Strauss Unveils New Strategy, Plans Up to $55 Million Share Buyback
Translated & summarized from Calcalist by baba
Strauss Group has launched a new "Winning with Loved Local Brands" strategy for 2027-2030, focusing on growth in Israel and abroad through brand expansion and innovation. The company will invest over 2 billion shekels in Israel and plans international expansion in Brazil, Poland, Romania, and Ukraine. Strauss also approved a share buyback program of up to 200 million shekels by the end of 2030. The strategy follows a period of challenges, including a major product recall.
The story in 5 lines · by baba
- Strauss Group launched a new 2027-2030 strategy focused on local brands and international growth.
- The company will invest over 2 billion shekels in Israeli infrastructure and operations.
- Strauss plans international expansion in Brazil, Poland, Romania, Ukraine, and Latin America.
- A share buyback program of up to 200 million shekels was approved by the board.
- The new strategy follows a period of challenges, including a significant product recall.
Strauss Group has launched a new strategy for 2027-2030, named "Winning with Loved Local Brands." This strategy aims to drive growth both in Israel and internationally by leveraging and expanding local brands and fostering innovation. The company plans to grow in existing and new categories in Brazil, Poland, Romania, and Ukraine, and expand in Latin America through its joint venture 3corações.
Domestically, Strauss will invest over 2 billion shekels (approximately $550 million) in infrastructure, factories, and its supply chain. This includes developing its dairy operations, broadening its range of functional products, and enhancing its water business. The company projects an average annual growth rate (CAGR) of 3%-5% in volume, 7%-9% in net profit, and a double-digit CAGR in free cash flow. Capital expenditures are expected to be 5%-7% of revenues between 2027 and 2030.
Shiy Ba'ad, President and CEO of the Group, stated that Strauss is entering this new strategic period with positive momentum, strong brands, and partnerships, following the successful completion of its previous strategy. He emphasized deepening operations in existing markets, strengthening investments in Israel, and continuing expansion abroad, including into new categories beyond coffee. Ba'ad added that the company will continue to create value for consumers, employees, partners, communities, and investors.
This is Ba'ad's second strategy and Strauss's third in four years, reflecting the company's adaptation to significant events. In March 2022, the company presented its "Taste the Future" strategy, which was disrupted by a major salmonella contamination recall at its Elite confectionery factory in Nazareth Illit. This incident led to a large-scale recall and required the company to focus on rehabilitating its operations and appointing a new CEO. After the factory resumed operations, Ba'ad was appointed CEO, and his initial steps included presenting a strategic plan focused on strengthening the core business, transforming operations, optimizing the business portfolio, and building infrastructure for future growth.
In parallel with the new strategy, the company's board of directors approved a share buyback program of up to 200 million shekels (approximately $55 million) by the end of 2030. Strauss explained this move as a tool for capital management and returning value to shareholders, alongside dividend distributions, considering its investment plans, growth, liquidity, and market conditions. The actual execution of buybacks will be subject to separate board approvals.
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