Israeli food company Strauss Group booked lower earnings for the first nine months of the year on the back of a decline in sales.
The company said revenue fell to NIS3.88bn (US$999.3m) in the period to 30 September, down from NIS4.05bn last year. Strauss said its sales were hit by the impact of currency exchange, which trimmed NIS396m off the top line. The group also flagged the implementation of Israel’s new food law, which resulted in changes to commercial agreements with large retailers.
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Operating profit dropped to NIS1.21bn from NIS1.24bn as the company lowered its marketing, selling and general administration costs in an attempt to offset lower revenues. Net profit was also down at NIS257m versus NIS301m.
On Sunday, fellow Israeli group Osem Investments booked lower net profit for the first nine months of the year as a result of higher financing costs.
It also reported a fall in sales due to an increase in discounts which were “partially the result of the implementation of the food law [that] effected changes to commercial agreements with large retailers and payments made in the past for services – recorded as selling expenses – were converted to discounts and reduced net sales”.
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By GlobalData
