Strauss Group Reports Fourth Quarter and Full Year 2024 Results
2024 revenues up 6% reaching NIS 11.2 billion; NIS 418 million in net profit[1]
The company delivered a year of significant growth in Brazil, China and Israel
Peak year in investments in core activities, infrastructure and the Group's plants, mainly in Israel. The company is expected to inaugurate a plant-based alternative dairy production facility in Northern Israel and another water plant in China this year
The company's confectionery business in Israel returned to its former market share
Strauss divested its holding in Sabra and Obela for NIS 891 million, net income of NIS 356 million and net cash flow of NIS 723 million.
Likewise, the Company completed the sale of the coffee business in Serbia and the fresh vegetable business in Israel, and entered into an agreement for the sale of the Café Elite chain
Strauss will distribute a dividend of NIS 160 million to shareholders
Strauss announces the appointment of Mr. Saul Kobrinsky as Deputy to the Chairperson of the Board of Directors
Mr. David Mosevics and Mrs. Tzipi Ozer Armon have requested to end their tenure on the Board of Directors
PETAH TIKVA, Israel, March 25, 2025 /PRNewswire/ -- Strauss Group Ltd. (TASE: STRS) reported its financial statements for the fourth quarter and full year of 2024, against the backdrop of the continuing impact of rising raw material prices on the company's profits.
Strauss Group President & CEO Shai Babad commented: "We have concluded the first year of implementing our revised strategy, in which we focused and strengthened our core business, adjusted our organizational structure to support future growth, continued to invest in production sites and infrastructure, built growth drivers, as well as optimized our portfolio to improve our financial and business resilience. In 2024 the war continued, and it was a challenging and complex year for Israel. The Group's employees continued to manufacture and market our products, maintaining business continuity, and supporting food security of all."
Summary of financial results for fourth quarter and full year 2024:
NIS millions
Q4 2024
Q4 2023
FY 2024
FY 2023
Sales
2,872
2,695
11,206
10,549
% change
+6.6 %
+6.2 %
Operating profit
174
181
752
772
% change
-3.5 %
-2.6 %
% of sales
6.1 %
6.7 %
6.7 %
7.3 %
Net profit
74
100
418
439
% change
-25.7 %
-4.8 %
% of sales
2.6 %
3.7 %
3.7 %
4.2 %
Strauss Group published its financial statements for the fourth quarter and full year of 2024 with annual revenues that surpassed the NIS 11 million mark for the first time, totaling NIS 11.2 billion and up 6.2% compared to 2023. Strauss concluded the fourth quarter of 2024 with revenue of NIS 2.9 billion, reflecting 6.6% growth compared to the corresponding quarter last year.
Strauss concluded FY 2024 with NIS 752 million in operating profit, 6.7% of the sales, and net profit of NIS 418 million, 3.7% of the sales. In the fourth quarter, operating profit was NIS 174 million, 6.1% of the sales, and net profit was NIS 74 million, 2.6% of the sales. Strauss has announced a dividend of NIS 160 million.
In 2024, Strauss launched an update to its strategy and began its implementation. As noted in previous reports, the company announced this year that it had completed the sale of its holding in the international dips and spreads activities, Sabra and Obela, to the PepsiCo corporation for a consideration of NIS 891 million, net income of NIS 356 million and net cash flow of NIS 723 million, had completed the sale of the coffee business in Serbia and the fresh vegetables business in Israel. Additionally, in February 2025, the Group entered into an agreement with a third party for the sale of the Café Elite coffee shop chain in consideration for an amount that is immaterial to the Group, and the parties are working to complete the transaction.
Furthermore, the company adapted the Group's organizational structure and expedited productivity and transformation initiatives, continued to strengthen its status as the leading coffee company in Brazil and as a growing coffee company in Eastern Europe, and demonstrated continuing growth and margin enhancement in the water activity in China. The company also continued to strengthen its core categories in Israel through innovation in its leading brands. In parallel, Strauss continued to invest in a facility for the development of plant-based alternative dairy in Northern Israel, and in a second plant for the water activity in China.
Additionally, the company is updating on a few changes in its board of directors, Mr. Saul Kobrinsky was appointed Deputy to the Chairperson of the Board of Directors. Saul joined the company's board of directors in April 2024, having previously serving as Chairman of the board of "Bank Discount", in parallel, Saul also currently serves as Chairman of the board of "BaitveGag". Likewise, the company updated that Mr. David Mosevics and Mrs. Tzipi Ozer Armon have requested to end their tenure on the Board of Directors. The company wishes to thank them for their contribution over the years to Strauss Group.
FY 2024 summary by operating segment:
Strauss Israel, 6.2% growth in 2024
Strauss Israel concluded the full year with revenue of NIS 5,170 million, up 6.2% compared to last year. Strauss Israel's operating profit was NIS 528 million, up 7.9% from 2023. Sales by the Health & Wellness segment in 2024 amounted to NIS 3,076 million, up 2.6%[2], and operating profit was NIS 389 million, up 9.4%. Sales by the Fun & Indulgence (Snacks and Confectionery) segment were NIS 1,264 million in FY 2024, an increase of 17.6%[3] compared to 2023, and operating profit was NIS 44 million, up 61.7% compared to last year. Sales by the Fun & Indulgence (Israel Coffee) segment in 2024 were NIS 830 million, an increase of 4.7% compared to 2023, and operating profit was NIS 95 million, down 11.7% from the prior year.
Strauss International Coffee, 7.9% growth in 2024
In FY 2024, Strauss Coffee B.V. delivered revenue of NIS 4,705 million, up 7.9% compared to last year, and operating profit was NIS 214 million, down 13.7% compared to 2023. Strauss's coffee companies in Europe, Poland, Romania, Russia and Ukraine, recorded revenue growth in local currency. The coffee company in Brazil, Três Corações (reflecting 50% ownership) delivered revenue of NIS 3,130 million in 2024, an increase of 13.4% compared to 2023, and operating profit was NIS 130 million, up 13.1% compared to last year.
Strauss Water, 5.3% growth in 2024
Strauss Water maintained its growth trend in 2024 with revenue of NIS 848 million, up 5.3% compared to the prior year, and operating profit was NIS 115 million, up 27.4% compared to 2023. The water activity in China concluded 2024 with NIS 919 million in revenue, an increase of 10.0% compared to 2023, and net profit was NIS 123 million, up 41.8% compared to last year (for 100% ownership).
Non GAAP Figures (1)
Fourth Quarter
2024
2023
Change
Total Group Sales (NIS mm)
2,872
2,695
6.6 %
Organic Sales Growth excluding FX
13.8 %
4.6 %
Gross Profit (NIS mm)
813
852
-4.6 %
Gross Margins (%)
28.3 %
31.6 %
-330 bps
EBITDA (NIS mm)
272
287
-4.7 %
EBITDA Margins (%)
9.5 %
10.6 %
-110 bps
EBIT (NIS mm)
174
181
-3.5 %
EBIT Margins (%)
6.1 %
6.7 %
-60 bps
Net Income Attributable to the Company's Shareholders (NIS mm)
74
100
-25.7 %
Net Income Margin Attributable to the Company's Shareholders (%)
2.6 %
3.7 %
-110 bps
EPS (NIS)
0.64
0.86
-25.8 %
Operating Cash Flow (NIS mm)
641
726
-11.7 %
Capex (NIS mm) (2)
197
159
23.9 %
Net debt (NIS mm)
1,989
2,400
-17.1 %
Net debt / annual EBITDA
1.7x
2.0x
(0.3x)
(1) The data in this document are based on the non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses and do not include share-based payment, mark-to-market at period end 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 and/or the financial derivative is exercised, other income and expenses, net, and the tax effects of excluding those items, unless stated otherwise.
(2) Investments include acquisition of fixed assets, investment in intangible assets, and proceeds from sale of fixed assets.
Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.
Non GAAP Figures (1)
Fourth Quarter
Sales
