Falling cocoa, coffee prices boost Strauss Group profit

Food company Strauss Group (TASE: STRS), controlled by the Strauss family and headed by Shai Babad, translated the fall in the prices of cocoa and coffee beans in the first quarter into a higher gross profit, as prices of its products on supermarket shelves remained unchanged. So while quarterly revenue was stable at NIS 3 billion, the company’s gross margin jumped from 26.1% to 31.9%. Net profit attributable to shareholders was NIS 181 million, up 126%.

Strauss states that prices of Arabica and Robusta coffee beans fell by 16% and 29% respectively in the first quarter, and that the price of cocoa beans collapsed by 63%. The price of raw milk rose by a moderate 3%. The fall in the prices of coffee and cocoa raw materials, following a long period in which rising prices led to higher prices of the company’s products, helped it to improve its gross margin, as mentioned.

“The growth in gross profit and in gross profit margins stemmed mainly from a fall in prices of green coffee and from losses on cocoa commodity derivatives in the first quarter of 2025,” Strauss Group explained in its report, adding: “The growth was partially offset by a rise in production costs, mainly in the Strauss Israel business.”

Strauss Israel posted a 56% rise in operating profit to NIS 175 million thanks to the fall in raw material costs and to a 4.5% increase in revenue to NIS 1.46 billion. Strauss Israel’s gross margin rose from 32% to 36%.

Strauss reports its financial results in two formats. The first is on the basis of the management accounts, from which the above figures are taken, and includes the accounting share of the company’s partners in its international activities. In the results of Strauss Group itself, quarterly revenue totaled NIS 2 billion, 5.5% more than in the corresponding quarter, and net profit rose 70% to NIS 146 million.

In the past year, Strauss Group’s share price has risen by more than 40%, giving the company a market cap of NIS 14.6 billion.

Published by Globes, Israel business news – en.globes.co.il – on May 20, 2026.

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