Key Group Financial Highlights -- First Quarter 2026(2)
-- Group net sales of NIS 3.0 billion, up 0.4%. Excluding FX effect, sales
grew by 2.5%.
-- Group EBIT of NIS 316 million, up 67.9%, representing an EBIT margin of
10.5%, compared to EBIT margin of 6.3% in Q1-2025.
-- Group net profit to shareholders of NIS 181 million, up 126.1%.
-- Solid Group free cash flow performance improving by NIS 449 year-on-year
to NIS -46 million.
-- Solid financial position strengthened further with Net debt/EBITDA ratio
at 1.5x as compared to 1.6x in Q4-2025 and 2.3x in Q1-2025.
PETAH TIKVA, Israel, May 20, 2026 /PRNewswire/ -- Strauss Group Ltd. (TASE: STRS) reported its financial results for the first quarter of 2026, that ended March 31(st) , 2026.
Shai Babad, CEO and President of Strauss Group: "The first quarter of 2026 continues the positive momentum that began in 2025, and reflects the implementation of the Group's strategy. In Q1 we remained focused on our coffee operations - our JV in Brazil and our coffee activities in CEE - and made progress with the turnaround of the confectionery business in Israel. We continued to invest in growth engines, in innovation and in the development of our plant-based milk substitutes, alongside the acquisition of Yoki by 3corações in Brazil - a strategic step that expands our JV presence in Brazil beyond coffee. In Israel, we restored profitability of our confectionery business. Importantly, we delivered volume growth across all our key activities in Q1, and opened 2026 with a solid foundation looking ahead."
(1) The data presented in this document is based on the company's Non-GAAP figures, which include the proportionate consolidation of jointly-controlled entities and exclude the following: share-based compensation; 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; other net income/expenses; and the related tax effects, unless stated otherwise.
(2) Q1-2026 results in this earnings release are presented in comparison to Q1-2025, unless otherwise stated.
Table 1: Key financial data, based on the Group's managerial (non-GAAP)
reports: (1)
------------------------------------------------------------------------------
% Change
(NIS, millions) Q1-2026 Q1-2025(2) % Change excl. FX
--------------------------------- -------- ----------- --------- ---------
Group Net Sales 3,001 2,990 0.4 % 2.5 %
--------------------------------- -------- ----------- --------- ---------
Gross Profit 957 781 22.6 % 24.4 %
Gross margin 31.9 % 26.1 %
--------------------------------- -------- ----------- --------- ---------
EBIT 316 189 67.9 % 71.0 %
EBIT margin 10.5 % 6.3 %
--------------------------------- -------- ----------- --------- ---------
Net Income Attributable to
Shareholders 181 81 126.1 %
Net margin 6.0 % 2.7 %
--------------------------------- -------- ----------- --------- ---------
EPS (NIS) 1.55 0.69 125.4 %
--------------------------------- -------- ----------- --------- ---------
EBITDA 423 290 45.6 %
EBITDA margin 14.1 % 9.7 %
================================= ======== =========== ========= =========
Operating Cash Flow 101 -347 129.1 %
--------------------------------- -------- ----------- --------- ---------
Capex, Net 147 148 -0.7 %
--------------------------------- -------- ----------- --------- ---------
Free Cash Flow -46 -495 90.7 %
--------------------------------- -------- ----------- --------- ---------
Net debt 2,354 2,652 -11.2 %
--------------------------------- -------- ----------- --------- ---------
Net debt / EBITDA 1.5x 2.3x
--------------------------------- -------- ----------- --------- ---------
Note: Financial figures have been rounded to NIS millions. Percentage changes
were calculated based on exact figures in thousands of NIS. (1) As of Q1-2026,
management determined that The Kitchen Hub is no longer a reportable activity
and has been excluded from management reporting. Comparative figures were
restated by NIS 6m and NIS 8m for Q1-2026 and Q1-2025, respectively
(2) Including loss on cocoa derivative of NIS 49 million in Q1-2025.
Business Segment Performance
Strauss Israel
-- Net sales of NIS 1,459 million, up 4.5% and EBIT of NIS 175 million, up
55.9% (EBIT margin of 12.0%).
-- Health and Wellness -- Net sales of NIS 775 million, up 4.4% and EBIT of
NIS 90 million, up 2.0% (EBIT margin of 11.6%).
-- Fun & Indulgence - (Snacks and Confectionery) -- Net sales of NIS 428
million, up 8.5% and EBIT of NIS 40 million (EBIT margin of 9.5%)
compared to an EBIT loss of NIS 16 million in Q1-2025 (which included a
NIS 49 million loss on cocoa derivative).
-- Fun & Indulgence (Coffee Israel) -- Net sales of NIS 256 million, down
1.2% due to the divestment of Coffee-To-Go (CTG) retail chain, and EBIT
of NIS 45 million, up 9.7% (EBIT margin of 17.5%). Excluding CTG, Coffee
Israel's net sales grew 8.6% year-on-year.
Coffee International
-- Net sales of NIS 1,322 million, down 4.7% and EBIT of NIS 132 million, up
141.6% (EBIT margin of 10.0%).
-- 3corações(1) (50% share) -- Net sales of NIS 917 million, down
9.6% (or 5.8% excluding FX effect) and EBIT of NIS 92 million, up 206.7%
(EBIT margin of 10.0%).
-- CEE(2) -- Net sales of NIS 411 million, up approx. 8%.
Strauss Water
-- Net sales of NIS 220 million, up 6.4% and EBIT of NIS 17 million, down
33.1% (EBIT margin of 7.8%).
-- Haier Strauss Water (100% in NIS) -- Net sales of NIS 226 million, down
0.5% but up 9.2% in local currency terms; net profit of NIS 25 million,
down 18.5% or 9.5% in local currency terms.
Table 2. Sales Summary by Segment (Non-GAAP):(3)
------------------------------------------------------------------------------
% Change
(NIS, millions) Q1-2026 Q1-2025 % Change excl. FX
------------------------------------- -------- -------- -------- ---------
Group Sales 3,001 2,990 0.4 % 2.5 %
------------------------------------- -------- -------- -------- ---------
Strauss Israel 1,459 1,396 4.5 %
------------------------------------- -------- -------- -------- ---------
Health & Wellness 775 742 4.4 %
------------------------------------- -------- -------- -------- ---------
Fun & Indulgence (Snacks and
Confectionery) 428 394 8.5 %
------------------------------------- -------- -------- -------- ---------
Fun & Indulgence (Coffee Israel) 256 260 -1.2 %
------------------------------------- -------- -------- -------- ---------
Strauss International Coffee 1,322 1,388 -4.7 % -0.3 %
------------------------------------- -------- -------- -------- ---------
Strauss Water 220 206 6.4 % 6.9 %
------------------------------------- -------- -------- -------- ---------
Note: Financial figures have been rounded to NIS millions. Percentage changes
were calculated based on exact figures in thousands of NIS.
(1) The group's activities in Brazil also include a joint-control holding (50%) together with the São Miguel Group (50%) in Três Corações Imóveis, whose results are not material in relation to the group's overall activity.
(2) CEE - Central Eastern Europe includes activities in Poland, Romania, Ukraine and Russia
(3) Fun and Indulgence (Snacks and Confectionery) figures include Strauss's share (50%) in Strauss Frito-Lay (salty snacks). Coffee International figures include Strauss's share (50%) in 3corações (Brazil) (a company jointly controlled by the Group and São Miguel Group (50%). Strauss Water EBIT figures include Strauss's share (49%) in Haier Strauss Water (HSW) China.
Table 3. EBIT Summary by Segment (Non-GAAP):
------------------------------------------------------------------------------
(NIS, millions) Q1-2026 Q1-2025(1) % Change % Change excl. FX
---------------------------- ------- ---------- -------- -----------------
Group EBIT 316 189 67.9 % 71.0 %
EBIT margin 10.5 % 6.3 %
---------------------------- ------- ---------- -------- -----------------
Strauss Israel 175 113 55.9 %
EBIT margin 12.0 % 8.1 %
---------------------------- ------- ---------- -------- -----------------
Health & Wellness 90 88 2.0 %
EBIT margin 11.6 % 11.9 %
---------------------------- ------- ---------- -------- -----------------
Fun & Indulgence (Snacks and
Confectionery) 40 -16 N.M.
EBIT margin 9.5 % -4.2 %
---------------------------- ------- ---------- -------- -----------------
Fun & Indulgence (Coffee
Israel) (3) 45 41 9.7 %
EBIT margin 17.5 % 15.7 %
---------------------------- ------- ---------- -------- -----------------
Coffee International 132 55 141.6 %
EBIT margin 10.0 % 3.9 %
---------------------------- ------- ---------- -------- -----------------
Strauss Water 17 26 -33.1 %
EBIT margin 7.8 % 12.5 %
---------------------------- ------- ---------- -------- -----------------
Other -8 -5 78.7 %
---------------------------- ------- ---------- -------- -----------------
(1) Including loss on cocoa derivative of NIS 49 million in Q1-2025.
Table 4: Key financial data, based on the Group's GAAP reports:
------------------------------------------------------------------------------
(NIS, millions) Q1-2026 Q1-2025 % Change
------------------------------------------------- -------- ------- --------
Total Group Sales 1,986 1,887 5.2 %
------------------------------------------------- -------- ------- --------
Gross Profit 651 612 6.4 %
Gross margin 32.8 % 32.4 %
------------------------------------------------- -------- ------- --------
EBIT 245 181 35.7 %
EBIT margin 12.4 % 9.6 %
------------------------------------------------- -------- ------- --------
Net Income Attributable to the Company's
Shareholders 146 86 70.7 %
Net margin 7.4 % 4.6 %
------------------------------------------------- -------- ------- --------
EPS (NIS) 1.25 0.74 68.9 %
------------------------------------------------- -------- ------- --------
Operating Cash Flow 157 -93 268.8 %
------------------------------------------------- -------- ------- --------
Capex, Net 132 132 0.0 %
------------------------------------------------- -------- ------- --------
Free Cash Flow 25 -225 N.M
------------------------------------------------- -------- ------- --------
Net debt 2,138 2,029 5.4 %
------------------------------------------------- -------- ------- --------
Net debt / EBITDA 1.6x 1.9x
------------------------------------------------- -------- ------- --------
Note: Financial figures have been rounded to NIS millions. Percentage changes
were calculated based on exact figures in thousands of NIS.
Conference Call
On Wednesday, May 20(th) , 2026, at 14:00 (Israel time), the Company will host a webcast conference call in Hebrew with management to review the financial results.
To participate in the webinar please use the following link:
https://us02web.zoom.us/webinar/register/WN_7KUghM18RcahtBIVKIIjEQ
Webinar ID: 815 3071 1202
In addition, on Wednesday, May 20(th) , 2026, at 15:30 (Israel time), the Company will host a webcast conference call in English with management to review the financial results.
To participate in the webinar please use the following link:
https://us02web.zoom.us/webinar/register/WN_GQrgHkv_RT6dt0UUse-_pw
Webinar ID: 865 5444 7992
Questions for the questions and answers session may be submitted (up to 2 hours) in advance to: IR@strauss-group.com
Management's review will be accompanied by a presentation which will be available on the Investor Relations section of our website on Wednesday, May 20(th) , 2026.
https://ir.strauss-group.com
Likewise, Strauss Group's Q1-2026 earnings press release, and financial statements will be available on the Company's website
A recording of the webinar will be available on the company's website shortly following the webinar
For further information, please contact:
Avshalom Shimi Head of Investor Relations +972-52-428-3330 Avshalom.shimi@strauss-group.com
Forward Looking Statement Disclaimer
This press release does not constitute an offering to purchase or sell securities of Strauss Group Ltd. (the "Company") or an offer for the receipt of such offerings. The press release's sole purpose is to provide information. The Information provided in the press release concerning the analysis of the Company's activity is only an extract, and in order to receive a complete picture of the Company's activity and the risks it faces, one should review the Company's reports to the Israel Securities Authority and the Tel Aviv Stock Exchange.
The press release may contain forward-looking statements as defined in the Israeli Securities Law, 5728-1968. All forward-looking statements in this press release are made based on the Company's current expectations, evaluations and forecasts, and actual results may differ materially from those anticipated, in whole or in part, as a result of different factors including, but not limited to, changes in market conditions and in the competitive and business environment, regulatory changes, currency fluctuations or the occurrence of one or more of the Company's risk factors. In addition, forward-looking forecasts and evaluations are based on information in the Company's possession while preparing the press release. The Company does not undertake any obligation to update forward-looking forecasts and evaluations made herein to reflect events and/or circumstances that may occur after this press release was prepared.
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SOURCE Strauss Group Ltd.
(END) Dow Jones Newswires
May 20, 2026 03:52 ET (07:52 GMT)