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Israel's Strauss Q1 profit up, raises stake in China water venture
May 29, 2017 / 6:39 AM / 7 months ago

Israel's Strauss Q1 profit up, raises stake in China water venture

TEL AVIV, May 29 (Reuters) - Israeli food company Strauss Group reported an 8 percent rise in quarterly net profit on Monday, boosted by strong coffee sales, and said it exercised its right to raise its stake in a joint water venture in China.

Strauss, a maker of snacks, fresh foods and coffee, reported adjusted net profit of 116 million shekels ($32.5 million) in the first quarter, up from 107 million a year earlier. Revenue rose 10.8 percent to 2.1 billion shekels.

Strauss is the second-largest company in the Israeli food and beverage sector.

Separately, Strauss said it is buying another 15 percent in Qingdao HSW Health Water from Haier for 78.3 million shekels, bringing its holding in the venture to 49 percent. Sales of the joint venture for purifying tap water doubled to 117.9 million shekels in the first quarter.

“Our core operations in coffee and water continue to post steady growth,” Chief Executive Gadi Lesin said.

Coffee sales grew 23 percent to 961 million shekels in the quarter as operating profit rose 14.5 percent to 91 million shekels.

Sales at its international dips and spreads joint ventures with PepsiCo fell 13.7 percent. ($1 = 3.5727 shekels) (Reporting by Tova Cohen; Editing by Steven Scheer)

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