The Strauss Group ended the first quarter with a profit of NIS 134 million, a jump of 213% compared to the corresponding period. The company's revenues increased by 12.4% to NIS 2.55 billion. The growth in revenues is due to continued growth in international coffee operations, and growth in the company's operations in Israel.
Strauss Israel's revenues increased by 7.6% to about one billion shekels with an operating profit of 109 million shekels. The confectionery activity continues the trend of recovery from the salmonella crisis and reaches a market share of 21.6% in the quarter, compared to 28.7% in 2022.
Strauss Coffee's revenues increased by 10% to NIS 1.2 billion. Sabra continues the recovery process after the implementation of the adjustment program at the plant in Virginia. The company, whose activity was significantly shut down during last year, returned to full production with sales of NIS 106 million.
Strauss Water's revenues increased by 2.9% to NIS 188 million, mainly as a result of the continued increase in the number of customers. Activity in China grew organically by 8.7%.
Shai Babad, the CEO: "Strauss is showing growth in most of its activities, with an improvement in market shares and an increase in revenues. At the same time, dealing with the prices of raw materials and inflation led to a significant erosion in the profitability of the group in general and in Israel in particular."
Shay Babed (Photo: Yonatan Zindel, Flash 90)According to him, "the price increases made by the company compensated for this only partially. We are making progress in the implementation of the strategic plans and continued growth, strengthening and expanding the partnerships, optimizing the portfolio, and focusing on significant programs to improve productivity."
