TEL AVIV, March 28 Israeli food company Strauss
Group reported a 22 percent drop in quarterly net
profit on Tuesday, hurt by a recall in November of its Sabra
spreads in the United States.
Strauss, a maker of snacks, fresh foods and coffee, reported
adjusted net profit of 58 million shekels ($16 million) in the
fourth quarter, down from 74 million a year earlier. Revenue
rose 7.2 percent to 2.03 billion shekels.
Separately, Strauss said unit Strauss Coffee has agreed to
buy back a 25.1 percent stake in the company held by buyout firm
TPG Capital Management for 257 million euros.
Strauss is the second-largest company in the Israeli food
and beverage sector.
"Strauss Israel continued to exceed market growth rates in
our home base in Israel and Strauss Coffee posted a set of
excellent results for 2016," said Chief Executive Gadi Lesin.
Coffee sales grew 21 percent to 1.06 billion shekels in
the quarter as EBIT profit rose to 84 million shekels.
Sales at its international dips and spreads joint
ventures with PepsiCo fell 27 percent.
Lesin said a recall of Sabra spreads in the United States in
November "is being responsibly managed to ensure a return to
Strauss said in November the recall would hurt operating
profit by $5 million.
($1 = 3.6100 shekels)
(Reporting by Tova Cohen; Editing by Steven Scheer)