Israel-based Strauss Group has pointed to a “strong performance” from its “core” businesses in the second quarter, while booking a set of mixed first-half results on a GAAP basis.
Strauss presents its financial numbers in two ways – according to GAAP but also on a non-GAAP basis it says includes the “proportionate consolidation” of jointly-controlled businesses without the implementation of IFRS 11. The non-GAAP numbers exclude other factors such as share-based payment, the valuation of the balance of commodity hedging transactions as at end-of-period and reflects “all adjustments necessary” to delay the recognition of profits or losses arising from commodity derivatives.
According to the non-GAAP numbers, Strauss booked higher net sales, operating income and net income in the second quarter of the year. The company’s domestic food and drinks business, as well as its coffee arm reported higher sales.
Strauss’ international dips and spreads unit saw sales fall, hit by a 6.3% decline from Sabra, the venture in the US it runs with PepsiCo. Sabra was still seeing the “continued effect” of a recall in November, Strauss said.
On a GAAP basis, Strauss reported a 4.1% rise in second-quarter net income attributable to shareholders of NIS73m. However, the company’s operating profit slid 23.2% to NIS132m (US$36.7m), in part due to commodity hedges. Sales rose 1.1% to NIS1.29bn.
Strauss booked first-half income attributable to shareholders of NIS180m, up 3.7% on the first half of 2016. Operating income dropped 9.3% to NIS340m. Sales were up 3.9% at NIS2.7bn.