An increase in third-quarter profits at Strauss Group was not enough to prevent the Israel-based food and drink maker reporting lower earnings over the first nine months of 2011.

Strauss said today (16 November) that its underlying net profit in the three months to the end of September was up 13.7% to ILS61m (US$16.4m).

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

However, third-quarter earnings benefited from lower finance costs. Net profit in the first nine months of the year was ILS170m, down 18.7%. So far this year, Strauss’s finance costs have been higher, while underlying operating income over the first nine months was down 12.7% at ILS418m.

Operating income was hit by costs linked to building Strauss’s water operations in China and the UK, the simultaneous operation of two factories in the US, lower profits from coffee and the company’s promotional activity in Israel. Third-quarter operating profit was down 13.6% at ILS139m.

Raw materials, sales and marketing costs hit profits from Strauss’s coffee operations. In Israel, where Strauss sells its own brands, as well as products for the likes of Danone and PepsiCo, profits fell due to the company’s decision to bring forward promotional campaigns. Strauss said the moves were a response to the recent general protests at the cost of living in Israel.

See Also:

Profits from Sabra, Strauss’s global dips venture with PepsiCo, were lower due to the running of two plants at the same time in the US.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

However, Strauss had better news to report on sales. Turnover totalled ILS2bn, up 13.8%. Organic sales, excluding exchange rates, were up 12.2%. In the first nine months of the year, sales climbed 11.5% to ILS5.6bn. Organic sales growth, excluding currency fluctuation, was 10.2%.

Click here for the full release from Strauss.