ISRAEL: Increased investment, FX hit Strauss profits
- Sales fall 2% on FX
- EBIT drops 4.8% to ILS204m (US$58.6m)
- EPS declines 3.9%
Strauss Group booked a near-5% increase in organic sales but currency exchange and an increased investment in product support held back the group's result.
The company said organic sales rose 4.8% in the first quarter. However, total sales were dented by the negative impact of currency exchange, dropping 2%.
EBIT was also down in the period, falling 4.8%. The company said EBIT margins fell by 0.3% to 10.3% of sales. Operating margins were dented by an increased level of investment in marketing and product innovation. EPS dropped 3.9% in the period.
|Strauss Group Announces Results for First Quarter of 2014|
Strauss Group Posts 4.8% Organic Growth in First Quarter of 2014 Excluding the FX Effect, Thanks to the Operations of Strauss Israel and Most International Growth Drivers
Gadi Lesin, President and Chief Executive Officer of Strauss Group, said today (May 27, 2014): "Faced with a challenging quarter in our home market and the international arena, the Group posts sound results that attest to significant capabilities in coping with a changing geopolitical (Russia, Ukraine) and economic reality. Strauss Israel has displayed solid performance despite softness in consumption in Israel thanks to effective marketing effort and product innovation, as well as the beneficial effect of the timing of Passover this year. Três Corações (1) (our JV in Brazil) and Sabra (our JV in the USA and Canada) have continued to post strong operating results and consolidate their competitive position."
Q1 2014 highlights (2)
Original source: Strauss Group
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