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Strauss Group announces results for the third quarter of 2019: Revenue growth driven by volume growth, and continued improvement in profit margins
20/11/2019

Strauss Group announces results for the third quarter of 2019: Revenue growth driven by volume growth, and continued improvement in profit margins

Sales in the quarter were NIS 2.24 billion, with organic sales up a stellar 6.1% excluding foreign currency effects; Operating profit rose significantly by 9.4% to NIS 256 million Giora Bardea, President and CEO of Strauss Group: “This morning we are announcing another quarter of revenue growth and significantly improved profit earnings and margins across most of the Group’s businesses. These results were achieved thanks to innovation and product diversification, a guiding concept for the Group, as well as the implementation of efficiency enhancement processes in our plants in Israel and around the world. The appreciation of the shekel against most currencies continued to negatively impact our international operations in the current quarter, perpetuating the trend in prior quarters. For some years now Strauss has been investing and focusing on getting the company ready for future  disruptive challenges in the food industry. One of the ways we have chosen to tackle these challenges is through the establishment of The Kitchen, our FoodTech hub, the first in Israel, with the aim of leading the ecosystem of this sector in Israel and worldwide. In the past quarter we hosted our annual conference, FoodTech IL, here in Israel, which was attended by some 1,500 guests from Israel and other countries. Participants included representatives of the world’s largest food and beverage corporations, representatives of leading investment funds, scientists and tech people, gastronomy and culinary experts. It was exciting to see our FoodTech vision become a reality as companies nurtured in our FoodTech incubator in Ashdod realize achievements and are at the helm of advanced developments in all areas of activity, successfully raising capital as a result, and some already selling their products. We will continue full steam ahead to advance FoodTech, which we consider both an internal growth driver as well as a contribution to making the world a better place.” Strauss Group delivered sales of NIS 2.24 billion in the third quarter, an increase of 4% compared to the corresponding period. The appreciation of the shekel against most currencies reduced earnings by approximately NIS 40 million, and accordingly, organic growth, excluding foreign currency effects, amounted to 6.1%. The Group’s total revenue in the first nine months of 2019 was approximately NIS 6.4 billion, in line with last year; however in organic terms and excluding foreign currency effects, the Group’s sales increased by 2.6% compared to the corresponding period last year.   Strauss Group delivered another successful quarter of profit growth and strong margins for the Group as a whole, as well as for its subsidiaries. This was achieved mainly thanks to volume growth across most of the Group’s operations, an improvement in product diversity and product mix, as well as operational efficiency enhancements. The Group’s gross profit in the quarter was NIS 887 million, accounting for 39.6% of sales, compared to gross profit of NIS 812 million and a gross profit margin of 37.6% in the corresponding period last year, an increase of 9.3%.  In the first nine months the gross profit totaled NIS 2.55 billion compared to NIS 2.46 billion last year – an increase of 3.9%. The operating profit in the quarter amounted to NIS 256 million – 11.4% of sales – compared to an operating profit of NIS 235 million and an EBIT margin of 10.9% in the third quarter of 2018, which reflects an increase of 9.4%. Net profit rose in the quarter by 6.5% and totaled NIS 153 million, compared to NIS 144 million in the corresponding period last year. The improvement in net profit is mainly the result of the increase in operating profit and was partially offset by an increase in financing expenses and tax expenses. strauss Israel maintained the growth trend of the past quarters. Strauss Israel is the second-largest food company in the Israeli food industry, and at the end of the third quarter its market share rose to 11.7% (according to StoreNext figures), compared to 11.4% in the corresponding period. The company’s sales in the third quarter amounted to NIS 899 million, reflecting 7.4% growth compared to last year. Revenue growth is the result of volume growth, which is due in part to a number of additional selling days in the current quarter compared to the corresponding period as a result of the timing of the Jewish high holidays, as well as sales growth particularly in the fun and indulgence category. During the quarter Strauss Israel launched numerous new diverse products in the dessert and milk beverage categories. The company also launched innovative products during the quarter, including Splendid Single Origin and Cow 30% Less Sugar chocolate tablets.   Strauss Israel’s gross profit in the quarter was NIS 358 million – 39.9% of sales – compared to 37.9% in the corresponding period last year. Operating profit rose from NIS 90 million in the third quarter of 2018 to NIS 98 million in the current quarter, raising the operating profit margin from 10.7% to 10.9%, respectively. In addition to the increase in sales, the improved margin was achieved, among other things, thanks to a diverse sales mix and the ramp-up of productivity processes at the company’s manufacturing sites, following investments in technology and diverse operational enhancements. strauss Coffee delivered an outstanding quarter of growth in sales volumes, notably in local currency in its international business. In total, the coffee company posted revenues of NIS 986 million in the current quarter – an increase of 5.1% excluding foreign currency effects. Following the appreciation of the shekel, growth in the quarter totaled to 1.8%. Strauss Group’s revenue from the business of the Três Corações joint venture in Brazil[1] amounted to NIS 476 million in the third quarter (the Group’s share), an increase of 1.5% compared to the corresponding period in local currency terms – achieved mainly by increased quantities sold and by significantly raising the Brazilian company’s market share to 28.5%. In the third quarter of 2019 the TRES coffee machine and capsule business moved into the black for the first time since inception in 2015. The coffee business in Israel, which is affected by seasonal factors, as well as the additional business days due to timing of Jewish High Holidays, grew 11.2% in the current quarter. In Eastern Europe, the coffee business in Russia and Ukraine grew strongly, and Poland delivered high sales growth in local currency. However Romania and Serbia posted a decline in revenues, mainly as a result of the growing competition in those countries.   Strauss Water delivered another strong quarter of growth with NIS 165 million in sales in the quarter, an increase of 5.4% compared to the corresponding period last year.  Revenue growth was mainly achieved thanks to an increase in sales of new appliances in Israel and growth of the customer base. Operating profit in the quarter amounted to NIS 20 million, compared to NIS 18 million in the corresponding period. Operating profit increased as a result of growth in the customer base in Israel and improved profits of Haier Strauss Water (HSW). Sales of Haier Strauss Water in China were NIS 134 million in the third quarter, compared to NIS 145* million in the corresponding period last year, a decrease of 7.4%. Excluding foreign currency effects, sales were down 1.5% compared to last year (unaudited, reflecting 100%). The decrease is primarily the result of an adverse change in the macro environment as well as the competitive environment. Sabra and Obela delivered a solid quarter. Sabra’s sales in local currency grew 5.2% and amounted to NIS 345 million, or 1.8% organic growth. However, the appreciation of the shekel against the US dollar eroded revenues, leading the company to register a drop of 1.6% in revenues. Operating profit in the quarter dropped from NIS 28 million to NIS 24 million, mainly as a result of an increase in selling and marketing expenses. In the third quarter Sabra increased its market share in the US, which is presently 62.2%, compared to 60.1% in the corresponding period.   Sales by Obela in the quarter were NIS 40 million, in line with the corresponding period. The company reduced its operating loss from NIS 4 million last year to NIS 3 million in the current quarter. [1] 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). * Restated. Key financial data for the nine months ended September 30 – non-GAAP (NIS millions)*: Net sales Gross profit and gross profit margin Operating profit and operating 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. **The figures for 2016-2018 were reclassified. For further information, see Note 1.3 to the Condensed Consolidated Interim Financial Statements as at September 30, 2019. Key financial data for the quarters ended September 30 – non-GAAP (NIS millions)*: Net sales Gross profit and gross profit margin Operating profit and operating 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. ** The figures for 2016-2018 were reclassified. For further information, see Note 1.3 to the Condensed Consolidated Interim Financial Statements as at September 30, 2019. 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 as 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. * Reclassified. For further information, see Note 1.3 to the Condensed Consolidated Interim Financial Statements as at September 30, 2019. ** EBITDA for the 12 months ended September 30, 2019 was adjusted to reflect the effects of IFRS 16, Leases. 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 as 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 as 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. * Reclassified. For further information, see Note 1.3 to the Condensed Consolidated Interim Financial Statements as at September 30, 2019. ** EBITDA for the 12 months ended September 30, 2019 was adjusted to reflect the effects of IFRS 16, Leases.   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 as 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. Investor Conference and Conference Calls Strauss Group will host an investor conference at the company’s offices in Petach Tikva on Wednesday, November 20, 2019 at 14:00 (Israel time) to review the Financial Statements of the Company for the third quarter of 2019. Investors can listen to the conference in Hebrew by dialing 03-918-0687. Strauss Group will also host an investor conference call in English on Wednesday, November 20, 2019 at 17:30 Israel time (15:30 UK, 10:30 EST) to review the Financial Statements of the Company for the third quarter of 2019. To participate in the conference in English, please call one of the following numbers as appropriate:   From the UK: 0-800-917-5108 From the US: 1-866-860-9642 From Israel: 03-918-0691   The Financial Statements for the third quarter of 2019 and Investors Presentation are posted on the Group’s Investor Relations website at: http://ir.strauss-group.com/phoenix.zhtml?c=92539&p=irol-irhome For further information please contact: Osnat Golan VP Communications, Digital & 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  
Strauss Group announces results for the second quarter of 2019, with stable sales as earnings and profit margins rise significantly
13/08/2019

Strauss Group announces results for the second quarter of 2019, with stable sales as earnings and profit margins rise significantly

Sales in the quarter were NIS 2.07 billion, with organic sales up 1.7% excluding foreign currency effects; Operating profit rose 9.4% to NIS 227 million Giora Bardea, President and CEO of Strauss Group: “As an international group with operations in diverse categories and numerous countries, we have delivered another quarter of growth and improvement in earnings and profit margins in most of the Group’s  businesses, in line with the trend  of the past three years. We note that in the second quarter, similar to other international Israeli firms, Strauss was once again negatively impacted by the appreciation of the shekel against foreign currencies, with most of this effect applying to international revenues of the coffee company. The Group’s other businesses – Strauss Israel, Sabra and Strauss Water – delivered growth and continued improvement in earnings and profit margins. Strauss Group posted sales of NIS 2.07 billion in the quarter, reflecting a drop of 1.4% compared to the corresponding period; however, in organic terms and excluding foreign currency effects, sales increased by 1.7%. As mentioned, the difference is primarily due to the impact of softer currencies in the coffee company’s countries of operations.   In terms of earnings and profit margins Strauss Group has delivered another strong quarter, with an increase in profit and improved profit margins for the Group and the subsidiaries, mainly thanks to continued innovation and long term productivity implementations. The Group’s gross profit in the quarter was approximately NIS 822 million, accounting for 39.6% of sales, compared to a gross profit margin of 38.7% in the corresponding quarter last year and reflecting an improvement of 1.1% in gross profit. The operating profit margin in the quarter was 11% of sales and amounted to NIS 227 million, compared to NIS 207 million in earnings and an EBIT margin of 9.9% in the second quarter of 2018, reflecting an improvement of 9.4% in operating profit. On the bottom line, the Group concluded the second quarter of 2019 with a net profit of NIS 121 million, an increase of 9.5% over the corresponding period last year. The improvement in net profit is the result of the increase in operating profit.   In the first half-year, the Group’s revenue amounted to NIS 4.18 billion, reflecting 0.8% organic growth excluding foreign currency effects; gross profit was NIS 1.67 billion – 39.9% of sales compared to 38.5% of sales in the corresponding period. The EBIT in the half-year was NIS 496 million, 11.9% of sales, reflecting an improvement of 7.4% compared to the corresponding period last year. Strauss Group’s net profit was NIS 293 million, an improvement of 13.6% compared to the net profit in the first half of 2018.   Strauss Israel continued the positive momentum, with sales rising by approximately 3.3% to NIS 803 million. The company’s business in the second quarter was mainly influenced by continued growth in the yogurt and milk beverage category under the Pro brand, and by the start of distribution of Arla products (butter and cheeses), continued growth of the bakery category, Energy healthy snacks products and salty snacks led by Tapuchips. The Taam Teva and Yad Mordechai brands also delivered strong growth.   Strauss Israel’s gross profit in the quarter was NIS 316 million – 39.3% of sales – compared to 38.6% in the corresponding period last year. Operating profit rose from approximately NIS 69 million in the second quarter of 2018 to NIS 80 million in the second quarter of 2019, reflecting margins of 8.9% and 10%, respectively. The improved margins were achieved mainly as a result of the sales mix, which was based on new launches in numerous categories while targeting different, and new,   consumer publics, and the ramp-up of productivity processes initiated several months ago, particularly at the company’s manufacturing sites, following investments in technology and various operational enhancements. According to StoreNext’s[1] figures for the end of June 2019, Strauss’s aggregate share of the Israeli food and beverage market was 11.9%, compared to 11.7% in the corresponding period last year   [1] StoreNext is engaged in the measurement of the fast-moving consumer goods (FMCG) segment in the barcoded retail market (hereinafter: “StoreNext”).   Strauss Coffee delivered sales growth in Israel and Brazil (in local currency) during the second quarter, whereas the coffee company’s business in Eastern Europe experienced a challenging quarter. Sales   by the Três Corações joint venture in Brazil[1] grew by 1.7% in local currency and amounted to NIS 470 million (the Group’s share 50%), while significantly increasing sales volumes and growing the company’s market share from 27% in the corresponding period to 28.4% in the second quarter this year (according to A.C. Nielsen figures). Gross profit and profitability in local currency also rose; however, the 7.9% depreciation of the Brazilian currency eroded shekel income in the quarter by 6.1% compared to the corresponding quarter. The company’s sales were also impacted by the drop in green coffee prices in Brazil. The coffee business in Eastern Europe posted a drop in sales, mainly as a result of the softer currencies in the region as well as increased competition in those countries. In Israel, Strauss Coffee continued to grow, mainly as a result of an increase in sales volumes. In total, the coffee business yielded revenue of approximately NIS 913 million in the quarter – a drop of 6.6% compared to the corresponding period last year. Excluding foreign currency effect, the drop in revenue amounted to 1.3%.   Strauss Water delivered another strong quarter of growth with NIS 159 million in sales, an increase of 6% compared to the corresponding period. Strauss Water’s operating profit, which includes the Group’s share of the net profit of the joint venture with Haier Group in China, HSW, amounted to NIS 19 million, 11.9% of sales compared to 11.3% in the corresponding period. The business in China delivered sales of approximately NIS 141 million (100%) in the second quarter, similar to sales in the corresponding period. Excluding foreign currency effects, sales increased by 5.7%   compared to the corresponding period. HSW is presently active only in the POU (point of use) segment, which consists of filters and purifiers installed inside homes. Given the joint venture’s interest in expanding into additional categories in the water business, including the point of entry (POE) category (point of entry filtration and purification systems treat the water as it enters the home by connecting directly to the water line, improving water quality for general use and not only for consumption), in the second quarter the HSW joint venture entered into a distribution agreement for POE products manufactured by a company owned by Haier Electronics (which holds 51% of the HSW joint venture) and BWT. These filtration and purification systems filter the water as it enters the home by connecting directly to the water line and provide an overall water purification solution for general home use, and are designed for private homes and higher income sectors of the population.   Sabra and Obela delivered 6.8% organic growth in local currency during the quarter. Sales by Sabra, which is active in the US and Canada, amounted to approximately NIS 357 million (100%) in the quarter. Sabra is the largest refrigerated dips and spreads manufacturer in the US. According to IRI, Sabra’s value market share of the hummus market in the 24 weeks ended June 30, 2019 was 61.6%, compared to 59.9% in the corresponding period last year.   Sabra’s operating profit rose 49.7% to NIS 60 million, constituting 16.7% of sales in the second quarter. Sales by Obela, which is active in Mexico, Australia, New Zealand and Western Europe, amounted to approximately NIS 38 million in the quarter, similar to the corresponding period; however, excluding foreign currency effects, growth was 7.7%   [1] 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). Key financial data the half year ended June 30 – non-GAAP (NIS millions)*:   Net sales Gross profit and gross profit margin Operating profit and operating 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. ** Reclassified. For further information, see Note 1.3 to the Condensed Consolidated Interim Financial Statements as at June 30, 2019. Key financial data for the quarters ended June 30 – non-GAAP (NIS millions)*: Net sales Gross profit and gross profit margin Operating profit and operating 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. ** Reclassified. For further information, see Note 1.3 to the Condensed Consolidated Interim Financial Statements as at June 30, 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 (without implementation of IFRS 11) and do not include share-based payment, mark-to-market as 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. * Reclassified. For further information, see Note 1.3 to the Condensed Consolidated Interim Financial Statements as at June 30, 2019. ** EBITDA for the 12 months ended June 30, 2019 was adjusted to reflect the effects of IFRS 16, Leases. 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 (without implementation of IFRS 11) and do not include share-based payment, mark-to-market as 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 the joint venture in China, Haier Strauss Water (HSW) (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 (without implementation of IFRS 11) and do not include share-based payment, mark-to-market as 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. * Reclassified. For further information, see Note 1.3 to the Condensed Consolidated Interim Financial Statements as at June 30, 2019. ** EBITDA for the 12 months ended June 30, 2019 was adjusted to reflect the effects of IFRS 16, Leases. 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 (without implementation of IFRS 11) and do not include share-based payment, mark-to-market as 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 the joint venture in China, Haier Strauss Water (HSW) (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.   Investor Conference Calls Strauss Group will host an investor conference call in Hebrew on Tuesday, August 13, 2019 at 14:00 (Israel time) to review the Financial Statements of the Company for the second quarter of 2019. Investors can listen to the conference in Hebrew by dialing 03-918-0609. Strauss Group will also host an investor conference call in English on Tuesday, August 13, 2019 at 15:30 Israel time (13:30 UK, 08:30 EST) to review the Financial Statements of the Company for the second quarter of 2019.   To participate in the conference in English, please call one of the following numbers as appropriate: From the UK: 0-800-917-5108 From the US: 1-888-668-9141 From Israel: 03-918-0610 The Financial Statements for the second quarter of 2019 and Investors Presentation are posted on the Group’s Investor Relations website at: http://ir.strauss-group.com/phoenix.zhtml?c=92539&p=irol-irhome For further information please contact: Osnat Golan VP Communications, Digital & 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  
Strauss Group Announces Revenues of NIS 8.6 billion and NIS 489 million Net Profit for 2018
13/03/2019

Strauss Group Announces Revenues of NIS 8.6 billion and NIS 489 million Net Profit for 2018

Strauss Group announces outstanding results across all businesses, with NIS 8.6 billion in revenue for the year and 4.8% organic growth excluding foreign currency effects. Growth stemmed from higher sales in all group subsidiaries. In the fourth quarter, the Group’s revenue was NIS 2.2 billion and organic growth was 2.5%. This year, the company’s sales were impacted by a negative currency translation of NIS 263 million, NIS 256 million of which are the result of the depreciation of the Brazilian real against the shekel. The Group announced record profits, with business focus and continuous efficiency methods implemented delivering improved profit margins in most of its operations. Gross profit in 2018 was NIS 3.3 billion, reflecting a gross profit margin of 38.0% compared to a gross profit margin of 36.7% in 2017. The Group’s operating profit (EBIT) was NIS 865 million, up 10.9% compared to last year and reflecting an operating profit margin of 10.1%, versus an operating profit margin of 9.2% in 2017. These results are due to an increase in operating profit in all of the Group’s business operations: Sabra-Obela, Strauss Water, Strauss Coffee and Strauss Israel. Net income attributable to the Company’s shareholders was NIS 489 million, an increase of 17.8%. Giora Bardea, President & CEO of Strauss Group, referred to the company’s results: “2018 presented Strauss Group with managerial and business challenges. The company made numerous changes in its management team while dealing, among other things, with rising input and raw material prices; for example, the price of raw milk. The Group’s robustness and its diversified business portfolio – in terms of both products and geographical spread – have enabled it to successfully face these challenges and deliver outstanding results. The impressive growth in profit margins was achieved thanks to focus, product innovation and consistent efficiency enhancements. “The coffee business in Brazil continued to serve as a significant growth driver as sales volumes continued to increase and the company delivered strong results; Strauss Water’s business continued to post impressive sales figures, with 9.2% sales growth. The water business in China focused on online sales; this year, Sabra focused on hummus and guacamole in the US, delivering 10.7% organic growth excluding foreign currency effects and increasing our market share in hummus to [1] The data in this document are based on the company’s non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses (without implementation of IFRS 11) and do not include share-based payment, mark-to-market as 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. 60.1%. Obela continued to expand and grew 19.4% organically excluding foreign currency effects in 2018.” Bardea added, “As part of the Group’s long-term planning, we recently formed a growth and innovation platform that integrates all our activities in this sphere: Alpha Strauss, The Kitchen FoodTech Hub and our business development and technology activities. By establishing this arm, the Group will further invest in the development of products, business models, the development of new geographies and the creation of future growth drivers.”   Subsidiary Analysis  Strauss Israel In 2018 Strauss Israel’s sales amounted to NIS 3.3 billion, up 4.6% versus last year and exceeded the growth of the overall domestic food and beverage market, which was 4%. The increase in sales is the result of growth in both the Health & Wellness and Fun & Indulgence divisions. This year as well, Strauss Israel continued to encourage a balanced diet. The company continued its efforts to reduce the sugar and sodium content of its products and to focus on portion control. The company also continued to pursue product innovation initiatives, entered new categories and expanded existing ones, such as the successful protein-enriched products. Health & Wellness In 2018 sales of the Health & Wellness division were NIS 2.2 billion, up 5.3% compared to the corresponding period in 2017. This year, Strauss Dairies continued to launch innovative products in the Pro series as well as others such as Gamadim Squeeze. In 2018 Fresh Foods piloted a health move in which all added fat was removed from hummus, and the ready-to-eat meal series Eat Good was launched. New products included the Tasty Flavors cracker series under the Energy brand, a product based on healthy ingredients such as chickpeas, peas and black lentils. Fun & Indulgence Fun & Indulgence sales were NIS 1.1 billion in 2018, up 3.4%. This year, the confectionery and bakery activity was again characterized by diversification and new product launches. The division also implemented an innovative technological move – the removal of aspartame and titanium dioxide from chewing gum. In 2018 the salty snacks company continued the process of reducing the fat and sodium content of its products. Strauss Coffee In 2018 organic growth of the coffee operation in domestic currency was 3.1%, with sales rising to NIS 4.0 billion and mainly reflecting growth in sales volumes in Brazil and Israel. In the fourth quarter sales by the coffee company were NIS 1.0 billion, compared to NIS 1.1 billion in the corresponding period last year. Operating profit in 2018 was NIS 418 million, up 6.2%, and the operating profit margin was 10.6%, an increase of 1% compared to last year. Strauss Coffee’s operation in Israel grew 4.8% in the year to NIS 737 million. Activities focused on the launch of additional and stronger flavors in coffee capsules, launch of the Platinum brand and the BeanZ business – fresh coffee beans from farmers around the world with a grinding machine to deliver a fresh coffee experience at home. In 2018 the coffee business in Brazil continued to break records. The income of Três Corações – Brazil’s largest coffee company and a joint venture owned by Strauss Group and São Miguel Holding e Investimentos S.A. – amounted to NIS 2.0 billion (reflecting 50%) in 2018, up 7.3% in domestic currency. However, the appreciation of the shekel against the Brazilian real had a negative effect of NIS 256 million. At the end of December, the company’s market share was 27.3% of the Brazilian coffee market, compared to 25.8% in the corresponding period in 2017. Most of the growth was the result of an increase in sales quantities of roast and ground (R&G) coffee. The company in Brazil also markets and distributes coffee capsules and machines under the TRES brand. In April 2018 Três Coraçõesacquired the activity of TapajósIndústria de Café Ltda, retail coffee brands Manaus, Tapajós and Betânia as well as additional products in the R&G category in northern Brazil for approximately NIS 23 million (reflecting 100%). Domestic currency sales in Russia and Ukraine dropped by 5.9% in 2018, mainly as a result of challenging trade conditions, and amounted to NIS 574 million. Exchange differences – appreciation of the shekel against the Russian ruble and the Ukrainian hryvnia – reduced the company’s revenues by NIS 36 million. Sales in Poland amounted to NIS 305 million, similar to the corresponding period last year, but eroded 3.8% in domestic currency. Romania sales in 2018 totaled NIS 221 million, similar to the corresponding period last year; in Serbia, sales increased by 7.6% to NIS 151 million, mainly as a result of positive currency translations of the Serbian dinar into shekels. Strauss Water Strauss Water had another outstanding year with sales of NIS 591 million, an increase of 9.2% compared to last year. Operating profit almost doubled to NIS 65 million compared to NIS 36 million in the corresponding period. The increase in operating profit is mainly the result of growth in the customer base and an increase in quantities sold, combined with continued operational efficiency enhancement. Strauss Water Israel continues to grow rapidly, mainly thanks to growth in the number of customers and increased purchases by existing ones. In 2018 the company launched the Maze water filter, a patented product that is unique to Strauss Water and the most advanced of its kind in the world, and replaced the water bars filters for its customers during the year, free of charge. Haier Strauss Water – In 2018, Strauss Water’s joint venture with the Chinese home appliances and consumer electronics giant, Haier, yielded revenues of NIS 562 million in 2018 compared to NIS 491 million in 2017, an increase of 14.4%, mainly as a result of restructuring the sales network in China and a shift to focusing on online sales. Virgin Strauss Water – In 2018, the Group’s water business in the UK in collaboration with Virgin Group launched digital sals channels, including a website, as well as marketing activities via an app and Instagram.   Global Dips & Spreads Strauss Group’s international dips and spreads operation, Sabra in the US and Canada and Obela in Mexico, Australia, New Zealand and Western Europe closed out 2018 with immpressive growth. Sabra, the Group’s dips and spreads joint venture with PepsiCo,had a record year in local currency revenues, which translated into NIS 1.4 billion, up 8.7% compared to 2017, and revenues of NIS 322 million in the fourth quarter, reflecting 9.6% growth (for 100% of the company). Sabra continues to lead the US dips and spreads market with 25.3% market share (IRI figures) and dominates 60.1% of the US hummus market. In 2018 the company focused its operations on hummus and guacamole after divesting of its salsa business. The health trend in the US and the shift to a plant-based diet have contributed to Sabra’s business and the company launched new products, including a guacamole spread with toast for breakfast. Obela wrapped up 2018 with revenues of NIS 166 million compared to NIS 141 in 2017, reflecting 17.9% growth and 19.4% growth excluding foreign currency effects. In the fourth quarter the company’s sales amounted to NIS 49 million, up 15.2% compared to the corresponding period last year. The company continues to invest in the penetration into new geographies, and as a result has reported an operating loss of NIS 18 million for the year compared to NIS 21 million in 2017 (reflecting 100%). The company’s market share in Australia continues to grow and is now 42% (IRI figures); in New Zealand, where operations began in 2017, market share is 11.5% (IRI figures). The company initiated activities in Germany during 2017 and has already gained a market share of 7.5% (Nielsen figures). Key financial data for the years ended December 31 – non-GAAP (NIS millions)*: Gross profit and gross profit margin          Net sales               Cash flows from operating activities and      Operating profit and operating profit margin free cash flow                                                                Key financial data for the quarters ended December 31 – non-GAAP (NIS millions)*: Gross profit and gross profit margin                Net sales  Cash flows from operating activities and        Operating profit and operating profit margin free cash flow                                                    * Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands. ** reclassified (1)  The data in this document are based on the company’s non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses (without implementation of IFRS 11) and do not include share-based payment, mark-to-market as 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. * Reclassified 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 (without implementation of IFRS 11) and do not include share-based payment, mark-to-market as 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 D&S figures reflect Strauss’s 50% share in Sabra and Obela. Strauss Water EBIT figures include Strauss’s share in the joint venture in China, Haier Strauss Water (HSW). Until August 2017 the Company held a 34% stake in the joint venture, and commencing in September 2017, its percentage holding increased to 49% following the acquisition of an additional 15%. (3)  Commencing in the first quarter of 2018, Company Management has elected to report the results of the Strauss Water segment, formerly presented within the Other Operations segment, separately. (4)  In the second quarter of 2017 the Company sold the Max Brenner operation. 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 (without implementation of IFRS 11) and do not include share-based payment, mark-to-market as 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 intangibles assets. * reclassified 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 (without implementation of IFRS 11) and do not include share-based payment, mark-to-market as 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 D&S figures reflect Strauss’s 50% share in Sabra and Obela. Strauss Water EBIT figures include Strauss’s share in the joint venture in China, Haier Strauss Water (HSW). Until August 2017 the Company held a 34% stake in the joint venture, and commencing in September 2017, its percentage holding increased to 49% following the acquisition of an additional 15%. (3)    Commencing in the first quarter of 2018, Company Management has elected to report the results of the Strauss Water segment, formerly presented within the Other Operations segment, separately. 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. Investor Conference Calls Strauss Group will host an investor conference at the Tel Aviv Stock Exchange on Wednesday, March 13, 2019 at 10:30 (Israel time) to review the Financial Statements of the Company for the full year and fourth quarter of 2018. Investors can listen to the conference online at: http://ir.strauss-group.com/phoenix.zhtml?c=92539&p=irol-conferencecalls Strauss Group will also host an investor conference call in English on Wednesday, March 13, 2019 at 15:00 Israel time (13:00 UK, 09:00 EST) to review the Financial Statements of the Company for the full year and fourth quarter of 2018. To participate in the conference in English, please call one of the following numbers as appropriate:  From the UK: 0-800-917-5108  From the US: 1-888-407-2553  From Israel: 03-918-0610 The Financial Statements for the full year and fourth quarter of 2018 and Investors Presentation are posted on the Group’s Investor Relations website at: http://ir.strauss-group.com/phoenix.zhtml?c=92539&p=irol-irhome For further information please contact:   Osnat Golan VP Communications, Digital & 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  
Hila Mukevisuis will replace Nurit Tal Shamir after 10 years as VP Human Resources and 22 years at Strauss
18/02/2019

Hila Mukevisuis will replace Nurit Tal Shamir after 10 years as VP Human Resources and 22 years at Strauss

Aligned with the Company’s culture of open innovation, the partnership with The Kitchen will enable Givaudan to expand its innovation ecosystem further by connecting with Israel-based food entrepreneurs who are contributing to the creation of healthier and sustainable products and solutions. Givaudan’s Head of Science & Technology, Flavours, Fabio Campanile, said: “Our partnership with The Kitchen is the latest example of Givaudan’s commitment to address global food challenges. We are thrilled to share our capabilities with entrepreneurs in one of the most dynamic FoodTech ecosystems in the world and jointly develop new technologies and solutions that will shape the future of good and sustainable food.” Jonathan Berger, CEO of The Kitchen, said: “Israel plays an important role in creating innovative food technologies, and our goal at The Kitchen is to nourish promising FoodTech ventures that can disrupt the global food system making it more productive, more affordable, more sustainable, and healthier. Our partnership with Givaudan will provide FoodTech start-ups with a wealth of food science knowledge and sensory expertise to help them navigate challenges in their product development journeys.” About Givaudan Givaudan is the global leader in the creation of flavours and fragrances. In close collaboration with food, beverage, consumer product and fragrance partners, Givaudan develops tastes and scents that delight consumers the world over. With a passion to understand consumers’ preferences and a relentless drive to innovate, Givaudan is at the forefront of creating flavours and fragrances that ‘engage your senses’. The Company achieved sales of CHF 5.5 billion in 2018. Headquartered in Switzerland with local presence in over 145 locations, the Company has almost 13,600 employees worldwide. Givaudan invites you to discover more at www.givaudan.com. About Givaudan Flavours Givaudan’s comprehensive knowledge of local flavours, extensive global footprint and strategic insights enable close partnerships with customers wherever they may be. With a customised approach to product creation, the Flavour Division is a powerhouse of knowledge, innovation and creativity equipped to surprise customers and consumers with fresh, unique ideas and solutions. Givaudan creates lasting flavour and taste experiences that touch emotions across key segments including beverages, sweet goods, savoury and snacks; regardless of product category Givaudan’s passion is to make food and beverage products taste delicious. We invite you to ‘engage your senses’ and learn more about Flavours at www.givaudan.com/flavours. About The Kitchen Founded in 2015 as a part of the incubators program of Israel Innovation Authority, and owned by Strauss Group, The Kitchen is Israel's only FoodTech focused incubator. We address global food challenges by harnessing Israel’s renowned innovation eco-system. Some examples of our areas of interest are: Supply chain technologies, efficient food processing, sensors for food safety and quality, prolonged shelf life and reduction of food spoilage, smart packaging, ingredients and products with new health benefits, improved nutritional profiles, reduction of environmental foot prints. Discover more at www.thekitchenhub.com. For further information, please contact Aleksandra Mrsa, Givaudan Communications Manager T +41448242328 E aleksandra.mrsa@givaudan.com  
STRAUSS GROUP CEO GIORA BARDEA APPOINTS HILA MUKEVISUIS AS GROUP VICE PRESIDENT OF HUMAN RESOURCES
18/02/2019

STRAUSS GROUP CEO GIORA BARDEA APPOINTS HILA MUKEVISUIS AS GROUP VICE PRESIDENT OF HUMAN RESOURCES

Giora Bardea, CEO of Strauss Group, today announced the appointment of Hila Mukevisuis as Vice President of Human Resources and a member of Strauss Group management. She will be replacing Nurit Tal Shamir, who has asked to step down after 10 years on the job and 22 years in Strauss Group’s HR organization. Hila, 44, holds an MA in Diplomacy and Security from Tel Aviv University and a BA in Behavioral Science from the College of Management Academic Studies. For the past four years she served as SVP, Head of Global Human Resources at Netafim, which today has 4,300 employees in the world. Before joining Netafim she spent seven years as VP Human Resources at Nova Measuring Instruments Ltd. and eight years at Amdocs, where she served in a variety of HR management positions. Bardea: “We believe that the people in the company, its leadership, culture and our way are what have enabled us to accomplish our chosen mission and guarantee success in the long term. “As we prepare for the years to come, we believe more strongly than ever that the quality of our people, culture and leadership will continue to play a key and growing, more meaningful role in our ability to create and maintain a competitive advantage, build an agile organization with outstanding human capital, and leadership that is able to tailor the organization to the changing environment and growing expectations of our stakeholders. “Hila brings a background and extensive experience in the management of HR organizations in global companies that have undergone profound change processes following the need to adapt to a changing environment. Her broad experience in working in a multicultural environment will help us to continue to develop the human capital in our group. “Nurit is responsible for a huge part in shaping Strauss Group’s way in the past twenty years, and we are currently reviewing other senior positions to enable us to continue to benefit from her diverse capabilities in the future.” Hila will assume her new position on May 1st, 2019. For further information: Osnat Golan                                                                        Shlomi Sheffer VP Corp Communications & Sustainability                        External Relations Director 052-8288111                                                                       050-6208000
International kudos for a startup from Strauss Group’s The Kitchen FoodTech Hub
09/01/2019

International kudos for a startup from Strauss Group’s The Kitchen FoodTech Hub

Yofix, manufacturer of the “Only” brand, wins first place in PepsiCo’s Nutrition Greenhouse Program The company, which vied against European startups, will be awarded a €100,000 grant Israeli startup Yofix, which had its beginnings in Strauss Group’s The Kitchen FoodTech Hub, has won first place in PepsiCo’s European Nutrition Greenhouse competition. Yofix was accepted to PepsiCo’s innovation accelerator program, where it worked for the past six months along with other FoodTech startups from all over Europe. As part of the program, participants received advice and mentoring by PepsiCo’s experts. Yofix was announced as a finalist along with nine other startups and was ultimately declared the winner and recipient of a €100,000 grant. Yofix will be awarded the grant for its strategic launch and retail growth during the program.   Yofix is a FoodTech startup established by entrepreneur Ronen Lavie and managed by Steve Green. The company markets its brand, “Only”, through Strauss. “Only” is clean-label, plant-based (non-dairy) dessert that contains probiotics. The product is based on rich, natural raw materials including oats, legumes, seeds and fruit.   Strauss Dairies, which identified the company’s potential by as early as the initial stages, invested in Yofix together with the Israel Innovation Authority, and following a three-year process development of the product was completed, a new production line was set up at the factory in Netivot and a brand was built, which is sold today under the name “Only”. It is the first product to “graduate” from the incubator and is a 100% Israeli development.   Steve, CEO of Yofix: “Winning the competition has given us an official seal for the innovation and uniqueness of our dessert on the international level. Our dream, before conquering world shelves, is for “Only” to be present in every home in Israel as part of the daily diet because of its great taste and health values.”   Jonathan, CEO of The Kitchen FoodTech Hub: “We are thrilled that a giant like PepsiCo recognized Yofix’s breakthrough technology and awarded it first place in its innovation accelerator program. The Kitchen invests in promising startups and helps them break into global markets, and it is only natural for Strauss’s partners such as Pepsi and others to be part of the international breakthrough by these ventures.”   PepsiCo: “It has been a privilege to partner with another stand-out group of exciting, innovative entrepreneurs in the second year of our Nutrition Greenhouse incubator program. Our vision remains steadfastly the same as when we launched in 2017; to support forward-thinking food and beverage startups that deliver great-tasting, nutritious products to people around the world.” 
Giora Bardea, President & CEO of Strauss Group, today announced three new appointments in the Group
09/01/2019

Giora Bardea, President & CEO of Strauss Group, today announced three new appointments in the Group

Shahar Florence, Strauss Group CFO for the past ten years, has been appointed Chief Growth and Innovation Officer, a member of Group management. Ariel Chetrit, Strauss Israel CFO, has been appointed Strauss Group CFO and a member of Strauss Group management. Gur Zamir, Strauss Water CFO, will be replacing Ariel Chetrit as CFO of Strauss Israel. Giora Bardea said today: “The food and beverage industry has undergone rapid global changes in the past few years. We have chosen to establish a new, dedicated unit for growth and innovation in order to assure the development of capabilities and to enable us to make the necessary preparations in light of trends, needs and new business opportunities and bring them to commercial fruition. This includes solidifying and assimilating groundbreaking innovations and technologies at Strauss, cultivating and leading the world FoodTech community, strengthening the worlds of technology, including Alpha, the incubator and business development, accelerating digital transformation along the value chain, and identifying opportunities for future growth.   The establishment of this unit will enable the Group to better leverage its existing assets in the spheres of innovation, entrepreneurship and technology, to make a quantum leap in the development of capabilities, to strengthen its home base and develop competitive advantages in the global arena that will enable growth in existing business areas as well as new ones in the future.   The appointment of Shahar Florence, as well as the appointment of Ariel Chetrit and Gur Zamir to the senior financial management teams of the Group and Strauss Israel, is an excellent opportunity to grow and promote outstanding managers from within the Group, and I consider this a genuine success. I am certain that their personalities, experience and uncompromising pursuit of excellence will enable them to succeed and to make a significant contribution to the Group’s continued success.”   Shahar Florence will manage the Group’s new innovation and growth unit and will continue to manage IT and business development in the Group. Florence, a resident of Shoham and married with three children, has served as the Group’s CFO since joining Strauss in 2008.   Mr. Florence has rich management experience and before joining Strauss Group, managed Starhome, which is engaged in solutions for international mobile carriers, after having served as the company’s CFO and previously, as CFO of Promedico and Lannet.   During his term of office at Strauss Group, Mr. Florence led some of the most complex business processes in the Group, such as the buyback of Strauss’s complete ownership of Strauss Coffee from former partners TPG Capital; played a meaningful role in M&A processes in the coffee company, and also accomplished significant achievements in investor relations as well as in capital and debt raising, on a scale of over four billion shekels. During Mr. Florence’s term the Group solidified its financial strength while maintaining a high credit rating during turbulent periods in the capital market, cultivating the trust of the investor public, managing the debt level, improving the tax structure, sale and purchase of real estate assets and streamlining the Group’s capital structure and cash flows.   In addition to serving as Group CFO, in the past few years Mr. Florence led The Kitchen FoodTech Hub to success, recruiting 12 startups and impressively positioning Strauss in the global FoodTech arena. He was also responsible for business development moves executed vis-à-vis Strauss’s business partners in the various companies and as a member of the board of directors of most of the Group’s companies. Ariel Chetrit, Strauss Israel CFO, has been appointed Strauss Group CFO and a member of Strauss Group Management. Mr. Chetrit, who lives in Modi’in, is married and father of two, joined Strauss Group as HQ controller and treasurer in 2008. In 2011 he was appointed CFO of Strauss Israel and played a leading, significant role in Strauss Israel’s impressive success in recent years. He was a key partner in leading and implementing strategic moves and business plans in Strauss Israel in the past eight years, led major investments in the business and devised and implemented the concept of gross profitability as a business foundation. He also drove Strauss Israel’s portfolio strategy and was a key partner in managing the challenges during the 2011 social justice protest in Israel and Strauss Israel’s preparations for the numerous, extensive regulatory processes that came in its wake, and in the initiation, leadership and implementation of SLTO processes throughout the years: lowering product prices, the nutrition strategy and the social program. Mr. Chetrit also led the productivity concept and the methodology for its realization, as well as numerous other initiatives and moves. Gur Zamir, Strauss Water CFO, will be replacing Ariel Chetrit as CFO of Strauss Israel. Mr. Zamir, who lives in Kfar Yehoshua, is married and father of three, joined Strauss Water, then Tami4, in 2006 as CFO and served in this position until 2009. In 2010 he was appointed CFO of Strauss Water and in this capacity, played a key role in the leadership of all business moves executed by Strauss Water in Israel, China and the UK. His accomplishments include the establishment of the joint venture with Haier in China (Haier Strauss Water), his involvement in the establishment of the Virgin Strauss Water joint venture with Virgin Group in England, his leadership of the team that negotiated the collective agreement with the workers’ representatives and the Histadrut General Federation of Labor in Israel, and his key role in improving Strauss Water’s financial performance, its rapid growth, strong cash flow and double-digit profits. The appointments are scheduled to take effect in April.   For further information: Osnat Golan                                                                        Shlomi Sheffer VP Corp Communications & Spokesperson                      External Relations Director 052-8288111                                                                       050-6208000