Israeli food manufacturer Strauss Group has reported year-on-year revenue growth of 6.5% to NIS 9.5 billion (€2.4 billion) (organic, excluding foreign currency effects) in its financial year 2022.
Gross profit was down 12.3% and amounted to NIS 2.8 billion (€709 million), with the gross margin falling to 29.8% compared to 36.9% in 2021.
Strauss Group has claimed that gross profit and margin erosion was largely due to the recall in its confectionery division, the adjustment plan in the Sabra facility, and the rising prices of green coffee, raw milk, packaging materials and energy.
The group noted that these factors led to the erosion of its operating profit, which dropped 61.4% compared to 2021 to NIS 379 million (€96 million), and a decline of 72.9% in net profit, which dropped to NIS 174 million (€44 million).
Strauss Israel ended 2022 with sales worth NIS 3.5 billion (€887 million), down 8.9% year-on-year. The company delivered sales growth across all divisions, especially in dairies, food, and salty snacks, which offset the drop in sales in the confectionery division.
In 2022, Strauss Israel continued to launch new products, including new Danone Pro items and Pro beverages.
It expanded the Alpro offering of plant-based drinks, Danone Multi for the Third Age, and launched other product variation throughout the year in other divisions.
"In the past few months, we made changes in the group's management," said Ofra Strauss, chairperson of Strauss Group.
"We are investing in innovation, upgrading our production sites and continuously adapting ourselves to fulfill emerging expectations, while maintaining our commitment to improve our positive impact on people and on the environment."
Read More: Israeli Foodmaker Strauss To Raise Prices As Costs Soar
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