Strauss Group wraps up a successful 2020 with 4.6% organic growth
The Group’s sales totaled 8.35 billion, reflecting 4.6% organic growth excluding foreign currency effects

Strauss Group wraps up a successful 2020 with 4.6% organic growth
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    
Strauss Group generates 4.5% organic growth in the first nine months of 2020
18/11/2020

Strauss Group generates 4.5% organic growth in the first nine months of 2020

The Strauss Group concludes the first nine months of 2020 with an organic increase in revenue Strauss Group generates revenue of NIS 6.3 billion in the first nine months of 2020, reflecting 4.5% organic growth excluding foreign currency effects[1]; Net profit in the period was NIS 464 million, an increase of 4.1%   The Group’s Q3 sales totaled NIS 2.17 billion, reflecting 3.9% organic growth excluding foreign currency effects   Strauss Group CEO, Giora Bardea: “Strauss Group continues to deliver robust business performance despite the substantial global impacts of the COVID-19 crisis on its activities. In the first nine months and third quarter of 2020 the company recorded an improvement, particularly in product categories suited to at-home consumption, while away-from-home (AFH) categories and channels weakened significantly, trends which grew stronger in the third quarter, among other things as a result of the second lockdown in Israel.   “Managerial stability, business diversity among categories, channels and markets, as well as financial strength, which improved significantly in the period under review, have enabled the company, which has learned to “live with COVID-19” and the accompanying complexities, to deliver organic sales growth, an improvement in the operating profit margin, and an increase in net profit.   “In the reporting period the Group continued to invest substantial resources in maintaining operational and business continuity, while making every effort to protect the health and safety of its employees across all sites worldwide. Looking ahead, the company continues to invest – and has even increased its investments – in the development of categories and business areas that have the potential for growth, including various dairy alternatives, health products, fresh foods, coffee capsules and entry to the POE (point of entry) market – a water treatment solution at the point of entry to homes and buildings – in China.   “Additionally, the Group has continued to invest in the development and upgrade of existing production lines and in the construction of new plants, including the water company’s manufacturing site in China, a modern warehouse and distribution center in Ukraine, Ta’am Hateva’s new production facility at Kibbutz Bror Hayil in Israel, and the completion of the acquisition of Mitsui’s coffee business in Brazil. The company’s financial strength, especially at this time, has enabled it to seek out business opportunities in Israel and other countries across a broad range of activities, with the aim of expanding its business. At the same time, the Group has persevered in its community investment, deepening it to support population groups harmed by the COVID crisis, and considers itself part of the effort to preserve social and economic resilience in all its countries of operations.   A month ago, with great pain and sorrow, we said goodbye to Michael Strauss, son of the founders of Strauss Group. Michael was a business leader and a moral and social compass to all people in the Group and to many in the Israeli economy. We mourn his passing and salute his great contribution to the development of Israel’s flourishing industry and economy.   Strauss Group concluded the period with solid results against the backdrop of numerous, diverse challenges, including the second lockdown in Israel, erosion of currencies against the shekel, and others. In its retail business the company delivered sales growth, particularly in product categories suited to at-home consumption, but in parallel, the closure of restaurants, hotels and cafés for extended periods as well as the drop in impulse purchases have negatively affected the Group’s sales in most companies, the coffee company in particular.   In total, Strauss Group delivered NIS 2.17 billion in revenue in the third quarter, while in the nine-month period revenue was NIS 6.3 billion, reflecting an increase of around 3.9% and 4.5%, respectively (organic, excluding FX), over last year. As a result of the weakening currencies, the company reported a drop of around 3.1% in revenue in the third quarter and of 2.2% in the nine months, compared to the corresponding periods last year.   The foreign currency effect on the company’s sales in the third quarter amounted to approximately NIS 163 million, of which NIS 136 million are the result of the depreciation of the Brazilian real against the shekel. In the first nine months of 2020 the foreign currency effect amounted to approximately NIS 429 million, of which NIS 351 million are due to the weakening of the real against the shekel. Operating profit was NIS 250 million, up 4.8% (excluding FX effects). On translation into shekels this reflects a drop of around 2.3% compared to the corresponding quarter last year. The operating profit (EBIT) margin was 11.5%, up 0.1% compared to the corresponding quarter.   Net profit (attributed to the shareholders of the company) was NIS 158 million in the third quarter compared to NIS 153 million in the corresponding period last year; the increase is the result of a decrease in financing and tax expenses. Net profit in the nine-month period was NIS 464 million, an increase of 4.1% compared to the first nine months of 2019.   Since the beginning of the year Strauss Group has donated over 80 thousand food parcels, and the company in Israel is currently helping thousands of families to buy food products, free of charge, as part of an initiative that began in September and will be maintained with those families through to the end of the year under the slogan “Doing Good Together”. This is in addition to other efforts underway with numerous communities in Israel and around the world. [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] Três Corações (3C) – The Três Corações joint venture in Brazil – a company jointly held by the Group (50%) and by a local holding company, São Miguel Holding e Investimentos S.A. (50%). (Data reflect Strauss Coffee’s share (50%) unless expressly stated otherwise).     Strauss Israel The COVID-19 crisis continues to be the major factor that affected Strauss Israel’s business in the third quarter of 2020. Like other food manufacturers in Israel and other countries, Strauss Israel has been impacted by two conflicting trends – the first, significant growth in at-home consumption, and the second, a significant drop in AFH consumption and the consumption of food for special events and parties, mainly sweet and savory snacks. The company has worked to maintain its production capacity in order to meet the high demand for its products, while making maximum efforts to protect the health and safety of its employees. In the third quarter, Strauss Israel’s sales were approximately NIS 953 million, and in the nine months – approximately NIS 2.8 billion, reflecting 6.1% and 8.1% growth, respectively, compared to sales in the corresponding periods last year.   A breakdown according to segment reveals that revenue in the Health & Wellness segment grew by around 10.4% in the quarter, mainly as a result of an increase in purchases of products for at-home consumption – yogurts, dairy desserts, milk beverages, salads and dips and spreads, Yad Mordechai products (honey and sauces), and washed and cut vegetables and fresh foods in general. In the Fun & Indulgence segment sales dropped in the third quarter by 3.2%, mainly as a result of decreasing demand for impulse and on-the-go products – particularly sweet and salty snacks. At the same time, sales of products for home baking such as chocolate tablets rose significantly.   The increase in sales and continuing efficiency and productivity processes led to an 8.6% increase in operating profit in the third quarter, which rose to NIS 106 million, with the EBIT margin rising from 10.9% to 11.1%.   Strauss Coffee In the third quarter, Strauss Coffee demonstrated growth both in local currency sales and in quantities sold in most of the company’s operations. However, business was also affected by the drop in sales to the AFH market, i.e. institutional customers including hotels, cafés and restaurants, as well as the discontinuation of most of the business of the Elite Café chain in Israel during the quarter as a result of the second lockdown. The coffee company’s total revenue in the third quarter was approximately NIS 851 million, up 1.4% (organic) in local currency.   The coffee company in Israel wrapped up the third quarter with approximately NIS 175 million in revenue, down 10.4% compared to the corresponding period last year, mostly as a result of the drop in sales to the AFH market and discontinuation of the activity of the Elite Coffee To Go chain in September. The coffee business in Brazil, carried out through the Três Corações joint venture[2], which is mainly active in the home consumption market, grew by around 10.0% in the quarter in local currency thanks to growth in sales volumes. The company’s market share, which includes the market share of Mitsui’s recently acquired coffee business, was 31.0% of the Brazilian coffee market at the end of the quarter. Overall, the coffee operation in Eastern Europe recorded business growth as well as growth in operating profit in local currency, and an increase in quantities sold. The business in Russia and Ukraine grew by about 5.5% in the quarter as a result of an increase in sales volumes, and in Romania sales grew by around 4.3% in local currency. In Poland and Serbia sales volumes remained effectively unchanged.   Sabra and Obela (100%) In the third quarter, Sabra reported a 2.4% drop in sales in local currency, which amounted to approximately NIS 327 million. In the first nine months, Sabra’s sales totaled approximately NIS 1 billion, reflecting a drop of 1.1% in local currency. The decrease is primarily the result of the impact of the COVID crisis on the company’s sales in the AFH market and lower sales of portability products, which are made to customers such as convenience stores, airports and institutional customers, including restaurants. In parallel, the at-home consumption market grew. The company’s operating profit margin improved in the quarter, rising to 11.5% compared to 7.0% in the corresponding quarter, mainly thanks to a drop in marketing expenses compared to last year as a result of the timing of these expenses. Obela’s business continues to grow and in the third quarter yielded revenue of around NIS 44 million, reflecting an improvement of 10.4% excluding foreign currency effects. In the first nine months, the company’s sales amounted to NIS 120 million, 5.2% organic growth excluding FX effects.   Strauss Water Strauss Water posts another successful quarter, with sales amounting to around NIS 184 million – 10.5% growth arising, among other things, from an increase in the number of appliances sold and growth in the customer base. Operating profit rose 24.2% and amounted to NIS 25 million. The company’s business in China has made a fast recovery from the impacts of the lockdown in the first quarter. Third-quarter sales rose 6.8% in local currency and amounted to approximately NIS 142 million. In the first quarter, HSW’s board of directors approved an investment of approximately 375 million yuan (around NIS 190 million) for the construction of a manufacturing facility for the production and assembly of HSW’s products sold in China. Construction of the site began at the end of March 2020 and is expected to end by the second half of 2021. The company estimates that the plant will improve its competitive position, since in-house manufacturing capabilities allow for greater flexibility in developing and manufacturing innovative and unique products, shorter time-to-market and the launch of high-quality products.   Key financial data for the nine months ended September 30 – non-GAAP (NIS millions)*: * Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.   Key financial data for the quarter ended September 30 – non-GAAP (NIS millions)*:                                                 * Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands. 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. 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.   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.   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.   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. 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.   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.   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 an online Zoom meeting in Hebrew on Wednesday, November 18, 2020 at 14:00 (Israel time) with the participation of company management to review the financial statements of the company for the third quarter of 2020. Meeting URL: https://straussgroup.zoom.us/j/91354458126?pwd=SDBwS01YM1JNQkswNDJsYzlTMW8rZz09 Meeting ID: 913 5445 8126 Password: 994109 Strauss Group will also host a conference call in English on Wednesday, November 18, 2020 at 16:30 (Israel time) (14:30 UK, 09:30 EST) with the participation of company management to review the financial statements of the company for the third quarter of 2020.   To participate in the conference call in English, please call one of the following numbers as appropriate: UK: 0-800-917-5108 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 third quarter of 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  
Mrs. Tzipi Ozer Armon was appointed as a director in the board of directors of Strauss Group
29/10/2020

Mrs. Tzipi Ozer Armon was appointed as a director in the board of directors of Strauss Group

Tzipi Ozer Armon was appointed as a director in the board of directors of Strauss Group Tzipi has over 20 years of experience in senior management in a range of industries, including technology, medical devices and drugs. Tzipi will contribute to the Board extensive capabilities and expertise in international management of companies, as well in in the areas of strategy, operations, marketing and R&D. She is currently CEO at Lumenis, a world leader in energy-based medical devices for the surgical, ophthalmological and aesthetic markets. Tzipi joined Lumenis in 2012. During her tenure, she led Lumenis to significant growth and major increases in profitability. At the beginning of 2020, Lumenis was acquired by a private equity fund for over $1 billion. Prior to joining Lumenis, Tzipi managed Teva’s operations in Japan. Previously, she served as Senior Vice President Marking and Sales and SanDisk; as VP at M-Systems, and as VP Strategy and Business Development at Comverse. Her impressive career also includes four years as a strategic consultant for the international strategic consulting firm ATKearney, based in London, UK. Tzipi currently serves as a director of Itamar Medical and of ICL (Israel Chemicals). In the coming days Tzipi will begin an on-boarding process of studying and becoming familiar with the company, during which time she will meet with the managers and people in the company. Tzipi has a BA in economics from Tel Aviv University, and an MBA in finance and marketing from the Kellogg-Recanati Program at Tel Aviv University. With Tzipi joining us, the representation of women on the Strauss Group board is now over 50%.  
Strauss Group reports solid results for half year 2020
17/08/2020

Strauss Group reports solid results for half year 2020

Strauss Group delivers NIS 4.1 billion in revenue in the first half of 2020, reflecting 4.9% organic growth excluding foreign currency effects[1]; Net profit in the half-year was NIS 306 million, up 4.0%   In Q2 the Group delivered NIS 1.94 billion in revenue, reflecting 1.5% organic growth excluding foreign currency effects   Strauss Group CEO, Giora Bardea: “Today we are wrapping up a second quarter that was affected by COVID-19 in its entirety, with solid results achieved in spite of the complex reality. Strauss Group has maintained business stability and financial strength, as reflected in market shares, organic revenue growth, higher gross profit, stronger cash flows and improved cost and structure of debt. “In general, in the past quarter and half-year, an improvement was noted in our various activities in local currency, with businesses catering to in-home consumption benefiting from significant growth, whereas those focusing on away-from-home (AFH) consumption weakened. Following a challenging month in April, we saw a gradual trend of improvement in results in subsequent months, as social and economic restrictions are lifted in most countries. “The strong shekel and ongoing weakening of currencies against the shekel, particularly the Brazilian real, significantly eroded the company’s revenue and profits. “Throughout the crisis, the Group has invested considerably in protecting the safety and health of its employees, in increasing investments in providing help and contributing to the community while maintaining its business operations. This includes new product developments, entry into new categories, acquisitions, ongoing investment in advanced technology and setting up new production sites in Israel and in other countries, as we look forward to emerging from the crisis.”   Strauss Group has wrapped up the second quarter of 2020 with solid results against a backdrop of challenges and positive and negative impacts, most of which are the result of the COVID-19 pandemic. The Group has maintained its high credit rating and has raised capital at attractive interest rates to ensure business continuity. In its retail business the company reported sales growth in most sectors, but the closure of restaurants, hotels and cafés has had a significant negative effect on the Group’s sales in the AFH market, particularly in the coffee business. The depreciation of the Brazilian real against the shekel eroded the company’s revenue. In total, the Group delivered NIS 1.94 billion in revenue in the second quarter, while in the half-year revenue was NIS 4.1 billion, reflecting an increase of around 1.5% and 4.9%, respectively (organic, excluding FX effects) compared to last year. As a result of the weakening currencies, the company reported a drop of around 6.5% in revenue in the quarter and of 1.7% in the half-year, compared to the corresponding periods last year. As mentioned, the main impact on the Group’s revenue in the second quarter was the result of the weakening of the various currencies against the shekel. The foreign currency effect on the company’s sales in the quarter amounted to approximately NIS 164 million, of which NIS 138 million are the result of the depreciation of the Brazilian real against the shekel. In the first half, the foreign currency effect was around NIS 266 million, of which NIS 215 million are due to the weakening of the real against the shekel. In the second quarter, the Group’s gross profit was approximately NIS 743 million, down 9.6% compared to the corresponding period last year, mainly due to the drop in revenue as a result of foreign currency effects. The gross profit margin was 38.4%. Operating profit was NIS 223 million, down 1.6% compared to the corresponding period. The operating profit margin was 11.5%, up 0.5% compared to last year. Net profit (attributed to the shareholders of the company) was NIS 135 million in the quarter compared to NIS 121 million in the corresponding period last year, with the increase attributed to a decrease in tax expenses, which was partially offset by the drop in operating profit. Net profit in the half-year was NIS 306 million, reflecting an increase of 4.0% compared to the first half of 2019.   [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.   With the outbreak of COVID-19 the Group formulated a dedicated social program with the aim of helping some of its key stakeholders to cope with the pandemic and its implications. The Group applied a compensation mechanism to strengthen its people who have continued to come in to work despite the complexities involved, with emphasis on “front-line” employees. A loan fund was established to assist the company’s small suppliers. The company also enlarged the scope of its contributions to the community to help populations harmed by the crisis, including donations of food and money to relevant nonprofits as well as through employee volunteering and the distribution of food products to medical teams in Israel, the US, Brazil and Eastern Europe.   Strauss Israel The COVID-19 crisis impacted the activities of Strauss Israel in several ways, from both the operational and business aspects. From the operational aspect, the company invested millions of shekels in protecting and compensating its people, with emphasis on “front-line” employees. The company also increased its manpower quotas for the present time to maximize production capacity and expand its ability to deliver food to all retail customers.   Following the lockdown which began at the end of March and continued until mid-May 2020, demand for products for in-home consumption grew, especially products for cooking and baking at home such as dairy, salads, dips and spreads and chocolate tablets. In parallel, there was a drop in demand for single serve snack products and a shift to larger pack purchases by consumers. The Group’s sales to retail chains grew, among other things in light of a significant increase in online grocery shopping, alongside a drop in sales to the institutional and AFH market (such as hotels, offices, cafés and restaurants). During and after the second quarter (through to the reporting date), demand for the Group’s products has remained high, but has dropped in relation to the demand observed during the outbreak and lockdown phase. In the first half of 2020 the Group held a 12.2% share of the total domestic food and beverage market in Israel (in value terms), compared to 12.0% in the corresponding period in 2019. In parallel, this year the company increased the grant of discounts and campaigns for retailers, and will maintain this policy according to the state of the economy and the implications of the crisis.   In the second quarter Strauss Israel’s sales were approximately NIS 851 million, reflecting 5.9% growth compared to sales in the corresponding period last year. Sales growth was mainly observed in the Health & Wellness segment, in products such as yogurt, dairy desserts, milk beverages, salads and dips and spreads, and washed and cut fresh vegetables. In the Fun & Indulgence segment sales dropped compared to last year, mainly as a result of decreased purchases of salty and sweet snacks, which are usually bought and consumed away from home (“on the go”), a drop in purchases of impulse products and fewer social events such as birthday celebrations and parties. Strauss Israel’s gross profit in the second quarter was approximately NIS 342 million, reflecting an improvement of 8.4% compared to the corresponding period last year, and the operating profit was approximately NIS 98 million.   Strauss Coffee The coffee business results were mixed druing the period and were channel dependant. Sales to the large retail chains rose moderately in the second quarter as consumers in most countries of operations stocked up on basic coffee brands, coffee beans and capsules for home consumption in preparation for lockdowns. Online sales were strong as well. However, sales to the traditional sales channel, which includes stores, groceries and open-air markets, were negatively impacted due to restrictions on opening hours and a drop in customer traffic. Sales to the institutional and AFH market dropped significantly   following discontinuation of the business of hotels, cafés, restaurants, offices and the points of sale of the Elite Café chain in Israel. The coffee company’s total revenue in the past quarter was approximately NIS 750 million, 0.8% less than revenue in the corresponding period last year (organic, excluding currency effects), but the erosion of the Brazilian real against the shekel had a material impact on income translated into shekels, which recorded a drop of 17.9%.   A breakdown by country demonstrates high variance: The business in Brazil grew by around 9.5% in local currency, and in the half-year, the market share of the coffee company in Brazil (Três Corações) was 28.0% compared to 28.3% in the corresponding period. In Poland, 16.9% sales growth in local currency was recorded in the quarter, but the weakening of the zloty negatively impacted sales by approximately NIS 6 million, such that growth in the quarter was 6.4%. In Israel and Romania, where AFH business is significant, revenue dropped, whereas in Russia and Ukraine, where AFH activities are on a small scale, revenue in local currency increased.   Sabra and Obela (100%) Of all of the Group’s businesses, in the second quarter Sabra’s activity suffered significant harm to its supply chain as a result of COVID-19, which made it difficult to fully supply demand for the company’s products. Another impact of the crisis was a reduction in sales to convenience stores, groceries and AFH sales. The company’s total revenue in the second quarter was approximately NIS 319 million, constituting a drop of 9.0% compared to the corresponding period in local currency. It is worth noting that in the second quarter and first half the US hummus market grew, but due to the production shortages experienced by Sabra, the company could not benefit from this growth. Nevertheless, Sabra’s market share in the half-year was 62.6%, higher than its market share in the corresponding half in 2019, which was 61.5%. The weakening of the dollar against the shekel constrained Sabra’s sales by approximately NIS 8 million, meaning that on translation into shekels Sabra recorded a drop of 10.9% in revenue. The operating profit fell by around 31.2% to NIS 41 million as a result of the drop in sales, a change in the sales mix, and the company’s expenses resulting from the adaptation of manufacturing and logistics sites to accommodate the effects of COVID-19. Obela’s sales in the quarter were approximately NIS 36 million compared to NIS 38 million in the corresponding period in 2019, reflecting a drop of 4.0%. However, excluding foreign currency effects, the company delivered 5.1% sales growth.   Strauss Water In the second quarter, Strauss Water’s business in Israel experienced a gradual return to activity levels prior to the crisis and was influenced mainly by growth in the customer base, which was countered by a drop in the number of new appliances. The company’s operation in China in the quarter was affected by the process of emerging from the lockdown, which led to a recovery in sales. The second quarter saw growth in online sales in China.   In total, Strauss Water wrapped up the second quarter with NIS 159 million in revenue, an increase of around 0.7% over last year, in spite of the restrictions on movement and the lockdowns in its countries of operations. Operating profit was approximately NIS 30 million compared to NIS 19 million in the corresponding period, due, among other things, to recognition of a development grant for the construction of the new manufacturing facility in China, which the company began building with an investment of 375 million yuan. The revenue of HSW in China amounted to approximately NIS 139 million in the quarter compared to NIS 141 million in the corresponding period last year, reflecting a slight drop of 1.3%. Excluding the currency impact, sales grew by 4.9%.   Key financial data for the half-year ended June 30 – non-GAAP (NIS millions)*: *Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.   Key financial data for the quarter ended June 30 – non-GAAP (NIS millions)*: * Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.   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. 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.   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. 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.   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. 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.   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.   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 conference call in Hebrew on Monday, August 17, 2020 at 14:00 (Israel time) with the participation of company management to review the financial statements of the company for the second quarter of 2020. To participate in the conference call in Hebrew, dial 03-918-0685.   Strauss Group will also host a conference call in English on Monday, August 17, 2020 at 16:00 (Israel time) (14:00 UK, 09:00 EST) with the participation of company management to review the financial statements of the company for the second quarter of 2020.   To participate in the conference call in English, please call one of the following numbers as appropriate: UK: 0-800-917-5108 US: 1-888-281-1167 Israel: 03-918-0687   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 second quarter of 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    
5 important guidelines to advance inclusion
05/08/2020

5 important guidelines to advance inclusion

Noga Segev Nadir Talent Management Director, Human Resources.   I’ve practiced Tai Chi for a few years. I remember myself looking at the instructor, listening to his instructions, imitating the movements in what seemed to me like a superb combination of imagination and talent, and feeling good about myself with the achievements of body and soul alike.   All this was true – until the exercises in pairs began. I always found these exercises to be an interruption to the good, meditative order of my movement with myself. Tai Chi pair exercises are a kind of highly-synchronized movement, with a very gentle touch – sort of touching -and-not-really-touching, forehand to backhand. The same movements performed in a pair. When one person moves forward, the other moves back, and vice versa. Only then did I understand, that I had done wrong some of the exercises previously performed alone. Only by gently touching the other could I feel the discomfort in the mirror that was put in front of my blind spots. The same movement took on a whole new meaning with someone else, but with a different challenge and quality. The essence stopped being my own movement with myself, and started being the joint, harmonious creation, which none of us could have created alone. For me, that is the true experience of inclusion. The seemingly liberal person that I am, is so aware of herself, gives each and every one around her an equal chance, and does not judge by external appearance, religion, ethnic origin, gender, etc. But only during moments of gentle contact – not necessarily a tough and conflictual one – I become aware of what I usually don’t experience: my unconscious biases towards those who are like me, my judgmental tendencies which must be pushed aside, the desire for someone to be like me, instead of the willingness to adapt. Only then do I see how open I truly am for creating a new story – together. “Inclusion” means inviting someone over, having them join you inside. And I am not even sure I want to have someone over. Maybe it would be better to create something new together and having both parties keep what is dear and important to them. And if that is true inclusion, how does one promote it in the organization? In the business unit that has a shared purpose? in every place where results play a critical role, as does a focused, goal-oriented language? Strauss’ decade-long journey, which is still underway, has taught me five important guidelines in advancing inclusion. Things that happen in parallel, in the organization as a whole, and in every single person individually. I was tempted to organize them in numbers and put periods at the end, but in fact, they can not be numbered, and they are far from being absolute truths. Patience – there is no swift move, in which a great, orchestrated effort is made, and the result miraculously appears. Awareness and openness are very slowly built, with great effort. One more voice gets to be heard center stage, and then another, and then another. More and more people get a chance to look at their biases and to consciously make a different choice. There are ripple effects, ones that are not often seen, but rather accelerate underwater and emerge when the time comes. Bandwidth – a critical mass needs to be created, working in parallel on processes, awareness, skills, communication, rewards, top-down, bottom-up, sideways… and the list goes on and on… Modesty and openness – understanding that we probably don’t understand is critical. Once we know this, we take careful steps, so that we can manage the cost of making mistakes. This is important, because our mistakes influence people careers and wellbeing. We can not do this without listening to things that are less pleasant. We must assume that we do not have all the answers. Curiosity and a willingness to change – we will not bring here people who are different than us, only to make them like us. So let’s learn, take something from them, change ourselves, and explore further. Different people and communities bring different stories with them. Becoming familiar with these stories creates a common language and value to all those involved. Inclusion outside the comfort zone – inclusion must happen not in those places where it is easy for us to include, but in meaningful places, such as the decision-making table. Are all populations represented in places that are critical to the organization? Can all voices really make an impact? Organizations don’t talk about “diversity and inclusion” these days, but the other way around – “inclusion and diversity”. Diversity happens from the outside inwards; inclusion happens the other way – from the inside outwards. Our existence as a business depends on our ability to truly include – those who consume our products, those who supply to us, those who partner with us, those who work for us and have diverse skills – any one of our stakeholders. Moreover, our existence as a society and as human beings depends on our ability to include. Developing mangers as inclusive leaders is a lot more than “simple” gender balance, or the integration of the Arab-Israelis or people with disability. In today’s world, inclusion is a managerial tool of the utmost importance, in a world where it is very hard to listen, and in a world in which there is a great role for listening. In a world where we are all different and all similar. In a world where wisdom and knowledge are not the privilege of one person alone. In a world where the ability to work with someone who is different than me and the ability to change are key to resilience and success over time. Organizational inclusion is at the end of the day many encounters between people. And in that encounter, in that movement which is almost a dance, in that pair exercise in Tai Chi, something common is created and each one of us learns about himself or herself, and brings all of himself/herself, in all colors, in the delicate interface between the inside and the outside.  
How to fall in love with our food ?
05/08/2020

How to fall in love with our food ?

Michal Benishti, Head of Gastronomy and Nutrition Division at Strauss Group, shares her thoughts about food and explains how the most basic thing turned so complicated and what you can do to live a healthy life while enjoying our food This week, as I often do, I went to my neighborhood shopping center and suddenly It hit me. This shopping center that was packed with all sorts of shops up until a few years back, has turned lately to an all food establishment. Just food. From every kind. Specialty deli, Greek bakery, Italian restaurant, herbs shop, beverage shop and much more. No doubt a culinary festival. combine this with numerous other trends that keep popping up such as “low carbs”, “keto” “gluten free”, “clean eating”, “organic” and so on and you get a society that is obsessed with food on all its layers and formations.   How can one survive all this information and diversity of food and have value from it – mentally and health wise? I suggest 3 new ways to think about our food, enjoy what it has to offer and eat it in a way that is responsible for the world and our body;   1.Variety and moderation. As do all things in life, it’s all about balance. We all know that if we eat a lot of candy it probably won’t be best for our body. But what happens if we only eat super foods? Would that give us strength and immunity forever? Probably not. The key to real health of body and soul is variety and moderation. Eat everything local agriculture has to offer and yet listen to our bodies and not exaggerate. True, it isn’t simple, it takes practice and awareness to our bodies. It’s not some magic formula that promises health if you only eat certain food at certain times. But it is the only way you can combine both worlds – enjoy your food and be nourished by it.   2. Know your food. Knowing your food means know things about it because food matters. It means something. it is a part of our survival on this planet and it also affects our environment and shapes our economy, our society and basically every dimension in our lives. Once we understand its many implications we care where our food comes from, who made it and how. The answer to all those questions will grant us better and deeper understanding with our food. We will feel more connected to our food, be more engaged with it and eat food with a sense of identity and feel something about it. Eventually the result Is that we eat better and more consciously.   3. Food as a source of pleasure and not a “risk factor”. Sometimes it feels like we are only told what not to eat. Don’t eat too much sugar, don’t eat too much salt, don’t eat too much saturated fat. All of these “no’s” take us to a world in which we see food as a risk factor for disease, for poor quality of life, for obesity and so on. This is less than optimal way of looking at our food. I suggest we look at food positively. As an opportunity for enjoyment, to experience different cultures, to improve our health and quality of life. If we look at food in that way, I believe we will have great food and have something more we enjoy doing.   Eventually you can see that there are two kinds of people – those who eat to survive and those who eat to enjoy. Those who see food as a means for survival and those who see food as happiness, joy, wants to understand where food comes from, explore new tastes and a variety of dishes. They also know when to balance, when comes the time to eat a light snack and when to eat something “heavier” because they listen to their bodies. Let’s learn to fall in love with our food and acquire physical health and a healthy relationship with food at the same time– that thing we consume multiple times a day, every day, all our lives.