Strauss Group Reports Q2 & H1-2026 Financial Results:¹ Solid operating income growth to NIS 363 million, up 42%; Net profit doubled to NIS 195 million

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(Neutral)

Rhea-AI Summary

Strauss Group (SGLJF) reported Q2-2026 non-GAAP revenues of NIS 2,867 million, down 6.7% (1.9% lower on a like-for-like basis), while EBIT rose 41.9% to NIS 363 million with a 12.6% margin. Net income attributable to shareholders doubled to NIS 195 million, up 113.3%, and free cash flow turned positive at NIS 150 million versus negative NIS 89 million.

For H1-2026, revenues were NIS 5,868 million, down 3.2% (up 0.3% like-for-like), with EBIT up 52.9% to NIS 679 million and net income up 119.3% to NIS 376 million. The Group reported non-GAAP net debt of NIS 2,504 million (net debt/EBITDA 1.5). Midroog maintained an Aa1.il rating with a stable outlook. Strauss Group declared a semi-annual dividend of NIS 180 million (about NIS 1.54 per share), payable on September 3, 2026.

Positive

Q2-2026 EBIT up 41.9% to NIS 363m; margin 12.6%
Q2-2026 net income up 113.3% to NIS 195m; margin 6.8%
H1-2026 EBIT up 52.9% to NIS 679m; margin 11.6%
H1-2026 net income up 119.3% to NIS 376m; margin 6.4%
Q2-2026 free cash flow NIS 150m vs negative NIS 89m
Net debt / EBITDA improved to 1.5 (non-GAAP basis)
Semi-annual dividend NIS 180m (~NIS 1.54 per share) on Sept 3, 2026
Strauss Israel Q2 EBIT up 46% to NIS 198m; 15.2% margin
Coffee International Q2 EBIT up 44.3% to NIS 148m; 11.1% margin
Fun & Indulgence snacks H1 EBIT NIS 92m vs negative NIS 15m in H1-2025

Negative

Q2-2026 Group sales down 6.7% to NIS 2,867m (non-GAAP)
H1-2026 Group sales down 3.2% to NIS 5,868m (non-GAAP)
Coffee International Q2 sales down 13.1% to NIS 1,334m
3corações Q2 sales down 15.0% to NIS 945m (non-GAAP share basis)
Strauss Water H1 EBIT down 13.9% to NIS 45m; margin 9.9%
Coffee Israel Q2 sales down 11.1% to NIS 190m
Haier Strauss Water H1 net profit down 21.8% to NIS 40m

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08/12/2026 - 02:39 AM

Key Financial Highlights – Q2-2026²

Strauss Group revenues of NIS 2,867 million, down 1.9% on a LFL basis.³
EBIT of NIS 363 million, up 41.9% (EBIT margin of 12.6%), compared with NIS 255 million (8.3% margin).
Net Income attributable to shareholders of NIS 195 million, up 113.3%, compared with NIS 90 million.
Positive free cash flow of NIS 150 million, compared with negative free cash flow of NIS 89 million.
Strauss Israel and Coffee International delivered strong, double-digit EBIT growth.
Midroog maintained Strauss Group's Aa1.il rating and "Stable" outlook.
Strauss Group declared a semi-annual dividend of NIS 180 million, or approx. NIS 1.54 per share, to be paid on September 3^rd, 2026.

PETAH TIKVA, Israel, Aug. 12, 2026 /PRNewswire/ -- Strauss Group Ltd. (TASE: STRS) reported its financial results for the second quarter and first half of 2026, that ended on June 30^th, 2026 with a substantial improvement in profitability, free cash flow and continued business momentum.

Shai Babad, President and CEO of Strauss Group, stated:

"The quarter's results are a testament to Strauss's resilience and the quality of our execution. Even in a complex business environment we have been able to significantly improve profitability, while continuing to invest in our brands, innovation, and capabilities that will drive our growth in the years to come. This is not a one-quarter move but the result of a clear path, disciplined execution and focus on activities in which we have a real advantage. I am proud of Strauss' thousands of employees in Israel, around the world as well as in our JVs. Thanks to their professionalism, commitment and dedication, we continue to lead, grow and create value for all our stakeholders."

Table 1: Key financial data, based on the Company's Non-GAAP reports:^{(1, 2, 3)}
NIS million	H1-2026	H1-2025	% Change	% Change excl. FX	Q2-2026	Q2-2025	% Change	% Change excl. FX
Group Sales	5,868	6,063	-3.2 %	0.3 %	2,867	3,073	-6.7 %	-1.9 %
Gross Profit	1,943	1,649	17.9 %	20.9 %	986	868	13.6 %	17.6 %
Gross margin	33.1 %	27.2 %			34.4 %	28.3 %
EBIT	679	444	52.9 %	57.5 %	363	255	41.9 %	47.3 %
EBIT margin	11.6 %	7.3 %			12.6 %	8.3 %
Net Income Attributable to Shareholders	376	171	119.3 %	131.3 %	195	90	113.3 %	129.7 %
Net margin	6.4 %	2.8 %			6.8 %	3.0 %
EPS (NIS)	3.21	1.47	118.4 %		1.65	0.78	112.3 %
EBITDA	895	649	37.9 %	41.6 %	472	359	31.7 %	36.4 %
EBITDA margin	15.2 %	10.7 %			16.4 %	11.7 %
Operating Cash Flow	366	-296	N.M.		265	51	419.6 %
Capex, Net	-262	-288	-9.0 %		-115	-140	-17.9 %
Free Cash Flow	104	-584	N.M.		150	-89	N.M.
Net debt	2,504	2,966	-15.6 %		2,504	2,966	-52.2 %
Net debt / EBITDA	1.5	2.4			1.5	2.4

Note: financial figures have been rounded to NIS millions. Percentage changes were calculated based on exact figures in thousands of NIS.
(1) As of Q1-2026, management determined that The Kitchen Hub incubator is no longer a reportable activity and has been excluded from Non-GAAP reporting. Comparative figures were restated by approx. NIS 18 million for H1-2026.
(2) Including loss on cocoa derivative of NIS 49 million in Q1-2025.
(3) Including insurance income of NIS 27 million in Q2-2026.

Strauss Group Financial Highlights – Q2-2026:

Strauss Group's revenues of NIS 2,867 million, down 6.7%, or 1.9% on a LFL basis.⁴
Strauss Group's EBIT of NIS 363 million, up 41.9% (EBIT margin of 12.6%). Excluding one-time insurance income of NIS 27 million, EBIT reached NIS 336 million (EBIT margin of 11.7%).
Net profit attributable to shareholders of NIS 195 million, up 113.3% (Net margin of 6.8%).
Positive free cash flow of NIS 150 million vs. negative free cash flow of NIS 89 million.

Strauss Group Financial Highlights – H1-2026:

Strauss Group revenues of NIS 5,868 million, down 3.2%, or up 0.3% on a LFL basis.⁵
Strauss Group EBIT of NIS 679 million, up 52.9% (EBIT margin of 11.6%). Excluding one-time insurance income of NIS 27 million, EBIT reached NIS 652 million (EBIT margin of 11.1%).
Net profit attributable to shareholders of NIS 376 million, up 119.3% (Net margin of 6.4%).
Positive free cash flow of NIS 104 million vs. negative free cash flow of NIS 584 million.

Business Segment Performance

Strauss Israel

Q2-2026 revenues of NIS 1,300 million, down 1.5%. Excluding the divested activity of Coffee-To-Go (Elite Coffee retail chain), sales remained unchanged. Q2-2026 EBIT of NIS 198 million, up 46% (EBIT margin of 15.2%). Excluding one-time insurance income of NIS 27 million, EBIT reached NIS 171 million (EBIT margin of 13.2%).
H1-2026 revenues of NIS 2,759 million, up 1.6%. EBIT of NIS 373 million, up 50.5% (EBIT margin of 13.5%). Excluding one-time income from insurance, EBIT reached NIS 346 million (EBIT margin of 12.5%).
Health & Wellness

Q2-2026 stable revenues of NIS 804 million, and EBIT of NIS 117 million, up 4.3% (EBIT margin of 14.6%).
H1-2026 revenues of NIS 1,579 million, up 2.1%, and EBIT of NIS 207 million, up 3.3% (EBIT margin of 13.1%).

Fun & Indulgence (Snacks & Confectionery)

Q2-2026 revenues of NIS 306 million, up 1.8%, and EBIT of NIS 52 million (EBIT margin of 16.7%) vs. break-even in Q2-2025. Excluding one-time insurance income of NIS 27 million, EBIT reached NIS 25 million (EBIT margin of 8.2%).
H1-2026 revenues of NIS 734 million, up 5.6%, and EBIT of NIS 92 million (EBIT margin of 12.5%) vs. negative EBIT of NIS 15 million in H1-2025. Excluding one-time insurance income of NIS 27 million, EBIT reached NIS 65 million (EBIT margin of 8.8%).

Fun & Indulgence (Coffee Israel)

Q2-2026 revenues of NIS 190 million, down 11.1%, or 3.1% excluding the divested Coffee-To-Go business, and EBIT of NIS 29 million, up 35.0% (EBIT margin of 15.4%).
H1-2026 revenues of NIS 446 million, down 5.6% or up 3.5% excluding Coffee-To-Go, and EBIT of NIS 74 million, up 18.5% (EBIT margin of 16.6%).

Coffee International

Q2-2026 revenues of NIS 1,334 million, down 13.1% mainly driven by negative FX translation due to the stronger shekel, as well as lower selling prices in 3corações following the decline in green coffee prices.⁶ LFL revenues declined 3.9%. Q2-2026 EBIT of NIS 148 million, up 44.3% (EBIT margin of 11.1%).
H1-2026 revenues of NIS 2,656 million, down 9.1% of 2.2% on a LFL basis, and EBIT of NIS 280 million, up 78.2% (EBIT margin of 10.5%).
3corações (50% share)

Q2-2026 revenues of NIS 945 million, down 15.0% or 8.2% on a LFL basis, driven by lower selling prices partially offset by volume growth in R&G segment. Q2-2026 EBIT of approx. NIS 110 million, up ~25.0% (EBIT margin of 11.6%).
H1-2026 revenues of NIS 1,856, down 12.4% or 7.1% on a LFL basis, and EBIT of approx. NIS 202 million, up 71.2% (EBIT margin of 10.8%).

Central and Eastern Europe (CEE) (Poland, Romania, Russia and Ukraine)

Q2-2026 revenues of NIS 389m, down 8.3% or up 6.4% on a LFL basis.
H1-2026 flat revenues of NIS 800 million, or up 11.0% on a LFL basis.

Strauss Water

Q2-2026 revenues of NIS 233 million, up 7.1%, and EBIT of NIS 28 million, up 4.9% (EBIT margin of 11.8%).
H1-2026 revenues of NIS 453 million, up 6.8%, and EBIT of NIS 45 million, down 13.9% (EBIT margin of 9.9%) mainly due to the impact of the war in Israel in Q1-2026.
Haier Strauss Water (49%-owned JV with Haier) (100% in NIS)

Q2-2026 revenues of NIS 213 million, down 9.8% or up 2.6% on a LFL basis. Net profit of NIS 15 million, down 26.8% or 14.3% on a LFL basis.
H1-2026 revenues of NIS 439 million, down 5.2% or up 5.8% on a LFL basis. Net profit of NIS 40 million, down 21.8% or 12.4% on a LFL basis.

Table 2. Sales Summary by Operating Segment (Non-GAAP):
NIS million	H1-2026	H1-2025	% Change	% Change excl. FX	Q2-2026	Q2-2025	% Change	% Change excl. FX
Group Sales	5,868	6,063	-3.2 %	0.3 %	2,867	3,073	6.7%-	-1.9 %
Strauss Israel	2,759	2,715	1.6 %		1,300	1,319	1.5%-
Health & Wellness	1,579	1,548	2.1 %		804	806	-0.1 %
Fun & Indulgence (Snacks and Sweets) (1)	734	695	5.6 %		306	301	1.8 %
Fun & Indulgence (Coffee Israel)	446	472	-5.6 %		190	212	-11.1 %
Coffee International (1)	2,656	2,924	-9.1 %	-2.2 %	1,334	1,536	-13.1 %	-3.9 %
Strauss Water(1)	453	424	6.8 %	7.6 %	233	218	7.1 %	8.3 %

Note: Financial data were rounded to the nearest NIS million. Percentages changes were calculated based on the exact figures in NIS thousands.
(1) Fun & Indulgence (Snacks and Confectionery) figures include Strauss Group's 50% interest in the salty snacks business. Coffee International figures include Strauss Group's 50% interest in the 3corações joint venture in Brazil (jointly held with the local São Miguel Group (50%)).

Table 3. EBIT Summary by Segment (Non-GAAP):⁽¹⁾
NIS million	H1-2026	H1-2025	% Change	% Change excl. FX	Q2-2026	Q2-2025	% Change	% Change excl. FX
Group EBIT	679	444	52.9 %	64.4 %	363	255	41.9 %	53.5 %
EBIT margin	11.6 %	7.3 %			12.6 %	8.3 %
Strauss Israel	373	248	50.5 %		198	135	46.0 %
EBIT margin	13.5 %	9.1 %			15.2 %	10.2 %
Health & Wellness	207	201	3.3 %		117	113	4.3 %
EBIT margin	13.1 %	13.0 %			14.6 %	14.0 %
Fun & Indulgence (Snacks and sweets) (2) (3)	92	-15	N.M.		52	1	3353.0 %
EBIT margin	12.5 %	-2.1 %			16.7 %	0.5 %
Fun & Indulgence (Coffee Israel)	74	62	18.5 %		29	21	35.0 %
EBIT margin	16.6 %	13.2 %			15.4 %	10.1 %
Coffee International	280	157	78.2 %	94.1 %	148	102	44.3 %	59.5 %
EBIT margin	10.5 %	5.4 %			11.1 %	6.7 %
Strauss Water	45	52	-13.9 %		28	26	4.9 %
EBIT margin	9.9 %	12.3 %			11.8 %	12.1 %
Other	-19	-13	-44.4 %		-11	-8	-26.1 %

Note: financial figures have been rounded to NIS millions. Percentage changes were calculated based on exact figures in thousands of NIS.
(1) As of Q1-2026, management determined that The Kitchen Hub incubator is no longer a reportable activity and has been excluded from Non-GAAP reporting. Comparative figures were restated by approx. NIS 18 million for H1-2026.
(2) Including insurance income of NIS 27 million in Q2-2026, and loss on cocoa derivative of NIS 49 million in H1-2025.
(3) Including loss on cocoa derivative of NIS 49 million in Q1 & H1-2025.

Table 4: Key financial data, based on the Company's GAAP reports:
NIS million	H1-2026	H1-2025	% Change	Q2-2026	Q2-2025	% Change
Total Group Sales	3,829	3,762	1.8 %	1,843	1,875	-1.7 %
Gross Profit	1,377	1,195	15.2 %	726	583	24.4 %
Gross margin	36.0 %	31.8 %		39.4 %	31.1 %
EBIT	586	373	56.8 %	341	183	85.0 %
EBIT margin	15.3 %	9.9 %		18.4 %	9.8 %
Net Income Attributable to the Company's Shareholders	359	150	139.4 %	213	64	231.2 %
Net margin	9.4 %	4.0 %		11.6 %	3.4 %
EPS (NIS)	3.06	1.28	139.1 %	1.81	0.55	229.1 %
EBITDA	772	549	40.6 %	436	271	60.9 %
EBITDA margin	20.2 %	14.6 %		23.7 %	14.5 %
Operating Cash Flow	303	-73	N.M.	146	20	630.0 %
Capex, Net	-230	-254	9.4 %	-98	-122	19.7 %
Free Cash Flow	73	-327	N.M.	48	-102	N.M.
Net debt	2,387	2,383	0.2 %	2,387	2,383	0.2 %
Net debt / EBITDA	1.6	2.2		1.6	2.2

Note: financial figures have been rounded to NIS millions. Percentage changes were calculated based on exact figures in thousands of NIS.

Conference Call

On Wednesday, August 12th, 2026, at 14:00 (Israel time), the Company will host a webcast conference call in Hebrew with management to review the financial results.

To participate in the webinar please use the following link:
https://us02web.zoom.us/webinar/register/WN_h2xLHPKVS8uRce2jqitFYA
Webinar ID: 872 1102 2759

In addition, on Wednesday, August 12th, 2026, at 15:30 (Israel time), the Company will host a webcast conference call in English with management to review the financial results.

To participate in the webinar please use the following link:
https://us02web.zoom.us/webinar/register/WN_jEPSAAVfReGKPADwvcUS1A
Webinar ID: 825 2528 4755

Questions for the questions and answers session may be submitted (up to 2 hours) in advance to: IR@strauss-group.com

Likewise, Strauss Group's Q2-2026 earnings press release, and financial statements will be available on the Company's website

A recording of the webinar will be available on the company's website shortly following the webinar.

For further information, please contact:

Telem Yahav	Avshalom Shimi
Director of External Communications	Head of Investor Relations
972-52-257-9939	972-52-428-3330
972-3-675-6713	avshalom.shimi@strauss-group.com
Telem.Yahav@Strauss-Group.com

Liron Ben Yaakov
Director of Communications and PR
972-54-609-1600
972-3-675-2584
liron.ben-yaakov@Strauss-Group.com

Forward Looking Statement Disclaimer

This press release does not constitute an offering to purchase or sell securities of Strauss Group Ltd. (the "Company") or an offer for the receipt of such offerings. The press release's sole purpose is to provide information. The Information provided in the press release concerning the analysis of the Company's activity is only an extract, and in order to receive a complete picture of the Company's activity and the risks it faces, one should review the Company's reports to the Israel Securities Authority and the Tel Aviv Stock Exchange.

The press release may contain forward-looking statements as defined in the Israeli Securities Law, 5728-1968. All forward-looking statements in this press release are made based on the Company's current expectations, evaluations and forecasts, and actual results may differ materially from those anticipated, in whole or in part, as a result of different factors including, but not limited to, changes in market conditions and in the competitive and business environment, regulatory changes, currency fluctuations or the occurrence of one or more of the Company's risk factors. In addition, forward-looking forecasts and evaluations are based on information in the Company's possession while preparing the press release. The Company does not undertake any obligation to update forward-looking forecasts and evaluations made herein to reflect events and/or circumstances that may occur after this press release was prepared.

¹ The data presented in this document is based on the company's Non-GAAP figures, which include the proportionate consolidation of jointly-controlled entities and exclude the following: share-based compensation; end-of-period mark-to-market valuations of open financial derivative positions used for commodity hedging; timing adjustments for gains and losses from commodity derivatives, which are deferred until the related inventory is sold to third parties; other net income/expenses; and the related tax effects, unless stated otherwise.

² Q2-2026 and H1-2026 results in this earnings release are presented in comparison to Q2-2025 and H1-2025, respectively, unless otherwise stated.

³ LFL (like-for-like) – Excluding translational impact of converting local currency of international JVs and subsidiaries into the Group's reporting currency (NIS).

⁴ LFL (like-for-like) – Excluding translational impact of converting local currency of international JVs and subsidiaries into the Group's reporting currency (NIS).

⁵ LFL (like-for-like) – Excluding translational impact of converting local currency of international JVs and subsidiaries into the Group's reporting currency (NIS).

⁶ 3corações – Três Corações is a joint venture in Brazil jointly held by Strauss Coffee B.V. (50%) and São Miguel Group (50%).

View original content:https://www.prnewswire.com/news-releases/strauss-group-reports-q2--h1-2026-financial-results-solid-operating-income-growth-to-nis-363-million-up-42-net-profit-doubled-to-nis-195-million-302849420.html

SOURCE Strauss Group Ltd.

FAQ

How did Strauss Group (SGLJF) perform financially in Q2-2026?

Strauss Group reported Q2-2026 non-GAAP revenues of NIS 2,867 million, down 6.7%, with EBIT up 41.9% to NIS 363 million. According to Strauss Group, net income attributable to shareholders rose 113.3% to NIS 195 million and free cash flow reached NIS 150 million.

What were Strauss Group (SGLJF) H1-2026 results compared with H1-2025?

In H1-2026, Strauss Group reported non-GAAP revenues of NIS 5,868 million, down 3.2% year over year. According to Strauss Group, EBIT increased 52.9% to NIS 679 million, while net income attributable to shareholders rose 119.3% to NIS 376 million, with free cash flow of NIS 104 million.

What dividend did Strauss Group (SGLJF) declare with its Q2-2026 results?

Strauss Group declared a semi-annual dividend of NIS 180 million, approximately NIS 1.54 per share. According to Strauss Group, the dividend will be paid on September 3, 2026, reflecting improved profitability and cash generation during H1-2026.

How did Strauss Group’s Coffee International segment perform in Q2-2026?

Coffee International Q2-2026 revenues were NIS 1,334 million, down 13.1%, mainly due to FX and lower selling prices. According to Strauss Group, segment EBIT rose 44.3% to NIS 148 million, with an EBIT margin of 11.1%, supported by improved profitability at 3corações.

What were the key results for Strauss Israel in Q2-2026?

Strauss Israel posted Q2-2026 revenues of NIS 1,300 million, down 1.5%, but flat excluding the divested Coffee-To-Go activity. According to Strauss Group, segment EBIT increased 46% to NIS 198 million, with an EBIT margin of 15.2%, supported by higher profitability across sub-segments.

How did Strauss Group’s Fun & Indulgence snacks business trend in H1-2026?

The Fun & Indulgence (snacks and sweets) business reported H1-2026 revenues of NIS 734 million, up 5.6% year over year. According to Strauss Group, segment EBIT improved to NIS 92 million versus negative NIS 15 million in H1-2025, aided by insurance income and operational recovery.

What is Strauss Group’s leverage position following H1-2026 results?

On a non-GAAP basis, Strauss Group reported net debt of NIS 2,504 million at H1-2026, down from NIS 2,966 million a year earlier. According to Strauss Group, the net debt to EBITDA ratio improved to 1.5, reflecting stronger earnings and positive free cash flow.