Strauss Coffee International Q3 sales reach US$488.5 million up 30.0%, EBIT up 30.0% at US$49.8 million

PETAH TIKVA, Israel – Strauss Group Ltd. reported its financial results for the third quarter and first nine months of 2025, that ended September 30, 2025. Shai Babad, CEO and President of Strauss Group: “The Group is on a growth trajectory, demonstrating improvement in profitability and increase in market share across most key market segments.

Alongside continued impressive growth in our international coffee business, led by the coffee JV in Brazil, we have reinforced our beloved brands in Israel through innovation.

Last month we inaugurated Michael’s Campus in the North of Israel, which includes a new plant-based dairy facility at an investment of approximately NIS 270 million—a strategic investment that creates jobs, develops the local economy, and brings innovative products to market.

Additionally, we launched the new ‘Tami4 Shabbat’ water bars and introduced the Cow-Free category, representing groundbreaking innovation in the dairy alternatives space. Today, Strauss stands in a position of strength, with growth engines in Israel and abroad, and a solid foundation for continued progress in the coming years.”

Note: NIS 1 = US$ 0.31

Quarterly Highlights

• Strauss Group: Significant sales growth reaching NIS 3.3 billion (US$1 billion), up 9.6%, improved operating profit and margin, mainly from Coffee International in addition to implementation of productivity initiatives. Pro-forma growth reached 16.3%.
• Strauss Israel: Growth in sales and market share alongside decline in profit and margin, primarily in the Health & Wellness segment.
• Coffee International: Significant growth in sales and operating profit, mainly due to pricing in the coffee JV in Brazil. The coffee companies in Central Eastern Europe have established their position as # 2-3 player in the market.
• Strauss Water: Continued revenue growth alongside decline in profit and margin, mainly due to reduced profitability in Haier Strauss Water in China following intense competition.
• Innovation and new launches: Inauguration of Michael’s Campus in the North of Israel, launch of Cow-Free and Tami4Shabbat.

Third Quarter 2025 Financial Highlights

• The Group’s sales grew approximately 9.6% to NIS 3,277 million (13.2% excluding FX).
• EBIT increased approximately 40.1% to NIS 312 million, representing 9.5% of sales, in comparison to NIS 223 million, 7.4% of sales.
• Net income attributed to shareholders increased approximately 42.7% to NIS 146 million, 4.4% of sales, in comparison to NIS 102 million, 3.4% of sales.
• Free cash flow of NIS 245 million, compared to negative free cash flow of NIS 98 million.

First Nine Months 2025 Financial Highlights

• The Group’s sales grew approximately 12.1% to NIS 9.3 billion (16.4% excluding FX).
• EBIT increased approximately 27.6% to NIS 738 million, representing 7.9% of sales, compared to NIS 578 million, 6.9% of sales.
• Net income attributed to shareholders decreased approximately 13.2% to NIS 299 million, representing 3.2% of sales, compared to NIS 344 million, 4.1% of sales.
• Negative free cash flow of NIS 339 million, in comparison to negative free cash flow of NIS 495 million.

Fun & Indulgence

Fun & Indulgence – Israel Coffee segment sales in Q3-2025 reached NIS 221 million, down 0.2%, while the segment’s EBIT increased by 4.3% to NIS 30 million (13.5% margin). Sales in 9M-2025 reached NIS 693 million, up 10.8%, y-o-y, with the segment’s EBIT increasing by 11.5% to NIS 92 million (13.3% margin). Sales in Q3-2025 reflected the divestment of Coffee-to-Go and lower volumes. 9M-2025 sales reflected higher pricing and volumes. EBIT was supported by pricing, which partially offset higher green coffee costs.

Strauss Coffee International

Strauss Coffee International sales in Q3-2025 reached NIS 1.6 billion (US$488.5 million), up 30.0%, and EBIT increased by 139.8%, reaching NIS 163 million (9.9% margin), or US$49.8 million. Sales in 9M-2025 reached NIS 4.6 billion, up 33.4%, EBIT increased by 91.3% to NIS 320 million (7.0% margin). Sales increased primarily due to higher pricing, while improving market share in most geographies. EBIT reflected higher pricing together with operational efficiencies.

Três Corações (JV in 50% terms) Q3-2025 sales reached NIS 1.1 billion, up 26.9%, while EBIT increased by 171.2% to NIS 129 million (11.3% margin). 9M-2025 sales reached NIS 3.3 billion, up 36.9%, y-o-y, while EBIT increased by 149.7% to NIS 247 million (7.5% margin). Sales increased primarily due to higher pricing and total volumes. EBIT reflected higher pricing together with operational efficiencies for the 9M-2025 period.

Central Eastern Europe (CEE) sales in Q3-2025 reached NIS 504 million, an increase of 38.1%, moderated by the impact of exchange rates. Sales in 9M-2025 reached NIS 1.3 billion, an increase of 32.5%. Sales were primarily supported by higher pricing and higher volumes mainly in Poland, where Strauss established #2 market position, leading the beans segment.