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Israeli foodmaker Strauss says U.S. delays may hit 2022 results -Breaking

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© Reuters. FILE PHOTO – Food products from Israeli company Strauss Group were displayed at an Israeli news conference held in Tel Aviv on March 13, 2019. REUTERS/Tova Cohen

JERUSALEM, (Reuters) – Israeli foodmaker Strauss Group warned Wednesday that delays in manufacturing at the Sabra Dipping Co. site in the United States could further impact its 2022 results.

“The company anticipates further negative impact on Sabra’s operating results in 2022, including in Sabra’s sales volumes and profit, which may also impact the company’s results,” Strauss said in a statement.

“Currently, it is impossible to assess the effect on Sabra’s and the company’s performance.”

Strauss is a producer of coffee, snacks and fresh foods with a 12.4% Israeli market share. It reported last month that it earned 2021 profits of 639,000,000 shekels ($199m) on an 8.4% increase in revenues to 8.7 Billion shekels.

Sabra and its joint venture in international dips & spreads Pepsico (NASDAQ:) In the same period, operating profit dropped 42% to $11 Million due to increased manufacturing costs and the partial shut down of the plant in December.

Strauss informed the U.S. Food and Drug Administration that it had initiated an adjustment plan at Sabra’s Virginia plant. This will result in a temporary decrease in production and lower manufacturing costs.

Strauss said in February it anticipated a full return to capacity during the second quarter (2022).

It updated the timeline Wednesday and blamed further delays on manufacturing interruptions over the last few days.

It stated that there would be significant delays in the process and adjustments to timing and scope.

($1 = 3.2176 shekels)

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