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Strauss Group Announces Fourth Quarter and Fiscal Year 2012 Results, Posting Strong Performance in Sales and EBIT, Primarily



 Strauss Group Announces Fourth Quarter and Fiscal Year 2012 Results, Posting
Strong Performance in Sales and EBIT, Primarily Driven by International Coffee
                      and International Dips and Spreads

  PR Newswire

  TEL AVIV, Israel, March 20, 2013

TEL AVIV, Israel, March 20, 2013 /PRNewswire/ --

   The Group's sales in 2012 and its non-GAAP EBIT totaled a record NIS 8.2
billion and NIS 625 million, respectively - 6.3% sales growth and 9.2% growth
                              in non-GAAP EBIT.

The Group's sales and EBIT hit a record fourth quarter   high as sales in the
fourth quarter totaled NIS 2.1 billion and non-GAAP EBIT, NIS 157 million.

Ofra Strauss, Chairperson of the Strauss Group, said today (March 20, 201 3 ):
"Strauss Group has concluded a year of growth in all segments, particularly in
two key international growth drivers - the coffee company and the
international dips and spreads operation. The strong results in 2012 reflect
the diverse capabilities of the Group, which operates in different regions and
manages a broad business portfolio in the food industry based on a long-term
strategy designed to create value for all stakeholders of the Group."

Gadi Lesin, President and Chief Executive Officer of the Strauss Group, said
today: "The Group's strong performance in the past year is the outcome of
long-term processes executed outside Israel in the last decade in the
international coffee segment and in the international dips and spreads
operation, whose sales in the past year grew by 35%. The Group continues to
realize its global growth and expansion strategy while continuing to invest in
its home base in Israel. The Israeli market continues to pose a challenge, and
accordingly, we have persevered with innovation and the delivery of value to
the consumer while executing dozens of internal streamlining processes."

Key data on 2012 and as at December 31, 2012     ^[1]

  * Sales totaled NIS 8.2 billion (NIS 7.7 billion last year), an increase of
    6.3%; organic sales excluding the effect of changes in exchange rates grew
    by 7.1%.

  * Non-GAAP gross profit totaled NIS 2.9 billion (35.1% of sales) compared to
    NIS 2.7 billion last year (35.1% of sales), an increase of 6.1%.

  * Non-GAAP operating profit (EBIT) totaled NIS 625 million (7.6% of sales)
    compared to NIS 572 million last year (7.4% of sales), an increase of
    9.2%.

  * Non-GAAP net income attributable to the Company's shareholders totaled NIS
    238 million (2.9% of sales) compared to NIS 237 million last year (3.1% of
    sales), an increase of 0.5%.

  * Cash flows from operating activities totaled NIS 663 million compared to
    NIS 298 million last year.

  * The net debt as at December 31, 2012 totaled NIS 1,422 million, compared
    to NIS 1,476 million on December 31, 2011.

Key data on the fourth quarter ^    ^[ ^1 ^]

  * Sales totaled NIS 2.1 billion (NIS 2.1 billion last year), an increase of
    1.6%; organic sales excluding the effect of changes in exchange rates grew
    by 3.6%.

  * Non-GAAP gross profit totaled NIS 738 million (35.1% of sales) compared to
    NIS 688 million last year (33.3% of sales), an increase of 7.1%.

  * Non-GAAP operating profit (EBIT) totaled NIS 157 million (7.5% of sales)
    compared to NIS 154 million last year (7.5% of sales), an increase of
    1.8%.

  * Non-GAAP net income attributable to the Company's shareholders totaled NIS
    68 million (3.2% of sales) in the fourth quarter, compared to NIS 67
    million last year (3.2% of sales), an increase of 2.0%.

--------------------------------------------------

1. Based on non-GAAP data, which do not include share-based payment, valuation
of the balance of commodities hedging transactions as at end-of-period, and
other income and expenses.

ANALYSIS OF FINANCIAL RESULTS     *

Following are the condensed financial accounting statements of income (GAAP)
for the years and quarters ended December 31, 2012 and 2011 (in NIS millions):

                                                            For the Fourth
                                       For the Years            Quarter
                                    2012   2011     % Chg   2012   2011    % Chg
    Sales                           8,182  7,699     6.3    2,103  2,070    1.6
    Cost of sales excluding impact
    of hedging transactions         5,311  4,994     6.4    1,365  1,382   (1.2)
    Valuation of balance of
    commodities hedging
    transactions as at end of
    period                              5     28               27      2
    Cost of sales                   5,316  5,022     5.9    1,392  1,384    0.7
    Gross profit                    2,866  2,677     7.0      711    686    3.5
    % of sales                       35.0%  34.8%            33.8%  33.2%
    Selling and marketing expenses  1,808  1,727     4.7      462    432    6.7
    General and administrative
    expenses                          457    427     6.9      125    100   24.3
    Operating profit before other
    income (expenses)                 601    523    15.0      124    154  (18.7)
    % of sales                        7.4%   6.8%             6.0%   7.5%
    Other income (expenses), net       44    (60) (173.4)      (7)   (53) (85.9)
    Operating profit                  645    463    39.2      117    101   15.9
    Financing expenses, net          (135)  (103)   30.4      (33)   (16) 101.0
    Income before taxes on income     510    360    41.7       84     85   (0.6)
    Taxes on income                  (185)  (127)   46.4      (28)   (39) (26.1)
    Effective tax rate               36.3%  35.1%            33.7%  45.4%
    Income for the period             325    233    39.2       56     46   20.7
    Attributable to:

    The Company's shareholders        244    161    51.3       41     33   20.6
    Non-controlling interests          81     72    12.2       15     13   21.0

* Financial data were rounded off to NIS millions. The percentages change were
calculated on the basis of the exact figures in NIS thousands

Following are the adjustments to the Company's non-GAAP management reports
(NIS millions):

                                                            For the Fourth
                                       For the Years            Quarter
                                     2012   2011  % Chg   2012   2011   % Chg
    Operating profit - GAAP - after
    other income (expenses)            645    463  39.2     117    101  15.9
    Share-based payment                 19     21             6     (2)
    Valuation of balance of
    commodities hedging
    transactions as at end of
    period                               5     28            27      2
    Other expenses (income), net       (44)    60             7     53
    Operating profit - non-GAAP        625    572   9.2     157    154   1.8
    Financing expenses, net           (135)  (103)          (33)   (16)
    Taxes on income                   (185)  (127)          (28)   (39)
    Taxes in respect of adjustments
    to the above non-GAAP operating
    profit                              22     (8)           (6)    (2)
    Income for the period -
    non-GAAP management reports        327    334  (2.2)     90     97  (7.9)
    Attributable to:

    The Company's shareholders         238    237   0.5      68     67   2.0
    Non-controlling interests           89     97  (8.8)     22     30 (29.3)

Following are the condensed results of business operations (based on non-GAAP
management reports) for the years and quarters ended December 31, 2012 and
2011 (in NIS millions):

                                                            For the Fourth
                                       For the Years            Quarter
                                     2012   2011    % Chg   2012    2011   % Chg
    Sales                            8,182  7,699    6.3    2,103  2,070     1.6
    Cost of sales                    5,311  4,994    6.4    1,365  1,382    (1.2)
    Gross profit - non-GAAP          2,871  2,705    6.1      738    688     7.1
    % of sales                        35.1%  35.1%           35.1%  33.3%
    Selling and marketing expenses   1,808  1,727    4.7      462    432     6.7
    General and administrative
    expenses                           438    406    7.9      119    102    17.3
    Operating profit - non-GAAP
    management reports                 625    572    9.2      157    154     1.8
    % of sales                         7.6%   7.4%            7.5%   7.5%
    Financing expenses, net           (135)  (103)  30.4      (33)   (16)  101.0
    Income before taxes on income      490    469    4.5      124    138   (10.0)
    Taxes on income                   (163)  (135)  21.2      (34)   (41)  (14.8)
    Income for the period -
    non-GAAP management reports        327    334   (2.2)      90     97    (7.9)
    Attributable to:

    The Company's shareholders         238    237    0.5       68     67     2.0
    Non-controlling interests           89     97   (8.8)      22     30   (29.3)

Following are the condensed results of business operations (based on non-GAAP
management reports) of the major business sectors for the years and quarters
ended December 31, 2012 and 2011 (in NIS millions):

                                     For the Years     For the Fourth Quarter
                                   2012  2011  % Chg   2012    2011    % Chg
    Israel
    Net sales                      2,901 2,840   2.1    703     679   3.5
    Operating profit                 297   302  (1.5)    66      63   3.6
    EBITDA                           372   374  (0.4)    79      79  (0.5)
    Coffee
    Net sales                      4,206 3,926   7.1  1,125   1,150  (2.2)
    Operating profit                 312   260  20.2     91      82  11.2
    EBITDA                           389   334  16.6    110     101   9.7
    International Dips and Spreads
    Net sales                        522   388  34.6    139     100  39.2
    Operating profit                  44    20 123.6      9       5  64.8
    EBITDA                            64    37  76.7     14      11  47.8
    Other
    Net sales                        553   545   1.4    136     141  (4.1)
    Operating profit (loss)          (28)  (10)          (9)      4
    EBITDA                            28    46 (40.0)    13      17 (24.5)
    Total
    Net sales                      8,182 7,699   6.3  2,103   2,070   1.6
    Operating profit                 625   572   9.2    157     154   1.8
    EBITDA                           853   791   8.0    216     208   4.6

For further information:

Talia Sessler Director of Investor Relations Strauss Group Ltd.
+972-54-5772195 +972-3-6752545 talia.sessler@strauss-group.com

Osnat Golan VP Communications & Digital, Spokesperson Strauss Group Ltd.
+972-52-8288111 +972-3-6752281

Or Gil Messing External Communications Director Strauss Group Ltd.
+972-54-2525272
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