Tnuva announced its 2014 Second quarter financial statements

  • COMTINUED PLACING OF PRODUCTS UNDER PRICE CONTROL AND MARKET SLOWDOWN ARE EVIDENT IN THE GROUP'S RESULTS
  • 28-08-2014
Arik Schor: "The Group is dealing with growing competition and increased control in all of its areas of operation by managing its expenses and streamlining its operations"
Today, Tnuva Group published its results for the second quarter of 2014 through Mivtach Shamir.

Financial highlights:
  • The Group's revenues amounted to NIS 1.73 billion compared to NIS 1.83 billion in the corresponding period last year, a decrease of approximately 5.7%. The decrease is attributable mainly to the placing of soft cheese and whipping cream under price control at the beginning of January 2014, to a reduction in the prices of controlled products and to a decrease in beef and eggs sales.
  • The gross profit amounted to NIS 502 million compared to NIS 506 million in the corresponding period last year, a decrease of approximately 0.9%. Such decrease resulted from the reduced revenues, most of which was compensated by a decrease in the production costs and streamlining of expenses compared to the corresponding period last year.
  • The gross profit rate climbed from 27.6% in the corresponding period last year to 29% and reflects the foregoing decrease in production costs and streamlining of expenses.
  • The operating income amounted to NIS 137 million compared to NIS 141 million in the corresponding period last year, a 2.5% decrease. The decrease is attributable to the decline in the gross profit and in the Group's share of investees' profits, which was partly offset by streamlining of marketing and sales expenses.
  • The net profit amounted to NIS 86 million compared to NIS 127 million in the corresponding period last year, a decline of 32.1%. This is mainly attributed to substantial real estate revenues recognized in the corresponding period last year.
  • The net profit excluding other income and expenses (which in the corresponding period included mainly profits from the sale of real estate and their related tax effect) amounted to NIS 95 million compared to NIS 99 million in the corresponding period last year, a decrease of 4.6%. 
Arik Schor, Tnuva Group's CEO: "The Placing of products under price control and the market slowdown are evident in the Group's results. The results of the second quarter reflect the challenges which the Group is facing in bringing added value to the consumers of its products, while adapting its expenses to the competitive environment, to the price control and the to the changing consumer behavior in the food market."
Yaacov chen, Tnuva Group’s Chief Financial Officer: "Substantial capital gains from real estate were recorded in the Group's financial statements for the corresponding period last year. After excluding the aforementioned capital gains, the Group's other income and expenses and their related tax effect , the results of the second quarter are lower by NIS 4.6 million, a decrease of 4.6% compared to the corresponding period last year. The net profit for the first half of 2014 excluding the foregoing is higher by NIS 1.7 million compared to the corresponding period last year."

Highlights of the results of the first half of 2014:
  • The Group's revenues amounted to NIS 3.45 billion, compared to NIS 3.59 billion in the corresponding period last year, a decrease of approximately 3.8%. Such decrease is attributable mainly to the placing of soft cheese and whipping cream under price control at the beginning of January 2014, to a reduction in the prices of controlled products, and to a decline in the sales of beef and eggs.
  • The gross profit amounted to NIS 985 million compared to NIS 962 million in the corresponding period last year, an increase of approximately 2.4%. Such increase is attributable to the decrease in production costs in the first half of 2014 compared to the corresponding period last year and to streamlining measures taken by the Group.
  • The gross profit rate increased from 26.8% in the corresponding period last year to 28.5% and reflects the decrease in the production costs in the first half of 2014 and the foregoing streamlining measures taken throughout the Group.
  • The operating income amounted to NIS 269 million compared to NIS 273 million in the corresponding period last year, a decrease of 1.3%. Such decrease is attributable to the non-recurring positive impact of general and administrative expenses in the first quarter of last year and the decline in the Group's share in its investees' profits.
  • The net profit amounted to NIS 172 million compared to NIS 216 million in the corresponding period last year, a decrease of 20.2%. The main difference is attributable to substantial real estate revenues in the corresponding period last year  which was partly offset by a decrease in the net financing expenses of the Group.
  • The net profit excluding other income and expenses (which in the corresponding period, include mainly profits from sale of real estate and their related tax effect) amounted to NIS 187 million compared to NIS 185 million in the corresponding period last year, an increase of 0.9%.
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