The results on the ground: The Strauss Group ends the first half of 2022 with a decrease in operating profit of approximately 59%.
This is about NIS 4.5 billion in revenue with organic growth of 8%.
The company ended the first half of the year with revenues of approximately NIS 1.75 billion and with a decrease of approximately 7.6%, which is mainly due to a 30.8% decrease in sales from the pleasure and enjoyment sector, which amounted to a total of NIS 407 million in the first half, due to the recall incident in the candy division.
This is according to the financial statements for the first half and the second quarter of 2022, which the Strauss Group published this morning.
Recall that the salmonella incident took place at the end of last April.
The reports show that the coffee and water companies and the activity in Israel with the exception of sweets grew in the first half of the year.
As part of the reports, the company announced that it is preparing for the gradual return to production of the factory in the Galilee landscape.
In addition, the Sabra plant in Virginia has returned to partial production.
Recall that the US Food and Drug Administration, FDA found salmonella in hummus produced at the Sabra plant in Virginia.
This is a factory that is jointly owned by Strauss and PepsiCo worldwide.
The reports show that in the first half the company recorded an increase of about 18% in revenues, which amounted to a total of about NIS 4.5 billion.
In the second quarter, revenues amounted to approximately NIS 2.3 billion.
This is an increase of about 14.6%.
The growth is mainly due to an increase in the sales of the coffee activity and is offset by a decrease in the sales of the sweets division and the Sabra company which operated partially during the half.
Despite the growth in sales, the company records a decrease in profit and operating profitability in the first half and second quarter of the year.
The impact of the recall event in the sweets division and the adjustment plan at Sabra's factory, together with the increase in the prices of raw materials, transportation and energy in the world and in Israel, resulted in the operating profit of the group in the first half of the year amounting to approximately NIS 204 million, a decrease of approximately 59.1% and the profit to the shareholders decreased by about 66.2% to about NIS 113 million.
The company stated that "the company has carried out cleanings and investments in infrastructure, in order to ensure an improvement in the quality standard and food safety. The company is currently preparing for a gradual return to production under strict control and will announce this upon receiving approval from the Ministry of Health."
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