Israel’s food company Osem Investments Ltd, which is controlled by Nestle, reported a strong third quarter for 2014.
The company reported an increase in quarterly net profit of 0.7% in part due to the increased demand of the Jewish holidays which fell during September. Quarterly sales rose 4.2%.
Its net profit rose to 102 million shekels ($26.5 million) from 101.3 million a year ago. In the first nine months of 2014, net profit totaled NIS 299.7 million ($78 million), compared with NIS 286 million ($74 million) in the corresponding period of 2013, representing growth of 4.8%.
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%.
The group’s gross profit in the third quarter grew 2.5% to NIS 474 million ($123 million).
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%.
Osem stated that the growth in net profit in the first three quarters of 2014 was due 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.”