Strauss Group (STRS) Q2 2026 earnings summary

Executive summary

• EBIT rose over 40% to NIS 363 million in Q2-2026, with net profit up 113% to NIS 195 million, despite a 1.9% like-for-like revenue decline mainly due to FX and lower coffee prices in Brazil and CEE.

• H1-2026 net profit surged 119.3% to NIS 376 million; EBIT up 52.9% to NIS 679 million.

• Robust organic volume growth across core businesses, reflecting successful focus on core brands.

• Strategic initiatives and productivity improvements established a new profit platform with margins around 10%-12%.

• Dividend of NIS 180 million announced, representing a 2.7% annual yield, to be paid September 3, 2026.

Financial highlights

• Q2-2026 revenues were NIS 2,867 million, down 6.7% (down 1.9% like-for-like); EBIT was NIS 363 million, up 41.9% (margin 12.6%).

• Net income in Q2-2026 was NIS 195 million, up 113.3% (margin 6.8%); H1-2026 net income reached NIS 376 million, up 119.3%.

• Free cash flow improved to NIS 150 million in Q2-2026 and NIS 104 million in H1-2026, compared to negative figures last year.

• Net debt at end of June was NIS 2,504 million, with net debt/EBITDA ratio improving to 1.5x from 2.4x a year ago.

• Gross margin in Q2-2026 rose to 34.4% from 28.3% prior year; EBITDA margin at 16.4%.

Outlook and guidance

• Management expects to sustain the new profit platform, targeting 10%-12% EBIT margin for full-year 2026, likely at the higher end.

• Productivity initiatives on track to deliver NIS 300-400 million in run-rate savings by 2026.

• Focus remains on core brands, plant-based innovation, and international expansion, especially in coffee and water segments.

• Long-term trends in raw material prices, not short-term fluctuations, will impact results due to hedging and pricing strategies.

• New strategic plan for 2027-2030 will focus on new growth engines, continued productivity, and AI-driven transformation.