© Shutterstock In the shadow of the salmonella crisis: CEO of Strauss Israel Eyal Dror is stepping down
| Hayali Jacobi-Handelsman, Israel Hayom |
Strauss Israel CEO Eyal Dror announced today (Wednesday) the end of his position after five years. In the coming months, Dror will accompany the chosen replacement and take part in leading strategic projects in the group. After that, he will go on behalf of the group to a dedicated course for senior managers at Harvard. The departure comes against the background of the salmonella affair at the plant The company’s chocolates in the Galilee landscape earlier this year.
Dror, who took office in 2018, dealt with one of the most complex events the company has known in the last year. At the end of April this year, Strauss announced a call to return chocolate products produced in the factory since February 20 of this year. The event became the largest recall case in the history of the economy, with extensive financial consequences for the company.
From the financial reports of Strauss in the third quarter, it emerged that Strauss Israel ended the quarter with revenues of approximately NIS 871 million, a decrease of approximately 10.7%, which is mainly due to a decrease of approximately 47% in sales from the pleasure and enjoyment sector, which totaled approximately NIS 143 million in the quarter Due to the consequences of the recall event in the sweets division.
At this time (of the financial statements), the company updated the assessment of the damage to the net profit for 2022 due to the recall event and the shutdown of the plant to a range of NIS 290-310 million.
The consequences of the recall event and the adjustment plan in Sabra, as well as the increase in the prices of raw materials, primarily raw milk, green coffee, packaging prices and transportation costs eroded by 9.9% the company’s gross profitability which amounted to approximately NIS 746 million in the quarter, a gross profitability rate of approximately 30%.
The operating profit in the quarter was also eroded due to these reasons and amounted to approximately NIS 111 million – a decrease of approximately 63.3% compared to the corresponding quarter last year. The profit for the shareholders in the quarter amounted to about NIS 35 million, a decrease of about 82.4% compared to the corresponding quarter last year.
As mentioned, in the Strauss announcement, it is noted that during his tenure “Eyal led the company to excellent business results and a significant improvement in all financial indicators, while demonstrating exceptional leadership characterized by sensitivity, determination, aspiration for excellence and strategic vision.
“In recent years, Strauss Israel has presented excellent business results, starting with high growth over time, increasing market share, improving profit and establishing Strauss’ leadership in the fields of dairy, salads and salty snacks. In these years, Strauss expanded its activities in the field of plant-based milk, among other things, Strauss received the franchise for the import and distribution of Alpro products in Israel”.
Also, Eyal led the move to establish a new plant for the production of plant-based milk products near the dairy in Echihud. In addition, the collaborations with our international partners Pepsi and Danone, as well as with Yatbata and Vaid Mordechai, were deepened, a dedicated unit was established for the field of frozen products and new technological platforms were launched. Alongside the business performance, a leap was made in the nutritional composition of the product portfolio, focusing on solutions for different audiences, in a way that strengthened Strauss’ leadership.
On the side of business moves, new platforms have been established in recent years for the absorption and integration of workers and managers from Arab society, there has been a further improvement in the proportion of female managers, and products with accessible packaging for people with disabilities have been developed. At the same time, Dror took on a central role within the Social Economic Forum, which was established in Israel.
CEO of the Strauss Group, Shai Babad:
“Eyal led the company in a turbulent time, maintained the resilience of Strauss Israel and made sure to build infrastructures that would guarantee excellence in the future. Eyal asked to end his position after five years in the position and I thank him on behalf of all Strauss men and women. In the coming months, Eyal will accompany the chosen replacement and take part in leading projects strategists in the group and then he will join the senior managers course at Harvard Business School.”
Read the full article on the Israel Today website