Strauss Group reports 13.5% sales growth in H1 2025 driven by strong coffee segment 

ISRAEL – Israeli multinational Strauss Group has posted a 13.5% rise in group net sales to NIS 6.1 billion (US$1.82 billion) for the first half of 2025, propelled by robust growth in its international coffee segment, particularly in Brazil, alongside solid performances across other business lines. 

Operating profit for the period climbed 19.8% to NIS 426 million (US$126.75 million), reflecting improved efficiencies and strong revenue streams.  

However, the group’s net profit attributable to shareholders fell 36.7% to NIS 153 million (US$45.52 million), while free cash flow was negative at NIS 584 million (US$173.8 million). 

“In the second quarter, we continued our growth momentum across all our global activities,” said Strauss Group CEO and President Shai Babad.

He emphasized that the company’s international expansion, coupled with innovation across core brands, helped sustain growth despite financial headwinds. 

The Coffee International segment emerged as a key driver, recording a 33% increase in sales and more than doubling its operating profit. The group’s Brazilian joint venture, Três Corações, reported second-quarter sales of NIS 1.1 billion (US$325.7 million), up 32.7% year-on-year, with operating profit reaching NIS 88 million, an increase of 130.8%.  

In the first half, sales reached NIS 2.1 billion (US$621.9 million), up 43%, while EBIT stood at NIS 118 million, marking a 129.4% rise. 

The strong coffee results were supported by higher pricing, which offset increased green coffee costs and foreign exchange impacts. Efficiency improvements further strengthened earnings in the segment. 

Strauss Group highlighted that its Health & Wellness segment posted better profitability, while the Fun & Indulgence division rebounded from previous losses. Additionally, the company’s recent bond expansion received strong investor demand, signaling confidence in its financial position. 

The water business also continued to expand across Israel, China, and the UK, underpinning the group’s diversification strategy. According to the company, ongoing initiatives to boost productivity and expand global market presence have bolstered its competitiveness. 

Looking forward, Strauss Group affirmed its commitment to growth through innovation and strategic market expansion.

Despite geopolitical uncertainties, the group said it remains confident in sustaining momentum, supported by its diverse product portfolio and strengthened operational base. 

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