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Strauss Group (STRS) investor relations material
Strauss Group Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved strong organic growth in Q3 2025, with proforma sales up 16% and net sales reaching NIS 3,277 million, mainly driven by price increases and international coffee, especially Brazil.
EBIT rose 43% to NIS 312 million, and net income for the quarter increased 42.7% to NIS 146 million, with free cash flow improving significantly.
International coffee business, particularly the Brazil JV, was a standout, with operating profit up 140% and margins at 11.3%.
Launched innovative products, including CowFree dairy alternatives and a new water bar for niche segments, supported by the inauguration of a new plant-based facility.
One-time operational issues in Israel's health and wellness segment impacted EBIT, but these have been resolved and recovery is expected.
Financial highlights
Q3 2025 net sales rose 9.6% to NIS 3,277 million; 9M 2025 net sales up 12.1% to NIS 9,340 million.
EBIT for Q3 was NIS 312 million, up 43% year-over-year; net profit for the quarter was NIS 146 million.
Free cash flow in Q3 was NIS 245 million, a significant turnaround from negative free cash flow in Q3 2024.
Q3 2025 EBITDA was NIS 415 million, up 24.9% year-over-year.
Net debt/EBITDA ratio improved to 2.1x as of September 30, 2025.
Outlook and guidance
Management targets 5% CAGR top-line growth (2024–2026), 10–12% EBIT margin by 2026, and NIS 300–400 million in run-rate savings by 2026.
Continued strong performance expected in international coffee, especially Brazil, and growth in plant-based and CowFree product lines.
Water business growth to continue, with new product launches and expansion in Israel and the UK; China segment faces ongoing competition.
CAPEX expected to reach 5–7% of sales through 2026.
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