Tnuva reports financial results for the third quarter of 2013

  • Overall Growth performance indicators compared with the same quarter last year
  • 27-11-2013

Arik Schor: "The Group is handling increasing competition in all areas of operations through new product launches that bring added value to the consumer coupled with better, prudent and more efficient expense management as well as streamlining its operations.
Tnuva released today, through Mivtach Shamir Company, the Group results for the third quarter of 2013."

Results highlights:

  • Group revenues totaled NIS 1.78 billion, 2% increase compared with the same quarter last year.
  • Gross profit amounted to NIS 506 million, 7% increase compared with the same quarter last year. Gross profit margin was 28.5% compared with 27.1% in the same quarter last year. Improvement is attributed to streamlining as well as prudent and more efficient expense management.
  • Operating income amounted to NIS 158 million, an increase of 17% compared with the corresponding quarter last year. Increase is attributed to the improvement of gross profit and the improvement of the results of affiliated companies, partially offset by an increase in sales and marketing activity.
  • Net profit totaled NIS 79 million, a decrease of approximately 49% compared with the same quarter last year. The decrease derived from non-recurring tax expenses due to the increase of corporate tax rate to be effective in January 2014 (from 25% currently to 26.5%), amounting to NIS 28 million, compared with non-recurring tax income in the same quarter last year.
  • Net profit excluding other income/expenses (which include primarily gains from sale of real estate and related tax), and after excluding the impact of the expected increase enacted Tax rate on the outstanding tax liability, net, rose to NIS 105 million, compared with NIS 92 million in the same quarter last year.

Arik Schor, CEO of Tnuva: "The third quarter results reflect Tnuva’s efforts to create added value to Group's products for our customers and consumers in all categories, such as reduced sugar milk drinks and a broader range of frozen fish marketed across more locations, as well as improving professional markets' product range. These efforts are reflected in the business results of operations, growing market share, and in the growth of the company.”

Schor further commented: "The Group is handling increasing competition in all areas of operations through new product launches that bring added value to the consumer coupled with better, prudent and more efficient expense management as well as streamlining its operations.”
Yaacov Heen, Tnuva's Chief Financial Officer: "The Group recorded a non-recurring tax expense of NIS 28 million as a result of an increase in the enacted tax rate to be effective as of January 2014 (from 25% currently to 26.5%) in this quarter. After eliminating such tax expense and other income and expenses (including primarily gains from sale of real estate) and the related tax, the results for the third quarter of 2013 are NIS 13 million higher than the same period last year. For the 9 month accumulated period, net profit excluding the above was NIS 7 million lower versus comparative period last year."

Highlights of 9 month accumulated results of 2013:

  • Sales for the 9 month period amounted to NIS 5.36 billion, versus NIS 5.15 billion in the comparative period last year, an increase of approximately 4%. The increase is mainly attributable to increased sales of commodities (milk, eggs, and poultry).
  • Gross profit for the 9 month period amounted to NIS 1.47 billion representing 27.5% of sales, versus NIS 1.45 billion representing 28.15% of sales in comparable period last year.
    The decrease in the rate of gross profit was due to, inter-alia, from the fact that regulated prices of milk products increased only partially relative to the increase of target price for raw milk.
  • Operating profit (before other income and expenses) for 9 month period was NIS 431 million versus NIS 439 million in comparable period last year. The decrease in operating profit derives primarily from an increase of marketing expenses as well as new launches.
  • The net profit of Tnuva for the 9 month period amounted to NIS 295 million compared with NIS 1,086 million in the comparable period last year. The decrease in the net profit derived mainly from income from the sale of major real estate properties in the comparable period.
  • Net profit excluding other income/expenses (which include primarily gains from sale of real estate and related tax), and after eliminating the impact of expected increase in enacted tax rate on the outstanding tax liability, net, decreased to NIS 294 million, versus NIS 301 million in the corresponding period last year. The decrease in operating income is mainly due to an increase in marketing expenses as well as new launches.

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