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"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 not possible to estimate the influence on
Sabra's or the company's results."
Strauss, a maker of snacks, fresh food and coffee with an
Israeli market share of 12.4%, last month said it posted 2021
profit of 639 million shekels ($199 million) on a 7.4% rise in
revenue to 8.7 billion shekels.
Sabra, its international dips and spreads joint venture with
Pepsico, recorded in the same period a 42% drop in operating
profit to $11 million due to an increase in manufacturing costs
as a result of the partial shutdown of the plant in December as
well as increased labour costs.
After an inspection and warning letter from the U.S. Food and
Drug Administration in December, Strauss had said it started an
adjustment plan at Sabra's plant in Virginia bringing a
temporary reduction in production capacity and manufacturing
costs.
In February, Strauss had said it expected a return to full
capacity in the second quarter of 2022.
But it updated that timeline on Wednesday, blaming further delay
on manufacturing disruptions in the past few days.
"There will be substantial delays and changes in scope and
timing to the adjustment plan," it said.
($1 = 3.2176 shekels)
(Reporting by Steven Scheer; Editing by Alexander Smith)
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