- Tnuva Group profits in the second quarter of 2013 totaled about NIS 127 million. The company’s revenues increased by approximately 4.5% and amounted to NIS 1.83 billion.
The company's profits declined from the second quarter of 2012, in part due to increased marketing activities and new launches.
Tnuva released today, through the Mivtach-Shamir Group, its results for the second quarter of 2013:
- Company revenues amounted to about NIS 1.83 billion compared with about NIS 1.75 billion in the same quarter in 2012, representing an increase of about 4.5 %.
- Gross profit of the company increased to NIS 510 million, compared with about NIS 508 million in the second quarter last year.
- Operating profit decreased from about NIS 165 million in the second quarter last year to about NIS 141 million in the second quarter of 2013, a decrease of 14 %, due to increased marketing activities and new launches
- Tnuva Group profits in the second quarter of 2013 amounted to about NIS 127 million. Net profit excluding other income / expenses (including mainly gains from sale of real estate and tax thereon) fell to NIS 100 million compared with NIS 110 million in the same quarter last year.
To sum up the first six months results:
- Tnuva Group sales for the first half of this year amounted to NIS 3.586 billion compared with NIS 3.412 billion in the first half of last year, an increase of 5.1%. The increase resulted mainly from an increase in sales of the commodities sector (mainly milk, eggs and poultry).
- Tnuva’s gross profit for the first half year in 2013 amounted to NIS 970 million which is 27% of sales, compared with NIS 978 million, representing 28.6% of sales, in the same period last year.
- The decrease in the gross profit derives primarily from a delay in updating the regulated prices of dairy products in relation to the increase in the target price of raw milk.
- Tnuva’s operating profit for the first half year in 2013 was about NIS 273 million, compared to about NIS 304 million in the same period last year.
The decrease in operating income is due to the decrease in gross profit and an increase in marketing expenses and new launches.
Arik Schor, Tnuva CEO, said: "Tnuva Group sales in the first half of the year rose by 5.1%. The increase resulted mainly from an increase in sales of the commodities sector, especially milk, eggs and poultry. The decline in profits was mainly due to the pricing of dairy products that did not cover increases of the target price and production costs".
Schor said in addition: "The Group dealt with competition in all aspects of its operations by launching new added-value products, such as a low-sugar chocolate drink."