Israeli food manufacturer Elite Industries has reported a 2002 net loss of NIS56.7m (US$12.2m), compared to a net profit of NIS10.4m in 2001.
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The company said it had decided to apply the accounting measure Standard 15 which requires companies to record the book value of assets according to their market values, reported Ha’aretz.
Elite said that without the measure, it would have recorded a 2002 net profit of NIS42.2m.
Through Standard 15, Elite wrote off NIS55m relating to its investment in Excella, which manufactures chocolate for private labels in France and other European countries, and NIS40.5m relating to its investment in Brazilian coffee manufacturer Tres Coracoes.
Elite’s CEO Erez Vigodman said that Elite International lost €4m in 2002 on account of its French subsidiary Excella, which was acquired for €3.5m.
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By GlobalData“Excella definitely hit us,” Vigodman was quoted by Ha’aretz as saying, “We don’t have any interest in a private label, but in order to consider whether to exit the company we first have to improve its profitability. We won’t be investing again in a private label.”
The company said it would make a decision in 2003/04 whether or not to pull out of its loss-making operations in Turkey.
Elite posted 2002 revenue of NIS2.12bn, compares to NIS2.15bn in 2001. The company’s sales in Israel fell 6.7% to NIS1.92bn, while its sales abroad rose 6.6% to NIS928m.
