Strauss said sales and profits from Sabra JV grew in Q2

Strauss said sales and profits from Sabra JV grew in Q2

Israel-based food and beverage company Strauss Group saw sales and earnings rise in the first half of the year, enjoying growth from its domestic business and from Sabra, its US-focused venture with PepsiCo.

Net income was up 39.1% at NIS185m (US$49.1m) in the first six months of 2016. Operating income grew 27.8% to NIS396m.

Group sales rose 1.2% to NIS3.81bn, with growth dampened by exchange rates. On an organic basis excluding currency fluctuations, sales were up 7.8%.

Strauss said its sales in Israel grew by around 4% in the first half of the year. Citing data from StoreNext, Strauss said the size of the Israeli food and beverage market had dipped 0.7%.

In a presentation of the performance of Strauss's divisions in the second quarter, the company said sales from its Sabra venture increased by 7.9% to NIS187m. Strauss has a 50% stake in the Sabra venture, which was set up in 2007.

In 2011, Strauss and PepsiCo formed another 50-50 venture, Obela, to sell fresh dips and spreads outside North America. In the second quarter of this year, Obela sales were up 17.6% to NIS10m, according to Strauss's figures.