Midroog Upgrades Strauss Group's Outlook to Stable Amid Strong Performance

Midroog's Outlook Upgrade for Strauss Group

On June 17, 2025, Strauss Group Ltd., an established name in the food industry based in Israel, received positive news from the credit rating agency Midroog, a subsidiary of Moody's. The agency upgraded the company’s outlook from negative to stable, while maintaining the Aa1.il rating for the Group’s debentures (Series E and F).

The shift in outlook is attributed to several strategic improvements made by Strauss Group, including enhanced profit margins and a successful optimization program that has been launched to streamline operations. Furthermore, the agency highlighted a notable reduction in debt levels, largely due to the divestment of non-core operations, aligning with the company’s long-term business strategy.

In reports, Midroog pointed out that Strauss Group has experienced a recovery of its market share, particularly following a period of recalls that had affected its performance. The combination of pricing adjustments—especially within the Brazilian coffee joint venture—and the group's actions taken in 2024 and 2025 have also contributed to a significant surge in sales growth.

One of the key financial maneuvers was the successful sale of the Sabra and Obela dips and spreads business in December 2024, which generated a remarkable NIS 723 million in net cash flow. This capital was largely directed towards decreasing the company’s debt, showcasing the Group's commitment to maintaining strong financial health moving forward.

Looking ahead, Midroog has expressed confidence that ongoing debt reduction will complement other measures targeted at boosting profit margins over the medium term. The Group's productivity program, aimed at enhancing operational efficiency, along with more pricing adjustments and margin improvements in Brazil are anticipated to lead to a robust debt-to-EBITDA ratio. This ratio is expected to lie within the 1.8-2.1 range, which adheres to the current rating levels.

Midroog further noted that Strauss Group’s long-standing stable and prudent management—in conjunction with its effective integration of acquired businesses—has been a significant factor in the positive outlook revision. The company’s strong market position was emphasized, with its leading status in the Israeli food market being sustained by a wide array of top products that hold considerable market share across all sectors.

The overall growth trajectory of Strauss Group appears promising, driven by internal growth rates surpassing those of the industry averages, a testament to their innovative marketing strategies and strategic partnerships with international food manufacturers. This reassessment from Midroog not only marks a milestone for Strauss Group but also fortifies investor confidence in the company’s future.

For further inquiries or detailed financial analysis, Rivka Neufeld, the Investor Relations Manager at Strauss Group, is available at +972-54-4224146 or via email at email protected] Visit [Strauss Group's website for more insights on the company's developments and strategies.

This positive news signifies a new chapter for Strauss Group as it continues to navigate the competitive landscape of the food industry, promising growth and stability for all stakeholders involved.