- INCREASE IN REVENUES, GROSS PROFIT, AND OPERATING PROFIT COMPARED TO THE PREVIOUS YEAR; NET PROFIT DECREASED DUE TO THE SALE OF REAL ESTATE ASSETS IN THE PREVIOUS YEAR
Arik Schor, CEO of Tnuva: "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 of operations across all lines of business
Tnuva released today, through Mivtach Shamir Co., its audited results for the year 2013.
- Group revenue amounted to approximately NIS 7.17 billion compared to NIS 6.9 billion in 2012, an increase of approximately 4.37% compared to last year. The increase is mainly due to increased sales in all lines of business.
- Gross profit amounted to NIS 1.97 billion, compared with NIS 1.89 billion in 2012, an increase of approximately 4.35% over last year. Gross profit margin remained stable at approximately 27.5%.
- Operating income amounted to NIS 614 million compared with NIS 566 million in 2012, an increase of approximately 8.5% compared to last year. The increase was mainly due to the increase in gross profit and the improvement in results of our affiliated companies. Such improvement was partially offset by the increase in the SG&A due to the launch of new products and in light of growing competition.
- Net profit for 2013 amounted to about NIS 520 million compared with NIS 1,176 million in 2012, a decrease of approximately 55.8% compared to last year. The decrease in the net profit derived mainly from income from the sale of major real estate properties in the corresponding period last year.
Arik Schor, Tnuva Group's CEO, said: "2013 was a year in which competition grew and Tnuva faced increasing competition in all lines of its operations. 2013 results reflect Tnuva’s efforts to improve Group's products and bring added value to customers and consumers of various categories, such as the lunch of Tnuva's program for better nutrition of which, among others, low-sugar milk drinks and desserts for children, low-sodium cottage cheese and a wider variety of quality frozen fish over a wide area, were lunched and in improving the product range for customers of the professional market."
Schor added: "This year we focused on improving intra-organizational processes as well as prudent management of expenses across all lines of business, to support growth in operation without a corresponding increase in costs."
Yaacov Heen, Tnuva Group's CFO, said: "Group's results are significantly affected by real estate sales as well as the tax effects in the last two years. Real estate, produced exceptionally high profits last year, and this year exceptional tax effects were recorded due to the change in corporate tax for 2014, resulting in deferred tax expenses in the third quarter, on the other hand, a positive tax effect was recorded due to finalizing tax assessments of previous years. After eliminating these effects, the net profit amounted to NIS 447 million in 2013 compared to NIS 378 million in 2012, reflecting the Company's continued efforts to improve its product range to the consumer while maintaining operational efficiency."