PETAH TIKVA, Israel – This morning, Strauss Group released its financial reports for the first quarter of 2024, showing an increase in revenue, which totalled approximately 2.6 billion shekels (US$709.6 million), a rise of about 1.4% compared to the same quarter last year. The operating profit for the quarter amounted to approximately 204 million shekels (US$ 55.68), representing about 7.8% of total sales.
The operating profit was impacted, among other things, by the significant rise in raw material prices, which led to a decrease of about 2.4% in operating profit compared to the same quarter last year. The net profit for the group in the quarter was approximately 159 million shekels (US$43.4 million), compared to a net profit of approximately 134 million shekels in the same quarter last year.
During the first quarter, and as part of implementing the group’s strategy, the group completed the sale of the coffee company in Serbia for a sum of 38.8 million euros.
Simultaneously, the group’s confectionery operations continue to recover with growth and an increase in market share. Additionally, in recent months, the credit rating agency ‘Maalot S&P’ announced an update to Strauss Group’s outlook from negative to stable and reaffirmed the ‘ilAA+’ rating assigned to the group.
The Israel Coffee segment ended the quarter with net sales of 217 million shekels (US$59.2 million), a decrease of 8.7% from the corresponding quarter, and an operating profit of 35 million shekels, a decrease of about 8.7%. Strauss Israel now also includes coffee operations in Israel, which were previously part of the coffee segment.
Strauss Coffee International: Increase in revenue and market share growth in Brazil
Strauss Coffee International concluded the quarter with revenues of 954 million shekels (US$260.4 million), an increase of about 0.3% from the corresponding quarter last year.
The international coffee operations ended the quarter with an operating profit of 38 million shekels (US$10.4 million), a decrease of about 36.3% from the corresponding quarter, among others, due to a significant rise in raw material prices. The operating profit margin from coffee international sales was 4.0%.
The coffee operations in Brazil concluded the quarter with sales of 645 million shekels (US$176 million), an increase of about 3.8%, and an operating profit of 13 million shekels (US$3.5 million), a decrease of about 56.3% from the corresponding quarter.
Coffee operations in Russia and Ukraine concluded the quarter with sales of 129 million shekels (US$35.2 million), coffee operations in Romania with sales of 45 million shekels and coffee operations in Poland with sales of 103 million shekels (US$28.1 million).
The average market share of Três Corações (value) in the roast and ground (R&G) coffee sector in 2024 reached about 33.1% compared to about 33.7% in the same period last year.
