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Strauss Group Reports Second Quarter & First Half 2025 Results: Brazil Coffee JV Sees Sales Growth of 33%

By: Alexis Rubinstein, Managing Editor - Coffee Network

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CoffeeNetwork (New York) - Strauss Group Ltd. (TASE: STRS) reported its financial statements for the second quarter and first half of 2025, that ended June 30, 2025.

Highlights:

  • Strong growth in Strauss Group sales led by higher pricing in the Coffee International segment
  • Higher Group EBIT achieved mainly from the Coffee International segment and profitability improvement in the Health & Wellness segment
  • Strauss Israel: Higher sales and EBIT led by the Health & Wellness segment
  • Coffee International: Significant revenue and profit growth in international coffee operations, with marked improvement in Brazil
  • Lower Group Net Income due to higher financial expenses mainly due to Shekel appreciation and higher tax expenses due to profit mix

Second Quarter 2025 Financial Highlights:

The Group's sales grew by approximately 11.5% to NIS 3.1 billion, with growth excluding FX of approximately 15.5%, y-o-y.

Operating profit increased by approximately 60.8% to NIS 245 million, representing 8.0% of sales, in comparison to operating profit of approximately NIS 151 million, 5.5% of sales.

Net profit attributable to shareholders declined by approximately 1.8% to NIS 80 million, 2.6% of sales, in comparison to profit of approximately NIS 83 million, 3.0% of sales.

Negative free cash flow of NIS 89 million, compared to negative free cash flow of NIS 119 million.

First Half 2025 Financial Highlights:

The Group's sales grew by approximately 13.5% to NIS 6.1 billion, with growth excluding FX reaching approximately 18.1%.

Operating profit increased by approximately 19.8% to NIS 426 million, representing 7.0% of sales, compared to profit of approximately NIS 355 million, 6.7% of sales.

Net profit attributable to shareholders decreased by approximately 36.7% to NIS 153 million, representing 2.5% of sales, compared to profit of approximately NIS 242 million, 4.5% of sales.

Negative free cash flow of NIS 584 million, in comparison to negative free cash flow of NIS 397 million.

Segment Q2 & H1 Financial Highlights

Strauss Israel sales in Q2-2025 reached NIS 1.32 billion, up 8.9%, y-o-y. EBIT increased by 37.1% to NIS 135 million, 10.3% of sales. In H1-2025 sales increased by 7.7% to NIS 2.72 billion, EBIT decreased by 0.9% to NIS 248 million, 9.1% of sales. The increase in sales is mainly attributed to higher quantities, sales mix and pricing. Higher EBIT in Q2-2025 was achieved following lower operating expenses which offset the impact of higher cocoa and coffee prices, supporting H1-2025 EBIT, which was also impacted by realization of non-recurring loss of NIS 49m on cocoa derivatives in Q1-2025.

The group realized non-recurring loss on cocoa derivatives amounting to NIS 49 million in Q1-2025 and NIS 27 million in Q2-2024. Excluding these losses, Strauss Israel EBIT for Q2-24 would have totaled NIS 126m (10.4% margin), for H1-25 Strauss Israel EBIT would have totaled NIS 297m (10.9% margin) and in H1-24, NIS 277m (11.0% margin).

Excluding losses on cocoa derivatives, as noted above, F&I EBIT for Q2-24 would have totaled NIS 15m (5.9% margin), for H1-25 F&I EBIT would have totaled NIS 34m (4.9% margin) and in H1-24, NIS 57m (9.1% margin).

Fun & Indulgence (Israel Coffee) segment sales in Q2-2025 reached NIS 212 million, up 14.0%, y-o-y, while the segment's operating profit increased by 14.7% reaching NIS 21 million, 10.1% of sales. Sales in H1-2025 reached NIS 472 million, up 16.9%, y-o-y, with the segment's operating profit increasing by 15.3%, reaching NIS 62 million, 13.2% of sales. Sales were supported by higher quantities and pricing, while higher green coffee prices impacted the EBIT. 

Strauss International Coffee

Strauss International Coffee sales in Q2-2025 reached NIS 1.5 billion, up 27.4% y-o-y. EBIT increased by 67%, reaching NIS 102 million, 6.7% of sales. Sales in H1-2025 reached NIS 2.9 billion, up 35.4% y-o-y. EBIT increased by 58.2%, reaching NIS 157 million, 5.4% of sales. Sales increased primarily due to higher pricing, which together with pricing and operational efficiencies offset higher green coffee prices.

Central Eastern Europe (CEE) sales in Q2-2025 reached NIS 424 million, an increase of 16.8%, y-o-y, moderated by the impact of exchange rates. Sales in H1-2025 reached NIS 804 million, an increase of 19.6%, y-o-y. Sales were primarily supported by higher pricing, moderated by the impact of exchange rates.

Três Corações Q2-2025 sales (in 50% terms) reached NIS 1.1 billion, up 32.7%, y-o-y, while operating profit reached NIS 88 million, an increase of 130.8%, y-o-y. H1-2025 sales (in 50% terms) reached NIS 2.1 billion, up 43.0%, y-o-y, while EBIT reached NIS 118 million, an increase of 129.4%, y-o-y. Sales were primarily supported by higher pricing, moderated by the impact of exchange rates. The EBIT was supported by higher pricing and operating efficiencies, offsetting the higher cost of green coffee.

Alexis Rubinstein

  • Coffee

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