23.7%
|
|
|
Net Income Margin Attributable to the Company's Shareholders (%)
|
3.8%
|
4.7%
|
-90 bps
|
|
|
EPS (NIS)
|
2.05
|
2.69
|
-24.1%
|
|
|
Operating Cash Flow (NIS mm)
|
90
|
274
|
-67.2%
|
|
|
Capex (NIS mm) (2)
|
(211)
|
(455)
|
-53.6%
|
|
|
Net debt (NIS mm)
|
1,813
|
1,846
|
-1.8%
|
|
|
Net debt / annual EBITDA
|
2.1x
|
1.9x
|
0.2x
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.
|
|
Non GAAP Adjusted Figures (1)
|
|
|
|
|
|
|
|
|
|
|
First Nine months
|
|
Sales (NIS mm)
|
Sales Growth vs. Last Year
|
Organic Sales Growth excluding FX and Food Law
|
EBIT (NIS mm)
|
NIS Change in EBIT
|
% Change in EBIT
|
EBIT margins
|
Change in EBIT margins vs. 2014
|
|
Sales and EBIT by Operating Segments and Activities
|
|
|
|
|
|
|
|
|
|
Strauss Israel:
|
|
|
|
|
|
|
|
|
|
Health & Wellness
|
1,435
|
-4.9%
|
-3.0%
|
141
|
(18)
|
-11.3%
|
9.8%
|
-70 bps
|
|
Fun & Indulgence (2)
|
743
|
-4.7%
|
-2.4%
|
81
|
(11)
|
-12.1%
|
10.9%
|
-90 bps
|
|
Total Strauss Israel
|
2,178
|
-4.9%
|
-2.8%
|
222
|
(29)
|
-11.6%
|
10.2%
|
-80 bps
|
|
|
|
|
|
|
|
|
|
|
Strauss Coffee:
|
|
|
|
|
|
|
|
|
|
Coffee Israel
|
494
|
-5.1%
|
-2.6%
|
64
|
(17)
|
-20.5%
|
13.0%
|
-260 bps
|
|
International Coffee (2)
|
2,063
|
-9.2%
|
11.5%
|
135
|
(76)
|
-35.9%
|
6.5%
|
-280 bps
|
|
Total Strauss Coffee
|
2,557
|
-8.4%
|
8.4%
|
199
|
(93)
|
-31.6%
|
7.8%
|
-260 bps
|
|
|
|
|
|
|
|
|
|
|
International Dips & Spreads:
|
|
|
|
|
|
|
|
|
|
Sabra (50%) (2)
|
539
|
15.7%
|
4.0%
|
66
|
(7)
|
-9.4%
|
12.2%
|
-340 bps
|
|
Obela (50%) (2)
|
27
|
6.0%
|
15.1%
|
(13)
|
2
|
NM
|
NM
|
NM
|
|
Total International Dips & Spreads
|
565
|
15.2%
|
4.5%
|
52
|
(5)
|
-9.0%
|
9.3%
|
-240 bps
|
|
|
|
|
|
|
|
|
|
|
Other (2)
|
443
|
-9.2%
|
-10.4%
|
28
|
25
|
757.0%
|
6.2%
|
+550 bps
|
|
Total Group
|
5,743
|
-5.2%
|
1.9%
|
501
|
(102)
|
-17.0%
|
8.7%
|
-130 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's 50% share in the salty snacks business. International Coffee figures include Strauss's 50% share in the Tres Coracoes joint venture (3C) – Brazil – a company jointly held by the Group (50%) and by the local Sao Miguel Group (50%). International D&S figures reflect Strauss's 50% share in Sabra and Obela. Other Operations includes Strauss's share in Strauss Water China (50%) until June 30, 2015.
|
|
|
|
Note:
|
Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.
|
Q3 2015 highlights(1)
- Organic sales growth, excluding foreign exchange effects, was 3.2%(2). Shekel sales were NIS 2.0 billion compared to NIS 2.1 billion in the corresponding quarter last year, and reflected NIS 210 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 711 million (36.0% of sales), down 12.2% compared to the corresponding period last year. Gross margins were down 1.9%.
- Operating profit (EBIT) was NIS 192 million (9.7% of sales), down 15.4% compared to the corresponding quarter last year. EBIT margins were down 0.9%.
- EPS for shareholders of the company were NIS 0.80, down 28.3% compared to the corresponding period.
- Cash flows from operating activities totaled NIS 60 million, compared to NIS 146 million last year.
|
(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)
|
Also excluding the impact of classification of costs following the introduction of the Food Law, as explained in the Board of Directors Report.
|
|
Non GAAP Adjusted Figures (1)
|
|
|
|
|
|
|
Third quarter
|
|
2015
|
2014
|
Change
|
Organic
Sales
Growth
excluding FX and
Food Law
|
|
Total Group Sales (NIS mm)
|
1,974
|
2,138
|
-7.6%
|
3.2%
|
|
Gross Profit (NIS mm)
|
711
|
811
|
-12.2%
|
|
|
Gross Margins (%)
|
36.0%
|
37.9%
|
-190 bps
|
|
|
EBITDA (NIS mm)
|
246
|
280
|
-12.0%
|
|
|
EBITDA Margins (%)
|
12.5%
|
13.1%
|
-60 bps
|
|
|
EBIT (NIS mm)
|
192
|
227
|
-15.4%
|
|
|
EBIT Margins (%)
|
9.7%
|
10.6%
|
-90 bps
|
|
|
Net Income Attributable to the Company's Shareholders (NIS mm)
|
86
|
119
|
-28.0%
|
|
|
Net Income Margin (Attributable to the Company's Shareholders) (%)
|
4.4%
|
5.6%
|
-120 bps
|
|
|
EPS (NIS)
|
0.80
|
1.12
|
-28.3%
|
|
|
Operating Cash Flow (NIS mm)
|
60
|
146
|
-58.9%
|
|
|
Capex (NIS mm) (2)
|
(54)
|
(198)
|
-72.7%
|
|
|
Net debt (NIS mm)
|
1,813
|
1,846
|
-1.8%
|
|
|
Net debt / annual EBITDA
|
2.1x
|
1.9x
|
0.2x
|
|
|
|
|
|
|
|
(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 to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.
|
|
Non GAAP Adjusted Figures (1)
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
|
|
Sales (NIS mm)
|
Sales Growth vs. Last Year
|
Organic Sales Growth excluding FX and Food Law
|
EBIT (NIS mm)
|
NIS Change in EBIT
|
% Change
in EBIT
|
EBIT margins
|
Change in EBIT margins vs. 2014
|
|
Sales and EBIT by Operating Segments and Activities
|
|
|
|
|
|
|
|
|
|
Strauss Israel:
|
|
|
|
|
|
|
|
|
|
Health & Wellness
|
507
|
-4.5%
|
-2.6%
|
63
|
4
|
5.3%
|
12.4%
|
+110 bps
|
|
Fun & Indulgence (2)
|
240
|
-5.8%
|
-3.8%
|
23
|
(3)
|
-12.4%
|
9.3%
|
-70 bps
|
|
Total Strauss Israel
|
747
|
-5.0%
|
-3.0%
|
86
|
1
|
0.1%
|
11.4%
|
+60 bps
|
|
|
|
|
|
|
|
|
|
|
Strauss Coffee:
|
|
|
|
|
|
|
|
|
|
Israel Coffee
|
161
|
-2.2%
|
0.3%
|
18
|
(9)
|
-35.5%
|
11.1%
|
-570 bps
|
|
International Coffee (2)
|
715
|
-16.2%
|
12.0%
|
45
|
(41)
|
-46.3%
|
6.4%
|
-350 bps
|
|
Total Strauss Coffee
|
876
|
-14.0%
|
9.7%
|
63
|
(50)
|
-43.6%
|
7.2%
|
-380 bps
|
|
|
|
|
|
|
|
|
|
|
International Dips & Spreads:
|
|
|
|
|
|
|
|
|
|
Sabra (50%) (2)
|
192
|
19.0%
|
8.9%
|
32
|
2
|
5.1%
|
16.6%
|
-220 bps
|
|
Obela (50%) (2)
|
10
|
3.3%
|
20.5%
|
(3)
|
2
|
NM
|
NM
|
NM
|
|
Total International Dips & Spreads
|
201
|
18.1%
|
9.4%
|
29
|
4
|
15.5%
|
14.6%
|
-30 bps
|
|
|
|
|
|
|
|
|
|
|
Other (2)
|
150
|
-7.9%
|
-6.4%
|
14
|
10
|
264.1%
|
NM
|
NM
|
|
Total Group
|
1,974
|
-7.6%
|
3.2%
|
192
|
(35)
|
-15.4%
|
9.7%
|
-90 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's 50% share in the salty snacks business. International Coffee figures include Strauss's 50% share in the Tres Coracoes joint venture (3C) – Brazil – a company jointly held by the Group (50%) and by the local Sao Miguel Group (50%). International D&S figures reflect Strauss's 50% share in Sabra and Obela.
|
|
|
|
Note:
|
Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands. The figures for total International D&S were calculated on the basis of the exact Sabra and Obela figures in NIS thousands.
|
Appendix
|
|
|
|
Reconciliations of GAAP to Non GAAP Adjusted Figures
|
|
First Nine months
|
|
2015
|
2014
|
|
GAAP sales
|
3,881
|
4,051
|
|
Add back JV sales (accounted for under the equity method) (1)
|
1,862
|
2,009
|
|
Non GAAP sales
|
5,743
|
6,060
|
|
|
|
|
GAAP EBIT
|
429
|
493
|
|
Minus: Share of profits of equity-accounted investees
|
(134)
|
(170)
|
|
Plus: JV EBIT (accounted for under the equity method)
|
171
|
207
|
|
Additional adjustments:
|
|
|
|
Non cash equity based compensation
|
12
|
16
|
|
Loss (Profit) from accounting mark-to-market of commodity hedging transactions as
at the end of period
|
3
|
(6)
|
|
Other expenses
|
20
|
63
|
|
Non GAAP Adjusted EBIT according to management reports
|
501
|
603
|
|
|
|
|
Non GAAP financing expenses, net (including JVs)
|
(99)
|
(70)
|
|
Non GAAP taxes on income (including JVs)
|
(110)
|
(159)
|
|
Taxes on income in respect of the additional adjustments above
|
(5)
|
5
|
|
Non GAAP income for the period
|
287
|
379
|
|
Attributable to the Company's shareholders
|
219
|
287
|
|
Attributable to Non controlling interests
|
68
|
92
|
|
|
|
|
|
|
|
Reconciliations of GAAP to Non GAAP Adjusted Figures
|
|
Third Quarter
|
|
2015
|
2014
|
|
GAAP sales
|
1,365
|
1,415
|
|
Add back JV sales (accounted for under the equity method) (1)
|
609
|
723
|
|
Non GAAP sales
|
1,974
|
2,138
|
|
|
|
|
GAAP EBIT
|
154
|
159
|
|
Minus: Share of profits of equity-accounted investees
|
(51)
|
(66)
|
|
Plus: JV EBIT (accounted for under the equity method)
|
64
|
81
|
|
Additional adjustments:
|
|
|
|
Non cash equity based compensation
|
3
|
6
|
|
Loss from accounting mark-to-market of commodity hedging transactions as at the end of period
|
8
|
3
|
|
Other expenses
|
14
|
44
|
|
Non GAAP Adjusted EBIT according to management reports
|
192
|
227
|
|
|
|
|
Non GAAP financing expenses, net (including JVs)
|
(35)
|
(14)
|
|
Non GAAP taxes on income (including JVs)
|
(42)
|
(53)
|
|
Taxes on income in respect of the additional adjustments above
|
(4)
|
(2)
|
|
Non GAAP income for the period
|
111
|
158
|
|
Attributable to the Company's shareholders
|
86
|
119
|
|
Attributable to Non controlling interests
|
25
|
39
|
|
(1)
|
Starting the third quarter, excluding sales of Haier Strauss Water JV in China, which are accounted for under the equity method in the Non GAAP figures.
|
|
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
|
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/strauss-group-reports-third-quarter-results-32-organic-sales-growth-excluding-foreign-currency-effects1-and-improved-operating-results-by-a-number-of-international-growth-drivers-as-strauss-coffees-results-are-impacted-prim-300183807.html
SOURCE Strauss Group
