Strauss profit jumps on coffee activity
Israeli food company posts sharply higher first-quarter net profit, boosted by income at its international coffee, spreads and dips operations
The company said on Tuesday its net profit excluding one-off items jumped to NIS 103 million ($27.8 million) from NIS 65 million ($17.6 million) in the same period last year.
Sales slipped 2.5% to NIS 2 billion ($540 million) due to a 13% erosion in the value of the Brazilian real against the shekel.
Strauss, a maker of snacks, fresh foods and coffee, is a market leader in roast and ground coffee in central and eastern Europe. It is the second-largest company in the Israeli food and beverage market with a 12.1% market share.
"Strauss's international activity continues to prove itself and improve its profitability despite significant fluctuations in exchange rates," Chief Executive Gadi Lesin said in a statement. "At the same time ... our operation in Israel continues to show positive results."
Global coffee sales fell 5.6% to NIS 989 million ($268 million) though operating profit in the segment jumped by nearly 45%. Coffee sales were also hurt by a decline in exports of green coffee from its Tres Coracoes joint venture in Brazil.
Sales at its international dips and spreads joint venture half-owned by PepsiCo grew 11% in the quarter as operating profit surged 64%.
