Strauss Group coffee profit surges as Q2 EBIT jumps 44.3%

ISRAEL – Strauss Group’s global coffee operations delivered strong profit growth in the second quarter and first half of 2026, as improved margins helped offset lower revenues linked to foreign exchange pressures and falling green coffee prices. 

The Israeli food and beverage company reported a 44.3% year-on-year increase in Q2 EBIT for its Coffee International segment to NIS 148 million (US$49.9 million). H1 EBIT rose 78.2% to NIS 280 million (US$94.5 million). 

Coffee International revenue fell 13.1% year-on-year in Q2 to NIS 1.334 billion (US$450 million), while H1 revenue declined 9.1% to NIS 2.656 billion (US$900 million). Strauss attributed the decline mainly to the stronger Israeli shekel and lower selling prices at Brazilian joint venture 3corações following the decline in green coffee prices. 

On a like-for-like basis, Q2 revenue declined 3.9%, while H1 revenue fell 2.2%. Despite the lower sales, Coffee International’s EBIT margin increased to 11.1% in Q2 from 6.7% a year earlier. H1 EBIT margin rose to 10.5% from 5.4%. 

Brazilian coffee business 3corações, in which Strauss holds a 50% stake, contributed to the improved profitability. Q2 revenue fell 15% to NIS 945 million (US$319 million), or 8.2% on a like-for-like basis, reflecting lower selling prices. Volume growth in roasted and ground coffee helped increase EBIT by approximately 25% to NIS 110 million. 

For H1, 3corações revenue declined 12.4% to NIS 1.856 billion, while EBIT increased 71.2% to approximately NIS 202 million (US$68.2 million). 

In Israel, Strauss’ Coffee Israel division also recorded stronger profitability despite the divestment of its Coffee-To-Go retail chain. Q2 revenue declined 11.1% to NIS 190 million (US$64.1 million). Excluding the divested operation, revenue decreased 3.1%, while EBIT rose 35%, lifting the margin to 15.4%. 

Strauss CEO Shai Babad said in the company’s 2026 first-quarter earnings call: “Coffee International delivered record profitability, supported by higher gross margins, resulting mainly from lower green coffee costs and offset by lower pricing.” (Investing.com) 

He also said the Brazil business had maintained profitability as prices adjusted alongside falling green coffee costs. 

Strauss said Coffee International was among its strongest-performing segments during the first half, alongside its Israel operations. The company said the coffee businesses continued to focus on profitability and operational execution amid currency pressures and changing coffee market conditions. 

The segment’s improved EBIT performance also supported group profitability during the period. 

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