Strauss Group Reports Second Quarter & First Half 2025 Results: Operating Profit up 61% in the Quarter while Sales Grew 12% to NIS 3.1b
Brazil coffee JV more than doubled operating profit with sales growth of 33%, leading improvement in Group operating profit[1]
PETAH TIKVA, Israel, Aug. 26, 2025 /PRNewswire/ -- Strauss Group Ltd. (TASE: STRS) reported its financial statements for the second quarter and first half of 2025, that ended June 30, 2025.
Shai Babad, CEO and President of Strauss Group: "In the second quarter, we continued our growth momentum across all our global activities. I would like to express my gratitude to our people for their dedication and sense of mission as we navigated ongoing challenges posed by the war in Israel and maintained business continuity during the conflict with Iran. Our coffee JV in Brazil continue to deliver strong results, with sustained growth and improved profitability. In Israel, we have maintained innovation within our core brands, and our water business continued to expand in Israel, China, and the UK. As part of the ongoing implementation of our group strategy, we continued to drive productivity initiatives and remain committed to generating new growth engines and innovation, both in Israel and globally."
Highlights[2]:
Strong growth in Strauss Group sales led by higher pricing in the Coffee International segment
Higher Group EBIT achieved mainly from the Coffee International segment and profitability improvement in the Health & Wellness segment
Strauss Israel: Higher sales and EBIT led by the Health & Wellness segment
Coffee International: Significant revenue and profit growth in international coffee operations, with marked improvement in Brazil
Lower Group Net Income due to higher financial expenses mainly due to Shekel appreciation and higher tax expenses due to profit mix
Aa1.il rating affirmed with upgraded outlook from Negative to Stable by Midroog (Moody's affiliate)
Successful expansion of bonds series F with net proceeds of NIS 461m, with high investor interest
Improved market share in most categories in the Group
Table 1. Financial Performance Summary (Non-GAAP):
NIS million
Q2-2025
Q2-2024
% Change
% Change excl. FX
H1-2025
H1-2024
% Change
% Change excl. FX
Group Sales
3,073
2,754
11.5 %
15.5 %
6,063
5,343
13.5 %
18.1 %
Gross Profit
868
841
3.2 %
5.9 %
1,649
1,715
-3.9 %
-1.0 %
Gross margin
28.3 %
30.5 %
27.2 %
32.1 %
Operating Profit (EBIT)
245
151
60.8 %
64.8 %
426
355
19.8 %
21.7 %
EBIT margin
8.0 %
5.5 %
7.0 %
6.7 %
Net Income attributable to shareholders
80
83
-1.8 %
0.7 %
153
242
-36.7 %
-35.7 %
Net margin
2.6 %
3.0 %
2.5 %
4.5 %
EPS
0.69
0.71
-1.9 %
1.31
2.07
-36.7 %
EBITDA
349
262
32.4 %
631
580
8.6 %
EBITDA margin
11.3 %
9.6 %
10.4 %
10.9 %
Free Cash Flow
-89
-119
25.0 %
14.7 %
-584
-397
-46.7 %
-63.3 %
Second Quarter 2025 Financial Highlights:
The Group's sales grew by approximately 11.5% to NIS 3.1 billion, with growth excluding FX of approximately 15.5%, y-o-y.
Operating profit increased by approximately 60.8% to NIS 245 million, representing 8.0% of sales, in comparison to operating profit of approximately NIS 151 million, 5.5% of sales.
Net profit attributable to shareholders declined by approximately 1.8% to NIS 80 million, 2.6% of sales, in comparison to profit of approximately NIS 83 million, 3.0% of sales.
Negative free cash flow of NIS 89 million, compared to negative free cash flow of NIS 119 million.
First Half 2025 Financial Highlights:
The Group's sales grew by approximately 13.5% to NIS 6.1 billion, with growth excluding FX reaching approximately 18.1%.
Operating profit increased by approximately 19.8% to NIS 426 million, representing 7.0% of sales, compared to profit of approximately NIS 355 million, 6.7% of sales.
Net profit attributable to shareholders decreased by approximately 36.7% to NIS 153 million, representing 2.5% of sales, compared to profit of approximately NIS 242 million, 4.5% of sales.
Negative free cash flow of NIS 584 million, in comparison to negative free cash flow of NIS 397 million.
Segment Q2 & H1 Financial Highlights
Table 2. Sales Summary by Operating Segment (Non-GAAP):
NIS million
Q2-2025
Q2-2024
% Change
% Change excl. FX
H1-2025
H1-2024
% Change
% Change excl. FX
Group Sales
3,073
2,754
11.5 %
15.5 %
6,063
5,343
13.5 %
18.1 %
Strauss Israel
1,319
1,212
8.9 %
8.9 %
2,715
2,521
7.7 %
7.7 %
Health & Wellness
806
754
6.8 %
N.M.
1,548
1,485
4.2 %
N.M.
Fun & Indulgence (Snacks and Confectionary) (2)
301
271
11.0 %
N.M.
695
632
10.0 %
N.M.
Fun & Indulgence (Coffee Israel) (2)
212
187
14.0 %
N.M.
472
404
16.9 %
N.M.
Strauss International Coffee(2)
1,536
1,205
27.4 %
37.5 %
2,924
2,159
35.4 %
49.3 %
Strauss Water(2)
218
210
3.9 %
N.M.
424
403
5.3 %
N.M.
Other(3)
0
127
0
260
(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 and/or the derivative is exercised; other net income and expenses; and the related tax effects, unless stated otherwise. All changes are in comparison with the corresponding period last year, unless stated otherwise.
(2) Fun & Indulgence (Snacks and Confectionery) figures include Strauss's 50% interest in the salty snacks business. International Coffee figures include Strauss's 50% interest in the Três Corações joint venture (3C) in Brazil (a company jointly held by the Group (50%) and by the local São Miguel Group (50%)).
(3) Comparative figures include the data for Sabra and Obela (based on 50%), which were sold during 2024.
Note: Financial data were rounded to the nearest NIS million. Percentages changes were calculated based on the exact figures in NIS thousands. The figures for total International Dips & Spreads were derived from the exact figures for Sabra and Obela, in NIS thousands.
Table 3. Operating Profit Summary by Operating Segment (Non-GAAP):
