Novolog Reports Slight Revenue Growth Amid Leadership Overhaul and Profitability Challenges

Novolog, a 60-year-old logistics and healthcare services company, released its financial results for the second quarter of 2026 following a major leadership shakeup. The company reported a modest 1% increase in revenue to 957 million shekels for the first half of the year, while operating profit declined by 1.5% to 13.7 million shekels. Net profit dropped sharply to about 1 million shekels from 5.8 million shekels in the same period last year, primarily due to higher financing expenses driven by the rising dollar exchange rate and increased interest costs.

Quarterly figures showed a 2% revenue increase to 452 million shekels, but operating profit fell 13% to 8.6 million shekels, and net profit decreased to 541,000 shekels from 4.6 million shekels year-over-year. The company’s cash reserves stood at 204 million shekels, slightly down from 218 million shekels a year earlier. Novolog’s largest division, logistics for pharmaceutical distribution, remained stable, while its healthcare services division grew in both revenue and profit. The digital health division also expanded but remains small compared to other units.

The financial report coincides with significant corporate upheaval. CEO Aviad Busi and CFO Yaniv Vidavski announced their departures amid a control battle led by Oded Pozis, grandson of the company’s founder. Pozis recently replaced the entire board and management, consolidating his family’s dominance by acquiring a 44% stake after buying shares from Arkyn and Phoenix groups for 91 million shekels, a 45% premium over market price. This move followed a competing 100 million shekel investment offer from Eli Dahan of the Movment Group, which would have balanced control.

Novolog has faced challenges since the pandemic, including a 39 million shekel loss in 2023 due to asset write-downs and operational disruptions in 2025 caused by an ERP system replacement. These issues led to customer attrition and fragmented business. The previous management had begun a strategic plan focusing on trimming non-core activities but did not advance to acquiring companies closer to its core business. Pozis is expected to pursue a new strategic direction with new leadership.

The company’s transformation marks a clear break from its past, aiming to stabilize and grow under renewed family control amid ongoing market and operational pressures.