PETAH TIKVA, Israel, Nov. 26, 2025 /PRNewswire/ -- Strauss Group Ltd. (TASE: STRS) reported its financial results for the third quarter and first nine months of 2025, that ended September 30, 2025.
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.
Table 1. Financial Performance Summary (Non-GAAP) (1):
NIS million
Q3-2025
Q3-2024
% Change
% Change excl. FX
9M-2025
9M-2024
% Change
% Change excl. FX
Group Sales
3,277
2,991
9.6 %
13.2 %
9,340
8,334
12.1 %
16.4 %
Gross Profit
960
911
5.3 %
8.0 %
2,609
2,626
-0.7 %
2.1 %
Gross margin
29.3 %
30.5 %
27.9 %
31.5 %
EBIT
312
223
40.1 %
43.2 %
738
578
27.6 %
29.9 %
EBIT margin
9.5 %
7.4 %
7.9 %
6.9 %
Net Income attributed to shareholders
146
102
42.7 %
47.0 %
299
344
-13.2 %
-11.4 %
Net margin
4.4 %
3.4 %
3.2 %
4.1 %
EPS
1.25
0.88
42.6 %
N.M.
2.56
2.95
-13.2 %
N.M.
EBITDA
415
332
24.9 %
27.5 %
1,046
912
14.5 %
16.5 %
EBITDA margin
12.6 %
11.1 %
11.2 %
10.9 %
Free Cash Flow
245
-98
N.M.
N.M.
-339
-495
31.5 %
N.M.
(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) Comparative figures include the data for Sabra and Obela (based on 50%), which were sold during 2024.
(3) Including loss on cocoa derivative of NIS 49 million in Q1-25, NIS 27 million in Q2-24 and NIS 18 million in Q3-24.
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.
Third Quarter 2025 Financial Highlights[2]:
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.
First Nine Months 2025 Financial Highlights[2]:
The Group's sales grew approximately 12.1% to NIS 9.3 billion (16.4% excluding FX).
EBIT increased approximately 27.6% to NIS 738 million, representing 7.9% of sales, compared to NIS 578 million, 6.9% of sales.
Net income attributed to shareholders decreased approximately 13.2% to NIS 299 million, representing 3.2% of sales, compared to NIS 344 million, 4.1% of sales.
Negative free cash flow of NIS 339 million, in comparison to negative free cash flow of NIS 495 million.
Segment Q3 & 9M Financial Highlights
Table 2. Sales Summary by Operating Segment (Non-GAAP) (1):
NIS million
Q3-2025
Q3-2024
% Change
9M-2025
9M-2024
% Change
Strauss Israel
1,407
1,371
2.7 %
4,122
3,892
5.9 %
Health & Wellness
821
827
-0.6 %
2,369
2,312
2.5 %
Fun & Indulgence (Snacks and sweets) (2)
365
323
12.9 %
1060
955
11.0 %
Fun & Indulgence (Coffee Israel)
221
221
-0.2 %
693
625
10.8 %
Strauss International Coffee(2)
1,636
1,259
30.0 %
4,560
3,418
33.4 %
Strauss Water
234
224
4.1 %
658
627
4.9 %
Other(3)
0
137
N.M.
-
397
N.M.
(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.
