Ofra Strauss
Photo: Sivan Farag
Strauss revenue drop 23% in 2011
Social protest, consumer boycott bites into food conglomerate's net profits
Last summer's social protest and difficulties in global markets have taken a bite out of Strauss' profits in 2011, as the food conglomerate's performance report noted a 23.6% drop in gross profits.
The company reported a net profit of NIS 161 million ($43.4 million), compared with NIS 211 million ($56.8 million) in 2010.
Consequences
Golan Hazani, Calcalist
Social protest hurt Israel’s largest dairy company’s bottom line, says CEO
Despite the ramifications of consumer boycotts, Strauss' saw a favorable fourth quarter, noting a rise of 15% in sales, which came to NIS 2.07 billion ($557.5 million).
Overall annual sales grew by 12.3% and reflected a growth in all of Strauss' divisions.
The company also noted a 4.8% drop in its operational revenue.
In 2011, the Strauss Group employed 14,122 workers, an increase from 2010's 13,883, which the company said reflects various efficiency measures.
"The consumer protest in Israel means we must improve further and become more efficient in our organizational adjustments, which will be in line with the new reality and increase the added value we can offer consumers," Strauss Group Chairwoman Ofra Strauss said.
"We also continue investing in innovations and it bolstering the foundations of our international growth."
