Rustic Bakery Reports 32% Net Profit Surge After Tel Aviv IPO

Rustic Bakery, owner of the Pillsbury brand and importer of Nature Valley and Alpen Dazs, released its first financial results following its June IPO on the Tel Aviv Stock Exchange. Controlled by Dan Nagel with a 32.59% stake, the company reported a 31.6% increase in net profit for Q2 2025 (April-June), reaching 23.5 million shekels. Sales rose 3% to 194.5 million shekels, driven by a 1.5% growth in the bakery segment to 171.4 million shekels, attributed to new bakery counters launched in retail chains in the second half of 2025. The import segment of Nature Valley and Alpen Dazs brands saw a sharp 16.2% sales increase to 23.2 million shekels, due to shipment timing and distributor sales.

Gross profit grew 10% to 84.2 million shekels, lifting gross margin to 43.3% from 40.5% the previous year. This improvement stemmed mainly from sales growth, efficient bakery production processes, and reduced logistics costs. Bakery gross margin stood at 44.6%, while the brands’ segment had a 33.1% margin. Despite an 11.4% rise in selling and marketing expenses, mainly from higher wages linked to new bakery points, operating profit increased 12.7% to 28.6 million shekels, with operating margin improving to 14.7% from 13.4% year-over-year.

In June, Rustic Bakery completed a 200 million shekel capital raise at a pre-money valuation of 800 million shekels. The company appointed Effi Rosenhaus as an independent director last month. In March, Rustic signed a non-binding memorandum to acquire 70% of a specialty dough manufacturer valued at 100 million shekels, reflecting an EBITDA multiple of about 5.5 over the prior two years. The parties recently extended the deal completion deadline by 60 days.