TEL AVIV (Reuters) - Israeli food producer Strauss Group (STRS.TA) said second-quarter net profit rose 9.5% as strength in its home market, water division and Pepsico (PEP.O) joint venture outweighed the impact of a firmer shekel on overseas sales.
Strauss, a maker of snacks, fresh food and coffee, said on Tuesday it earned adjusted net profit of 121 million shekels ($35 million) in the April to June period, up from 112 million a year earlier, citing “productivity implementations”.
Revenue slipped 1.4% to 2.07 billion shekels but excluding foreign currency effects increased 1.7%, which Strauss said reflected weakness in the currencies of its coffee company’s global markets.
“The group’s other businesses – Strauss Israel, Sabra and Strauss Water – delivered growth and continued improvement in earnings and profit margins,” Strauss chief executive Giora Bardea said.
Sales at its international dips and spreads joint venture with Pepsico rose 6.8% excluding exchange effects, while sales in its water business grew 1.7% and sales in Israel rose 3.3%.
Coffee sales fell 6.6% from a year earlier to 913 million shekels, but slipped only 1.3% excluding foreign exchange effects. Strauss is one of the market leaders for roast and ground coffee in central and eastern Europe and Brazil.
Strauss is the second-largest company in the Israeli food and beverage sector.
($1 = 3.4791 shekels)
Reporting by Rami Ayyub; Editing by Steven Scheer and Jan Harvey