Now we hope that everything's gonna 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 answer sessions. You are encouraged to post your questions through 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 on 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, 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 changes in industry and 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 document 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 in 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. 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 Q4 of 2025. In the year of 2025, we also managed to regain back our margins and improve the profit, operational profit and the operational profitability, with margins reaching 9.6% without our kitchen activity, which is very close to the strategic guidance that we gave.
In net profit in the last quarter, we managed to improve the results by 100%, getting to ILS 150 million in one quarter of net profit, which is a substantial improvement, and also to the free cash flow. In addition, lately we acquired Yoki, 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 TAFRI and SHABBAT machine 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 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 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've managed to increase price to actually increase market share in most of the categories in which we play.
In categories, in very strong categories in Israel, overall categories in which we play in, we managed to increase market share by 1%. Also in Brazil, we maintain 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 ILS 800 to almost 1.7 billion. Sorry, ILS 1.07 billion in EBIT. It's the first time that we actually crossed ILS 1 billion in EBIT without our kitchen activity. Net sales remained with a smaller improvement from ILS 418 to ILS 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 activities, 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 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 ILS 14 million 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 and Indulgences here, because of our Confectionery business and because of cocoa prices, we went a little behind. We can see that in the last quarter, there's 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're managing 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 and our confectionery business, which is starting to improve rapidly Q4 and also looking into 2026. Of course, 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 our innovation, we have diversified innovation, stretching our brands from one category to another.
You can see the Milky brands here, that Madagana, which is another yogurt, was stretched into that brand. Also in Alpro, we stretch 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 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 fermentation 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 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 of 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 price increases that was done. You can see revenues increased year-over-year by almost 31%, while operating income more than doubled on the total coffee business. We can see here, Três Corações, our Brazilian business, with its revenues tripling. Here it's very important to say, we saw very unique, 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 above 12% or 11%. 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 gonna be as high as Q4, but it is gonna be very strong operations, Brazil in the R&G. In addition, in the non-R&G, we are continuing to expand our activity in the non-R&G as part of our strategy to naturally hedge the green coffee volatility prices with the coffee activity, with the non-R&G activity in Brazil.
One of the steps that we took, which is in line with the strategy, was the Yoki acquisition, which I'll say a few words later on. When we look at our water business, we increased our install 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 are planning because of the war. In parallel to that, we managed to maintain the profits, the operating profits of ILS 115 million 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 on to attack mode, in which we gave a lot of discounts and we reduced price in many cases and also put new platforms into the market. This has cut off our total profits from China, and therefore the total result remained the same. The good news 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 storm will continue with us into the next few quarters until we'll be able to get profits back on a high level in China. 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 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 ILS 300 million and ILS 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 gonna 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 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, so we kind of ticked the box on all the targets and missions that we set in the 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 decided 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. We're doing a lot of innovation activity. We built two engines of growth in Israel with the milk drinks and protein drinks and protein by itself. On the other hand, the new factory that we built with alternative milks and the new factory that we built in the north, that will enable us to give all our brands 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 our position as first in market share, but also to improve our R&G profitability and total profit. We've managed to do 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 are not gonna be able to maintain the same margins as we saw in margin in quarter four, but the margins will stay high. There's 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 Yoki. Overall, 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 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-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 U.K. business in our water business as well. In China, we are opening now the second plant this year, which will enable us to push more on productivity, to reduce costs, to strengthen profitability, but also will push growth. All this 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 built in the culture and the health of the organization through upskilling, reskilling leadership models and a lot of activities that we are doing in the streams of the health of our organization. One word which is very important for me to say about the Yoki business.
There was some eyebrows lifted when we acquired Yoki, with questions of 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 this all. General Mills sold the activity for two major reasons. They have published this in their notification when they sold, so I feel free to mention this. One is their focus on global brands. They want to enhance their exposure to global brands and to focus very much on the global brands and not on local brands. The other is 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 won't say never, but our strategy does not aim or 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 Peet's, which is a global brand, was number one. We managed to exceed and to become the number one player in coffee with loved local brands. With Yoki, 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 are reaching in Brazil more than 400,000 points, where Yoki 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 already existing infrastructures in Brazil, we have much larger scale to support Yoki and very high synergies to support Yoki.
Therefore, when we look at all the synergies, logistic synergies, distribution synergies, and also G&A synergies by combining 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.
Buying this company for 0.4x 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 good fit to our existing business and very much in line with our strategy to become a larger food and dry food company in Brazil on the one hand. On the other hand, to continue to grow our non-R&G activity, to hedge the volatility and the vulnerability that we have because of green coffee prices.
That was the rationale 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. And just to conclude before the last slide, looking till now, I talked about the qualitative targets of our strategy. I just wanna remind us all the long-term financial targets that we set ourself 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%-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. I think that we are in line right now to reach the target that we set on the lower part of it, so we feel confident also with our 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 reached capacity constraints where demand is much higher than what we are supplying into the market. So 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%-10% sustainable and being either number one or number two in the market. In all of those criteria, I think that we've 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 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 to 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 wanna enter. We will push hard on productivity, and we will enhance the build and the growth of our core activities as well. 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 what we think we can achieve and where the strategy will take us by H2. Stay tuned. The last thing that I wanna 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 and investing in alternative milks in parallel to make our portfolio more nutritious and more healthier. We are working on sustainable supply chain with our suppliers that they meet demands. Of course, our water business 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 the communities and helping our people, and we're investing a lot of that. Of course, governance. There's been jumps ahead in governance in the company, where we have our own risk assessment team that was embedded already a year and a half ago in Strauss, and we upgraded our ability of risk analysis. On the other hand, internal control and audit team, internal audit team, actually, was built through a local team, inside team, inside the company from external advisor.
Those first line, second line, and third line of defense are being built within the company, and 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 ILS 3.2 billion, 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 ILS 12.5 billion, 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. Strauss Water achieved steady growth, driven by a larger install base in Israel and in the U.K.
On slide 17, Q4 2025 group EBIT was ILS 282 million, 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 ILS 1.02 billion 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 ILS 136 million, up 13.6% year-on-year. Coffee International's EBIT increased by 270% to ILS 173 million. Strauss Water's EBIT remained flat at ILS 40 million.
For the full year 2025, Strauss Israel EBIT totaled ILS 530 million, up 0.4%. Coffee International more than doubled its EBIT to ILS 493 million, and Strauss Water contributed ILS 115 million flat year-on-year. On slide 19, we see the net income. In Q4, the net income attributable to shareholders more than doubled to ILS 151 million, reflecting strong EBIT growth. Full year net income reached ILS 450 million, 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 ILS 5,554 million, an increase of ILS 110 million year-on-year. For the full year, free cash flow turned positive at ILS 215 million versus -ILS 51 million in 2024. These gains were driven by higher business profitability and lower CapEx. Slide 21. We ended 2025 with net debt of ILS 2.2 billion, slightly higher than a year ago, while our net debt to EBITDA ratio improved to 1.6x at year-end, compared to 1.7x 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 ILS 1.34 billion, a 4.4% increase year-on-year.
Growth was driven by Health and Wellness, higher volumes and improved mix, as well as our Snacks and 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 ILS 5.46 billion, up 5.6% versus 2024. Health and Wellness segment sales grew 2.7% through increased volumes and better product mix, offset by the divestiture of the ultra-fresh business. Snacks and 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 and confectionery, while in the full year 2025, profitability gains in Health and 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. See record performance in our International Coffee segment. Q4 of 2025 net sales were ILS 1.6 billion, up 24% year-on-year.
Q4 EBIT jumped to ILS 173 million, 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 ILS 6.2 billion, up 31%, and EBIT more than doubled to ILS 493 million 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, offsetting 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 BRL 3.59 billion, up 23.9% year-on-year, an EBIT of BRL 464 million, up 364% with Q4 EBIT margin of 12.9% versus 3.5% in Q4 of 2024.
For the full year 2025, Três Corações achieved BRL 14.1 billion in sales and BRL 1.26 billion 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 inflation, 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 ILS 237 million, up 7.4% year-on-year, driven by a larger installed base in Israel and in the U.K., and also by an improved product mix. Q4 EBIT was flat at ILS 40 million.
For the full year 2025, sales reached ILS 895 million, a 5.5% increase, and full year EBIT reached ILS 115 million, unchanged from 2024. Solid growth in Israel and in the U.K. 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 CNY 543 million, up 7.5% year-on-year.
However, net income for the quarter declined 48% to CNY 42 million 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 CNY 179 million, down 25% from 2024, reflecting higher costs to successfully protect our market position in China. Let's move back to Ashi 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. We have to still continue to monitor that. We have two missions in this period of war. One, we put two main focuses on 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. So far, we've managed to do that. Second, 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 focused. So 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 gonna take, you know, more than a couple of months, then this will be able to continue. If not, we will need to examine, reexamine our activity, but so far there's no real implications of the war.
Thank you, Shai, and we move to the next question. What kind of productivity initiatives remain for this year?
We continue with all. We have eight streams of productivity initiatives. One is working capital, other one is logistics, S&OP, manufacturing, revenue management, marketing, R&I, 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 each one of the working with a very detailed and deep plan in each of those streams with stream leaders that are working on that productivity. 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 a new plan to enhance productivity. So far we're 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 make the turnaround for Yoki? And are there any low-hanging fruits that you can discuss?
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 BRL 14 billion 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 Yoki 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 Yoki are doing now in corn, for instance, are we have already today in Três Corações as well.
When we look at their categories and the categories in which way, and the costs, logistics costs and distribution costs that they have, in parallel, 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'll be able to let go. There's a lot of headquarters and managers that can be actually synergized and combined. 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 high connection. General Mills mentioned it by themselves, that their scale of infrastructure today in Brazil is not strong enough and not supported enough in order to make the business profitable, which is in contrast the opposite to what we have in Brazil through the Três Corações business. If this was just a standalone 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 low-hanging 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. The fact that they have such a Yoki 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 increased sales, and also the merger of headquarters and reduction 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 18-24 months, we'll 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 the Três Corações and the Lima 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 build on the same synergies.
We also experienced how do you take and merge local brands from Brazil that were not in our portfolio to embed them 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. You know, the proof is up to us. We have to actually show and perform to see that what we say, this is what will happen. Luckily for all of us, we'll meet here again in 18-24 months, and we'll see the results. We are very confident, as I mentioned.
Thank you. Thank you for that, Shai. I see we don't have any further questions, so 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. Also in the last quarter, our net profit already improved. We are entering 2026 with a very good tailwind, 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.
We are looking to see how the engines of growth that we put in place, such as the new line in Yotvata, 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 Yoki business. More than all, we are also looking into, and these days we're working very hard on our new strategy for 2027 to 2030 to show how we're going to continue and to set a path of how we're gonna continue this healthy growth and continue to expand the company, mainly in the global arena, and less in Israel.
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, so I just wish for everyone to be safe. I wish that 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 continue 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 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 and for the coming Easter and coming Passover or anyone celebrating. So 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, and thank you, guys, for joining Strauss Group's fourth quarter and full year 2025 results earnings call. This concludes our call for today. Thank you.