Strauss Group Stock Earnings Reports

Strauss Group delivered a strong Q1 2026 with record EBIT and improved profitability across key businesses. Group EBIT rose ~58–68% y/y to ILS ~316–360 million (management cited ILS 360m; CFO ILS 316m on slides) and EBIT margin returned to double digits at 10.5%. Net income improved sharply (+126% to ILS 181m) and free cash flow improved by ~ILS 450m, supporting a stronger balance sheet (net debt down ~11%, net debt/EBITDA ~1.5x). Volume growth was notable (+~3.5%), driven by Israel and international coffee volumes despite macro headwinds. Coffee International achieved record profitability (notably Três Corações/JV: gross margin expansion and strong EBIT in Brazil) even as revenue was moderated by pass-through price reductions due to falling green coffee costs. Strauss Israel posted broad-based growth and margin expansion (EBIT margin ~12%). Strauss Water grew sales but saw EBIT decline due to war-related weakness in Israel and competitive pressures in China; a second China plant is planned H2 2026. Management reiterated strategic priorities: continue scaling Brazil (Yoki acquisition expected to close by July and to be integrated in H2), double-down on core categories and innovation, pursue productivity/cost savings and higher CapEx for capacity and digitization, and launch the next strategy for 2027–2030 later this year. Management expects the 10%+ EBIT margin to be sustainable and to improve further as commodity (cocoa, coffee) prices decline and as Yoki synergies and ongoing productivity efforts are realized.