Prodalim Sees Revenue Growth from Specialty Ingredients but Juice Segment Weakness Cuts Profits

Prodalim reported a 16% increase in revenue to $92.5 million in Q2 2026, driven mainly by a 132% surge in its specialty ingredients segment, which reached $22 million. Despite this growth and a 4% rise in adjusted EBITDA to $10.5 million, the company’s core juice solutions segment showed zero revenue growth and a decline in profitability. Operating profit fell 11% to $7 million, while net profit dropped 8% to 4.6 million shekels, impacted by increased expenses related to the company’s transition to a public entity following its February IPO.

The adjusted net profit, excluding one-time IPO and acquisition costs, rose 3% to 5.3 million shekels. Prodalim, controlled by the Berzovsky family and managed by Tzvi Barak, completed its IPO on the Tel Aviv Stock Exchange in February, raising 390 million shekels at a pre-money valuation of 2.1 billion shekels. The company produces natural solutions for food and beverage industries, including natural juices, concentrates, flavor and aroma materials, beverage bases, and functional natural ingredients.

The specialty ingredients segment, which includes essential oils, natural colors, dietary fibers, and flavored beverage blends, doubled its share of total revenue from 12% to 24% and increased operating profit by 300% to $3.2 million. This growth was attributed to organic expansion and the acquisition of two companies as part of Prodalim’s M&A strategy. Meanwhile, the juice solutions segment, which remains the company’s main activity, generated stable revenue of 70.2 million shekels but saw operating profit decline 24% to 6.7 million shekels and adjusted EBITDA fall 18% to 8.4 million shekels.

Since its IPO, Prodalim’s stock has dropped 27.5%, underperforming the Tel Aviv 125 index, which declined less than 1% over the same period.