#Israel #financial results #Strauss Group #Petah Tikva #Net Profit

Strauss Group Reports Fourth Quarter and Full Year 2024 Results

Strauss Group Ltd. has unveiled its financial results for the fourth quarter and the full year of 2024, showcasing significant developments in various markets. The company achieved a remarkable 6% growth in revenue, totaling NIS 11.2 billion, alongside a net profit of NIS 418 million. The improvements were stimulated mainly by strategic investments and a commitment to maintaining business continuity amidst external challenges.

Growth Highlights

In 2024, Strauss Group observed excellent growth trajectories in markets such as Brazil, China, and Israel. The results reflect the company’s well-executed strategy to fortify its core businesses, boost productivity, and restructure its organizational framework to support future growth opportunities.

The shift towards plant-based alternatives also gained momentum, with plans for inaugurating a new dairy production facility in Northern Israel, aimed at catering to the increasing demand for sustainable food options. Further, a new water plant in China is expected to enhance its operations in the water sector.

Financial Performance Overview

During the fourth quarter, Strauss recorded revenues of NIS 2.9 billion, representing a growth of 6.6% compared to the same quarter in 2023, alongside an operating profit of NIS 174 million—approximately 6.1% of sales. The overall growth in revenues can be attributed to improvements in various segments, including health and wellness, snacks, and confectionery, reflecting the company’s diversified portfolio strategy.

While the company's overall revenue saw a healthy upward trend, certain segments had mixed results. For instance, the confectionery business in Israel exhibited a return to its former market share and exceeded previous performance figures.

However, it's worth noting that despite the growth in revenues, the net profit saw a decline of approximately 25.7% compared to the fourth quarter of 2023, primarily due to rising raw material costs which impacted the profit margins.

Strategic Divestitures

2024 was also a year of strategic divestitures for Strauss Group. The company successfully completed the sale of its holdings in Sabra and Obela for NIS 891 million, generating a net income of NIS 356 million and a significant cash flow of NIS 723 million. Additionally, Strauss disposed of its coffee operations in Serbia and its fresh vegetable division in Israel, and it aims to complete the sale of the Café Elite coffee chain shortly.

These divestitures not only strengthened Strauss’s financial position but also provided the necessary cash resources to fund ongoing strategic initiatives and developments.

Leadership Changes and Future Outlook

In a notable update, Strauss Group appointed Mr. Saul Kobrinsky as Deputy Chairperson of the Board of Directors, further strengthening its leadership foundation. Meanwhile, Mr. David Mosevics and Mrs. Tzipi Ozer Armon have chosen to step down from their board positions, which opens up the possibility for new insights and direction.

The future of Strauss Group looks promising as the company plans to host a webinar earnings call to discuss these results and provide insight into their strategic outlook moving forward. The leadership is keen on continuing its trajectory of growth amidst a challenging business environment while enhancing its market presence globally.

In conclusion, 2024 was a transformative year for Strauss Group, one that set the stage for further growth and competitive advantage in the international market landscape.