Shay Babad launches new strategy and records a huge one-time profit of NIS 630 million

Strauss Group, led by CEO Shay Babad, presented a new strategy for 2027-2030, focusing on investing over NIS 2 billion in Israeli production infrastructure and expanding operations in Brazil and Europe. The company targets 7%-9% annual net profit growth and double-digit free cash flow growth. Simultaneously, Strauss announced an accounting move: it sent PepsiCo an irrevocable notice to purchase about 0.1% of Strauss PepsiCo shares for approximately $400,000, raising its stake to 50.1% and leading to the first consolidation of the joint venture's results in its reports. As a result, Strauss expects to recognize a one-time accounting profit of NIS 630-650 million, subject to antitrust approval. The profit stems from a change in ownership structure and does not represent cash flow.

Strauss Group, under the management of Shay Babad, presented its business strategy for 2027-2030 this morning, centered on investing over NIS 2 billion in production infrastructure in Israel and expanding activities in Brazil and Europe. The company sets a target of 7%-9% annual growth in net profit and double-digit growth in free cash flow. Simultaneously, Strauss announced an accounting move: it sent PepsiCo an irrevocable notice to purchase about 0.1% of Strauss PepsiCo shares for approximately $400,000, which will raise its stake to 50.1% and lead to the first consolidation of the joint venture's results in its reports. As a result, Strauss expects to recognize a one-time accounting profit of NIS 630-650 million, subject to antitrust approval. The profit stems from a change in ownership structure and does not represent cash flow.