Strauss Group announces 10% revenue growth in Q2 2021
Following the lifting of restrictions and living alongside COVID-19, the Group reports impressive growth in all businesses across all countries of operations, with revenues of NIS 2.13 billion in the second quarter of 2021

Strauss Group announces 10% revenue growth in Q2 2021
Stop Food Waste
11/10/2021

Stop Food Waste

Our commitment to nourish and nurture a better tomorrow - has naturally led us as a food and beverage company to address the issue of reducing food waste. Food waste is an economic, social, and environmental problem. It is estimated that the value of food not eaten and thrown away in the world is worth about $172 billion a year; environmentally, food waste is the cause of about 6-8 percent of greenhouse gas emissions; in addition to that, today, there are over 800 million people. Women, boys, and girls do not have easy access to food, and 1 in 9 is malnourished. The concept that leads us to invest in the subject is that we love food. We have invested love in it, though, development, raw materials, and working hours - a valuable, environmental and economic investment - and our ambition is that as many people as possible will enjoy it. Our efforts occur throughout the Strauss Group's operations and logistics warehouses worldwide; processes are initiated to examine destruction's dimensions and prevention. For example, in our warehouse in Virginia, USA, inventory management in our warehouses has undergone a dramatic change in recent years. In 2017, about 85% of the short-term inventory was destroyed, and only 14 percent was saved and donated. , And only 19 percent went out to extermination, and the number continues to decline. Over the years, Strauss has been donating food that did not go on sale - whether due to changes in supply and demand in stores, which changed according to consumer behavior, such as during the COVID-19 crisis - when buying habits changed unexpectedly, and products had less need than before. We donated it through the organization "LATET." Also, if there is a defect that prevents us from selling but does not harm the quality of the product, for example - if a packaging came out unclear or we got a little too much whipped cream in our Milky - we will donate the product. All our donations are reported in the Sustainability Report, and food technologists monitor the quality of the products. Food loss happens in every part of the food chain, from the field to the personal consumption stage, and 40% of food waste happens in homes. However, a significant percentage can be saved at earlier steps along the chain. In 2020, we organized a team at Strauss Israel to address the challenge of food waste. The team's work was added to our long list of work for saving food from the company's warehouses in Israel and abroad, our contributions to the community, quality assurances, and improved logistics management. Local activity in Israel to reduce food waste: our team at Strauss Israel carefully examined the overall impact of Strauss on food rescue and decided to act on two levels - prevention and recovery. Prevention: According to the Israeli Food Loss Report, it was found that one of three main reasons for food loss at the distribution and retail stage - is the expiration date, after the food leaves our factories and is in stores. According to the report, about 20% of customers do not understand the meaning of text written on the packaging. The team found confusion among customers, most of whom do not understand the difference between "better to use before" versus "use until." The text is intended to fulfill the law that distinguishes between "use until" indicating products with risk to food safety - meaning the product will go wrong and endanger consumers' health shortly after the expiration date. Compared to "better to use before" on dry products, which indicates that their properties may change in color and taste, but the product is entirely safe to eat. In addition, to avoid waste, we are constantly looking for advanced technologies, machines, or advanced packaging that allows us to extend validity while maintaining high quality and preventing food waste. For example, in the transition to plastic bottles in our milk and chocolate products, we have invested in an advanced set that keeps a sterile Inflation and filling. This change allowed the same milk to have a significant extension to days of use and shelf life - more days of use means a higher consumption chance before the expiration date, thus reducing the likelihood of discarding the product before consumption. Food rescue: Another move that Strauss initiated is the food rescue pilot with the Yochananoff chain and organization "LATET" in 2021. The employment agreements between Strauss and certain food chains stipulate that if the chain does not sell a product it bought from Strauss, it can qualify it with Strauss. Many products were returned by stores without a valid date causing the products to be destroyed. As part of the pilot, in several stores of the Yohannoff chain, the products are removed from the shelf by an employee a few days before their expiration date. When Strauss qualifies the store to the "return," it transfers the edible products to a local organization that works in partnership with "LATET" on the same day. See more information about the pilot: Click here   The ability of every one of us to contribute to reducing waste is great, in the buying process, in creative cooking ideas, by innovatively using products and their packages - to look, smell, taste - and not waste. I invite you to share with us your food storage tips and recipes for saving food.
Strauss Group Announces 10% Revenue Growth in Q2 2021
17/08/2021

Strauss Group Announces 10% Revenue Growth in Q2 2021

  Following the lifting of restrictions and living alongside COVID-19, the Group reports impressive growth in all businesses across all countries of operations, with revenues of NIS 2.13 billion in the second quarter of 2021 This morning, Strauss Group published its financial statements for the second quarter and first half of 2021. The financial statements indicate that innovation, coupled with the lifting of restrictions and the resumption of business activities alongside the pandemic in the past quarter, have contributed to growth in the company’s revenues, which increased by around 10.0% in the quarter and amounted to approximately NIS 2.13 billion. Sales growth is evident in all operating segments, particularly Strauss Coffee, Strauss Israel and Strauss Water, while Sabra in the US also recorded revenue growth in local currency. Strauss President & CEO Giora Bardea says: “We are wrapping up a solid quarter and half year with significant sales growth, reflected across all regions in which the Group is active, and stability in most of our market shares. The lifting of restrictions and the gradual return to life alongside COVID-19 have enabled the Group to resume regular operations in segments where business was considerably slowed in the corresponding periods last year. That said, looking ahead it seems likely that some of the limitations will be reinstated in the third and fourth quarters due to the global spread of the delta variant, and we will simply have to learn to live and work alongside COVID. This understanding – that business activities in the foreseeable future will continue alongside the coronavirus, with the resulting uncertainty served as a catalyst for continued pursuit of our expansion as we build growth drivers for the future. We will continue to enter new business fields: In Israel, we recently announced our entry into ready-to-heat frozen meals and the signing of a partnership agreement with the tofu manufacturer, Wyler Farms, as part of the Group’s expansion in the plant-based protein category. In the context of this move, which we announced several months ago, the company has decided on the establishment of a new manufacturing plant for Alpro products in Israel. Business has also been robust in China. Sales are growing, and we continue to lead in the online sales channels. The Chinese joint venture’s new manufacturing plant is now operational and will soon be operating at full capacity. In Israel, at the end of the quarter Strauss Water launched its new, advanced water bars, Edge and Edge Plus, and sales are excellent. The coffee company is growing in all geographies: Brazil, Israel and Eastern Europe, and the capsule category is a strong growth driver in Israel and Brazil. Other businesses that are driving the Group forward are the Growth and Innovation Arm and FoodTech. Just recently, we announced an impressive funding round by the cultivated meat manufacturer, Aleph Farms, which raised $105 million, and the gain will be recorded in the third quarter as a result. I am certain that in the foreseeable future, we will be witnessing more successes by other companies that are growing in the FoodTech accelerator in Ashdod.” The company’s gross profit in the second quarter was approximately NIS 795 million, a 6.9% growth compared to the corresponding period last year, and the gross margin was 37.3% compared to 38.4% last year. The drop in the gross margin is largely the result of the increase in raw material prices and international shipping costs. Operating profit in the quarter was approximately NIS 212 million – a 10.0% margin compared to 11.5% in the corresponding period. The drop in the operating profit margin is mainly due to the drop in the gross margin as well as nonrecurring events, which include a one-time government grant in China that was received in the corresponding period last year and low marketing and G&A expenses due to COVID-19 in the corresponding period among others. Strauss Israel’s operating margin improved in the quarter. Net profit in the second quarter was approximately NIS 126 million, reflecting a decrease of 6.3%, and in the first half – NIS 322 million, an increase of 8.7%. Strauss Israel’s business grew by an impressive 7.7% in the second quarter with revenues of approximately NIS 917 million, largely the result of growth in sales of dairy and dairy alternative products as well as a recovery in salty and sweet snack sales for consumption away-from-home and at social gatherings. At the end of the second quarter, Strauss Israel’s business held a 12.4% share of the domestic food and beverage market, compared to 12.1% last year. The company’s operating profit in the quarter was NIS 108 million, reflecting an increase of 10.1%. In the second quarter, Strauss Coffee’s sales totaled NIS 848 million – 13.0% growth compared to the corresponding period last year, thanks to sales growth in Israel, mainly as a result of the reopening of the Elite Café chain’s business and sales to the institutional market, and also in countries such as Serbia, Romania, Russia and Ukraine following growth in quantities sold and an increase in sales prices. In the quarter, the company recorded NIS 77 million in operating profit – an operating margin of 9.2% compared to 9.7% last year due to the drop in the gross margin following the increase in green coffee prices. Strauss Water enjoyed an especially strong quarter, with sales rising by a sharp 16.4% to NIS 186 million. Sales growth was the result of growth in the customer base as well as an increase in the number of new water bars in Israel. Toward the end of the quarter, the company launched its new, advanced water bars in the tami4edge series (Edge and Edge Plus), which were met with great success. Additionally, in China, Haier Strauss Water (HSW) recorded 22.4% sales growth in local currency, and HSW’s new manufacturing facility in the country is operational. Operating profit in the quarter amounted to approximately NIS 22 million compared to NIS 30 million in the corresponding period, when a one-time NIS 11 million government grant for the construction of the manufacturing plant was received. Excluding the one-time grant, Strauss Water recorded an increase in its operating profit and operating margin. In the second quarter, Sabra and Obela’s revenues were approximately NIS 321 million and NIS 42 million (reflecting 100% ownership), respectively, compared to NIS 319 million and NIS 36 million (100%) in the corresponding period last year, respectively. In the first half, Sabra’s share of the dips and spreads market in the US was 61.2% - Number 1 in the market – compared to 62.5% last year.   Following are key financial data for the first half and second quarter of 2021, according to the Management (Non-GAAP) Reports: Net Sales - First Half and Second Quarter   Gross Profit and Gross Profit Margin - First Half and Second Quarter Financial data were rounded to NIS millions.   Operating Profit and Operating Profit Margin - First Half and Second Quarter * Approximately 6.5% and 1.2% organic growth excluding foreign currency effects in the first half and second quarter of 2021, respectively, excluding the one-time government grant received in China in the second quarter of 2020.   Net Profit and Profit Margin - First Half and Second Quarter   Cash Flows from Operating Activities and Free Cash Flow - First Half and Second Quarter Financial data were rounded to NIS millions.   Non GAAP Figures (1) Second Quarter 2021 2020 Change Total Group Sales (NIS mm) 2,132 1,938 10.0% Organic Sales Growth excluding FX 10.9% 1.5% Gross Profit (NIS mm) 795 743 6.9% Gross Margins (%) 37.3% 38.4% -110 bps EBITDA (NIS mm) 296 309 -4.2% EBITDA Margins (%) 13.9% 15.9% -200 bps EBIT (NIS mm) 212 223 -5.0% EBIT Margins (%) 10.0% 11.5% -150 bps Net Income Attributable to the Company's Shareholders (NIS mm) 126 135 -6.3% Net Income Margin (Attributable to the Company's Shareholders) (%) 5.9% 6.9% -100 bps EPS (NIS) 1.08 1.16 -6.5% Operating Cash Flow (NIS mm) 130 292* -55.6% Capex (NIS mm) (2) 72 73 -1.5% Net debt (NIS mm) 2,156 2,053 5% Net debt / annual EBITDA 1.7x 1.6x 0.1x   * Restated. (1) The data in this document are based on the company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses and do not include share-based payment, mark-to-market at end-of-period of open positions in the Group in respect of financial derivatives used to hedge commodity prices and all adjustments necessary to delay recognition of gains and losses arising from commodity derivatives until the date when the inventory is sold to outside parties, other income and expenses, net, and the tax effect of excluding those items, unless stated otherwise. (2) Investments include the acquisition of fixed assets and investment in intangible assets. Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.   Non GAAP Figures (1) Second Quarter Sales (NIS mm) Sales Growth vs. Last Year Organic Sales Growth excluding FX EBIT (NIS mm) NIS Change in EBIT % Change in EBIT EBIT margins Change in EBIT margins vs. 2020 Sales and EBIT by Operating Segments and Activities   Strauss Israel: Health & Wellness 664 7.3% 7.3% 88 5 5.5% 13.2% -20 bps Fun & Indulgence (2) 253 8.8% 8.8% 20 5 35.8% 8.0% +160 bps Total Strauss Israel 917 7.7% 7.7% 108 10 10.1% 11.7% +20 bps Strauss Coffee: Israel Coffee 163 22.8% 22.8% 26 1 7.0% 16.8% -240 bps International Coffee (2) 685 10.9% 12.0% 51 3 7.4% 7.4% -30 bps Total Strauss Coffee 848 13.0% 13.9% 77 4 7.1% 9.2% -50 bps International Dips & Spreads:               Sabra (50%) (2) 160 0.6% 8.2% 13 -7 -39.4% 7.8% -510 bps Obela (50%) (2) 21 16.3% 8.6% -2 -1 -12.0% NM NM Total International Dips & Spreads 181 2.2% 8.2% 11 -8 -44.8% 5.7% -480 bps                   Strauss Water 186 16.4% 16.2% 22 -8 -26.4% 12.1% -700 bps Other (2) 0 NM NM -6 -9 -263.0% NM NM Total Group 2,132 10.0% 10.9% 212 -11 -5.0% 10.0% -150 bps   (1) The data in this document are based on the company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses and do not include share-based payment, mark-to-market at end-of-period of open positions in the Group in respect of financial derivatives used to hedge commodity prices and all adjustments necessary to delay recognition of gains and losses arising from commodity derivatives until the date when the inventory is sold to outside parties, other income and expenses, net, and the tax effect of excluding those items, unless stated otherwise. (2) Fun & Indulgence figures include Strauss’s 50% share in the salty snacks business. International Coffee figures include Strauss’s 50% share in the Três Corações joint venture (3C) – Brazil – a company jointly held by the Group (50%) and by the local São Miguel Group (50%). International Dips & Spreads figures reflect Strauss’s 50% share in Sabra and Obela. Strauss Water EBIT figures include Strauss’s share in Haier Strauss Water (HSW) in China (49%). Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands. Total figures for International Dips & Spreads were calculated on the basis of the exact figures for Sabra and Obela in NIS thousands.   Non GAAP Figures (1) First Half 2021 2020 Change Total Group Sales (NIS mm) 4,193 4,106 2.1% Organic Sales Growth excluding FX 5.0% 4.9% Gross Profit (NIS mm) 1,607 1,621 -0.9% Gross Margins (%) 38.3% 39.5% -120 bps EBITDA (NIS mm) 669 663 0.9% EBITDA Margins (%) 16.0% 16.1% -10 bps EBIT (NIS mm) 501 491 1.9% EBIT Margins (%) 11.9% 12.0% -10 bps Net Income Attributable to the Company's Shareholders (NIS mm) 332 306 8.7% Net Income Margin (Attributable to the Company's Shareholders) (%) 7.9% 7.4% +50 bps EPS (NIS) 2.86 2.64 8.4% Operating Cash Flow (NIS mm) 308 398* -22.6% Capex (NIS mm) (2) 137 134 2.2% Net debt (NIS mm) 2,156 2,053 5% Net debt / annual EBITDA 1.7x 1.6x 0.1x   *Restated. (1) The data in this document are based on the company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses and do not include share-based payment, mark-to-market at end-of-period of open positions in the Group in respect of financial derivatives used to hedge commodity prices and all adjustments necessary to delay recognition of gains and losses arising from commodity derivatives until the date when the inventory is sold to outside parties, other income and expenses, net, and the tax effect of excluding those items, unless stated otherwise. (2) Investments include the acquisition of fixed assets and investment in intangible assets. Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands   Non GAAP Figures (1) First Half Sales (NIS mm) Sales Growth vs. Last Year Organic Sales Growth excluding FX EBIT (NIS mm) NIS Change in EBIT % Change in EBIT EBIT margins Change in EBIT margins vs. 2020 Sales and EBIT by Operating Segments and Activities Strauss Israel: Health & Wellness 1,303 5.5% 5.5% 164 15 10.0% 12.6% +50 bps Fun & Indulgence (2) 588 -1.7% -1.7% 73 0 -0.3% 12.3% +10 bps Total Strauss Israel 1,891 3.1% 3.1% 237 15 6.6% 12.5% +40 bps Strauss Coffee: Israel Coffee 372 1.2% 1.2% 85 -1 -0.8% 23.0% -40 bps International Coffee (2) 1,227 0.1% 8.3% 91 -3 -3.3% 7.4% -30 bps Total Strauss Coffee 1,599 0.3% 6.5% 176 -4 -2.2% 11.0% -30 bps International Dips & Spreads:               Sabra (50%) (2) 304 -9.9% -3.2% 29 -12 -29.5% 9.3% -260 bps Obela (50%) (2) 43 12.9% 5.7% -5 -1 -33.2% NM NM Total International Dips & Spreads 347 -7.5% -2.2% 24 -13 -35.3% 6.8% -300 bps                   Strauss Water 356 17.3% 17.2% 44 -1 -2.6% 12.4% -260 bps Other (2) 0 NM NM 20 13 179.4% NM NM Total Group 4,193 2.1% 5.0% 501 10 1.9% 11.9% -10 bps   (1) The data in this document are based on the company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses and do not include share-based payment, mark-to-market at end-of-period of open positions in the Group in respect of financial derivatives used to hedge commodity prices and all adjustments necessary to delay recognition of gains and losses arising from commodity derivatives until the date when the inventory is sold to outside parties, other income and expenses, net, and the tax effect of excluding those items, unless stated otherwise. (2) Fun & Indulgence figures include Strauss’s 50% share in the salty snacks business. International Coffee figures include Strauss’s 50% share in the Três Corações joint venture (3C) – Brazil – a company jointly held by the Group (50%) and by the local São Miguel Group (50%). International Dips & Spreads figures reflect Strauss’s 50% share in Sabra and Obela. Strauss Water EBIT figures include Strauss’s share in Haier Strauss Water (HSW) in China (49%). Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands. Total figures for International Dips & Spreads were calculated on the basis of the exact figures for Sabra and Obela in NIS thousands.   Condensed Financial Accounting (GAAP) Second Quarter 2021 2020 Change Sales 1,458 1,333 9.4% Cost of sales excluding impact of commodity hedges 875 795 10.0% Adjustments for commodity hedges -12 4 Cost of sales 863 799 7.9% Gross profit 595 534 11.6% % of sales 40.8% 40.0% Selling and marketing expenses 328 300 9.8% General and administrative expenses 103 96 8.0% Total expenses 431 396 9.4% Share of profit of equity-accounted investees 43 70 -37.4% Operating profit before other expenses 207 208 -0.6% % of sales 14.2% 15.6% Other expenses, net -1 1 Operating profit after other expenses 206 209 -1.3% Financing expenses, net -25 -47 -45.7% Income before taxes on income 181 162 11.6% Taxes on income -33 -16 105.9% Effective tax rate 18.1% 9.8% Income for the period 148 146 1.3% Attributable to the Company's shareholders 130 126 3.0% Attributable to non-controlling interests 18 20 -9.7%   Condensed Financial Accounting (GAAP) First Half 2021 2020 Change Sales 2,967 2,878 3.1% Cost of sales excluding impact of commodity hedges 1,753 1,691 3.6% Adjustments for commodity hedges -11 18 Cost of sales 1,742 1,709 1.9% Gross profit 1,225 1,169 4.8% % of sales 41.3% 40.6% Selling and marketing expenses 649 636 2.2% General and administrative expenses 207 204 1.6% Total expenses 856 840 2.0% Share of profit of equity-accounted investees 111 118 -5.8% Operating profit before other expenses 480 447 7.3% % of sales 16.2% 15.5% Other expenses, net 3 0 Operating profit after other expenses 483 447 8.0% Financing expenses, net -22 -57 -61.6% Income before taxes on income 461 390 18.2% Taxes on income -92 -73 25.7% Effective tax rate 19.9% 18.8% Income for the period 369 317 16.5% Attributable to the Company's shareholders 333 282 18.4% Attributable to non-controlling interests 36 35 1.6%   Conference Call Strauss Group will host a Zoom conference call in Hebrew on Tuesday, August 17, 2021 at 14:00 (Israel time) with the participation of company management to review the financial statements of the company for the second quarter of 2021. Following is information for those wishing to join the conference: Meeting URL: https://strauss-group.zoom.us/j/91445848863?pwd=enBEUGVFMFA5OFZvdDkzbHQrOVh3Zz09 Meeting ID: 914 4584 8863 Password: 950051   Strauss Group will also host a Zoom conference call in English on Tuesday, August 17, 2021 at 15:30 (Israel time) (13:30 UK, 08:30 EST) with the participation of company management to review the financial statements of the company for the second quarter of 2021. Meeting URL: https://strauss-group.zoom.us/j/91539596392?pwd=Rk9aSGhSaDVkVG5kTlcxeTZscy9aUT09 Meeting ID: 915 3959 6392 Password: 844866   A recording of the calls will subsequently be available on the company’s website at: https://ir.strauss-group.com/company-presentations/conference-call-recordings/   The financial statements of the company for the second quarter of 2021 and the presentation that will accompany the conferences will be available prior to the conference calls on the following websites: https://ir.strauss-group.com/company-presentations/quarterly-presentations/ https://ir.strauss-group.com/earning-releases/   For further information, please contact: Osnat Golan VP Communications, Corporate Brand & Sustainability Strauss Group Ltd. 972-52-828-8111 972-3-675-2281 Osnat.Golan@Strauss-Group.com Daniella Finn Director of Investor Relations Strauss Group Ltd. 972-54-577-2195 972-3-675-2545 Daniella.Finn@Strauss-Group.com Or   Shlomi Sheffer External Communications Director Strauss Group Ltd. 972-50-620-8000 972-3-675-6713 Shlomi.Sheffer@Strauss-Group.com  
Joey Bergstein was appointed as President and CEO of dips and spreads companys Sabra & Obela
29/06/2021

Joey Bergstein was appointed as President and CEO of dips and spreads companys Sabra & Obela

He will be replacing Tomer Harpaz, who has recently announced his desire to take a year off President and CEO of Strauss Group Giora Bardea announced today the appointment of Joey Bergstein as president and CEO of the international dips and spreads company Sabra-Obela. Bergstein will take office in early August 2021, taking over from Tomer Harpaz, who recently announced his desire to take a year off, after 3 years in this role and 11 years in the Strauss Group. Bergstein will be joining the Strauss Group from the Seventh Generation, a leading household and personal care products company and pioneer in the environmentally conscious products space, which is a fully-owned subsidiary of Unilever. He joined Seventh Generation in 2011 and became CEO in 2017. Since his appointment, he has successfully led the organization, doubling the company's revenue and expanding its operations to over 30 countries, while developing its reputation as a sustainability-driven innovation company. Joey, a graduate of the School of Business Administration from the University of Western Ontario, began his professional career at the Procter & Gamble Group, followed by senior roles at the Molson Coors Beverage Company and at Diageo. “We welcome Joey as he joins Sabra's fascinating journey," Bardea said. “As a transformational leader in his previous roles, and especially in his most recent role as the Seventh Generation CEO, I am confident that Joey will lead Sabra and Obela to continued growth and development while combining his commitment to sustainability, social responsibility and a healthy and balanced diet. This is another opportunity for me to thank Tomer for his extraordinary contribution to the company, and for his leadership as CEO over the past three years.” “Sabra’s portfolio sits naturally at the intersection of better-for-you food and sustainability, two areas of personal passion,” said Joey Bergstein, incoming Sabra CEO. “Building on Sabra’s remarkable success, we have an enormous opportunity to satisfy people’s desire for delicious and accessible foods while helping to foster a more sustainable future. As a longtime fan of Sabra, I look forward to working with an outstanding team to grow an iconic plant-based food brand.” Sabra and Obela, jointly owned by the Strauss Group and PepsiCo, develop, manufacture, sell, market and distribute healthy, tasty and accessible plant-based cold dips and spreads, in those markets which are always on the lookout for more sustainable and better-quality food solutions. Sabra operates in the US and Canada, and Obela operates in Mexico, Australia, New Zealand and Western Europe. Both Sabra’s and Obela’s activity is managed through a joint venture between the Strauss Group and PepsiCo, which own 50% each. Sabra had revenue of NIS 1.3 billion in 2020, and Obela closed 2020 with a revenue of NIS 163 million.
Strauss Group wraps up Q1 2021 with stable revenues and an increase in profit and profit margins
31/05/2021

Strauss Group wraps up Q1 2021 with stable revenues and an increase in profit and profit margins

The international food corporation recorded NIS 2.06 billion in revenue, reflecting an organic decrease[1] of 0.4%; impressive growth in Strauss Water’s revenues; a profit of NIS 30 million from investees in the Group’s FoodTech incubator following funding rounds by three companies This morning, Strauss Group published its GAAP and non-GAAP financial statements for the first quarter of 2021. Similar to the results for FY 2020, the results for the current quarter were largely impacted by the COVID-19 pandemic, which transformed the patterns of our lives, the economy and consumption everywhere in the world. Like other international food corporations, the first quarter of 2020 was marked by increased consumption of food products as large parts of the world were subjected to lockdowns. By contrast, the first quarter of 2021 was marked by great variance – in some countries where the Group operates the impact of the pandemic had already declined, whereas in other regions, such as Europe and America, we continue to witness its effects on economic activity and consumption. Despite the record sales in the first quarter last year, which were the result of a sharp temporary increase in March sales following the outbreak of coronavirus, Strauss Group’s revenues in Q1 2021 remained stable and amounted to approximately NIS 2.06 billion, reflecting an organic decrease (excluding foreign currency effects) of around 0.4% compared to the first quarter last year. The stability in sales was, on the one hand, the result of growth in Strauss Water’s revenues in Israel and in China and stable revenues in Strauss Israel and Strauss Coffee in local currency, and a decline in sales at Sabra in the US, largely as a result of the impacts of COVID-19. Organic EBIT rose 11.8% and amounted to approximately NIS 289 million – 14.0% of revenues. The Company has concluded the first quarter with a net profit of approximately NIS 206 million to its shareholders, reflecting an organic increase of around 25.6% compared to the corresponding quarter in 2020 – 10.0% of revenues. Excluding foreign currency effects and the profits of the investees in the Group’s incubator, organic growth in operating profit and net profit attributable to shareholders was 0.5% and 7.8%, respectively. In the quarter, three of the companies in the Group’s FoodTech incubator, The Kitchen, completed funding rounds at an aggregate amount of approximately NIS 40 million. As a result of these rounds, in the current quarter the Company recognized gains on the decrease in holding rate and on loss of control, at a total of NIS 30 million. One of the companies, Flying SpArk, completed an IPO on the Tel Aviv Stock Exchange in the quarter. On March 31, 2021, the total value of the Company’s investments in the incubator investees on the financial statements was approximately NIS 44 million (according to the equity method). The fair value of these investments is around NIS 149 million. In the first and second quarters, the prices of raw materials, spare parts and packaging materials used in manufacturing the Group’s products rose. Among others, the prices of green coffee (on global exchanges and in Brazil in particular) increased, as did the prices of sugar, raw milk (the “target price”), energy, plastic packaging, metals and others. Furthermore, sea freight costs rose sharply in this period, impacting all world trade. In addition to the above, as a result of worldwide crises in the international transportation of goods, many companies are dealing with availability and production challenges. The company has defined the maintenance of business continuity and the regular functioning of its supply chain as a primary goal. The company is also monitoring the effects of the increase in the prices of the different inputs on its business and reviewing plans and courses of action, including product development and improvement, working capital management, operational and logistic efficiency enhancement, commodity price hedging policy, expansion and diversification of suppliers and raw materials, pricing policy, etc. Strauss Group President & CEO, Giora Bardea, referred to the results this morning. “All things considered, we have wrapped up a satisfying quarter. This is the fifth sequential quarter in which our results are affected by the COVID-19 pandemic and its impacts on sales channels, products and consumer behavior. The first quarter of 2020, when the pandemic began, and the month of March in particular, was marked by exceptional sales by all food companies. Now, however, there is a disparity: in the first quarter this year some geographical regions, first and foremost Israel and China, already showed signs of the end of the pandemic, in regions such as North America and Europe a gradual emergence is evident, and in regions like South America the pandemic is still raging and affecting society and the economy. “In this quarter too, we see that our broad global dispersion, category diversification and business flexibility, product development and innovation have enabled us to maintain stable revenues, and even improve our profit and profit margins. As part of this innovation concept, in Israel we recently launched new, advanced IOT water bars of the Edge series; FoodTech startups in The Kitchen incubator raised tens of millions of shekels in the quarter; and in early May, the water company’s manufacturing facility in China became operational, and we expect it to contribute to growth in the Group’s business going forward. “Israeli society has recently experienced events involving incitement and violence that have ripped the delicate fabric of co-existence between Jews and Arabs in the country. We profoundly believe in the business sector’s role, responsibility and impact on the communities in which we operate, not only in Israel but everywhere we do business. Strauss has for many years championed a diversity and inclusion discourse and actions and employs people of all population segments, religions and beliefs. Strauss will continue to be a company that is a symbol of partnership, cultural diversity and the advancement of a shared language and way of life. We have a commitment and aspirations to create a company where there is no segregation or differentiation between people on the grounds of religion, nationality, race or gender.” Strauss Israel grew its market share in the quarter, which rose to around 12.5% of the food and beverage market in Israel, reflecting 0.3% market share growth. In the first quarter this year the company recorded approximately NIS 974 million in revenues, a decline of around 0.9% compared to the corresponding period last year, which was marked by a sharp rise in sales due to the COVID-19 outbreak. Most of the growth was observed in dairy products and dairy alternatives, including yogurts, milk and milk beverages, and since we began to distribute Alpro products. The products of the confectionery division recorded a decline in sales in the quarter, largely as a result of a decrease in impulse product purchases away from home. The company’s operating profit grew by about 3.8% to NIS 129 million, around 13.2% of sales. Strauss Coffee’s business was marked by great variance in the quarter, with each country demonstrating unique features. For example, the coffee company in Israel experienced a decline of 10.9%, which was largely the result of the closure of the Elite Café points of sale in the first quarter. The coffee business in Brazil, operated through the Três Corações joint venture, delivered 10.0% organic growth in local currency mainly as a result of price increases while retaining market share, but was negatively affected by exchange differences. Russia and Ukraine experienced sales growth in local currency following price increases. Romania recorded stability, while Poland experienced a temporary decline in sales as a result of negotiations with a customer, to which sales were resumed in April. In Sabra, the largest dips and spreads company in the US with a market share of 61.4%, the prior quarter trend persisted. The Company was mainly harmed in its sales to the AFH market, which includes restaurants and airports, and in combo packs intended for on-the-go consumption. The company concluded the current quarter with sales of approximately NIS 287 million (reflecting 100% ownership), a decline of 19.2% compared to the corresponding period in 2020. Obela wrapped up the first quarter of the year with NIS 44 million in sales, an increase of 9.8%. Strauss Water has maintained the positive momentum experienced in 2020 in Israel and China in the first quarter of 2021 as well. During the quarter, the company recorded revenues of approximately NIS 170 million, reflecting impressive growth of 18.2%, as a result of growth in the installed base as well as the number of appliances sold. HSW’s business in China yielded revenues of approximately NIS 154 million in the current quarter, reflecting a sharp rise of 44.1%, due to the low sales in the first quarter last year following the outbreak of COVID-19. _______________________ The data in this document are based on the company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses and do not include share-based payment, mark-to-market at end-of-period of open positions in the Group in respect of financial derivatives used to hedge commodity prices and all adjustments necessary to delay recognition of gains and losses arising from commodity derivatives until the date when the inventory is sold to outside parties, other income and expenses, net, and the tax effects of excluding those items, unless stated otherwise. [1] Excluding the impact of M&A and the effect of foreign currency translation differences. _______________________   Following are key financial data, in a quarterly and multiyear comparison, based on the non-GAAP reports: Net Sales Gross Profit and Gross Profit Margin Operating Profit and Operating Profit Margin *Approximately 0.5% organic growth excluding foreign currency effects and the impact of the profits of the Group incubator investees. Net Profit and Profit Margin *Approximately 7.8% organic growth excluding foreign currency effects and the impact of the profits of the Group incubator investees. Cash Flows from Operating Activities and Free Cash Flow **Restated. *Restated. (1) The data in this document are based on the company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses and do not include share-based payment, mark-to-market at end-of-period of open positions in the Group in respect of financial derivatives used to hedge commodity prices and all adjustments necessary to delay recognition of gains and losses arising from commodity derivatives until the date when the inventory is sold to outside parties, other income and expenses, net, and the tax effect of excluding those items, unless stated otherwise. (2) Investments include the acquisition of fixed assets and investment in intangible assets. Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands. (1) The data in this document are based on the company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses and do not include share-based payment, mark-to-market at end-of-period of open positions in the Group in respect of financial derivatives used to hedge commodity prices and all adjustments necessary to delay recognition of gains and losses arising from commodity derivatives until the date when the inventory is sold to outside parties, other income and expenses, net, and the tax effect of excluding those items, unless stated otherwise. (2) Fun & Indulgence figures include Strauss’s 50% share in the salty snacks business. International Coffee figures include Strauss’s 50% share in the Três Corações joint venture (3C) – Brazil – a company jointly held by the Group (50%) and by the local São Miguel Group (50%). International Dips & Spreads figures reflect Strauss’s 50% share in Sabra and Obela. Strauss Water EBIT figures include Strauss’s share in Haier Strauss Water (HSW) in China (49%). Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands. Total figures for International Dips & Spreads were calculated on the basis of the exact figures for Sabra and Obela in NIS thousands. Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands/ Conference Call Strauss Group will host a Zoom conference call in Hebrew on Tuesday, May 25, 2021 at 14:00 (Israel time) with the participation of company management to review the financial statements of the company for the first quarter of 2021. Following is information for those wishing to join the conference: Meeting URL: https://strauss-group.zoom.us/j/94124216403?pwd=MDArcE9aNitqeHBJSVBBeDFqaERJZz09 Meeting ID: 941 2421 6403 Password: 804055   Strauss Group will also host a Zoom conference call in English on Tuesday, May 25, 2021 at 15:30 (Israel time) (13:30 UK, 08:30 EST) with the participation of company management to review the financial statements of the company for the first quarter of 2021: Meeting URL: https://strauss-group.zoom.us/j/94631263402?pwd=YjEwU3QyZmdDK3JHckJtQWtVZ1kzQT09 Meeting ID: 946 3126 3402 Password: 361024   A recording of the calls will subsequently be available on the company’s website at: https://ir.strauss-group.com/company-presentations/conference-call-recordings/   The financial statements of the company for the first quarter of 2021 and the presentation that will accompany the conferences will be available prior to the conference calls on the following websites: https://ir.strauss-group.com/company-presentations/quarterly-presentations/ https://ir.strauss-group.com/earning-releases/   For further information, please contact: Osnat Golan VP Communications, Corporate Brand & Sustainability Strauss Group Ltd. 972-52-828-8111 972-3-675-2281 Osnat.Golan@Strauss-Group.com Daniella Finn Director of Investor Relations Strauss Group Ltd. 972-54-577-2195 972-3-675-2545 Daniella.Finn@Strauss-Group.com Or   Shlomi Sheffer External Communications Director Strauss Group Ltd. 972-50-620-8000 972-3-675-6713 Shlomi.Sheffer@Strauss-Group.com
Time to build bridges
16/05/2021

Time to build bridges

Dear Strauss people, All of us have had a difficult time over the past 24 hours. Frustration, pain, concern and anger all intertwined with each other. The holidays of Shavuot and Eid al-Fitr and the end of Ramadan are coming right up. After years of working to connect and respect everyone, regardless of faith, race and gender, and particularly after a tough and complex year with COVID-19, more than anything, this holiday season was supposed to symbolize, coexistence and a family and community celebration. A period in which we hug, enjoy and celebrate with our family, friends and the communities in which we live. However, the reality here has once again shown us that coexistence is a complex concept and sadly it is extremely fragile. Now is the time for us, as citizens and Strauss employees to say - no more. Enough is enough!!! We will not let violence and incitement influence and divide us. As a company that has been dedicated to the messages of diversity and inclusion, we are committed to cultures, identities and to diverse people. Mutual tolerance is the foundation for our coexistence. I would like to call on all our partners within Strauss and beyond - from both the Jewish and Arab populations - to protect our home. To protect our togetherness. “They” are not responsible. Each and every one of us is responsible. Any poor choice of words or violent posts only serve to widen the rift. Let’s prevent this. Here at Strauss, we will not tolerate any show of violence or incitement of any kind. I call on everyone at Strauss to demonstrate tolerance and to work to promote tolerance and inclusion both at Strauss and beyond. This is our home. We don’t have any other. I would like to express my deep appreciation for all our employees, at all our sites, who continue to work in these difficult times, for their dedication, tolerance, and hard work. Please remember that when the rioting ends and the dust settles, we will all remain here together. Standing next to each other. The residential area next to the residential area, the community next to the community, people next to people. Destroying things is easy. Building them up is more difficult. Wishing us all a happy and peaceful holiday on Eid al-Fitr at the end of Ramadan and on Shavuot. Giora Bardea President and CEO of Strauss Group
Strauss Group wraps up a successful 2020 with 4.6% organic growth
22/03/2021

Strauss Group wraps up a successful 2020 with 4.6% organic growth

Approximately 7% of the Company’s products in Israel are sold via the various online platforms This morning, Strauss Group published its 2020 financial non- GAAP statements, demonstrating that the international food and beverage company has dealt with the challenges posed by the COVID-19 pandemic successfully. The company’s sales in local currencies grew in most categories in which it is active globally. The Group ended 2020 with NIS 8.35 billion in revenues, reflecting a sharp organic rise of 4.6%. Negative currency translations on the back of a very strong NIS, particularly from the Brazilian real, totaled NIS 589 million, leading to a 2.2% decline in the company’s reported income. Organic operating profit, excluding the foreign currency effect, rose by a sharp 5.4% and amounted to NIS 924 million – 11.1% of revenues. The company wrapped up the year with NIS 551 million in profit attributable to shareholders – an increase of 0.7% compared to last year and accounting for 6.6% of revenues. This morning, the company also published its thirteenth sustainability report. Strauss Group chair, Ofra Strauss: “Today we are summing up 2020 using the same words as always, through the various elements in our financial statements. Seemingly, life goes on as usual, but 2020 was a year that was anything but usual. Everything we perceived in our personal lives changed, and it was the same for Strauss Group. This year in its entirety was a test of Strauss Group’s resilience and its ability to maintain business continuity in unprecedented conditions. All along the way, protecting people’s lives and health was our guiding light, and contacts with our stakeholders took on a new meaning. The ability to collaborate with retailers to supply people with food was a test of our abilities, but it was mainly a test of the trust and partnerships that were built, in the course of many years, between Strauss Group and all our stakeholders in Israel and around the world. These relationships were what enabled us to fulfill our mission and continue to supply security and food in times when uncertainty was great and food was both a cure and a comfort. “This year, the term ‘sustainability’ took on a broader meaning. Sustainability in its most basic sense once again became our top priority – responsibility for the physical and emotional health of people while protecting our natural resources. “For me personally, this year was also a year of great loss and sad parting on the passing of my father, Michael Strauss. My father founded and shaped Strauss Group on the basis of values of partnership and mutual responsibility. This year was living proof of the importance and centrality of these values to our ability to cope with the unexpected, prevail over crises, big and small alike, and to keep on doing what we are meant to do, together. “Next week we will be celebrating Passover. This year, we will be able to once again celebrate together with our extended families, under lighter restrictions than those that were imposed on us last year. Passover is the festival of freedom, and I truly hope that the unprecedented vaccination campaign will allow us, at least here in Israel, a little more freedom, general and personal, less social distancing and greater physical closeness.” *Organic growth – excluding the impact of mergers and acquisitions and the impact of foreign currency translation differences.   Strauss Group CEO, Giora Bardea, commented on the Group’s results this morning: “Thanks to the strength of our business, our financial resilience, our operational stability and flexibility, we were able to emerge from this singular, complex and unexpected year with impressive growth in sales and profitability. This achievement was made possible by our ability to generate strong sales in most categories across all our businesses, particularly sales to the retail sector, and in this way, we were able to overcome the drop in sales in the away-from-home (AFH) channels, notably on-the-go impulse buys, restaurants, cafés, offices and hotels – all of which were harmed by the pandemic. I estimate that in the near future, we will also see recovery in this sector as Israel returns to routine, and later on, in other countries as well. Despite the many challenges, in 2020 we continued to plan ahead and even expedited processes of growth and development in numerous strategic channels: we broadened our collaboration with Arla, began distributing Alpro products in Israel and decided on the establishment of a manufacturing plant for the production of plant-based milk substitutes in Israel. Moreover, this year we built a new production site for fresh vegetables at Kibbutz Bror Hayil and saw progress in the construction of Strauss Water’s manufacturing facility in China, which will be completed in the coming months. We built a new logistics center for our coffee business in Ukraine and made two acquisitions that will grow the coffee business in Brazil. This year we also enlarged our startup portfolio in our FoodTech incubator with the addition of six new companies. Several of these startups have completed additional rounds of funding, raising tens of millions of dollars, which is evidence of their technological progress, of the various investors’ belief in them, and of their inherent potential for the Group. In addition to the financial statements and in our desire, as a resilient company, to be one that creates an impact on the communities in which it is active, this morning we also published our annual sustainability report, which reflects Strauss’s commitment to working to create economic, social and environmental value as a foundation for our stakeholders’ trust.” Strauss Israel, which holds a 12% share of the Israeli food and beverage market, recorded impressive growth of 7.9% in 2020 – more than the growth of the market that is relevant to its products (according to StoreNext). The company’s revenues amounted to NIS 3.7 billion, and most of the sales growth is due to the brands of the dairies, Strauss, Yotvata and Danone; Achla salads, dips and spreads; Yad Mordechai products; and Elite “Para” (the iconic Cow) chocolate tablets. The increased sales is the result of the lengthy lockdowns that kept people at home, as well as the home cooking and baking trend that flourished during the pandemic. Operating profit this year was NIS 418 million, rising by 12.8% to 11.3% of sales. Strauss Israel has reported a significant increase in online (e-tail) sales on the various platforms used by the company, which now account for about 7% of sales. Strauss Coffee reported growth in sales by volume in most countries, with strong growth in local currency sales in Poland, Russia and Ukraine as well as Brazil, where Três Corações reached a market share of 31.2% following 8.4% organic growth in local currency. In Israel, the coffee company recorded a dramatic increase of 31% in coffee capsule sales (according to StoreNext) and a continued rise in the number of BeanZ customers. However, the company’s sales to hotels and restaurants, as well as sales by the Elite Café chain, which account for around 10% of its business, were significantly harmed by the lockdowns. The coffee company ended 2020 with NIS 3.28 billion in revenues, reflecting 2.5% organic growth (excluding the foreign currency effect) as a result of an increase in sales in the retail channels, which was offset by the damage to the AFH channels. Sabra, which is the biggest dips and spreads company in the US and has a market share of 61.9%, experienced a challenging year. The company was mainly affected by its AFH sales, including sales to restaurants and sales of combination packs intended for on-the-go consumption. Sabra also experienced supply chain difficulties as a result of the pandemic. The company ended 2020 with sales of NIS 1.3 billion, an organic drop of 3.2% compared to 2019 excluding the foreign currency effect. Obela, which this year began self-distribution of its products in Germany, wrapped up the year with sales of NIS 163 million – 1.2% organic decrease excluding the foreign currency effect. Strauss Water has continued on its path of improvement and success. The company experienced a strong year in its global activities, posting dramatic growth of 6.4% in sales, which amounted to NIS 668 million, as well as an extremely sharp rise of 21.4% in operating profit. These results were achieved despite the lockdown in China in early 2020 and the COVID-19-related restrictions throughout the year in Israel. The company has reported record sales of new water bars in Israel and the UK, and impressive growth in fourth quarter sales in China, particularly online.   Summary of the Sustainability Report In line with Strauss Group’s guiding concept and its desire to create an impact in the communities in which it works, the Group is publishing its sustainability report today for the thirteenth time. The report describes the impacts of the Group’s business, social and environmental activities on its stakeholders in 2020. The report presents the Group’s main activities across the globe, aimed at creating economic, environmental and social value within and for the benefit of the communities in which it operates. This year’s report focuses on four central themes – activities for the benefit of stakeholders during the pandemic, activities for the benefit of people and communities, environmental protection and responsible business practices. During the pandemic, the Group worked vigorously everywhere in the world to protect and support various population groups, medical personnel, senior citizens, vulnerable populations and families badly affected by the pandemic. This year, the Group continued to broaden its diversity and inclusion activities, with 45.4% of management positions and 58% of board seats filled by women. The Group also increased its investment in the integration of diverse population groups throughout the entire job spectrum, and in tandem with the in-house launch, Strauss is working to further the subject in numerous circles outside the Group. As part of our commitment to improve the food we manufacture and to enable diverse populations to enjoy our products, this year we removed 142 tons of sugar, reached 786 gluten-free products, and 74% of our products are adapted to the needs of diverse consumer groups (gluten-free, vegan, lactose-free, etc.). Guided by our commitment to the environment, in the past five years we reduced our greenhouse gas emissions by 17% and recycled or reused approximately 90% of our solid waste. The report, published this morning, presents the environmental goals set by the Group for the coming years. Contributions: Strauss Group is active in diverse communities, placing emphasis on diversity and inclusion and on promoting a balanced diet and healthy lifestyle, and supports its stakeholders in a variety of ways. In total, in 2020 the Group donated more than NIS 25 million – double the amount donated in 2019. Despite the pandemic, this year Strauss employees devoted some 7,000 volunteer hours in the framework of different projects in communities around the world. Following are key financial data presented in a quarterly and multiyear comparison, according to the Management (Non-GAAP) Reports: Net Sales  Gross Profit and Gross Profit Margin Operating Profit and Operating Profit Margin Net Profit and Profit Margin Cash Flows from Operating Activities and Free Cash Flow Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.   (1) The data in this document are based on the company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses and do not include share-based payment, mark-to-market at end-of-period of open positions in the Group in respect of financial derivatives used to hedge commodity prices and all adjustments necessary to delay recognition of gains and losses arising from commodity derivatives until the date when the inventory is sold to outside parties, other income and expenses, net, and the tax effect of excluding those items, unless stated otherwise. (2) Investments include the acquisition of fixed assets and investment in intangible assets. Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.   (1) The data in this document are based on the company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses and do not include share-based payment, mark-to-market at end-of-period of open positions in the Group in respect of financial derivatives used to hedge commodity prices and all adjustments necessary to delay recognition of gains and losses arising from commodity derivatives until the date when the inventory is sold to outside parties, other income and expenses, net, and the tax effect of excluding those items, unless stated otherwise. (2) Fun & Indulgence figures include Strauss’s 50% share in the salty snacks business. International Coffee figures include Strauss’s 50% share in the Três Corações joint venture (3C) – Brazil – a company jointly held by the Group (50%) and by the local São Miguel Group (50%). International Dips & Spreads figures reflect Strauss’s 50% share in Sabra and Obela. Strauss Water EBIT figures include Strauss’s share in Haier Strauss Water (HSW) in China (49%). Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands. Total figures for International Dips & Spreads were calculated on the basis of the exact figures for Sabra and Obela in NIS thousands.   (1) The data in this document are based on the company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses and do not include share-based payment, mark-to-market at end-of-period of open positions in the Group in respect of financial derivatives used to hedge commodity prices and all adjustments necessary to delay recognition of gains and losses arising from commodity derivatives until the date when the inventory is sold to outside parties, other income and expenses, net, and the tax effect of excluding those items, unless stated otherwise. (2) Investments include the acquisition of fixed assets and investment in intangible assets. Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.   (1) The data in this document are based on the company's non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses and do not include share-based payment, mark-to-market at end-of-period of open positions in the Group in respect of financial derivatives used to hedge commodity prices and all adjustments necessary to delay recognition of gains and losses arising from commodity derivatives until the date when the inventory is sold to outside parties, other income and expenses, net, and the tax effect of excluding those items, unless stated otherwise. (2) Fun & Indulgence figures include Strauss’s 50% share in the salty snacks business. International Coffee figures include Strauss’s 50% share in the Três Corações joint venture (3C) – Brazil – a company jointly held by the Group (50%) and by the local São Miguel Group (50%). International Dips & Spreads figures reflect Strauss’s 50% share in Sabra and Obela. Strauss Water EBIT figures include Strauss’s share in Haier Strauss Water (HSW) in China (49%). Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands. Total figures for International Dips & Spreads were calculated on the basis of the exact figures for Sabra and Obela in NIS thousands.   Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.   Conference Call Strauss Group will host a Zoom conference call in Hebrew on Monday, March 22, 2021 at 14:00 (Israel time) with the participation of company management to review the financial statements of the company for the fourth quarter and full year 2020. Meeting URL: https://strauss-group.zoom.us/j/96882252532?pwd=NnE4dTA3aWNBa3FBM3Bqa0pkdCtZUT09 Meeting ID: 968 8225 2532 Password: 810938   Strauss Group will also host a conference call in English on Monday, March 22, 2021 at 16:30 (Israel time) (14:30 UK, 10:30 EST) with the participation of company management to review the financial statements of the company for the fourth quarter and full year 2020.   To participate in the conference call in English, please call one of the following numbers as appropriate: UK: 0-800-917-9141 US: 1-888-642-5032 Israel: 03-918-0650   A recording of the calls will subsequently be available on the company’s website at: https://ir.strauss-group.com/company-presentations/conference-call-recordings/   The financial statements for the for the fourth quarter and full year 2020 and the presentation that will accompany the calls will be available prior to the conference calls on the following websites: https://ir.strauss-group.com/company-presentations/quarterly-presentations/ https://ir.strauss-group.com/earning-releases/     For further information, please contact: Osnat Golan VP Communications, Corporate Brand & Sustainability Strauss Group Ltd. 972-52-828-8111 972-3-675-2281 Osnat.Golan@Strauss-Group.com Daniella Finn Director of Investor Relations Strauss Group Ltd. 972-54-577-2195 972-3-675-2545 Daniella.Finn@Strauss-Group.com Or   Shlomi Sheffer External Communications Director Strauss Group Ltd. 972-50-620-8000 972-3-675-6713 Shlomi.Sheffer@Strauss-Group.com  
Aleph Farms and The Technion Reveal World’s First Cultivated Ribeye Steak
09/02/2021

Aleph Farms and The Technion Reveal World’s First Cultivated Ribeye Steak

The proof-of-concept incorporates real muscle, fat, and vascular-like system similar to a ribeye from a slaughtered cow, in strategy to build a diverse portfolio of cultivated meat cuts of any dimension.   Rehovot, Israel— Aleph Farms Ltd. (the Company) and its research partner at the Faculty of Biomedical Engineering at the Technion – Israel Institute of Technology, have successfully cultivated the world’s first slaughter-free ribeye steak, using three-dimensional (3D) bioprinting technology and natural building blocks of meat – real cow cells, without genetic engineering and immortalization. With this proprietary technology developed just two short years after it unveiled the world’s first cultivated thin-cut steak in 2018 which did not utilize 3D bioprinting, the Company now has the ability to produce any type of steak and plans to expand its portfolio of quality meat products.   Unlike 3D printing technology, Aleph Farms’ 3D bioprinting technology is the printing of actual living cells that are then incubated to grow, differentiate, and interact, in order to acquire the texture and qualities of a real steak. A proprietary system, similar to the vascularization that occurs naturally in tissues, enables the perfusion of nutrients across the thicker tissue and grants the steak with the similar shape and structure of its native form as found in livestock before and during cooking.   “This breakthrough reflects an artistic expression of the scientific expertise of our team,” enthuses Didier Toubia, Co-Founder and CEO of Aleph Farms. “I am blessed to work with some of the greatest people in this industry. We recognize some consumers will crave thicker and fattier cuts of meat. This accomplishment represents our commitment to meeting our consumer’s unique preferences and taste buds, and we will continue to progressively diversify our offerings,” adds Toubia. “Additional meat designs will drive a larger impact in the mid and long term. This milestone for me marks a major leap in fulfilling our vision of leading a global food system transition toward a more sustainable, equitable and secure world.”   The cultivated ribeye steak is a thicker cut than the company's first product – a thin-cut steak. It incorporates muscle and fat similar to its slaughtered counterpart and boasts the same organoleptic attributes of a delicious tender, juicy ribeye steak you’d buy from the butcher. “With the realization of this milestone, we have broken the barriers to introducing new levels of variety into the cultivated meat cuts we can now produce. As we look into the future of 3D bioprinting, the opportunities are endless,” says Technion Professor Shulamit Levenberg, Aleph’s Co-Founder, Chief Scientific Advisor and a major brainpower behind the company’s IP. Levenberg is considered a global leader in tissue engineering and has amassed over two decades of research in the field at the Massachusetts Institute of Technology (MIT), in the United States and at the Technion, in Israel. Levenberg is also the former Dean of the Biomedical Engineering Faculty at the Technion.   Aleph Farms’ zealous plans to diversify its offering align with its mission to create a global platform for local production, leveraging a highly scalable technology to create culinary experiences that can be adapted for the different food cultures around the world.   About the Technion – Israel Institute of Technology and the Faculty of Biomedical Engineering:   Technion – Israel Institute of Technology, consistently ranked among the world’s top science and technology research universities, is Israel’s first university. Since its founding in 1912, the institute has educated generations of engineers, architects, and scientists who have played a key role in laying the State of Israel’s infrastructure and establishing its crucial high-tech industries.   The Faculty of Biomedical Engineering at the Technion offers undergraduate and graduate programs for students interested in integrating research, development and engineering methods in all areas of medicine. The Faculty’s state-of-the-art research labs enable the acquisition of skills and practical experience in diverse fields which are at the forefront of contemporary science.   About Aleph Farms: Aleph Farms is a food company that is paving a new way forward as a leader of the global sustainable food ecosystem, working passionately to grow delicious beef steaks from non-genetically engineered cells, isolated from a cow, using a fraction of the resources required for raising an entire animal for meat, without antibiotics and without the use of Fetal Bovine Serum (FBS).  Aleph Farms was co-founded with The Kitchen Hub of the Strauss Group and with Professor Shulamit Levenberg, former Dean of the Biomedical Engineering faculty of the Technion - Israel Institute of Technology. Aleph Farms is backed by some of the world's most innovative food producers, such as Cargill, Migros, and the Strauss Group. The company has recently received top accolades for its contribution to the global sustainability movement from the World Economic Forum, UNESCO, Netexplo Forum, FAO and EIT Food.   Twitter/LinkedIn/Facebook/Instagram/YouTube/Medium: @AlephFarms   For further information, please contact: Company Contact: Press Contact Aleph Farms NutriPR Mr. Yoav Reisler External Relations Manager at Aleph Farms Tel: +972-52-4559924 press@aleph-farms.com Ms. Liat Simha Tel: +972-9-974-2893 liat@nutripr.com www.nutripr.com Twitter: @LiatSimha     Credit_ Nitzan Zohar_ Office of the Spokesperson, Technion - Israel Institue of Technology-min