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Osnat Golan
Osnat Golan
VP Corp Communications, Digital, Sustainability & Spokesperson
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Shlomi Sheffer
Shlomi Sheffer
Dir. External Communications & Government Relations
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Gali Fried
Gali Fried
Public Relations Manager
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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 IsraelIn 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 & WellnessIn 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 & IndulgenceFun & 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 CoffeeIn 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 WaterStrauss 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 & SpreadsStrauss 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 marginfree 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.* reclassifiedNote: 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 CallsStrauss 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-conferencecallsStrauss 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: 03-918-0610The 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-irhomeFor further information please contact: Osnat GolanVP Communications, Digital & SustainabilityStrauss Group Ltd.972-52-828-8111972-3-675-2281Osnat.Golan@Strauss-Group.comDaniella FinnDirector of Investor RelationsStrauss Group Ltd.972-54-577-2195972-3-675-2545 Daniella.Finn@Strauss-Group.com Or Shlomi ShefferExternal Communications Director Strauss Group Ltd.972-50-620-8000972-3-675-6713Shlomi.Sheffer@Strauss-Group.com  
Givaudan announces partnership with The Kitchen to drive innovation in the food sector
18/02/2019

Givaudan announces partnership with The Kitchen to drive innovation in the food sector

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 GivaudanGivaudan 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 FlavoursGivaudan’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 contactAleksandra Mrsa, Givaudan Communications ManagerT +41448242328E 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