Strauss Group: 2023 revenue reaching NIS 10.5 billion
Source: The DairyNews
Strauss Group published its financial statements for the fourth quarter and full year of 2023, with revenue surpassing NIS 10 billion for the first time this year and reaching NIS 10.5 billion – up 11% compared to 2022. In the fourth quarter, Strauss delivered revenue of NIS 2.7 billion, reflecting 9.6% growth compared to the corresponding period last year.
Operating profit for 2023 was NIS 772 million (7.3% of sales), and net profit was NIS 439 million (4.2% of sales). In the fourth quarter, operating profit was NIS 181 million (6.7% of sales), and net profit was NIS 100 million (3.7% of sales). Strauss will distribute a dividend of NIS 270 million to shareholders.
Strategy 2024-2026 highlights include strengthening and renewing the core, a series of transformation and portfolio optimization processes as well as the building infrastructure and planting the seeds for future growth drivers. The goal of these strategic moves is to continue the organic annual revenue growth of c5% and increase the Group's margins to 10-12% in 2026. Strauss is working to expand its existing business in Israel, Brazil and in water.
Israel
In Israel, Strauss plans to continue to strengthen its snacking business by targeting new audiences and communities. Strauss Israel offers a broad variety of products, including dairy, confectionery and salty snacks. Strauss will continue developing the snacking business across various consumer occasions and catetgories addressing target consumers in dairy, sweet and salty snacks. Additionally it shall strive to achieve ongoing growth in core business in the coffee, dairy and packaged salads categories.
In addition, Strauss is working to expand its existing businesses in Israel by further broadening its plant-based product offering through a new production plant and entry into new plant-based categories. Strauss is also working on the development of breakthrough innovation around the core.
In order to carry out the Group's strategy in Israel, Strauss has set a target to concentrate most of the investments in CAPEX and OPEX in the Group's core businesses as of 2024.
Brazil
Strauss together with its joint venture partner (Sao Miguel), will continue to maintain 3corações's position as the largest coffee company in Brazil, serving today close to 200 thousand distribution clients. 3corações will also continue to develop its product offering to new consumers and expand its non-R&G business, among other things through internal product development and via M&A.
3corações non-R&G business in Brazil will also be broadened in categories such as coffee capsules, juice powers and cocoa and plant-based dairy alternative beverages. The JV's goal is to diversify and continue to grow its non-R&G portfolio leveraging its commercial and logistic platform.
Strauss Group President & CEO Shai Babad commented: "The Group has ended 2023 with growth across most financial parameters, after a series of business processes that was set in motion during the year and will continue into 2024. The strategy update reflects the process of change which focuses on the Group's core businesses and the strengthening of the company's financial strength, as we continue to build infrastructure for strategic growth drivers."
The past year was very complex and challenging on the national level. I am extremely proud of Strauss employees throughout the country, who continued to produce and market food and beverages, and did it all with a sense of mission, national responsibility, devotion to our consumers and to maintaining business continuity. We continue to pray for the safe return of all the hostages soon and strengthen the soldiers of the IDF and the security forces."
Strategy 2024-2026 highlights include strengthening and renewing the core, a series of transformation and portfolio optimization processes as well as the building infrastructure and planting the seeds for future growth drivers. The goal of these strategic moves is to continue the organic annual revenue growth of c5% and increase the Group's margins to 10-12% in 2026. Strauss is working to expand its existing business in Israel, Brazil and in water.
Israel
In Israel, Strauss plans to continue to strengthen its snacking business by targeting new audiences and communities. Strauss Israel offers a broad variety of products, including dairy, confectionery and salty snacks. Strauss will continue developing the snacking business across various consumer occasions and catetgories addressing target consumers in dairy, sweet and salty snacks. Additionally it shall strive to achieve ongoing growth in core business in the coffee, dairy and packaged salads categories.
In addition, Strauss is working to expand its existing businesses in Israel by further broadening its plant-based product offering through a new production plant and entry into new plant-based categories. Strauss is also working on the development of breakthrough innovation around the core.
In order to carry out the Group's strategy in Israel, Strauss has set a target to concentrate most of the investments in CAPEX and OPEX in the Group's core businesses as of 2024.
Brazil
Strauss together with its joint venture partner (Sao Miguel), will continue to maintain 3corações's position as the largest coffee company in Brazil, serving today close to 200 thousand distribution clients. 3corações will also continue to develop its product offering to new consumers and expand its non-R&G business, among other things through internal product development and via M&A.
3corações non-R&G business in Brazil will also be broadened in categories such as coffee capsules, juice powers and cocoa and plant-based dairy alternative beverages. The JV's goal is to diversify and continue to grow its non-R&G portfolio leveraging its commercial and logistic platform.
Strauss Group President & CEO Shai Babad commented: "The Group has ended 2023 with growth across most financial parameters, after a series of business processes that was set in motion during the year and will continue into 2024. The strategy update reflects the process of change which focuses on the Group's core businesses and the strengthening of the company's financial strength, as we continue to build infrastructure for strategic growth drivers."
The past year was very complex and challenging on the national level. I am extremely proud of Strauss employees throughout the country, who continued to produce and market food and beverages, and did it all with a sense of mission, national responsibility, devotion to our consumers and to maintaining business continuity. We continue to pray for the safe return of all the hostages soon and strengthen the soldiers of the IDF and the security forces."
