#Israel #Strauss Group #Petah Tikva #NIS 363 million #H1-2026

Strauss Group Financial Performance Review for Q2 and H1-2026

On August 12, 2026, Strauss Group Ltd. (TASE: STRS) released its financial results for the second quarter (Q2) and first half (H1) of 2026, demonstrating a remarkable turnaround in profit margins and operational strength despite facing diverse challenges in the market.

Key Financial Highlights

Q2-2026 Performance

• - Total Revenues: NIS 2,867 million, reflecting a 1.9% decrease on a like-for-like (LFL) basis.
• - EBIT: NIS 363 million, marking a significant increase of 41.9%, with an EBIT margin of 12.6%, an improvement from 8.3% last year.
• - Net Profit: Profits attributable to shareholders surged to NIS 195 million, more than doubling the previous year's figure of NIS 90 million, which equates to a growth of 113.3%.
• - Cash Flow: The company saw a positive free cash flow of NIS 150 million, a striking reversal from negative cash flows experienced in the prior year.

H1-2026 Insights

• - Cumulative Revenue: For the first half of 2026, revenues summed up to NIS 5,868 million, a 3.2% dip year-over-year, although there was a slight 0.3% uptick when excluding foreign exchange impacts.
• - EBIT Growth: The EBIT for H1 reached NIS 679 million, representing a 52.9% increase year-over-year, with an EBIT margin of 11.6%.
• - Net Income: Total net profits attributable to shareholders in H1 stood at NIS 376 million, showcasing an increase of 119.3% over the same period last year.
• - Free Cash Flow: The first half produced a favorable free cash flow of NIS 104 million versus a significant negative cash flow of NIS 584 million recorded in H1-2025.

Segment Performance

1. Strauss Israel:
- Revenues dropped slightly by 1.5%, but EBIT jumped 46%, affirming the division's resilience.
2. Coffee International Segment:
- Faced challenges with lower selling prices and foreign exchange fluctuations, resulting in a 13.1% decline in revenues, yet EBIT grew by 44.3%.
3. Health & Wellness Offerings:
- Steady revenue and profit growth show a sustained demand for health-oriented products.
4. Fun & Indulgence Categories:
- Significant EBIT improvements in snacks and confectionery highlight consumer preference shifts towards indulgent products.

Market and Strategic Outlook

Shai Babad, President and CEO of Strauss Group, emphasized that the results reflect the company's robust operational capabilities and the commitment of its workforce. Despite navigating a complicated business landscape, the company has managed to enhance profitability while maintaining significant investments in brand development and innovation.

He stated, "Our results are not merely a reflection of a single quarter but embody a trajectory guided by disciplined execution and a focus on core capabilities. I commend the dedication of our employees worldwide for their continuous contributions toward our growth and stakeholder value creation."

Going forward, Strauss Group plans to continue its focus on innovative products while enhancing its global presence. It aims to sustain this positive momentum, reiterating its commitment to shareholder value creation as illustrated by the recently announced semi-annual dividend payout of approximately NIS 180 million.

Conclusion

The financial results of Strauss Group for Q2 and H1-2026 highlight a significant recovery in operational performance and profitability. With a strategic focus on innovation, brand strength, and market expansion, the company is well-positioned for future growth and continued success in the competitive landscape.