Israeli food-to-coffee company Strauss Group has booked an increase in first-quarter profits, despite lower sales.
In an announcement to the market, Strauss said net profit rose 90.9% in the period to ILS140m (US$37.8m). The bottom line was boosted by a lower effective tax rate, lower financing costs and reduced operating expenses. Operating profit 23.1% in the three months, climbing to ILS186m, on lower cost of sales and reduced selling and marketing expenses.
Go deeper with GlobalData
Strauss said its international dips and spreads unit, as well as its coffee business, put in a particularly strong profit performance.
CEO Gadi Lesin said: “Overall, the group posted strong operating results thanks mainly to the improvement in the international coffee business as well as the dips and spreads segment, and as a result of the continued implementation of streamlining processes across all of the group’s businesses.”
Sales at the firm fell 3.4% in the period, dropping to ILS1.42bn. The company blamed the dip on the impact of currency exchange: excluding FX organic sales were flat.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
