Strauss Group Reports Fourth Quarter and Full Year 2024 Results, Coffee Sales Up Nearly 8%
CoffeeNetwork (New York) - Strauss Group Ltd. (TASE: STRS) reported its financial statements for the fourth quarter and full year of 2024, against the backdrop of the continuing impact of rising raw material prices on the company's profits.
Strauss Group President & CEO Shai Babad commented: "We have concluded the first year of implementing our revised strategy, in which we focused and strengthened our core business, adjusted our organizational structure to support future growth, continued to invest in production sites and infrastructure, built growth drivers, as well as optimized our portfolio to improve our financial and business resilience. In 2024 the war continued, and it was a challenging and complex year for Israel. The Group's employees continued to manufacture and market our products, maintaining business continuity, and supporting food security of all."
Strauss Group published its financial statements for the fourth quarter and full year of 2024 with annual revenues that surpassed the NIS 11 million mark for the first time, totaling NIS 11.2 billion and up 6.2% compared to 2023. Strauss concluded the fourth quarter of 2024 with revenue of NIS 2.9 billion, reflecting 6.6% growth compared to the corresponding quarter last year.
Strauss concluded FY 2024 with NIS 752 million in operating profit, 6.7% of the sales, and net profit of NIS 418 million, 3.7% of the sales. In the fourth quarter, operating profit was NIS 174 million, 6.1% of the sales, and net profit was NIS 74 million, 2.6% of the sales. Strauss has announced a dividend of NIS 160 million.
In 2024, Strauss launched an update to its strategy and began its implementation. As noted in previous reports, the company announced this year that it had completed the sale of its holding in the international dips and spreads activities, Sabra and Obela, to the PepsiCo corporation for a consideration of NIS 891 million, net income of NIS 356 million and net cash flow of NIS 723 million, had completed the sale of the coffee business in Serbia and the fresh vegetables business in Israel. Additionally, in February 2025, the Group entered into an agreement with a third party for the sale of the Café Elite coffee shop chain in consideration for an amount that is immaterial to the Group, and the parties are working to complete the transaction.
Furthermore, the company adapted the Group's organizational structure and expedited productivity and transformation initiatives, continued to strengthen its status as the leading coffee company in Brazil and as a growing coffee company in Eastern Europe, and demonstrated continuing growth and margin enhancement in the water activity in China. The company also continued to strengthen its core categories in Israel through innovation in its leading brands. In parallel, Strauss continued to invest in a facility for the development of plant-based alternative dairy in Northern Israel, and in a second plant for the water activity in China.
FY 2024 summary by operating segment:
Strauss Israel – 6.2% growth in 2024
Strauss Israel concluded the full year with revenue of NIS 5,170 million, up 6.2% compared to last year. Strauss Israel's operating profit was NIS 528 million, up 7.9% from 2023. Sales by the Health & Wellness segment in 2024 amounted to NIS 3,076 million, up 2.6%[2], and operating profit was NIS 389 million, up 9.4%. Sales by the Fun & Indulgence (Snacks and Confectionery) segment were NIS 1,264 million in FY 2024, an increase of 17.6%[3] compared to 2023, and operating profit was NIS 44 million, up 61.7% compared to last year. Sales by the Fun & Indulgence (Israel Coffee) segment in 2024 were NIS 830 million, an increase of 4.7% compared to 2023, and operating profit was NIS 95 million, down 11.7% from the prior year.
Strauss International Coffee – 7.9% growth in 2024
In FY 2024, Strauss Coffee B.V. delivered revenue of NIS 4,705 million, up 7.9% compared to last year, and operating profit was NIS 214 million, down 13.7% compared to 2023. Strauss's coffee companies in Europe – Poland, Romania, Russia and Ukraine – recorded revenue growth in local currency. The coffee company in Brazil, Três Corações (reflecting 50% ownership) delivered revenue of NIS 3,130 million in 2024, an increase of 13.4% compared to 2023, and operating profit was NIS 130 million, up 13.1% compared to last year.
Alexis Rubinstein




