Food company Osem Investments Ltd. (controlled by Nestle SA (SWX:NESN)) (TASE: OSEM) reported its third quarter results this morning. Sales turnover for the third quarter was NIS 1.128 billion, compared with NIS 1.08 billion in the corresponding quarter of 2013, representing a rise of 4.2%.
For the first nine months of 2014, sales turnover totaled NIS 3.22 billion, compared with NIS 3.15 billion in the corresponding period of 2013, representing a rise of 2.2%.
Sales in the third quarter of 2014 were positively affected by the timing of the Jewish holiday season, which this year mostly fell in the fourth quarter, allowing more shopping days in the period leading up to the holidays, in contrast to last year, when the holidays fell mostly in the third quarter.
The group's gross profit in the third quarter grew 2.5% to NIS 474 million, compared with NIS 463 million in the corresponding quarter.
Osem's operating profit before one-time revenue and expenses totaled NIS 144.4 million in the third quarter, compared with NIS 142.2 million in the corresponding quarter, representing growth of 1.6%. Third quarter operating profit as a percentage of turnover fell from 13.1% to 12.8%.
Net profit in the third quarter of 2014 was NIS 102 million, compared with NIS 101.3 million in the corresponding quarter, representing growth of 0.7%. In the first nine months of 2014, net profit totaled NIS 299.7 million, compared with NIS 286 million in the corresponding period of 2013, representing growth of 4.8%.
Osem says that the growth in net profit in the first nine months of 2014 was achieved thanks to improved operating profit and a fall in finance expenses. "These improvements in profit are mainly a result of the group's policy in recent years of expanding activity by promoting Nestle products, penetrating new areas of business in Israel and overseas, and launching new products, alongside consolidation and streamlining measures."
Published by Globes [online], Israel business news - www.globes-online.com - on November 23, 2014
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