Strauss Group concludes 2014 with 4.2% organic sales growth excluding foreign currency impacts and 12.6% growth in net profit, thanks in part to income from the revaluation of currency hedging transactions.
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Q4 organic sales growth, excluding the foreign exchange effect, was 2.8%. Shekel sales were NIS 2.1 billion, up 0.3%, and reflected NIS 60 million negative translation differences as a result of the continued strengthening of the NIS versus other functional currencies of the Group.
Q4 gross profit was NIS 750 million (36.1% of sales), down 6.0% compared to the corresponding period last year. Gross margins were down 2.4%.
Operating profit (EBIT) was NIS 143 million (6.8% of sales), down 10.1% compared to the corresponding period last year. EBIT margins were down 0.8%.
EPS was NIS 0.78 per share, up 18.2% compared to the corresponding period. The growth in EPS was mainly due to a decrease in the company’s net financing expenses, primarily reflecting income from hedges on the dollar against the ruble and on the dollar versus the shekel, thus partially offsetting the impact of the devaluation of the ruble on the cost of sales. The increase in profit also reflects a decrease in tax expenses.
Cash flows from operating activities were NIS 287 million, compared to NIS 266 million in t
Full year 2014
Organic sales growth, excluding the foreign exchange effect, was 4.2%. Shekel sales were NIS 8.1 billion, similar to last year, and reflected NIS 333 million negative translation differences as a result of the continued strengthening of the NIS versus other functional currencies of the Group.
Gross profit was NIS 3,119 million (38.3% of sales), up 0.1% compared to last year. Gross margins were up 0.1%.
Operating profit (EBIT) was NIS 746 million (9.2% of sales), down 3.1% compared to last year. EBIT margins were down 0.2%.
EPS for shareholders of the company was NIS 3.47 per share, up 12.1% compared to last year. The growth in EPS was mainly due to a decrease in the company’s net financing expenses, primarily reflecting income from hedges on the dollar against the ruble and on the dollar versus the shekel, thus partially offsetting the impact of the devaluation of the ruble on the cost of sales. ■