Tnuva reveals NIS 517M net profit in 2010

After chairwoman's resignation and price cuts, food conglomerate announces annual sales turnover totaled some NIS 7.2 billion last year. CEO Arik Schor: We are proud to be first to implement Trajtenberg Committee recommendations

Shay Salinas, Calcalist |Published: 10.04.11 , 14:01

The Tnuva food conglomerate released its 2010 financial statement in Thursday, showing a 19% increase in its net profit for the year, to NIS 517 million (about $138 million). In 2009, the company has a net profit of NIS 433 million ($115 million) and in 2008 – NIS 293 million ($78 million).

Furthermore, the reports show an operation profit of NIS 710 million ($190 million) – a 17% increase as compared with 2009, constituting 9.8% of the group's earnings stemming namely from lower raw material prices and a streamlined distribution and marketing array.

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Just for comparison's sake, Tnuva's competitor Strauss posted a NIS 451 million ($120 million) operational profit in 2010 and Osem posted an operational profit of NIS 480 million ($128 million) for that year. Strauss's profit rate was 7.9% and Osem's – 12.6% for that year.

Tnuva's cash and cash equivalents was NIS 1.44 billion ($380 million) in 2010 as compared with NIS 485 million ($129 million) in cash equivalents at the end of 2009.

Tnuva CEO Arik Schor commented just before the release of the statements, "We are proud to be the first to implement the Trajtenberg Committee recommendations. Results show that our profit rates are proportionate and similar to those of other food companies in Israel and abroad."

Schor further noted that "there is no doubt that recent events fundamentally changed the group's financial status. Changes in Israel's economy and long term price cuts we have recently announced will manifest in the group's profitability and will be reflected in its reports for 2011."

It should be mentioned that the financial statements that Tnuva released are for 2010 and not for the first two quarters of 2011. Moreover, the company did not report on its five highest wage earners like other publicly traded companies did.

Apex Israel CEO Zehavit Cohen announced Sunday that she would step down from her offices at Tnuva and Psagot. Cohen was the chairwomen both of the food conglomerate and of the investment house. Shlomo Rodev will be stepping in to take her place as Tnuva's chairman.

Last week, the company experienced another dramatic turn of events when Cohen and CEO Schor were summoned to the Antitrust Authority where they were questioned for nearly ten hours on the reasons why they failed to submit certain documents to the Authority as requested.