Baladi Reports 50% Net Profit Surge in Q2 Despite Minimal Revenue Growth

Baladi, an Israeli company, reported its financial results for the second quarter of 2026, showing a slight revenue increase of only 0.4% to approximately 357 million shekels compared to the same period last year. However, the company achieved a significant 50% rise in net profit, reaching about 38.1 million shekels.

The company attributed this profitability boost partly to the strengthening of the Israeli shekel against the US dollar, which benefited Baladi since it imports many raw materials priced in dollars while selling mostly in shekels. Additional factors included higher sales prices and operational efficiencies.

Baladi's main commercial sector saw revenues grow by 3.3% to around 288 million shekels, with operating profit jumping from 30.7 million to 52.5 million shekels, improving the operating profit margin from 11% to 18%. Conversely, the group’s manufacturing segment experienced an 8.8% revenue decline to 68.1 million shekels but still showed improved profitability.

Following the reporting period, Baladi approved an investment of about 47 million shekels in equipment and automation systems for its new warehouse, with full building permits granted in August. The company also declared an additional dividend payout of 20 million shekels, following two earlier distributions of 10 million shekels each this year.

This financial update was shared alongside Globes’ launch of a new service providing full transcripts of investor conference calls for companies listed on the Tel Aviv Stock Exchange, aiming to enhance transparency and investor understanding beyond financial statements.