Now, we hope that everything is going to run smoothly. Welcome to Strauss Group's fourth quarter and first full year 2025 results earnings call.

On our call today, management will provide a review of the results followed by a questions and answers session. You are encouraged to post your questions to the Q&A function in the Zoom.

As a reminder, this online Zoom earnings call is being recorded Wednesday, March 25th, 2026. A recording of this call will be available at the company's website a few hours after the call.

I would like to remind everyone that this online webinar may contain projections or other forward-looking statements regarding future events or the future performance of the company. These statements are only predictions and may change in time or as time passes.

Strauss Group does not assume any obligation to update this information. Actual events or results may differ materially from those projected, including as a result of changing industry market trends, reduced demand for our products, the timely development of our new products and their adoption by the market, increased competition in the industry and price reduction, as well as due to risks identified in the documents filed by the company with the Israeli Securities Authority.

Online with me today are Mr. Shai Babad, Strauss Group's President and CEO, and Mr.

Tobi Fischbein, Group CFO, and myself, Avshalom Shimi, Head of Investor Relations. We will begin with a review of the annual results by CEO Shai Babad and then move on to the financial highlights of the quarter and 2025 presented by CFO Tobi Fischbein.

We will then move to the Q&A session. Shai, the floor is yours.

Thank you very much, Avshalom. Again, we apologize deeply for the delay.

The computer fell in the last moment after everything was ready. Murphy's Law, and we had to upload everything on a new computer.

Let's start and I'll try to be brief and to the point. Next.

Next. The highlights of 2025, we have a very strong double-digit growth in 2025 and also a very strong double-digit growth in the last quarter of of Q4 of 2025.

In the year of 2025, we also managed to regain back our margins and improve the profit, the operational profit and the operational profitability, with margins reaching 9.6% without our kitchen activity, which is very, very close to the strategy guidelines that we gave. In net profit, in the last quarter, we managed to improve the results by 100%, getting to 150 million shekels in one quarter of net profit, which is a substantial improvement, and also to the free cash flow.

In addition, lately we acquired Yóki and we made a very substantial and large M&A in Brazil, which I will mention a little bit later. We also are in the journey of our productivity, and we can say that we are online with all the productivity targets that we set ourselves with, in line with the strategy.

There's also been a lot of innovation that was done from diversified innovation to disruptive innovation with the new launches of Cow-Free and Shabbat machine in in our water purification systems that was done in Q4. Last but not least, in the north of Israel, we launched our new plant for for alternative milks under the Michael Strauss, our founder, campus, which was launched in October 2025.

When we look at the results, we can see that here, there's a 15% growth all over the year organic growth and a 12% almost 13% growth in revenues in net sales in the last quarter. This is in addition to also volume increase that we had during this year, most of the increase in revenue came from price increase mainly in our coffee international business, but not only.

We managed to increase price to actually increase market share in most of the categories in which we play, in categories, various strong categories in Israel. Overall categories in which we play in, we managed to increase market share by 1%, but also in Brazil we maintained a very our position as number one, increased market share, but also increased prices.

We can see here the EBIT improvement all over the year from almost 800 to 1.7 almost 1.7 billion, 1. sorry, 1.07 billion in EBIT.

It's the first time that we actually crossed the 1 billion shekels in EBIT without our kitchen activity. Net sales remained with with with a smaller improvement from 418 to 450, mainly due to tax payments and financial costs that Tobi will elaborate later.

In the last quarter, as you can see already, there is improvement in the net profit and our ability to roll through our operational profit to our net profits. In cash flow, of course, you can see also there is an improvement from last year with a negative cash flow.

This year, we managed to get back to a positive cash flow with a very strong cash flow in the fourth quarter. When we look at our Israeli activity, so as I mentioned before, we managed to increase market share in almost all our categories here.

There was a lot of innovation that was done in Israel, which I'll talk about very soon. In health and wellness, while increasing sales and growing in sales, we also improved our EBIT.

When we look at last quarter EBIT in health and wellness, we kind of we stayed the same, but this is mostly because of marketing efforts that were done this quarter in health and wellness because of the launch of the new plant in the north for alternative milks. We invested more than 14 million shekels in marketing efforts in addition to what we've done last year, and this is the difference.

Overall, health and wellness, good growth in revenues, also improvement in operational profit and in margins. When we look at Fun & Indulgence, here, because of our confectionery business and because of cocoa prices, we went a little behind, and we can see that in the last quarter there's also already an improvement, as we've mentioned, in our confectionery business.

Looking into 2026, this will continue to improve and we'll see substantial improvement in our confectionery business which will yield results that will be close to what we used to have in 2021. Also in coffee, we managed to to improve margins.

As you can see, of total overall in Israel, we grew by almost 6%. Operating income stayed the same because of cocoa prices, because its effect on the business in our confectionery business, which is starting to improve rapidly Q4 and also looking into 2026.

Of course and therefore operating profit kind of remained the same with a very positive outlook into 2026. This is a little bit to show you a little bit of our innovation.

In innovation, we have a diversified innovation stretching our brands from one category to another. You can see the Milky brand here that Ma'adan Gonda, which is another yogurt, was stretched into that brand.

Also in Alpro, we stretched our confectionery brands into Alpro. You can see that we are going very much into the also improving innovation into the functional segments of PRO yogurts with proteins, drinks with proteins, and our PRO brand is being expanded.

We can also see the disruptive innovation that was done in this year with the first time Cow-Free drinks, which is alternative which is imitation of the protein that comes from a cow that is produced through fragments fragmentation with yeast or mushrooms and therefore we can produce milk that is just not being produced from cow and the same with cheese. We launched this in Israel and and and we see already sales that are starting to grow.

With our new opening of our new plant in Israel as well, there was a lot of innovation and a lot and investment in new engines of growth that we've put in place. Next.

When we look at our coffee international activity, this year for Strauss, it was the coffee year. We see substantial improvements in our business in our international coffee business mainly through prices increase that was done.

You can see revenues increased and eroded by 30 almost 31%, while operating income more than double itself on the coffee on the total coffee business. We can see here Três Corações, our Brazilian business, with tripling its revenues.

Here, it's very important to say, we saw a very unique and very good results in Q4 for our Brazilian business. We don't think we'll be able to maintain the same margins going forward, but of 12% or 11%, but we do believe we have a new platform in Brazil, and instead of the 3 or 4% margin that we used to have, we think we can be around the 8, 9% margins going forward for this year.

We did maintain a new platform. It's not going to be as high as Q4, but it is going to be very strong operations in Brazil in the R&G.

In addition, in the non-R&G, we are continuing to expand our our activity in the non-R&G as part of our strategy to to hedge, to naturally hedge the green coffee volatility prices with our coffee activity with a non-R&G activity in Brazil. One of the steps that we took, which is in line with our strategy, was the Yóki acquisition, which I'll say a few words later on.

When we look at our water business, we increase our installed base and revenue grew due to that, although there was a war, and we see also the impact this year that our growth is lower than what we we are planning because of because of the war. In in parallel to that, we managed to maintain the profits, the operating profits of 115 each year.

Israel grew its profit, but in China, as mentioned in the last quarters, Xiaomi gave a very hard competition, and therefore we went onto attack mode in which we gave a lot of discounts and we have reduced price in many cases, and also put new platforms into the market. This has cut off our our our our our total profits from China, and therefore the total results remained the same.

The good news is is that we already see in Q4 that we managed to come back to being a very strong number two player in market share. We gained market share back in China.

We managed to sell in a double-digit growth in the last quarter. We also managed to become number one in the offline sale and number two in the online sale, altogether number two in the market, pushing Xiaomi back.

We do think this this stomach will continue with us into the next few quarters until we'll be able to get profits back on a high level in China, but overall, when it comes to revenue and growth and market share position, we managed to get that back. Next.

When we look at our productivity, we are we are in line with our productivity targets that we set for this year. We will reach, we believe, within the target and even exceed the target between the 300 and 400 million.

This helps us a lot to achieve our results, to improve operational profit, and to improve profitability. There's a lot of streams that are working.

I'm not going to repeat all the streams that we talked in the last calls, but there's procurement, there's logistics, supply chain, in each one of them there's marketing, RGM. In all of them, we are working very hard, and we are building capabilities which will help us for the next upcoming years to even to continue to enhance, deepen, and improve productivity.

A word on strategy. If you look at the strategy that we mentioned in 2024 till the end of 2026, we kind of ticked the box on all the all the targets and and missions that we set in this strategy.

We talked a lot about a strong home base in Israel with optimizing the portfolio in Israel, with double down on the core, with growing more than 5% in the segments that we decide to stay. We reduced SKUs from 1,300 to 780 in Israel while maintaining a higher CAGR than 5%.

We've managed to improve margins. With the turnaround we are expected to do in the confectionery business this year, we believe that the Israeli business will be fully on track with the strategy that we set that we set.

We're doing a lot of innovation activity. We built two engines of growth in Israel with the with the milk drinks and protein drinks and protein by itself, and on the other hand, the new factory that we build with alternative milks and the new factory that we build in the north that will be that will enable us to give all our brands in in alternative milk version as well.

This is regarding Israel. Regarding the engine growth of Brazil, we said that we need to maintain and to improve, maintain our position as as first in market share, but also to improve our R&G profitability and total profit.

We've managed to do that we've managed to have done that. If you look at the last three quarters, you can see that in quarter two, quarter three, and quarter four, the results in Brazil have improved substantially.

We're not going to be able to maintain the same margins as we as we saw in project in in quarter four, but the margins will stay high. This new platform of profitability for the R&G, and this is also a tick on what we said in the strategy.

On the other hand, the non-R&G is growing also more than 5% each year in the non-R&G activity in Brazil. We also managed M&A activities that we will do in the strategy, and also that we can take with the acquisition of Yóki.

Overall, we hedged we are hedging our activity with the R&G to be less exposed to the volatility of green prices on the one hand, but on the other hand, to continue to push for healthy growth in the aim of becoming one of the largest dry food companies in Brazil. When we look talk about our international water player, as an international water player, we talked a lot about multi-products in the water business.

We launched five new products from affordable products to premium products to under the sink products to functional products such as the Shabbat and the soda products. Some of those products will be launched also outside Israel.

We've managed to turn around our UK business in our water business as well. In China, we are opening now the the second plant this year, which will enable us to to push more on productivity, to reduce cost, to to strengthen profitability, but also will push growth.

All this is is based also on the pillar of future ready and resiliency with performance improvement, which is all the productivity work that we have done, and the resiliency that we build in the culture and the health of the organization through upskilling, reskilling, leadership models, and a lot of activities that we are doing in in the streams of our health, the health of our organization. One word which is very important for me to say about the Yóki business.

There were some eye lifted when when we acquired Yóki with the fact that why General Mills sold it and why did we buy it, and the business is losing money, I just want to make some sense out of it for this all. General Mills sold the activity for two major reasons.

They have published this in their notification when they sold, I feel free to to mention this. One is their focus on global brands.

They want to enhance their their their exposure to global brands and to focus very much on the global brands and not on local brands. The other is their their scale and their infrastructure in Brazil, which wasn't big enough to support profitability in Brazil.

On the other hand, this is exactly in line with our strategy, because our strategy is to support loved local brands. We will never have our I wouldn't say never, but our strategy does not aim to focus on global brands.

On the contrary, it focuses only on how do we take local loved brands and leverage those in order to make sure that we build strong brands. We know how to bring innovation and synergies into those loved local brands.

If you look at our journey in Brazil, what we've done in our local loved coffee brands, which were number three and number four in the market, and JDE, which is a global brand, was number one, we managed to exceed them to become the number one player in coffee with loved local brands. With Yóki, it's the same thing.

We are taking now under our wings very loved local brands, very known local brands, and what we have are very high synergies when it comes to distribution, when it comes to logistics. We we are reaching in Brazil more than 400,000 points where Yóki before through third party reached only 100,000 points.

When we talk about scale and infrastructure, because of our coffee business in Brazil, and because of our our already preexisting infrastructures in Brazil, we have much larger scale to support Yóki and very high synergies to support Yóki. Therefore, when we look at all the synergies, logistics synergies, distribution synergies, and also G&A strategies SG&A strategy synergies by combining and and merging headquarters and management positions, we believe that within 18, 24 months, we will be able to turn around the business to make it profitable.

I think if our plans will work, we might be able even to do that sooner than that. Therefore, buying this company for 0.4 multiple on revenues with the synergies that we have, and with our abilities and infrastructure that we have in Brazil, we believe that we'll be able to do a turnaround, and we believe that it's a very, very good fit to our existing business and very much in line with our strategy to become a larger food and dry dry food, sorry, company in Brazil on the one hand, on the other hand to to continue to grow our non-R&G activity to hedge the the the volatility and the vulnerable that we have the vulnerability that we have because of green coffee prices.

That was the rational of the deal, and I must say that we are very confident about that, especially after building the new platform that we have now in the R&G in Brazil. Just to conclude before the last slide, looking until now, I talked about the qualitative targets of our of our of our strategy, I just want to remind us all the long-term financial targets that we set ourselves in the strategy.

We talked about a 5% CAGR. We are in line with that.

We will actually exceed that by the end of 2026. We talked about margin expansion between 10% to 12%.

If you look at Q4 of 2025, we are already at 9.6% margins. We don't know yet how 2026 will finish.

There's a lot of unknowns regarding cost of goods and what will happen and how will that affect, but I think that we are in line right now to reach the target that we set on the lower part of it, we feel confident also with that target so far. When we talk about productivity, as I mentioned before, here we are in line and even exceeding the target.

When we talk about investments, we are investing a lot in digitalization, in improving our infrastructure, in opening capacity constraints in Israel mainly, but not only. We have we have reached capacity constraints where demand is much higher than what we are supplying into the market, we are investing to put more lines to open those bottlenecks and to make sure that we can meet demand.

Last but not least, focusing on the core, we said that 85% from 65%, 67%, 85% of our activity will be core. Core means growing 5% or more sustainable, having margins between 8% to 10% sustainable, and being the number one or number two in the market.

In all of those criteria, I think that when we check all those criteria, 85%, as we've mentioned, of our activity will be by the end of 2026 core activity. With the turnaround of our confectionery business, already today, more than 80% is under the core.

Overall, we we think that we are accomplishing the targets of our strategy. Here it's very important to note, these days, we are already working on the new phase of our strategy for years 2027-2030.

We will publish the new strategy out by H2, the second half of 2026. The focus will be on continuous healthy growth and expanding the business while we will leverage loved local brands in geographies in which we play and also in new geographies in which we want to enter.

We will push hard on productivity and we will enhance the build and the growth of our core activities as well. All all that will be out by H2, while we'll finish working on the new strategy and we'll put the new strategy out to the market with the new guidelines of where we think we can what we think we can achieve and where the strategy will take us by H2, stay tuned.

The last thing that I want to mention is our work in ESG. This is highly important for us.

We continue working on improving our products by reducing sugar, by reducing nitrogen, by making sure that our products, the quality of our products are healthier, and also by increasing the portfolio of healthy products within our portfolio. We're going to proteins, we are enlarging we are growing our dairy business, we are growing as invested in alternative milks in parallel to make our portfolio more nutritious and more healthier.

We are working on sustainable supply chain with working with our suppliers that they meet demands. Of course, our water business and and and and extending our water business helps us a lot with reducing plastic bottles and helping the Earth.

We are investing a lot of time on people and communities, especially now during the war in Israel, but also in the war in Ukraine and Russia, helping out helping the communities and helping our people and we're investing a lot on that. Of course, governance.

There's been jumps ahead in governance in the company. We have our own risk assessment team that was embedded already a year and a half ago in Strauss and we upgraded our ability in risk of risk analysis, and on the other hand, internal control and auditing.

Internal auditing, actually, was built through a local team inside team inside the company from external adviser. Those front line, second line, and third line of of defense are being built within the company.

Therefore, you can see, I think, the rating that we have through the different rating companies on ESG is very high and we take it very, very seriously. With that, thank you, and we'll move it to Tobi for the financial results.

Thank you, Shai. On slide 15, we have Q4 net sales which totaled 3.2 billion shekels, up 10.2% year on year.

Growth was broad-based across all businesses with strong contribution from our Coffee International segment, offset by currency impact from stronger Israeli shekel vis-à-vis local currencies in most of our foreign activities. On slide 16, full year 2025 net sales reached 12.5 billion shekels, up 11.6% year on year.

All core segments contributed to this performance. Strauss Israel delivered solid mid-single-digit growth despite the impact of divested activities.

Coffee International sales grew 30% in shekel terms to record-high sales, and Strauss Water achieved steady growth driven by a larger installed base in Israel and in the UK. On slide 17, Q4 2025 group EBIT was 282 million shekels, up 62.3% year on year, with 8.9% EBIT margin, up from 6.1% in Q4 of 2024.

For the full year, group EBIT grew 35.6% to a record 1.02 billion shekels with an 8.2% EBIT margin. The strong growth and profitability improvement was driven largely by our Coffee International business and productivity gains across the group.

On slide 18, in Q4 2025, Strauss Israel's EBIT was 136 million shekels, up 13.6% year on year. Coffee International's EBIT increased by 270% to 173 million shekels, and Strauss Water's EBIT remained flat at 40 million shekels.

For the full year 2025, Strauss Israel EBIT totaled 530 million shekels, up 0.4%, Coffee International more than doubled its EBIT to 493 million shekels, and Strauss Water contributed 115 million shekels, flat year on year. On slide 19, we see the net income.

In Q4, the net income attributable to shareholders more than doubled to 151 million shekels, reflecting strong EBIT growth. Full year net income reached 450 million shekels, a 7.6% increase over 2024, driven by EBIT improvement while impacted by higher finance expenses, mainly due to a stronger shekel and higher interest expenses in Brazil, as well as higher tax expenses due to the profit mix and release of provisions in 2024.

On slide 20, we see the cash generation improved significantly. In Q4 2025, we generated free cash flow of 554 million shekels, an increase of 110 million shekels year on year.

For the full year, free cash flow turned positive at 215 million shekels versus negative 51 million shekels in 2024. These gains were driven by higher business profitability and lower CapEx.

Slide 21, we ended 2025 with net debt of 2.2 billion shekels, slightly higher than a year ago, while our net debt to EBITDA ratio improved to 1.6 times at year-end compared to 1.7 times a year ago, underscoring our strong financial position and moderate leverage. On slide 22, we see Strauss Israel's sales performance.

On slide 23, Strauss Israel Q4 2025 sales were 1.34 billion shekels, a 4.4% increase year on year. Growth was driven by Health & Wellness higher volumes and improved mix, as well as our Snacks & Confectionery segment, while Coffee Israel had pricing actions mitigating green coffee cost inflation and slightly lower volumes following the coffee-to-go divestiture.

On slide 24, we see Strauss Israel full year sales, and we see them reach 5.46 billion shekels, up 5.6% versus 2024. Health & Wellness segment sales grew 2.7% through increased volumes and better product mix, offset by the divestiture of the ultra-fresh business.

Snacks & Confectionery saw double-digit growth driven by pricing, volume, and mix. Coffee Israel delivered high single-digit growth following pricing actions and volume growth, offset by the exit of the coffee-to-go chain.

On slide 25, Strauss Israel Q4 2025 EBIT increase and margin improvement were driven by improved profitability in Coffee Israel and in Snacks & Confectionery, while in the full year 2025 profitability gains in Health & Wellness and in Coffee Israel, combined with successful productivity initiatives, helped offset much higher raw material costs using the confectionery business, resulting in stable overall yearly EBIT. On slide 26, we turn to Coffee International, our global coffee business, which delivered exceptional growth in 2025.

Coffee International highlights on slide 27, we see record performance in our international coffee segment. Q4 of 2025 net sales were 1.6 billion shekels, up 24% year on year.

Q4 EBIT jumped to 173 million shekels, a 270% surge versus Q4 of 2024, expanding the EBIT margin to 10.9% from 3.6% a year ago. For the full year, Coffee International sales reached 6.2 billion, up 31%, and EBIT more than doubled to 493 million shekels for an 8% EBIT margin.

On slide 28, we see our Brazil joint venture, Três Corações, achieved strong double-digit growth in Q4, driven by pricing actions to offset green coffee cost inflation and continued expansion into non-R&G categories, offset slightly by a weaker Brazilian real. In Central and Eastern Europe, we saw volume increases and successful pricing adjustments led by focused sales execution, gaining market share across all our key markets: Poland, Romania, Ukraine, and Russia.

These factors led to an overall 24% sales growth in Coffee International for Q4 of 2025. On slide 29, we see the full year Coffee International net sales grew 30.8% in shekel terms and over 45% in local currency in Brazil.

Três Corações had a record year in Brazil. The CEE region also delivered robust performance in 2025 with effective price management and volume growth across the region.

Slide 30, for the Três Corações, our Brazilian JV results. We saw Três Corações posted outstanding results with Q4 of 2025 net sales at 3.59 billion Brazilian reais, up 23.9% year on year, and EBIT of 464 million Brazilian reais, up 364%, with Q4 EBIT margin of 12.9% versus 3.5% in Q4 of 2024.

For the full year 2025, Três Corações achieved 14.1 billion Brazilian reais in sales and 1.26 billion Brazilian reais in EBIT, an increase of 226% year on year, bringing annual EBIT margin to 8.9%. These records were driven by excellent sales execution and pricing management to mitigate green coffee cost inflations, continued growth in non-R&G products, and operational efficiencies.

Moving to slide 31, to discuss our Strauss Water segment, actually on slide 32, Strauss Water delivered steady growth in 2025. Q4 2025 sales were 237 million shekels, up 7.4% year on year, driven by a larger installed base in Israel and in the UK, and also by an improved product mix.

Q4 EBIT was flat at 40 million shekels. For the full year 2025, sales reached 895 million shekels, a 5.5% increase, and full year EBIT reached 115 million shekels, unchanged from 2024.

Solid growth in Israel and in the UK was offset by softer results in our China water JV with Haier due to increased competition. On slide 33, we see Haier Strauss Water performance where we saw high single-digit top line growth in local Chinese currency.

Q4 of 2024 sales at HSW were 543 million yuan, up 7.5% year on year. However, net income for the quarter declined 48% to 42 million yuan as we invested heavily in marketing amid intensified competition, but were able to maintain market leadership positions.

For the full year 2025, HSW's revenue grew 8.7%, while net income totaled 179 million yuan, down 25% from 2024, reflecting higher costs to successfully protect our market position in China. Let's move back to Avshi for the Q&A session, please.

Thank you very much, Tobi. We will now move on to the questions you have sent.

We have the first question coming in, and I will read it out. Has the current conflict created any new near-term challenges or impediments to operations?

Not in a substantial way. There we have to still continue to monitor that.

We have two missions in this period of war. One, we put two main focuses and target: one is business continuity to make sure that all our factories all around the country, in the north and in the south, are continuing business operations as usual and we continue to produce, and so far we managed to do that; and second, to take care and to make sure that we take care of our people and our frontline workers and everyone in the company.

In those two missions, we are highly at focus. Far, we managed to pull and to maintain and to provide business continuity to the consumers here in Israel.

It all depends on the length of the war. We think that as long as the war is not going to take more than a couple of months, then this will be able to continue.

If not, we will need to reexamine our activity, but so far there's no real implications of the war.

Thank you, Shai. We move to the next question.

What kind of productivity initiatives remain for this year?

We have eight streams of productivity initiatives. One is working capital, other one is logistics, S&OP, manufacturing, revenue management, marketing, ROI, working capital, and I'm missing one, I think, right now.

In all of those streams, there are targets that were set for each year. We're continuing to work on that to improve procurement, which is one of them as well.

We're continuing to improve working with a very detailed and deep plan in each of those streams with stream leaders that are working on that productivity, and that will continue till the end of 2026. While we will issue our new strategy 2027 ahead, we will also put a new plan in how do we deepen, enhance our productivity with also AI coming into life and into our industry and also into our company.

With all that will be out when we get into 2027 to 2030 strategy with the new plan to enhance productivity, but so far we are still in the original plan and we are on track.

Thank you, Shai. We have another question.

Can you elaborate why or how are you confident about the ability to generate synergies and to make the turnaround for Yóki and are there any low-hanging fruits that you can discuss? Yes,

as I mentioned before, the fact that we reach 400,000 points in distribution today in Brazil and that today in Brazil we sell around 14 billion reais already of dry food, mainly coffee, but not only in Brazil, the synergies that we have and the connections that we have with all the retailers. When we talk about logistics and logistics costs in Brazil of warehouses, here we see many low-hanging fruits in which while we will embed Yóki activity into our activity, those synergies will come into life.

During the due diligence process, which is a very long process, we have actually examined that and some of the categories in which Yóki are doing now in corn, for instance, we have already today in Três Corações as well. When we look at logistic cost and distribution cost that they have in comparison to our logistics costs and distribution costs, we see a lot of potential of synergies there.

On the other hand, we also have headquarters and SG&A costs, which we believe that once this will be embedded in one company, there's a lot of headcounts which we will be able to let go, and there's a lot of headquarters and managers that can be actually synergize and combine. Also there, we see a low-hanging fruit.

The third is also the potential to grow sales by higher exposure. When we reach 400,000 points and they reach 100,000 points, we have much higher exposure to the market with higher connection.

General Mills mentioned it by themselves that their scale of infrastructure today in Brazil is not strong enough and not supportive enough in order to make the business profitable, which is in contrary and the opposite to what we have in Brazil through the Três Corações business. If this was just a stand-alone business by itself without all the infrastructure and the logistics and warehouses and the distribution that we have in Brazil, then of course we wouldn't have had any synergies and any laying fruits.

The fact that those dry food categories are in line, totally in line with our dry food categories, in some cases are the same categories because we are producing the same products and selling the same products in the market under different brands, and the fact that Yóki is such a strong loved brands in Brazil, we see a very, very high match with Três Corações loved, known local brands in Brazil. When we take those loved local brands with our loved local brands, and we add to that our synergies of logistics, distribution, and our ability through the exposure to exceed sales, and also the merge of headquarters and reduce of headcounts, we see many hanging fruits that through a very thorough and deep work that will be done by the management of Três Corações, we believe that within 18 to 24 months, we will be able to do the full turnaround, and we actually believe that we might be able to do it even before.

We also have experience in that. This is not the first M&A that we are doing in Brazil and Três Corações and the Lima brothers family who are managing the company in Brazil have done.

There have been businesses within the coffee and not only coffee that we've bought along the years, and all of them were very successful because they all built on the same synergies. We also experienced on how do you take and merge loved local brands from Brazil that were not in our portfolio into embedded in our portfolio, whether it's in coffee or whether it's in other categories.

To your question, we feel very confident that we'll be able to do the turnaround. We've done a very thorough due diligence checking those synergies, and the proof is up to us.

We have to actually show and perform to see that what we say is what will happen, and luckily for all of us, we will meet here again in 18 to 24 months and we'll see the results, but we are very confident, as I mentioned.

Thank you for that, Shai. I see we don't have any further questions, I will now return the call to Shai for closing remarks.

Thank you, Avshalom. As you can see from the results, we had a very successful year with a double-digit growth in revenues, with improved financial parameters all through our P&L, with much higher operational profit, with higher margin, and also in the last quarter our net profit already improved.

We are entering 2026 with a very good backwind, and we hope that the trends that you've seen in the last quarter of 2025 and in 2025 will continue in 2026. In Brazil, it will not be to that extent, but it will be a new platform.

We are looking into the turnaround of our confectionery business in 2026, which will also help us improve our results, and we are looking to see how the engines of growth that we put in place, such as the new line in Yotvata our milk drinks, or such as the new factory in the north of alternative milks in Campus Michael, those will actually help us and to contribute to continue growth and to continue improving our results. With Brazil, we are looking into doing a successful implementation of our Yóki business.

More than all, these days we're working very hard on our new strategy for 2027 to 2030 to show how we going to continue and to set a path of how we're going to continue this healthy growth and continue to expand the company mainly in the global arena and less in Israel, and how do we leverage our power, our infrastructures, our innovation capabilities into loved local brands in those different geographies and continue our path of growth. Last but not least, those are very difficult times in Israel, I just wish for everyone to be safe.

I wish our soldiers will come back home safely and that the war will be over as soon as possible, that everybody can go back to normal days. Till then, we will be continue to working very hard to make sure that we, on the one hand, provide business continuity and, on the other hand, take care of our people, take care of our people on the front line that are working on those factories that are under the attack.

I just wish all of us quiet and happy days. For that coming Easter and coming Passover, anyone celebrating, also happy Passover and happy Easter to all of us.

We hope to see you here soon in our first quarter and to continue to show you the positive trends that we've been showing in the last quarters. Thank you.

Thank you, Shai. Thank you, guys, for joining Strauss Group's fourth quarter and full year 2025 results earnings call.

This conclude our call for today. Thank you.