Food manufacturer Osem Investments Ltd. (TASE: OSEM) today published its financial report for the second quarter of 2007. Strong frozen food sales boosted the company’s revenue and profits for the quarter.
Osem posted NIS 712.9 million revenue for the second quarter, up 9.1% on the corresponding quarter. Frozen foods sales helped boost domestic revenue by 9.8% to NIS 616.1 million, 86.4% of total sales.
The company posted a net profit of NIS 49.5 million for the second quarter, up 8.7% on the corresponding quarter. Operating profit rose 9% to NIS 77.6 million, thanks in part to consolidation of the company’s baked goods business - including its merged bakeries in Carmiel and Yokne’am - with bakery company Bonjour Ltd. which it acquired last year. At the end of the quarter, the company exercised its option to acquire full control of bakery Migdanot Habait Ltd. for NIS 21.5 million less options and dividends already distributed.
In May, Midroog Ltd. gave Osem an “AAA” credit rating for the purpose of a bond issue for up to NIS 500 million. Proceeds are designated for investment in the company’s national logistics center, construction of the Tivall Ltd. plant in the Czech Republic, and the acquisitions of food companies.
Osem said that it has not made a provision for the request for a NIS 50 million class action suit against the company over issue of improper procedures at the company’s refrigeration warehouses in Petah Tikva on the grounds that “the lawsuit will probably be dismissed”.
Nestle (SWX:NESN) controls Osem.
Published by Globes [online], Israel business news - www.globes.co.il - on August 19, 2007
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