The Strauss Group ends the first quarter of 2022 with a 79.2% decrease in net profit and an 11.5% increase in revenue.
The group published this morning the first quarter reports for 2022, which were significantly affected by the recall carried out by the company at the end of April.
The growth in revenues is due to the increase in sales of Strauss Coffee, the health and quality of life sector and Strauss Water.
The company reports revenues of about NIS 2.2 billion, which is an organic growth of 11.5%.
However, the company recorded an injury of 64.7% in operating profit, which amounted to NIS 102 million, and a sharp decrease of 79.2% in net profit to shareholders, which amounted to NIS 43 million for the quarter.
According to Giora Bar-Dea, CEO of the Strauss Group: "Along with growth in international coffee activity, including recovery in activity in Ukraine, continued growth in water company activity in Israel and China and growth in all activity in Israel - the group faces a complex challenge in Sabra and candy business in Israel.
"Strauss is a strong team, already aware of crisis and complex events. Its resilience has always allowed it not only to emerge from the crisis successfully, but also to grow out of it and become a better society.
"The challenge is operational, financial and marketing. I am convinced that the financial and human resilience will allow us to successfully rehabilitate and return to growth in the short term.
"The process of returning the factory in the Galilee landscape to activity is in full swing. We are making every effort to complete the process before the deadline set by the Ministry of Health, in order to return to producing the favorite candy brands as soon as possible.
"At the same time, the company continues to implement work plans and promote strategic focus, emphasizing the worlds of innovation and food tech and The Kitchen incubator. Following the strategy and winning the incubator tender - we are currently launching The Kitchen Hub 2 incubator, with international partners."
As of the date of the report, the fair value of the Group's holdings in the greenhouse companies is approximately NIS 412 million, compared with approximately NIS 149 million in the corresponding period last year.
CEO of the Strauss Group, Giora Bar-De'a, Photo: Yehoshua Yosef
The impact of Strauss' recall is reflected in the loss of sales of the pleasure and enjoyment sector, in the amount of NIS 60 million. NIS million.
Strauss Israel's sales in the quarter, including the damage to the confectionery division, amounted to NIS 975 million - an increase of 0.1% compared with the corresponding quarter last year, and an operating loss of NIS 15 million.
The company's coffee activity benefited from a strong first quarter, which amounted to a growth of 32.6% in sales, due to an increase in sales of the international coffee sector, an increase in sales of the coffee sector in Israel, and an increase in operating profit of 7%, to NIS 105 million.
Coffee activities in Brazil, Poland, Romania and Serbia grew at a double-digit rate in local currencies during the quarter, and activity in Israel grew by 2.7%.
Sales in Russia and Ukraine fell by 13.3% in local currency, due to the war between the two countries.
During March, activity in Ukraine partially resumed, and it continued to increase during the second quarter.
Sabra, a manufacturer and marketer of chilled salads, ended the first quarter with a 32.4% drop in sales, which amounted to NIS 97 million, and with an operating loss of NIS 15 million.
This is due to disruptions in the production system resulting from the plant's adjustment program.
Since no products were supplied to the market, the company's market share, which leads the US chickpea market, fell from 61.7% to 45.8% in the first quarter of 2022, compared to the same period last year. The plant will return to full production capacity during the second half of 2022, and expects the second quarter to end with an operating loss of $ 17-15 million, of which lump sums in the range of $ 8-6 million.
Sabra hummus,
Strauss Water ended the first quarter with revenues of NIS 183 million, and an increase of 7.5% compared to the corresponding quarter last year, resulting from an increase in the number of customers and the sale of new devices in Israel.
The company's operating profit amounted to NIS 25 million, increasing by 15.5% following the increase in sales in Israel and an improvement in the net profit of the water company's operations in China, which grew by 47.6%.
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