Third Quarter Financial Results: Strauss Group concludes a strong quarter with an increase of 10% in Sales to NIS 3.3 billion and an increase of 43% in Net Income to NIS 146 million
Shai Babad, CEO and President of Strauss Group: “The Group is on a growth trajectory, demonstrating improvement in profitability and increase in market share across most key market segments. Alongside continued impressive growth in our international coffee business, led by the coffee JV in Brazil, we have reinforced our beloved brands in Israel through innovation. Last month we inaugurated Michael’s Campus in the North of Israel, which includes a new plant-based dairy facility at an investment of approximately NIS 270 million—a strategic investment that creates jobs, develops the local economy, and brings innovative products to market. Additionally, we launched the new ‘Tami4 Shabbat’ water bars and introduced the Cow-Free category, representing groundbreaking innovation in the dairy alternatives space. Today, Strauss stands in a position of strength, with growth engines in Israel and abroad, and a solid foundation for continued progress in the coming years.”
Quarterly Highlights[2]:
- Strauss Group: Significant sales growth reaching NIS 3.3 billion, up 9.6%, improved operating profit and margin, mainly from Coffee International in addition to implementation of productivity initiatives. Pro-forma growth reached 16.3%.
- Strauss Israel: Growth in sales and market share alongside decline in profit and margin, primarily in the Health & Wellness segment.
- Coffee International: Significant growth in sales and operating profit, mainly due to pricing in the coffee JV in Brazil. The coffee companies in Central Eastern Europe have established their position as # 2-3 player in the market.
- Strauss Water: Continued revenue growth alongside decline in profit and margin, mainly due to reduced profitability in Haier Strauss Water in China following intense competition.
- Innovation and new launches: Inauguration of Michael’s Campus in the North of Israel, launch of Cow-Free and Tami4Shabbat.
Third Quarter 2025 Financial Highlights2:
- The Group’s sales grew approximately 9.6% to NIS 3,277 million (13.2% excluding FX).
- EBIT increased approximately 40.1% to NIS 312 million, representing 9.5% of sales, in comparison to NIS 223 million, 7.4% of sales.
- Net income attributed to shareholders increased approximately 42.7% to NIS 146 million, 4.4% of sales, in comparison to NIS 102 million, 3.4% of sales.
- Free cash flow of NIS 245 million, compared to negative free cash flow of NIS 98 million.
[1] The data presented in this document are based on the company’s Non-GAAP figures, which include the proportionate consolidation of jointly controlled entities and exclude the following: share-based payments; end-of-period mark-to-market valuations of open financial derivative positions used for commodity hedging; timing adjustments for gains and losses from commodity derivatives, which are deferred until the related inventory is sold to third parties; capital-based compensation; other net income/expenses; and the related tax effects, unless stated otherwise. All changes are in comparison with the corresponding period last year, unless stated otherwise.
[2] Q3-2025 and 9M-2025 results in this earnings release are presented in comparison to Q3-2024 and 9M-2024, respectively, unless otherwise stated.
