Currency effects on coffee sales hit Israeli foodmaker Strauss
JERUSALEM Nov 24 (Reuters) - Israeli food company Strauss Group reported a 28 percent fall in third-quarter profit on Tuesday, hurt by currency effects on coffee sales in emerging markets.
Strauss, the second-largest company in the Israeli food and beverage sector, is a market leader in roast and ground coffee in central and eastern Europe and Brazil, where it was hit by the weakening of the Brazilian real and Russian rouble.
Coffee revenue, which accounts for 44 percent of total sales revenue, dropped 14 percent to 876 million shekels ($225.8 million), the company said.
Excluding foreign currency effects, coffee sales rose 12.7 percent.
The maker of snacks, fresh foods and coffee, which also had to contend with a new Israeli law aimed at lowering food prices, reported adjusted profit of 86 million shekels in the three months to Sept. 30, against 119 million shekels a year earlier.
Total sales revenue slipped 7.6 percent to 2 billion shekels but was up 3.2 percent excluding foreign currency effects and the impact of the new food law.
Sales at its Sabra international dips and spreads joint venture, which is half owned by PepsiCo, grew 19 percent. Strauss said that Sabra has a 60 percent market share of hummus in the United States.
Strauss declared a quarterly dividend of 100 million shekels, or 0.93 shekels a share. ($1 = 3.8790 shekels)
(Reporting by Steven Scheer; Editing by David Goodman)
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