2025-05-28-Jefferies-Strauss_Group（STRS）_2025年第一季度业绩_价格上涨保护利润率_7页_100kb

1Q25 Results Summary: Strauss Group Ltd

Core Content

The document provides a summary of the financial results for Strauss Group Ltd for the first quarter of 2025. It highlights the company's performance in terms of organic growth, operating profit, and margins, while also discussing the valuation and investment recommendation for the stock. The report is issued by Jefferies, a financial services firm, and includes important disclosures regarding the firm's methodology, potential conflicts of interest, and the legal jurisdictions under which the report is distributed.

Key Financial Performance

• Organic Growth: 20.9% in Q1 2025.
• Operating Profit: NIS 181 million.
• Operating Margins: 6.0%, down 180 basis points (bps) YoY from 6.1% in Q4 2024.
• Top Line Growth: Supported by significant growth in both Israel Coffee (7% of sales) and International Coffee (45% of sales), with the latter driven by pricing increases.
• Stock Performance: The stock is currently trading at ILS 87.74 and has outperformed the TA-35 index by 14% year-to-date (YTD).

Investment Recommendation

• Rating: HOLD
• Price Target: ILS 75.00, representing a -15% target from the current price.
• Market Cap: ILS 10.2B or approximately $2.9B.
• Valuation Methodology: Based on EV/EBITDA and P/E multiples, with consideration of market risk, growth rate, and other financial metrics.

Risks and Considerations

• Input Inflation: Operating margins are pressured by higher input costs for cocoa and coffee, including a non-recurring loss of NIS 49 million on cocoa derivatives.
• Currency Risk: The price targets and values are based on exchange rates as of the prior trading day, and fluctuations may affect the actual value.
• Investor Suitability: The report is not tailored to individual investors and should be considered only as one of many factors in investment decisions.
• Conflicts of Interest: Jefferies may have business relationships with companies covered in the report, which could affect the objectivity of the analysis.

Analyst Certifications

• Feng Zhang and David Hayes certify that the views expressed in the report accurately reflect their personal opinions and that their compensation is not directly tied to the recommendations.

Other Important Disclosures

• Legal Jurisdictions: The report is distributed in accordance with the regulations of various jurisdictions, including the US, UK, Germany, Hong Kong, Singapore, Japan, India, and Australia.
• Conflicts of Interest: Jefferies may have financial interests in the companies discussed, which could influence the report's objectivity.
• Disclaimer: The report is not investment advice and does not guarantee returns. It is provided for informational purposes only, and investors are advised to consult with their financial advisors.

Company Overview

• Strauss Group Ltd is an international food and beverage company based in Israel.
• It operates through multiple segments, including Fun & Indulgence, Health & Wellness, Coffee Israel, Coffee International, International Dips and Spreads, and Strauss Water.
• The company has a global annual revenue of over NIS 8.3 billion in 2020 (non-GAAP).
• Founded in 1933 and listed on the Tel Aviv Stock Exchange since 2004.

Analyst Ratings Distribution

• Buy: 60.44% (2105 count)
• Hold: 35.17% (1225 count)
• Underperform: 4.39% (153 count)

Final Notes

• The report emphasizes that the company's performance is shielded by price increases, despite the challenges from raw material inflation.
• Investors are advised to be cautious about relying solely on the report and to evaluate their own investment objectives and financial situations.