Third Quarter Financial Results: Strauss Group concludes a strong quarter with an increase of 10% in Sales to NIS 3.3 billion and an increase of 43% in Net Income to NIS 146 million

Core Insights - Strauss Group Ltd. reported significant growth in profitability, primarily driven by its Coffee International segment, particularly the coffee joint venture in Brazil, which saw a 27% increase in sales and a 171% increase in operating profit [1][5][11]. Financial Performance Summary - Group sales for Q3-2025 reached NIS 3,277 million, a 9.6% increase year-over-year, with a pro-forma growth of 16.3% [5][11]. - Gross profit for Q3-2025 was NIS 960 million, reflecting a 5.3% increase, while the gross margin decreased to 29.3% from 30.5% [4][11]. - EBIT for Q3-2025 increased by 40.1% to NIS 312 million, with an EBIT margin of 9.5% compared to 7.4% in Q3-2024 [4][11]. - Net income attributed to shareholders rose by 42.7% to NIS 146 million, with a net margin of 4.4% [4][11]. - Free cash flow improved to NIS 245 million, compared to a negative free cash flow of NIS 98 million in Q3-2024 [4][11]. Segment Performance - Strauss Israel: Sales increased by 2.7% to NIS 1.41 billion in Q3-2025, but EBIT decreased by 7.7% to NIS 146 million [20]. - Health & Wellness: Sales reached NIS 821 million, down 0.6%, with EBIT decreasing by 15.5% to NIS 101 million [23]. - Fun & Indulgence (Snacks and Confectionery): Sales grew by 12.9% to NIS 365 million, with EBIT increasing by 61.7% to NIS 15 million [23]. - Fun & Indulgence (Coffee Israel): Sales were stable at NIS 221 million, with EBIT increasing by 4.3% to NIS 30 million [23]. - Strauss International Coffee: Sales surged by 30.0% to NIS 1.6 billion, with EBIT increasing by 139.8% to NIS 163 million [23]. - Strauss Water: Sales increased by 4.1% to NIS 234 million, but EBIT decreased by 11.5% to NIS 23 million [23]. Strategic Developments - The company inaugurated Michael's Campus in Northern Israel, which includes a new plant-based dairy facility, representing a strategic investment of approximately NIS 270 million [2]. - New product launches included the 'Tami4 Shabbat' water bars and the Cow-Free category, showcasing innovation in the dairy alternatives market [2].