Strauss Group Ltd. (TASE:STRS) reported double-digit revenue and profit growth for the third quarter of 2011, despite the summer's social protest and its demand for lower prices. Revenue rose 13.8% to NIS 2.01 billion from NIS 1.77 billion for the corresponding quarter of 2010, while organic sales growth, net of exchange rates effects, was 12.2%. Domestic sales rose 9% to NIS 750 million from NIS 688 million.
Net profit attributable to majority shareholders rose 13.7% to NIS 61 million for the third quarter from NIS 54 million for the corresponding quarter.
Quarterly coffee sales passed the NIS 1 billion threshold, rising 17.7% to NIS 1.02 billion for the third quarter from NIS 868 million for the corresponding quarter. Net of currency exchange rate effects, the growth was 18.1%, while organic growth, excluding acquisitions in Brazil, Russia, and Israel, was 16.4%. Max Brenner chocolate sales rose 24.4% to NIS 36 million for the third quarter from NIS 29 million for the corresponding quarter, and there are 38 Max Brenner Chocolate Bars operating worldwide, 25 of them in Australia.
Strauss chairwoman Ofra Strauss said, “Strauss continued with its strategic plans of international expansion, while emphasizing the adjustments necessary in Israel as a result of public dialogue and the social protest that has erupted over the high cost of living in the country. While investing in international markets and the company's growth engine, Strauss continues to review all work plans to provide an appropriate solutions to the new reality."
In two separate announcements, Strauss says that it has begun collaborating in Israel with international recycling company TerraCycle Inc. to find solutions for hard-to-recycle packs waste. Strauss Frito Lay and TerraCycle will collect and recyc used packs of salty snacks, which includes financial donation to NPO's and schools in return for the collected empty packs.
Strauss also entered the Israeli in-home espresso domain with the acquisition of Espresso Club Ltd. which markets espresso machines and capsules that utilize Italian Caffita System SpA espresso machines.
Strauss' share price rose 0.4% in morning trading on the TASE today to NIS 47.67, giving a market cap of NIS 5 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on November 16, 2011
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