Strauss Group’s international coffee business posted another quarter of rising profit margins despite falling reported sales, as lower green coffee costs and currency movements reshaped the numbers across its global portfolio in the second quarter of 2026.
In results announced on 12 August from Petah Tikva, Israel, Strauss Group reported that Coffee International delivered Q2-2026 EBIT of NIS 148 million (US$49.9 million), up 44.3% year-on-year, even as segment revenue declined 13.1% to NIS 1,334 million (US$450 million). According to the company’s release via PR Newswire, the EBIT margin for Coffee International reached 11.1%, compared with 6.7% in the same quarter of 2025.
The same pattern held over the first half of 2026. Strauss said H1-2026 Coffee International EBIT climbed 78.2% year-on-year to NIS 280 million (US$94.5 million), with margins improving to 10.5% from 5.4%, while revenue fell 9.1% to NIS 2,656 million (US$900 million) and like-for-like sales were down 2.2%. At group level, Strauss reported Q2-2026 revenue of NIS 2,867 million, down 1.9% on a like-for-like basis, but EBIT up 41.9% to NIS 363 million and net profit attributable to shareholders up 113.3% to NIS 195 million.
President and CEO Shai Babad linked the profitability surge to input costs, saying Coffee International “delivered record profitability, supported by higher gross margins, resulting mainly from lower green coffee costs and offset by lower pricing,” as cited by Food Business Middle East & Africa. Both the PR Newswire release and Food Business MEA also reported that a stronger Israeli shekel exerted a negative foreign exchange impact on reported revenues, and that Coffee International was affected by broader currency pressures and changing coffee market conditions.
The group’s 50%-owned Brazilian joint venture, 3corações, remained a key driver of this margin-focused reshaping. Strauss’s Q2-2026 figures show 3corações revenue down 15% to NIS 945 million (US$319 million), or 8.2% on a like-for-like basis, while EBIT increased by approximately 25% to NIS 110 million, lifting the EBIT margin to 11.6%. Food Business MEA reported that for the first half of 2026, 3corações revenue declined 12.4% to NIS 1,856 million, but EBIT jumped 71.2% to about NIS 202 million (US$68.2 million).
According to the PR Newswire release and Food Business MEA coverage, declining green coffee prices led to lower selling prices at 3corações, but volume growth in roasted and ground coffee helped support the EBIT gains. This follows a strong 2025, when Strauss’s FY-2025 results showed 3corações revenue up 31.5% to NIS 4,352 million and EBIT up 196.6% to NIS 387 million, with margins reaching 8.9%, as reported in the company’s Q4 & FY-2025 results PDF.
In Strauss’s home market, the Coffee Israel business also improved profitability on lower sales. Food Business MEA reported that Q2-2026 revenue in this unit fell 11.1% to NIS 190 million (US$64.1 million), or 3.1% when excluding the divested Coffee-To-Go retail chain, while EBIT rose 35%, bringing the margin to 15.4%. The outlet noted that Strauss had divested its Coffee-To-Go operation, and that Coffee Israel, like the wider coffee segment, had previously been exposed to shifts in green coffee prices.
These 2026 results build on a profitability trend that accelerated in 2025. Strauss’s Q2/H1-2025 report showed Coffee International revenue rising 27.4% to NIS 1.5 billion in Q2-2025 with EBIT up 67% to NIS 102 million, and H1-2025 revenue up 35.4% to NIS 2.9 billion with EBIT up 58.2% to NIS 157 million, representing a 5.4% margin. By FY-2025, according to the company’s year-end release, Coffee International revenue had reached NIS 6,155 million, up 30.8%, while EBIT more than doubled, rising 130.7% to NIS 493 million and pushing margins to 8.0%.
Reflecting on the trajectory, Babad said in the Q2-2026 announcement that “even in a complex business environment we have been able to significantly improve profitability, while continuing to invest in our brands, innovation, and capabilities,” describing the results as the outcome of a “clear path” and “disciplined execution” rather than a one-quarter shift, according to the PR Newswire release.
