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Report Date : |
28.09.2012 |
IDENTIFICATION DETAILS
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Name : |
OSEM FOOD INDUSTRIES LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.06.2012 |
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Date of Incorporation : |
28.08.1942 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
manufacturers, importers, marketers and exporters of room temperature foodstuff products |
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No. of Employees : |
4,917 employees serving
OSEM Group |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
israel - ECONOMIC OVERVIEW
Israel has a technologically
advanced market economy. It depends on imports of crude oil, grains, raw
materials, and military equipment. Cut diamonds, high-technology equipment, and
agricultural products (fruits and vegetables) are the leading exports. Israel
usually posts sizable trade deficits, which are covered by tourism and other
service exports, as well as significant foreign investment inflows. The global
financial crisis of 2008-09 spurred a brief recession in Israel, but the
country entered the crisis with solid fundamentals - following years of prudent
fiscal policy and a resilient banking sector. The economy has recovered better
than most advanced, comparably sized economies. In 2010, Israel formally
acceded to the OECD. Natural gasfields discovered off Israel's coast during the
past two years have brightened Israel's energy security outlook. The Leviathan
field was one of the world's largest offshore natural gas finds this past
decade. In mid-2011, public protests arose around income inequality and rising
housing and commodity prices. The government formed committees to address some
of the grievances but has maintained that it will not engage in deficit
spending to satisfy populist demands.
|
Source : CIA |
OSEM FOOD INDUSTRIES LTD.
Telephone 972
3 720 50 50; 720 50 30
Fax 972
3 720 50 95
Physical Address:
2 Rimon Street, Osem Compound
Hevel Modi’in Industrial Zone
Mailing Address:
P.O. Box 935
SHOHAM 6085001 ISRAEL
A private limited company, incorporated as per file No. 51-045071-1 on
the 28.08.1942.
Authorized share capital NIS
350,450.00, divided into –
10
founder shares of NIS 0.001 each (issued),
180
ordinary shares of NIS 0.0005 each (issued),
2,499,000 ordinary "A" shares of
NIS 0.0001 each (1,759,000 issued),
350,200,000
ordinary "B" shares of NIS 0.001 each,
of which shares amounting to NIS 176.00 were issued.
(Note: The currency in share capital was
originally in Old Israeli Shekel whose nominal value was 1 thousandth of
the current New Israeli Shekel (NIS), converted in 1986).
Company is fully owned by OSEM INVESTMENTS LTD. (directly and via fully
owned subsidiaries) a public limited liability whose shares of which are traded
on the Tel Aviv Stock Exchange, controlled by NESTLE S.A. (58.8%) concern of
Switzerland, by the Proper Family (5%) and Itzhak Yarkoni (5%).
1. Dan
Proper, Chairman,
2. Gad
Proper,
3. Avraham
Finkelstein,
4. Pinhas
Kimelman, CFO.
Note: Former General Manager of OSEM Group, The Late
Aviezer (Gezi) Kaplan, is still registered as Director (passed away in May
2012).
Itzik Saig
Subject is the chief company in the room temperature foodstuff products
in OSEM (now divided into several segments), as well as in other sectors of
OSEM Group. Subject and OSEM Group operate as manufacturers, importers,
marketers and exporters of a wide range (over 1,000 items) of room temperature
foodstuff product, including powdered soups & stews, sweet and salted
snacks, cookies & cakes, crackers, syrups, chocolate, cereals (“Nestle”
brands), pasta, sauces, baking products, preserves, coffee (brands “Nestle” and
“Tasters’ Choice”), etc.
Local agents of NESTLE, of Switzerland.
16.2% of OSEM Group’s sales are for export in 2011 (17.1% in 2010).
Subject supplies to all supermarket chains and food and retail stores,
institutional market, governmental agencies, Ministry of Defense, etc.
Subject has many suppliers, and Group also uses the central purchasing of
NESTLE concern.
Among local suppliers: APPLIED CHEM, DAGAL FOOD ATTIVES, DANZIV HANDLING
SOLUTIONS, A.D. SINUN, JOLYBAR, HAGARIN,
M.A.M.A.SH., etc.
Operating from Group's
owned headquarters and logistic center, on an area of 100,000 sq. meters
(offices are on an area of 13,000 sq. meters, logistic center are on an a built
area of 40,000 sq. meters), in 2 Harimon Street, Osem Compound, Hevel Modi'in Industrial
Zone (see more in CHARACTER)
The Room Temperature Foodstuff Sector also operates from plants (all
owned) in Sderot (on an area of 43,000 sq. meters), Yoqneam (on an area of
26,000 sq. meters), Holon (on an area of 3,000 sq. meters) and Beit Hashita
(pickles).
There are 4,917 employees serving OSEM Group.
OSEM INVESTMENTS LTD’s current market value US$ 1,458 million.
In February 2012
rating company Midrug extended OSEM's AAA/Stable credit rating, being the first
and only Israeli industrial company with such rating.
Subject and other
companies in the Group are “Approved Enterprises” and as such enjoy tax
benefits and State incentives.
There are no
charges registered on the company's assets.
Financial details are included in the consolidated B/S of parent company,
OSEM INVESTMENTS LTD., which shows:
NIS
(thousands)
31.12.2011 30.06.2012
ASSETS
Current assets:
Cash and cash equivalents 104,479 121,722
Customers 655,529 778,833
Other debtors 31,496 31,555
Other assets and investments 28,598 19,864
Stock 388,191 396,228
1,208,293 1,348,252
Non-current assets
Fixed
assets 1,147,321 1,141,544
Intangible
assets 1,018,919 1,005,899
Other assets 56,563 71,320
2,222,803 2,218,763
3,431,096 3,567,015
======== ========
LIABILITIES
Current liabilities 1,172,467 1,140,570
Non-current liabilities 429,675 413,945
Equity 1,828,954 2,012,500
3,431,096 3,567,015
======== ========
Based on OSEM INVESTMENTS financial statements, Room
Temperature Foodstuff Sector sales (where subject is the major contributor)
are:
2008 sales - NIS 1,910,841,000, operating profit - NIS 273,508,000.
2009 sales - NIS 1,947,125,000, operating profit - NIS 313,472,000.
In 2010 Group changed its sector division, and Room Temperature Foodstuff no longer stands as a sector on its
own.
Subject ended 2008
with a net profit of NIS 52,636,000.
Subject ended 2009
with a net profit of NIS 76,093,000.
Subject ended 2010
with a net profit of NIS 60,429,000.
Subject ended 2011
with a net profit of NIS 58,000,000.
OSEM
INVESTMENTS LTD.
Consolidated
Statement of Income
NIS
(thousands)
Year
ended 31.12
2009 2010 2011
Sales 3,396,714 3,807,204 3,960,877
Gross profit 1,419,514 1,642,644 1,651,395
Operational profit 427,155 480,495 499,278
Pre-tax income 390,974 429,429 467,644
Net profit 291,277 316,479 340,980
========= ======== ========
OSEM INVESTMENTS LTD. consolidated first 6 months
of 2012 sales were NIS 2,008,445,000 (1.7% increase compared to the parallel
period in 2011), making a gross profit of NIS 824,357,000, an operating income
of
NIS 246,252,000 and a net income of NIS
180,320,000.
OSEM INVESTMENTS LTD., parent company, a holding and manufacturing
company, heading the OSEM food concern. The OSEM Group of Companies includes
(main ones, all 100% unless otherwise stated):
MIGDANOT HA’BAIT LTD.,
OSAMIM (1954)
LTD., deals in gift packages and OSAMIM GIFTS,
BEIT HASHITA-ASIS FOOD INDUSTRIES LP, pickles manufacturers,
MATERNA INDUSTRIES LP, 51%, developers, manufacturers of baby food.
Chilled and Frozen Food Sector
NOGA ICE CREAM LIMITED PARTNERSHIP, “Nestle” ice cream manufacturing,
BONJOUR (1986) LTD., pastries,
TIVALL (1993) LTD., manufacturers, exporters and marketers of frozen meat
free, vegetable-based readymade meals and meat substitutes. Fully owns: TIVALL
FOOD INDUSTRIES LTD., manufacturers, exporters and marketers of chilled salad
products and TRIBE MEDITERRANNEAN FOODS INC., chilled salads and food in the
USA.
Trade and Distribution
OSEM GROUP TRADING LP,
OSEM U.K. LTD., London,
OSEM U.S.A. Inc., N.J., USA.
TIVALL EUROPE LTD.
OSEM Group has many more holding and real estate companies.
Bank Hapoalim Ltd.
Central Business Branch (No. 600), Tel Aviv
Bank Leumi
Le’Israel Ltd., Tel Aviv Central Branch (No. 800), Tel Aviv.
Israel Discount
Bank Ltd., Main Tel Aviv Branch (No. 010), Tel Aviv.
In July 2012, a
motion was submitted to the Central District Court for the approval as a class
action lawsuit, for the sum of NIS 40 million, following an ammonia leak in its
plant in Shoham (another motion was submitted to the Tel Aviv District Court on
same grounds in June 2012 for NIS 2012). It should be noted that the procedure
for such claims to be approved are usually long and mostly eventually turned
down.
Nothing
unfavorable learned apart from that.
OSEM is the 3rd
largest food concern in Israel.
OSEM Group is
considered the second strongest label in Israel after TNUVA, and is ranked the
3rd largest supplier of all of Israel’s marketing chains (after
TNUVA and the ELITE-STRAUSS Group).
OSEM Group has a
leading market share (bar coded market) in pasta 55%, and in other various
products such as: soups and souses 39%, instant coffee 41% and pickles 37%.
Subject’s salted snack “Bamba”, a leading brand, is the most popular in
Israel in its kind ever (63% market share), with a 38% market share of all
salty snacks and pastries bar coded market, and 41% of market share of cakes
bar coded market.
In the beverages
branch, OSEM held 1.9% market share in 2011.
In April 2001 it was reported that subject will start to buy its imports
directly from the manufacturing companies in the NESTLE Group, rather than the
Group trading company NWTC.
In July 2001 subject inaugurated its new chips snacks plant in Sderot.
Subject invested NIS 7 million in building the plant and intends to invest
additional NIS 20 million in order to increase its manufacturing lines.
In October 2002, OSEM signed a deal to acquire the pet food activities of
the UNILEVER Group, for a sum of NIS 11 million.
As part of a
re-organization in OSEM Group, OSEM sold its property (and former long serving
premises) in Petach Tikva in December 2007 for NIS 98 million, and completed
the transfer to the new logistic center and headquarters erected in Hevel
Modi’in, near the Ben Gurion International Airport in May 2008, with a total
investment of over NIS 400 million.
In March 2004, subject reported it acquired Kibbutz Beit Hashita shares
(49%) in BEIT HASHITA-ASIS, for a sum of NIS 15 million.
In August 2008 parent company TIVALL acquired all the activities of
TRIBE, which deals in the chilled salads sector in the USA for the sum of US$
57 million, gaining a 17% in market share.
In December 2009
OSEM completed the acquisition of 51% of MATERNA LABORATORIES LTD shares from
MAABAROT PROD
In November 2010 OSEM gained full ownership over TIVALL, local leading
vegetable-based meat substitutes manufacturers, after acquiring (having 58%)
for NIS 468 million.
In February 2012 it was reported that ISROTEL (a leading hotel chain),
chose Group to supply breads and pastries (via BONJOUR), valued at NIS 8
million.
On the 02.04.2012 subject's and OSEM's General Manager Aviezer (Gezi)
Kaplan retired, replaced by Itzik Saig.
The local market for food & beverages grew by 11.4% from 2008 to
2011, summing up to NIS 35.15 billion, around 4.5% increase (in money terms) in
2011 from 2010. In 2012, from January to August, the market noted a mild growth
of 1.2% comparing to the parallel period in 2012. It was divided to a 1.5%
increase in the food branch, but some 3.8% decrease in the beverages branch.
According to the Industrialists' Association, 2008 sales by the local food
industries reached NIS 56 billion, of which NIS 53 billion were to the local
market, the rest for export. In real terms, sales fell by 1.5% from 2007. Some
NIS 43 billion of sales came from sales of food products. Local food industries
marked a decrease in 2009 due to the slow-down in local economy and global
economic crisis, although decrease was relatively mild, mainly as the economic
climate ameliorated in the 2nd half of 2009.
In 2011 sales for exports by the food & beverages industries rose by
16.6%, reaching US$ 929.8 million (rose by 9.8% in 2010 after export rate fell
in 2009 by 11% from 2008).
Import of food and beverages to Israel in 2011 summed up to US$ 2,358.2
million, rising by 18.7% from 2010, which comes after a by 15.5% increase in
2010 from 2009 (when import decreased by 9.4% comparing to 2008 due to the
slow-down in local economy). However, the trend has shown a reverse in 2012
first half, with a decrease in import of food.
Local food industry employs over 61,000 workers.
According to Central Bureau of Statistics (CBS) data,
investments in machinery & equipment from import for the food industry in 2011
summed up to NIS 929.5 million, 47.7% rise from 2010 (after 15.4% increase in
2010), while investments in machinery & equipment from import for the
beverage & tobacco industries rose by 2% to NIS 379.7 million (rose 9.7% in
2010).
The
Central Bureau of Statistics data shows that import of raw food
products to Israel in 2011 summed up to US$ 2,062.6 million, 23% increase from
2010 (a similar growth trend to 2010 from 2009, a year which witnessed a 20%
decrease from 2008). Over 50% of import is from the EU.
According
to the CBS, the total household expenditure for private consumption in 2011 on
food, beverage and tobacco rose 3.7% from 2010, after 4% rise in 2010 from
2009, reflecting an improvement trend in the loacl market after the general
slow-down in economy in 2009.
Good for trade engagements.
Good for all credits.
Note: Subject moved from 61 Jabotinsky St.
(which was in Petach Tikva, not Tel Aviv) several years ago. Please refer to
a/m address.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.53.26 |
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UK Pound |
1 |
Rs.86.23 |
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Euro |
1 |
Rs.68.64 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.