In This Article:
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Organic Growth: 8.6% for the full year 2024.
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Revenue Growth: 6.2% for the full year 2024.
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Gross Profit: Decline due to increased costs of goods, particularly cocoa and coffee.
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EBIT: Impacted by lower margins and high finance costs.
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Net Profit: Affected by high finance costs and lower margins.
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Cost Savings Target: 300 to 400 million shekels by 2026, with more than a third achieved.
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CapEx Investments: 5-7% of revenue, with 650 million shekels invested in 2024.
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Dividend Declared: 360 million shekels for the year.
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Net Debt: Declined to less than 2 billion shekels at the end of 2024.
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Gearing Ratio: Reduced to 1.7.
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Brazil Operating Profit: Second highest ever, despite high coffee prices.
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Water Business Profit: Increased by almost 30%, surpassing 100 million shekels.
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Confectionery Revenue: Exceeded 2021 levels with fewer SKUs.
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Health and Wellness Margins: Increased from 11.6% to 12.6%.
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Finance Costs: Increased by 13 million shekels in Q4 2024.
Release Date: March 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Strauss Group Ltd (XTAE:STRS) achieved substantial growth in 2024 with 8.6% organic growth, aligning with strategic goals.
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The company has made significant progress in its water business, particularly in China, becoming the number two player in water purification.
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Strauss Group Ltd (XTAE:STRS) has successfully launched new premium brands in Brazil to counteract the erosion of coffee prices.
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The company has shown resilience by maintaining and even exceeding pre-recall market shares in its confectionery business.
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Strauss Group Ltd (XTAE:STRS) has made significant investments in productivity and infrastructure, with a focus on operational excellence and strategic procurement.
Negative Points
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The company faced a decrease in gross profit and EBIT margins due to increased costs of goods, particularly cocoa and coffee prices.
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High finance costs negatively impacted net profit, with interest costs increasing significantly.
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Despite growth, the gross profit margin declined due to high commodity inflation, particularly in cocoa and green coffee.
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Strauss Group Ltd (XTAE:STRS) experienced a decrease in operating profit in its Coffee International segment, mainly from Central Eastern Europe.
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The company is still facing challenges in expanding its margins due to ongoing high costs of cocoa and coffee.
Q & A Highlights
Q: Can you give any color on the dynamics around what's driving the strong growth in Brazil? And also can you comment on the progress of penetration with new products there? A: Growth in Brazil is mainly driven by substantial price increases due to the high erosion of green coffee prices. Additionally, we are investing in non-RNG categories, selling coffee machines, and expanding our alternative milk and ready-to-drink products. We are also exploring new categories and M&As to further drive growth.