In This Article:
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Revenue Growth: 15.5% increase year-over-year; 23% growth excluding divested units Sabra & Obela and Serbia.
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EBIT: ILS181 million, an 11.2% decline year-over-year; would have been ILS230 million excluding a nonrecurring loss.
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Net Profit: Impacted by a one-time derivatives loss and tax differences, resulting in a significant gap compared to the previous year.
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Cash Flow: ILS0.5 billion loss, mainly due to operations in Brazil and raw material costs.
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Strauss Israel Growth: 6% growth in revenues; EBIT impacted by derivatives loss.
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Strauss Coffee International: 45% sales increase, primarily due to price increases in Brazil.
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Strauss Water: 7% revenue growth and almost 10% EBIT growth with double-digit margins.
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Dividends: ILS200 million paid from Sabra divestment; ILS160 million paid due to 2024 results.
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Net Debt: Increase due to working capital and dividend payments; net debt-to-EBITDA ratio increased.
Release Date: May 28, 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) reported a strong top-line growth of 15.5% year-over-year, with a pro forma growth of 23% when excluding divested entities.
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The company maintained its market leadership in Brazil despite significant price increases, even slightly increasing its market share.
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Strauss Water showed a 7% growth in sales and a nearly 10% increase in EBIT, with double-digit margins driven by operations in China and Israel.
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The company's strategic initiatives, including productivity improvements and innovation, contributed to improved EBIT in several segments despite raw material cost pressures.
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Strauss Group Ltd (XTAE:STRS) received a stable AA rating from Ma'alot, reflecting confidence in its financial stability and strategic direction.
Negative Points
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EBIT margins were under pressure due to increased raw material costs, particularly in green coffee and cocoa, leading to an 11% decline in EBIT.
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The company faced a significant one-time loss of ILS49 million on cocoa derivatives, impacting overall profitability.
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Net profit was adversely affected by higher taxes and the realization of nonrecurring losses, leading to a decline in net income.
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Cash flow was negatively impacted by operations in Brazil, primarily due to high raw material costs, resulting in a ILS0.5 billion loss.
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The snacks and confectionery segment in Israel reported a loss, exacerbated by high cocoa prices and the derivatives impact.
Q & A Highlights
Q: Can you give us any indication regarding the market and demand for plant-based milk alternatives? A: Yes, in Israel, this market is growing rapidly. Although there was a slight slowdown last year, it remains a significant segment. We believe that by introducing plant-based yogurts and desserts, which are currently not available, we can expand this segment and see substantial growth in Israel. - Shai Babad, President, Chief Executive Officer