Hey everyone. Thank you for standing by. Welcome to Strauss Group's second quarter 2021 results. All participants at present are in listen-only mode. Please keep yourself on mute unless you want to ask questions. Following management's formal presentation, time will be given for the questions- and- answer session. Feel free to also post any questions you may have on the chat box. As a reminder, this online Zoom conference is being recorded today, Tuesday, 17th of August 2021. I would like to remind everyone that the online conference 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 as time passes. Strauss does not assume any obligation to update that information. Actual events or results may differ materially from those projected, including as a result of changing industry and market trends, reduced demand for our products, the timing development of our new products and their adoption by the market, increased competition in the industry and price reductions, as well as due to risks as identified in the documents filed by the company with the Israel Securities Authority. With us online today are Mr. Giora Bardea, CEO of Strauss Group, and Mr. Ariel Chetrit, CFO, and myself, Daniella Finn, Head of Investor Relations. Giora, please go ahead. Hey all. Good afternoon. Good morning to everyone. At Strauss, we continue to closely manage the opportunities and risks during these very volatile times. Since you all understand that we are living in a really uncertainty days, we are very proud to report today the results of the first quarter, which we can see our strengths and some challenges for these coming next quarters. The main topic, when we look at the group, is the strong momentum on growth. After a long time, we can see that this quarter we are having double-digit growth, and the major phenomena that we have this growth in all our categories, countries and businesses. Second is the market share. During this period of time, as a branded company, we are very proud that in most of our brands, and mainly in the blockbusters, we're having regained market share or we protect the market share. I talk about Israel, which increased market share. We'll talk later. We see Sabra, a little bit decrease, but more than 60%. Coffee companies as well. During these volatile times, it's very important, on one hand, to continue and to keep the momentum with all the strategical approach. We continue to expand our business, penetrate or expand to new categories as well as invest in capacity in CapEx. On one hand, to protect and to cross the pandemic and all the rest of the crises around us, but not to give up and not to lose the long-term strategy and the long-term journey, to achieve the company goals. Another very important point that this quarter, remarkable results in our home base. As an international company, we understand that the resilience and a powerful home base is crucial for the long-term journey out of Israel as well. We grew the business in Israel, not Strauss Israel. I'm talking about the business in Israel. It's the coffee in Israel, water in Israel, and Strauss Israel, more than 8% over last year. Last point is very important, is to talk about the resilience. I just mentioned the resilience. The combination of the corona and the uncertainty time of the corona, the third wave, the fourth wave in Israel, out of Israel, Brazil, United States, et cetera. At the same time, in Israel, we had some issues with our neighbors in what we call Shomer HaHomot. It was operation Israel, and all the issue with the supply chain, all of them, we led with very strong resilience financially and operationally. When you look at the near future, the main issue is supply chain. I'm sure you are familiar with the challenges about transportation, about shortage of some raw materials and spare parts, and mainly the green coffee increase price. This is the main challenge for the next couple of months, and you will see later how we mitigate and how we believe we can gain with all this phenomena. Couple of words about each one of the business. You can see that the rally in Israel is continue, 7.7% growth. Strong EBIT. We leverage on the growth, and the EBIT is 10.1% over last year. Market share, 0.3%, which is 12.4% from the total Israel food business. We can see the AFH and On the Go since in Israel, the last quarter was the beginning of, let's say, more and more reopen, the office, hotels, and attractions, parks. Unfortunately, during the last couple of weeks, it's back to maybe, hopefully not, the fourth wave of the corona. During the quarter, we open most of the On the Go and the AFH, so it impact the growth. Very important in Israel, in order to meet the demand in our Israeli business, the dairy, the confectionery, the coffee, and the salty snacks, we invest a lot of money in our capacity. We have a huge master plan, what we call, in order to invest in our infrastructure. Future, mainly about our Pro and plant-based activities, and open a new channel. We found in Israel that there is a special channel. Not the traditional one, like the big ones, the discount, but more professional, like the butchers and bakeries. We develop a special channel in order to meet the demands in these special retailers. Next one, please. Coffee. You can see here a nice growth of almost 14% in local currency. The majority of this growth come from the opening, as I said, opening in Europe, in Israel, in Brazil, of the AFH. Coffee in Israel, up to 23% growth, mainly from the Elite coffee chain. It's a 70 point of sales in Israel and a lot of activity in AFH. In Brazil, impressive increase of almost 14% in local currency. As I said before, a huge challenge with pricing, we'll talk later. Improved momentum. After a couple of quarters with some challenging in Europe, now in our Eastern Europe, we have momentum in all the countries. EBIT of the coffee company, total coffee company, 7%, we see the erosion that came from the green coffee. The market share in Brazil, 30%, including the Mitsui. I believe you remember, and if not, you can find it in last year, we bought a local company, Mitsui Coffee, and we gain almost 2% from the synergy with this business that we merged into Três Corações. Future challenge mainly is to mitigate the increase of the green coffee, part of it by production, productivity, and other activities. The major one is increased price. We already have done in Brazil, we have done in Ukraine, in Poland, and we understand that this is unfortunately the only way to mitigate the price increase of the green coffee. Sabra and Obela. This is our joint venture with Pepsi. Increase sales in local currency more than 8% in United States and in Obela out of United States. When translated to shekel, Israeli Shekel, it's 2.2%. We have a new CEO in Sabra. In Sabra, this is the only place in our portfolio where we have some challenges over the supply chain. In Virginia, we have some challenges with the COVID. People sometimes refuse to come to the factory. We invest a lot of money in order to protect the employees and to show them, to give them the best environmental protection in order to feel comfortable. Still, we lost almost $5 million, less than $5 million in cuts. It means that we didn't meet the demand because the supply was problematic, and it hit our profitability in Sabra. The water continue amazing rally that we start a couple of quarters ago. You can see here the strong quarter of 16.5%, almost 16.4%. We are very proud to have this growth in all our countries or geographies, Israel, U.K., and China as well. Operating income improved by 13%. You can see the momentum in all the activities. We launch in Israel, you can see it in the picture, a new machine, which is much more modern, IoT system, amazing launch with unbelievable sales in Israel. We believe this machine will help us to expand the business out of Israel during the next couple of years. You can see in Haier, in China sales up to 22.4% in local currency. We reach in the quarter RMB 345 million. The business is growing amazingly. Income up to 11% better than last year. If we exclude the subsidiary that we got from the government last year, ILS 11 million for the new factory that we built in China. We're already number one in online. We believe the new factory and the new R&D center that we developed and we completed lately, will help us to be a leader very soon in offline as well. Down the road, the ambition is to be number one, both in online and offline in China, in what we call ready point of use and point of entry. It means the point of drinking and the entrance to the apartment to serve all kinds of water in the residential apartments. Last but not least, about the growth and the innovation. I'm sure that you're familiar with our Kitchen and innovation growth arm. We celebrate a month ago, the 20th startup that joined The Kitchen, and we have very successful follow investments in some of The Kitchen companies. Aleph Farms raised $105 million. We'll see our share in the third quarter very soon. We have some, let's call it test and learn, very innovative product that we produce here in Israel, and we launch them in United States in order to check what is the best way to bring some of the innovation, which is from The Kitchen or out of The Kitchen hub, what is the best way to launch new product in United States. This is the first one, Upland, and very soon, I believe we can learn and expand our innovation from Israel to United States or maybe to other countries as well. Thank you very much, and I will hand over to Ariel, and will be very happy to answer any question after Ariel will complete his screen. Ariel, unmute. Unmute. Sorry. Hi, everybody. Good afternoon. Good morning. Happy to be here with you. A short summary of the financial results for this quarter and a very brief look for the first half of 2021. Let's start with the overlook of the organic results for the quarter and the year- to- date. Maybe at the beginning, I will just state that this quarter, the foreign exchange translation effect was relatively very minor compared to the effect that we experienced in many previous quarters. This quarter, the effect was only ILS 40 million on the top line and ILS 5 million on the EBIT line, which is small, and therefore, the organic results and the reported Israeli shekel results are quite similar. If we look at the second quarter, the sales growth organically was almost 11%. In the first half, it was 5%. Just to show you the difference between the first quarter and the second quarter. In the first quarter, we were flat in sales. The second quarter, as you can see here, almost 11%, and the average is 5%. Just to remind you, the first quarter last year was the peak sales of March because of the panic buy phenomena of the COVID-19 at the beginning of the pandemic. Therefore, the sales in the first quarter of this year were flat. In the second quarter, we see the exactly opposite phenomena, where many channels were reopened in 2021, away from home, On the Go, and outside the consumption channels. In the previous second quarter of 2020, those channels were completely closed, and this explains the very nice growth that we have in the second quarter. If we look at the gross profit, we can see that we grew 8% in the second quarter, 1.6% in the first half. This is mainly due to the effect of increase in different inputs. For Strauss Group, it was mainly green coffee, milk in Strauss Israel, and transportation costs during the first half of the year. If we look at the EBIT line, we can see a decrease of 3.7% in the second quarter, but increase of 1.2% once we exclude the one-time Chinese subsidy that we received for the building of our new factory in China for our Haier Strauss Water partnership. In the year-to-date results, we see a growth of 4.1%, and excluding the one-time subsidy, 6.5%. Looking into the net income line, we can see that we decreased this quarter, but once we exclude the Chinese one-time subsidy, we grew almost 2%, and in year- to- date, we grew almost 10%, and once we exclude the subsidy, 14% in our net income. If we look at second quarter sales, we can see that this quarter growth is quite special compared to growth in previous quarters. We can see that the growth is across the board. All the segments, all the business units grew significantly this quarter. If we look at the reasons and root causes for this growth, we can see that we continue to grow very nicely in the retail channels across the different business units, but we also grew very significantly in the away-from-home and the On the Go channels this quarter. In the previous quarter, second quarter of 2020, you can see that we decreased almost 50% because at the beginning of the pandemic, everything was shut down and people did not consume foods and drinks outside of home. In this quarter, in most of our geographies, the markets were relatively open, not fully operating as they did before the pandemic, but quite open, and we saw a significant growth. If we look at the gross profit, we can see a nice growth of a bit more than ILS 50 million in the gross profit line. The gross profitability decreased by about 1%, from 38.4% to 37.3%, and this is mainly due to our input inflation. First and foremost, the green coffee price increases, and in Israel, the raw milk price increases, and across all of our geographies, the transportation costs grew dramatically. If we look at the EBIT line, once we exclude the one-time subsidy in China and the inorganic M&A and translation effect, we can see that we grew only ILS 1 million in our EBIT from ILS 211 million to ILS 212 million. You can see that in three out of our four operating segments, we grew in our operating line. In our dips and spreads, mainly Sabra, we decreased in our operating profit. The first reason for the decrease in, let's say, operating profitability was, of course, the decrease in our gross profitability due to the input inflation. The second reason is a more temporary reason. Last year, second quarter, we freeze most of our operating expenses, sales, marketing, and the G&A because we stopped traveling, we stopped all of our activities, projects, some of our marketing expenses, and we only focused on the very necessities of our business, manufacturing, delivering, distributing, and logistics, and therefore, we saved a lot of the OpEx costs. This quarter, in the second quarter of 2021, we were back to close to normal, let's say, not totally normal, but close to normal OpEx costs, and therefore, the decrease in the operating profit. If we look at the net income, we can see that the decrease came from the EBIT. The other items did not change the net income. On the one hand, we decreased in our finance expenses due to improving our interest rates dramatically last year, once we optimized our debt structure for the whole group. Therefore, our interest platform going ahead is much lower than what it was in the previous years. On the other hand, our taxes grew from a Q2 2020 by ILS 21 million, due to the fact that last year we had a one-time temporary decrease in tax payments because we decreased our provisions for taxes in several of our geographies. If we look very briefly on the year-to-date results, on the top line, as I mentioned before, we grew organically 5%. As you can see, we grew very nicely in the first half in three out of our four segments, Strauss Coffee, Strauss Israel, Strauss Water, and we were stagnant in our international dips and spreads. Once we look at our EBIT for the first six months, we can see a nice growth of ILS 10 million. We maintained our EBIT profitability at almost 12%, very similar to what we saw in the first half of 2020 and 2019. When we look at the net income, we can see a nice growth in the half year of ILS 26 million, nice growth in profitability to 7.9% net income profitability. We can see that this growth came from the growing EBIT and the improvement of our finance expenses, relatively to the first half of last year. It's also important to mention that in our incubator, in our Kitchen FoodTech Hub, we have a pretty big portfolio of 20 companies. In the first quarter of this year, we registered a profit from dilution in our holdings in a few of our investments, due to advanced rounds of finance that they have made in the first quarter. In the second quarter, we didn't register any major profits from advanced finance rounds of this portfolio. In the third quarter, as we reported in our immediate reports, we had a very significant finance round in our successful investment in Aleph Farms, the cultured meat company, which raised $105 million. From this raise and our dilution in our holdings, we registered an ILS 58 million profit, that will appear in our Q3 reports. With this, I will end the brief summary of the quarter, and we'll be happy to answer any questions that you have. Thank you, Ariel and Giora. I remind you may post any questions you may have on the chat box, or unmute yourself and ask directly. In the meantime, I'm going to ask a question on behalf of Chris Reimer from Barclays. Chris asks the following question, "First quarter in a while where organic growth was posted in Sabra. I was wondering if you could give some color on the changes in the operations there, and what, in your view, still needs to happen before margins improve or stabilize. Giora, do you want me to take that? First of all, I'm not sure that Giora mentioned it, but it's written in the presentation. We have a new CEO in Sabra. He started to lead the company from the 1st of August, so it's relatively very fresh. We believe that his experience and knowledge and capabilities will help Sabra continue its journey with success in the future. We also believe that the infrastructure and strategic plans that were built by Tomer, the previous CEO in Sabra, are very solid and will be used by the new CEO and the new management in the future. This is just a remark about management changes in the Sabra leadership team. With relation to the business itself. We believe that we have a few challenges to overcome in order to give us a more promising future, both in top line and in our margins. First of all, we have to build a very solid innovation pipeline, because innovation in the segments of dips and spreads and fresh salad is crucial, is key to growth in the top line. Therefore, we're working on our innovation pipeline very hardly. Second, we have to work on improving our product quality, because we believe that we can win the competition better, once we improve the quality of some of our products there. Third, we need to look at adjacent categories that we can also enter into. Not only focus on hummus and related salads for the near future. This is a very important thing for the top line. Also, we have to stabilize our supply chain. As you know, the corona posed some significant challenges for our supply chain, employment issues, salary issues, and we must improve our supply chain to make sure that the business is stabilized, and this will allow us to secure the orders that we receive without any cuts as we experienced in some of the previous quarters. Last but not least, we think there is a lot of room for productivity in Sabra. We started to look into major automation and productivity CapEx programs for the near future. We are very positive about the ROIs of these programs, and we're sure that in the future, this investment will improve our productivity and help us secure our margins. Thanks, Ariel. A follow-up question from Chris. How should we be looking at margins overall going forward, post-COVID lockdowns? Can you provide any details as to the factors which may continue to impact margins? I have nothing to I guess no news when we talk about the input inflation phenomena worldwide. Of course, it is also related to many of our categories in Strauss. Our main challenge will be the green coffee. We will have challenges in other inputs, but we don't see the other challenges as tough as the green coffee challenge, because we believe that we have enough productivity, mitigation, hedge, and other tools to tackle the challenges in the other inputs that are rising. With relation to green coffee, green coffee, we need to distinguish between Brazil and the other business coffee units. In Brazil, we are not hedged, and therefore, the changes in green coffee are translated immediately into our costs of sales. Therefore, our main mitigation plan there is to raise the selling prices, and we are doing that. We have raised the selling prices in February, in May, and again at the beginning of August by tens of percent. I cannot tell the exact amount, because we cannot disclose it. Since the green coffee rose by more than 50% from last year up till now, we have raised also our selling prices dramatically. We believe that towards the end of the year, we will reach parity between the raise in green coffee prices and the raise in our selling prices to the retailers. Therefore, from there on, we will stabilize our margins, which we believe will be higher, the margins will be higher than what we experienced in 2020 and the first half of 2021. We need to see how this rally of green coffee price increase ends, because we're not sure yet that the rally has ended. We have to wait until around October to see what will be the crops, the certain crops of green coffee for next year. Once the crops are certain, the prices will stabilize, and we will see if the rally has ended or we still have, unfortunately, room for more increases. Thank you, Ariel. Thanks, Giora. If there are no more questions, I'd like to thank you all for joining us today, and we look forward to seeing you on the next call. I remind you all that all the materials, the presentation, and the entire financial packages are posted on our website. A recording of this conference call or the Zoom conference call will be available at a later stage as well. Enjoy the rest of your summer. Stay safe. Take care. See you next time. Bye. Thank you.