Israeli food firm Strauss reports profit jumps on coffee, dips
Strauss chief says 'focused strategy, innovation, investment in strengthening brands' increased sales.
Israeli food and drinks maker Strauss Group posted sharply higher second quarter net profit, boosted by income at its international coffee and its spreads and dips operations.
The company said on Tuesday its net profit excluding one-off items more than doubled to 75 million shekels ($21 million) from 35 million in the same period last year.
Sales rose 4.2 percent to 2.0 billion shekels.
Strauss, a maker of snacks, fresh foods and coffee, is a market leader in roast and ground coffee in central and eastern Europe. It is the second-largest company in the Israeli food and beverage market with an 11.8 percent market share.
The company posted top-line growth in all activity segments, particularly Strauss Israel, Chief Executive Gadi Lesin said.
"Focused strategy, innovation, investment in strengthening our brands and smart cost management also led to significant growth in the group's operating and net profit," he said.
Global coffee sales rose 0.9 percent to 992 million shekels while operating profit in the segment jumped by nearly 72 percent to 99 million. Much of the growth in profit was due to improvement at its Tres Coracoes joint venture in Brazil.
Sales at its international dips and spreads joint venture half-owned by PepsiCo grew 22 percent in the quarter while operating profit rose 28 percent.