Strauss Group Ltd Ord

Hello everyone and thank you for joining us today. Welcome to Strauss Group's second quarter 2026 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, August 12, 2026. A recording of this call will be available on the company's website a few hours after the call. With me today are Mr. Shai Babad, Strauss Group's President and CEO, and Mr. Tobi Fischbein, the Group's CFO, and myself, Avshalom Shimi, Head of Investor Relations. I would like to remind everyone that this online webinar may contain projections of other forward-looking statements regarding future events or future performance of the company. These statements are only predictions and may change as time passes. Strauss Group does not assume any obligation to update this information, actual events or results. It may differ materially from those projected, including as a result of changing industry and market trends, Shai, the floor is yours. Thank you very, very much, Avshi. Thank you very much, everybody, for joining us today for this earning calls for the second quarter of 2026 and the first half of 2026. And with that, let's start. Avshi?

Thank you. So we'll start with the highlights of the quarter. So as you can see, there is a very, very strong growth of the EBIT and the net profit of the company for 2026 for the second quarter and for the first half as well, with more than 40% increase to 363 million shekels in EBIT and to almost 200 million shekels in net profit, which actually multiplies the net profit. With that, we also see a decrease in revenues. The decrease in revenues is mainly, 5% of it is mainly due to currencies. And the other decrease is due to the decrease in green coffee prices, which was transferred to the consumers and after reducing prices in Brazil mainly, but also in Central Eastern Europe. When we look volume-wise, there is a strong mid-single-digit growth of volume in the first quarter and also in the second quarter, which shows that our organic growth path is solid and strong. In addition, we continue to focus very much on our core brands and the growth of our core brands, investing on our core brands. and we also announced a dividend distribution of 180 million which will be distributed shortly which is equivalent to 2.7% yield on an annual basis. So here you can see the general results as I mentioned before the decrease in revenues mainly due to the strengthening of the shekel and the reduction of Coffee Prices, mainly in Brazil. But on the other hand, we saw that there is a strong volume growth of mid-single digits across our business. When we look at the EBIT and the net profit and the free cash flow, we can see substantial improvement. This, we can see, is the new platform of profits that the business now is holding. We published our strategy three and a half years ago. saying that we want to get into a new platform of profit of approximately 10% margins and a productivity of between 300 to 400 million. And we can see from those results that all the action that we took along the years implementing our strategy with doubling down on core categories, with the portfolio optimization, with the productivity activity that we have done in the company, we see now that this is taking its turn and with that, We see the substantial improvement in the results. We also see a good translation between the EBIT into the net profit and that most of the additional EBIT that we encountered in Q2 to 2026 actually made its way and was transferred to the net profit and to the free cash flow. And we do see this as a solid platform that we can also look ahead and forecast that this is the new platform that we want to continue to have when it comes to our margins and when it comes to our Ibit, Ibeda and Net Profit. Next. When we look about Israel, so we see the major improvement in funding indulgements, the turnaround that we've done in the confectionary Here I should note that there is a from the 62 million that you see here in EBIT half of it approximately is through to insurance money that we have received a one-timer but even taking that out we see that the funding endorsements is getting back to an 8% margin and by the end of the year I believe we can get to a 10% margin here and with the continued improvement since the COCO prices that we are seeing now are higher than the COCO prices that we'll see in H2 of 2026. This is with zero relation to the coca prices in the market. It's due to our hedging policy and our hedging quantities that we have for the next and also for the next year and therefore we know that we will see continuous improvement in funding indulgences for the rest of the year. We see here a little bit of a decrease in revenues in health and wellness. Here we should note that we used to distribute third party products such as our oranges of Primor and the spicy herbs of the avi which we stopped distributing and taking out the distribution that we took out Comparing apples to apples, also here there's growth in revenues, and of course continued growth in the EBIT. When we look at coffee, here also in the revenues, we had Elite Coffee To Go, which was our coffee chain, which we closed towards the end of last year, and therefore if you take that out, you see the gap here of the decrease. and Yael Nevo. Thank you. Dairies that are growing substantially outside of Israel, mainly with protein products and functional products and we have put a lot of initiatives in increasing our innovations there and launches of new products that we have done in the market in order to go with the trend and to promote our growth and here you can see just an example of part of our brands and how we did whether it's a diversified innovation, it's an improvement innovation with improving the product with fiber, with collagen, with protein, reducing sugar, and whether it's with our new launches of new yogurts under the Danone brand from our new factory of plant-based. Next. There was a survey held in Israel for the top 100 brands from all sectors, not just the food and beverage sector, the FNCG sectors, from all sectors, What are the top 100 brands in Israel? And out of the top 100, 9 of our brands made it to the top 100 list, with 3 of our brands making it to the top 20, and one of our brands, Yotvita, making it to the top 10 for the first time. And this is just a proof of the solid work that we are doing in investing in our brands and in growing our brands.

Thanks.

When we look at Coffee International, I think here is the main story of the improvement of our results. If you look over time in the past few quarters, we've managed to get a new platform of profit in Brazil while we maintain gross profit per kilo in Brazil. So whether the prices of green coffee are going up or whether they're going down, we are maintaining a gross profit per kilo in reals. We also grew in Brazil high single-digit in volumes, what helped us to push our profits, our total profits even further. So when we look now at Brazil and also looking ahead, we believe that this is a new platform of profit we've managed to achieve in the RNG and we continue also our work in the non-RNG segments. Hopefully Yoki will be concluded in the next month or so. We're still waiting. The only thing we're waiting for is the Brazilian antitrust to approve the deal. Once they will approve the deal, we will be in a place where our non-RNG will go to almost 40% of All our activity in Brazil which will help us also deal with the volatility of green prices while we manage to maintain a new profit platform in Brazil and also in Central Eastern Europe when it comes to our coffee and we are very happy that our international coffee has reached the double digit margins and we think when we are looking ahead this is a platform that we will be able to preserve. Our world of business also grew nicely, especially in Israel with more than 7% growth. All of it is done by volume with the new launches of our new machine with our Shabbat machine and the soda machine that we launched. We also see that looking ahead into the second half, we hope that we see that this We still have some difficulties in China. We are growing in China mid-circle digits in the past half a year and also in the last quarter. But yet profits in China are still lower than what they were due to the very high competition. We are maintaining our market share there as number one, between number two and number one. and we are strengthening our position in China, but getting back to the level of profits we had before will take longer. As I mentioned in the last earning calls, we believe this will be done somewhere around mid-27, towards the end of 27. It will still take time, but overall, we believe that our water business as a whole will show improvement in the results in the profit and in the margins in 2026. Thanks. When we talk about the strategy, and maybe this is almost the last quarter that I'll talk about the current strategy, because this strategy will end toward the end of 2026. So we said we're going to double down in our home base, we'll optimize the core, we'll optimize snacking, we'll optimize the growth of our core brands in Israel, we'll optimize the portfolio, taking out parts that are not relevant, such as Buhail, that we took out the fresh vegetables and the elite coffee chain on the one hand, but on the other hand, We managed to do a substantial turnaround for our confectionary, as we mentioned. And today in Israel, we have very, very solid categories in which we play with a very strong path for growth, especially in the dairy, in the protein part, in the functional food part, which is growing substantially, not just in Israel, but also outside Israel. And a lot of our products and our innovation is aimed to that. So we see solid growth there. When we talk about Brazil, we managed to get to the new platform of profit. We managed to do a turnaround to our RNG business in Brazil. We managed to also do a turnaround to our business in CE. We are growing also the non-RNG beyond coffee, the non-RNG segment such as the Yoki deal that I mentioned before. And we see a healthier platform and a healthier base and infrastructure for growth. Looking Ahead. And in our water business, we change and transform the company from a single product company to a multi-product company. We have more than five different machines with different functionality and different price tag today that are in the market. And with that, we believe that we'll be able to continue to grow the Israeli market, such as with our Shabbat, Product for Saturday for the people who keep Shabbat and also the affordable machines which we just launched in the UK. And we also dealt a lot with the future ready and resilience of the company. When we talk about future ready, we talked a lot about productivity, about doing things with less, doing things better with less resources and doing things and improving our processes in a much better way. This was done through our productivity plan. We said we will get between 300 to 400 millions in productivity in place and if you compare our business today to our business in 2021 and you take out the price increase of Raw material such as cocoa, such as coffee and you take out the price increases as well and you look what was the profit in 2021 and you do the same for 2026. You take out the increase in raw materials and you take out the price increases. You will see that today we have a healthier profit platform with a higher, much higher margins that we had before, mainly due to the productivity and the double down we did on core activity. And we also touched resilience. We talked a lot about the health of the organization, the leadership model, The agility of the organization which helped us achieve all the results that you see ahead. This is just to talk about again the productivity journey. We will announce by the end of this year that we reached a higher segment of what we published to the market heading 400 and above. In the scale here that you see and that helps us a lot reach our plan. We will of course issue, we are now issuing our second plan for the next upcoming years and also with our strategy going ahead and I'll say a couple of words about it in a few minutes. When we look at the long-term target of the strategy that we set for the end of 2026, so we believe that from 21 to 2026, if you do the CAGR, we will reach the 5% CAGR, even though there were price decreases due to the coffee and cocoa, and when we look about like for like, We believe we will reach the margins that said this quarter we finished with 12.6 EBIT margin. We believe we'll reach the 10 to 12% maybe on the higher side of that scale by the end of this year. The productivity, as I mentioned before, will be on the higher side of the scale this year. We are continuing to invest in our infrastructure of opening bottlenecks, investing in new lines for growth where we have capacity constraints, investing in automation to bring productivity, investing in maintenance in order to improve the quality and the resilience of the company. And when we started the journey, approximately 66-67% of our portfolio was core. Core we define as something that is growing 5%, that has a double-digit margin, and also, that is, we are even number one and number two in the market. When we started the journey, 67% of the categories were core. Today, we can say around 85% already are core and we'll also reach this target by the end of 2026. Next. I'm also happy to announce that there were two ratings that were done in this quarter. One was done by Mahala, who rates our ESG rating. We managed to get a very high score on our ESG rating, reaching a triple A, which is the highest score that you can get. with Mala and AA with MSCI. We are the highest-ranked food company in Israel in regards to DIG. And when we talk about DIG, that was a survey that was held in Israel, which are the 100 most loved companies that you want to work at. So it's all companies, again, all categories. Strauss was chosen to be number 16 of all the companies in Israel of all The categories in Israel as the last place to work in and chosen by the employers and got the highest rating. We improved our place from number 21 last year to number 16 this year. And when it comes to the food industry and the FMCG industry, we came as number one. And last slide by me, but it's very important, very important, last but not least, as we say, on the left side, on the upper side, you see the last 12 months of the business, meaning July 2025 till June 2026 and you can see revenues you can see the EBITDA reaching 1.7 billion with 14% you can see that on EBIT we reached 1.3 billion with 10.6% and you see that in net profit we reached 700 million shekels this is the platform we achieved in the last 12 months when we look ahead we think this is a sustainable platform which means we can take this platform continue with this platform and even there will be we believe that till the end of 2026 there might be even a small upside to that But we believe that this platform we achieved due to the operations, the productivity operations that we've done, the double down corn brands in Israel, the new platform that we have in Brazil. And here I want to say one more word about Brazil. There's a tendency to think that the change in raw materials prices of cocoa and coffee have an immediate effect on our business. This is totally not the case. Daily, weekly, and even monthly trends in coffee and cocoa have zero effect on our results. And I'll repeat that, have zero effect on our results. Only long-term trend, because of our hedging policy, Only long-term trends will have an effect on our results. So if cocoa prices or coffee prices raise by 5% one day and then go down 3%, then go up 5%, then go down 8%, etc., etc., and stay relatively the same but just are very, very fluctual during the month, that has zero effect on our business. What will have effect on our business if it's a long-term trend like we had in coffee from 2024 onwards, May 2024 to the end of 2024 and even 2025 where green coffee prices were rising. So as long as it's a long-term trade, because we are hedged in Central Eastern Europe, because we are hedged in Israel, and because we have almost full transfer of price in Brazil from green coffee prices to selling price, the effect of the prices is zero or relatively low This is something very, very important to mention. And going back to the platform we achieved, therefore, we believe that the problem we achieved due to our new profit platform in Brazil and in C and in Israel, this is something that we can carry on into the future as well. And on the bottom there, you see the results of 2025, and you can see the improvement of the last 12 months compared to what we had in the full year of 2025. And we believe this is sustainable. Again, looking ahead to what's next. So we will be launching our new strategy from 2027 to 2030 in a couple of months towards the end of the year. It's very important to note that this strategy that we have till now talks a lot about double-download core, fixing the infrastructure, the current categories in which we play, making them very resilient and getting them to be engines of growth. The new strategy will talk a lot about the new engines of growth and how do we take this very, very solid infrastructure that we build and the core that we have strengthened and made more resilient and now how do we grow the next layer of growth and we are very excited to show and to share with you the next phase of the strategy which we'll talk about year 2027 to 2030. We will continue with the next productivity journey. Cutting down cost, being more productive is something that we'll do a double down on going into the next phase again and we'll set targets for that again to continue to improve our profit and our margins. We'll go into an AI digital transformation. We started our AI journey. We believe that AI Being very very specific where we operate it in which streams is very crucial and very important to our business and it can have a substantial effect and we are working very hard on that. And last, we will focus more and more on our financial discipline And alongside the cost efficiency, we'll talk about the cash conversion, the net, the free cash flow and there's a stream headed by Tobi that is pushing very much to that. You can already see some of the results when we translate the EBIT to the net profit in Q1 and also in Q2 compared to last year and we believe that this trend will continue. And with that, I'm finished and I'll transfer it to Tobi.

Thank you, Shai. Let me now move to our financial results for Q2 of 2026, starting with a group level performance and then drill down into the business segments. Group sales reached 2.87 billion shekels, down 1.9% on a like-for-like basis, which excludes the FX translation of the local currency of our foreign activities into our reporting currency, the Israeli shekel. Strauss Israel sales were impacted mainly by coffee-to-go retail chain divestment in June 2025 and discontinued third-party product distribution in the health and wellness segment. Coffee international sales declined 3.9% on a like-for-like basis due to lower pricing in Brazil, following the decline in green coffee input cost, partially offset by volume growth. Strauss water continued to grow, supported by install-based expansion and improved sales mix. Moving to slide number 17. Group sales reached 5.87 billion shekels in the first half of the year, slightly up on a like-for-like basis. Strauss Israel sales grew 1.6%, driven by volume and pricing, and despite a coffee-to-go divestment, coffee international sales were impacted by lower coffee prices and declined 2.2% life-for-life. Strauss Water continued to grow, supported by install-based expansion in Israel, higher UK sales, and improved sales meat. Moving to slide 18, Group EBIT reached a record 363 million shekels, up 42% year-on-year, with EBIT margin improving to 12.6% from 8.3% in Q2 of 2025. This improvement was driven by strong performances in both South Israel and Coffee International. Stroud Israel benefited from productivity gains, a stronger shekel and one-time insurance income of 27 million shekels, while Coffee International benefited from volume growth and lower green coffee input costs. Stroud Water profitability recovered following the Q1 war impact. Moving to slide 19 for the Group EBIT for the first half of the year, Group EBIT reached 679 million shekels, up 53% year on year, with EBIT margin improving to 11.6% from 7.3%. The increase was driven mainly by strong profitability in Strauss Coffee International and Strauss Israel. Moving to slide 20 for an overview of the main income, The net income more than doubled to 195 million shekels driven by the significant heavy improvement year-over-year. For the first half of the year, net income reached 376 million shekels, up about 120% year-on-year, reflecting improved operating performance across the Group, partially offset by higher finance and tax expenses. Moving to slide 21 for KFLO, Free cash flow improved in the quarter significantly to 150 million shekels compared to negative 89 million shekels a year ago. Operating cash flow reached 265 million shekels, an improvement of 214 million shekels year on year. For the first half of the year, free cash flow improved to 104 million shekels compared to negative 584 million shekels last year, driven by higher EBITDA, lower working capital requirements, and lower financial payments. Moving to slide 22 for a view on our net financial debt and leverage ratio. The net debt for the Group stood at the end of June at 2.5 billion shekels, while the net debt to EBITDA ratio remained at 1.5 times compared to 2.4 times a year ago. This is a major improvement. The year-on-year improvement was driven by robust EBITDA growth and working capital release. Overall, our balance sheet remains strong and well within our target leverage range. On slide 24, I will discuss now Strauss Israel and its three business segments. Strauss Israel sales reached 1.3 billion shekels in Q2 of 2026, down 1.5%. Health and wellness sales remained stable despite the discontinuation of certain third-party distribution activities. Fun and indulgence snacks and sweets grew 1.8% driven by H2 2025 pricing in response to raw material cost inflation. Coffee Israel sales declined 11.1% mainly due to the coffee to go divestment while excluding this coffee to go divestment sales declined 3.1% partly due to the timing of Passover and the impact of the war with Iran. Slide 25, Strauss Israel sales for the first half of the year, which increased 1.6% driven by volume and pricing despite the CTG divestment. Health and wellness sales grew 2.1% and benefited from volume growth partially offset by discontinued third-party distribution. Fanon & Galgen Snacks & Sweets grew 5.6% following H2 2025 pricing in response to raw material cost inflation. Coffee Israel grew 3.5% excluding divested CTG business supported by pricing implemented in the second half of last year. Overall, Strauss Israel delivered solid volume growth in the first half of the year. On slide 26, Strauss Israel EBIT. Strauss Israel EBIT reached 198 million shekels in Q2 of 2026 up 46% with EBIT margin improving to 15.2% from 10.3% in Q2 of 2025. For the first half of 2026 EBIT reached 373 million shekels up 50% with EBIT margin expanding from 9.1% a year ago to 13.5%. Health and wellness benefited from higher sales and productivity. Fun and indulgence, snacks and sweets improved significantly due to higher gross profit and a 27 million shekel insurance income, while Coffee Israel EBIT increased by 35%, supported by pricing, stronger shekel and productivity. On slide 28, moving to Coffee International. The coffee international business delivered another quarter of strong profit and margin gains. Sales were 1.33 billion shekels, down 3.9% on a life-for-life basis, reflecting lower coffee prices in Brazil. At the same time, EBIT increased 44% to 148 million shekels and EBIT margin improved from 6.7% a year ago to 11.1% in this quarter. For the first half of 2026, EBIT increased 78% to 280 million shekels, supported mainly by lower green coffee input costs and strong commercial execution. On slide 29, looking at our coffee international geographies, sales of Tres Corazones, our 50% owned JV in Brazil, declined 8.2% on a like-for-like basis, driven by lower pricing offset by high single-digit volume growth. In Central and Eastern Europe, Life for Life sales grew 6.4% supported by solid volume growth in all our markets except Romania. Overall, the underlying business trends remain positive. On slide 30, for the first half of the year, we see that Tres Corazones Life for Life sales declined 7.1% on higher volumes, while CEE Life for Life sales grew 11% Driven by volume and pricing. This demonstrates continued momentum across our coffee international market despite currency headwinds. On slide 31, we see the results of stress corsoes, which we have already covered. We see the record Q2 profitability despite the lower selling prices. We see the sales decline of 8.2% to 3.25 billion Brazilian Reais, reflecting the pass-through of lower green coffee costs. At the same time, gross margin improved significantly to 27.5% and EBIT increased 35% to R$378 million, with EBIT margin reaching 11.6%. This performance highlights the strengths of the TresCrossSize platform and its leadership position in Brazil. On slide 33, turning now to StrausWater. Q2 Water Revenues increased 7.1% to 233 million shekels supported by higher sales in Israel and the UK as well as an improved sales mix. EBIT improved slightly to 28 million shekels while EBITDA reached 48 million shekels up 10.4% year on year. Gross profit benefited from higher sales, productivity and a stronger shekel. For the first half of 2026 sales increased almost 7% year on year while EBIT continued to reflect the impact of the war in Q1 and lower HSW equity gains. On slide 34 we see the HSW Higher Strauss Water financial highlights with Higher Strauss Water continue to grow sales and maintain market leadership despite intense competition. Q2 sales increased 2.6% in local currency to 490 million yuan while net income declined 14.3% to 35 million yuan reflecting increased market investments and spending on new products. For the first half of the year sales increased almost 6% to 988 million yuan, while net income declined 12.4% to 91 million yuan, reflecting a 9.2% margin. HSW continues to invest behind innovation and future growth in China. I will now turn the call back to Afi for Q&A.

Thank you Tobi. So we will move now to the questions that you guys have flagged to us. The first question, actually the first three questions regarding Brazil. Coffee international margins recovered to 11.1% on the back of the green coffee cost. How much of this is temporary and how much of it is structural and is 11% or the range is sustainable margin band as coffee prices stabilize?

So, again, I can't relate to the margin itself because coffee prices might go up radically or go down radically, and then what will happen is that the margin will change accordingly because we do a full transfer of those prices in our pricing. So it depends on what happens to revenues. What I can say is that yes, we are in a new platform of profit in Brazil. That means that we are working very much to retain gross profit per kilo that we sell, and therefore we believe that the absolute profit that we see from Brazil is a good platform, will remain and even grow. We grew in volumes this year. Thank you very much. If green prices go up by 20% and we increase prices by 20%, then the margins go down. But the absolute profit, if you compare it to year by year, will continue to grow and we believe that this new platform of profit in Brazil, which is healthier and it's more than double than what we had in the past, is a sustainable level of profit also looking ahead.

Thank you Shai. The second question regarding Brazil is can you give some color about how the competitors are responding to the recent increase in Arabica prices and also if you can update regarding Yoke acquisition.

So in regards to competitors, three of the major players in Brazil have 75% market share. It's us, it's JD8 and it's Melita. Camille is also a small player and there are other small players. What happened actually with the raise of Arabica, all companies have announced price increases in Brazil in different timing and in different percentage, but because of prices going up, all of them issued Price increases in the market that varies from 7% to 15%. And as we say, the Brazilian market is a market where we see almost a full transfer of green coffee prices to consumer. So as long as prices will go up, this will be transferred. When prices go down, also be transferred. And again, the most important thing is to maintain the gross profit per kilo in real. If we maintain that, then the profits in Brazil will continue. In addition, in Brazil, referring to the Yoki deal in the second part of the question, we work very hard to increase the non-REG segments. The non-REG segments are growing to more than 30% right now, and with the Yoki deal, they'll grow even further. And the reason for that is that we want to have a very solid portfolio in Brazil that We hope the antitrust will give its answer. It could be any day now or in the next few weeks. So that in Q3 we will conclude the deal. This is what we are now forecasting in April. But again, it's in the hands of the Brazilian antitrust and we don't control that. But it's the only thing that is now preventing the implementation of the deal.

Thank you Shai. Our next question is regarding the water business. Higher Thrust Water Net Income Fail Year-on-Year on Higher Marketing and New Product Spend. Is this an ongoing investment phase and when does profitability will re-accelerate? What is the timing on CAPEX for the new China facility? You can provide some coverage.

So most of the selling net profit is not because of investment on an R&D. Most of it was done because, as I mentioned before in the last earning calls, the competition environment in China became very fierce with Xiaomi cutting prices, entering the market very strongly. We acted immediately by giving discounts, by putting more profile of products into the market. and therefore with growth that we managed to get of high single digit and sometimes double digit growth, our margins and our profits have deteriorated and were cut. As I mentioned before, we also managed to gain back market share. We fell in market share in the beginning. We managed to gain back market share to become number two, between number two and actually touching number one in some of the weeks recently with pushing Xiaomi to being number three to number five. Profits have not, we're not restored yet. We do believe that it will take till mid 2007, maybe 2027, sorry, and maybe later than that to restore profits as well. But we are continuing working very, very hard to stable our position in the market, to continue to grow. We are putting new products into the market. The market, the condition in the market is still very, very low. So there's a lot of place still for growth. We believe we can push on that growth while we will continue to improve profits in Brazil. Regarding the investment in China, we are not going to see more profits going into China. What we will see is the launch of the second factory by the end of this year. Once we will launch the new factory, it will help us to push growth even further. and to reduce cost for the materials that we are doing now outside the factory. There's a lot of the components of our machines that we'll bring into the new factory and that will help us to cut down costs and also push growth and also help us improve margins. So overall, no, we don't see any more investments in Carpex. We are investing in new products and in discounts to push that competition and to make sure we restore our number two, number one place. We are growing in China and we think that by somewhere like mid-2017, towards the end of 2017, we will be able to get the margins back.

Thank you, Shai. Our next question is regarding the profitability. With H1-26 EBIT margin coming at 11.6% versus the 10-12% to 2026 target that Strauss has provided, should we expect the full year to land at around the top end of what we've seen, or are there any H2 seasonal or ethics or commodity factors that could pressure margins back down?

So we do think that the platform that we have shown is a solid one and that we can look into the second half of the year with continuing that platform and continuing improving our profits. We don't give out our numbers and our forecasts for the next half a year. What I can say is that we feel very, very comfortable that we will reach between 10% to 12% EBIT by the end of this year. and maybe it will be closer to the later one.

Thank you, Shai. And that's it for the questions part. Thank you for joining Spouse Group's second quarter 2026 earnings call. This concludes our call for today.