MILAN – Sales are up but profits are down at Strauss Group, which today – Tuesday 25 March 2025 – released its fourth quarter and full year 2024 results, with coffee once again proving to be a driving force. For the first time in its history, the group surpassed the milestone of 11 billion new Israeli shekels at NIS 11.206 billion ($3.025 billion) in sales, up 6.2 per cent from FY2023.
Operating profit, however, declined to NIS 752 million (US$203 million), down 2.6% from FY2023.
Strauss concluded the fourth quarter of 2024 with revenue of NIS 2.9 billion (US$), reflecting 6.6% growth compared to the corresponding quarter last year.
In the fourth quarter, operating profit was NIS 174 million (US$47 million), down 3.5% year-on-year, and net profit was NIS 74 million (US$20 million), down 25.7%. Strauss has announced a dividend of NIS 160 million (U$43.2 million).
In 2024, Strauss launched an update to its strategy and began its implementation. As noted in previous reports, the company announced this year that it had completed the sale of its holding in the international dips and spreads activities, Sabra and Obela, to the PepsiCo corporation for a consideration of NIS 891 million (US$240.5 million), net income of NIS 356 million and net cash flow of NIS 723 million, had completed the sale of the coffee business in Serbia and the fresh vegetables business in Israel.
Additionally, in February 2025, the Group entered into an agreement with a third party for the sale of the Café Elite coffee shop chain in consideration for an amount that is immaterial to the Group, and the parties are working to complete the transaction.
Furthermore, the company adapted the Group’s organizational structure and expedited productivity and transformation initiatives, continued to strengthen its status as the leading coffee company in Brazil and as a growing coffee company in Eastern Europe, and demonstrated continuing growth and margin enhancement in the water activity in China.
The company also continued to strengthen its core categories in Israel through innovation in its leading brands. In parallel, Strauss continued to invest in a facility for the development of plant-based alternative dairy in Northern Israel, and in a second plant for the water activity in China.
Strauss Israel concluded the full year with revenue of NIS 5,170 million (US$1.4 billion), up 6.2% compared to last year. Strauss Israel’s operating profit was NIS 528 million (US$142.5 million), up 7.9% from 2023.
Sales by the Fun & Indulgence (Israel Coffee) segment in 2024 were NIS 830 million (US$224), an increase of 4.7% compared to 2023, and operating profit was NIS 95 million (US$25.6 million), down 11.7% from the prior year.
In FY 2024, Strauss Coffee B.V. delivered revenue of NIS 4,705 million (US$1.27 billion), up 7.9% compared to last year, and operating profit was NIS 214 million (57.8 million), down 13.7% compared to 2023. Strauss’s coffee companies in Europe – Poland, Romania, Russia and Ukraine – recorded revenue growth in local currency.
The coffee company in Brazil, Três Corações (reflecting 50% ownership) delivered revenue of NIS 3,130 million (US$845 million) in 2024, an increase of 13.4% compared to 2023, and operating profit was NIS 130 million (US$35.1 million), up 13.1% compared to last year.
Strauss Water maintained its growth trend in 2024 with revenue of NIS 848 million, up 5.3% compared to the prior year, and operating profit was NIS 115 million, up 27.4% compared to 2023. The water activity in China concluded 2024 with NIS 919 million in revenue, an increase of 10.0% compared to 2023, and net profit was NIS 123 million, up 41.8% compared to last year (for 100% ownership).
