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.
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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.
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By GlobalData
