Baladi's net profit jumped by 50% in the second quarter, despite minimal revenue growth

Baladi concludes the second quarter of 2026 with growth of less than one percent in revenue, but with a significant improvement in profitability. The company's revenue totaled approximately 357 million shekels, an increase of only 0.4% compared to the same quarter last year, while net profit jumped by about 50% to approximately 38.1 million shekels.

One of the factors that aided the results was the strengthening of the shekel against the dollar, the company explains. Baladi imports a significant portion of its raw materials and products at prices pegged to the dollar, while most sales are conducted in shekels. The company notes in the report that the strengthening of the shekel during the quarter benefited its operations, and alongside this, attributes the improvement to an increase in sales prices and operational efficiency.

The improvement is particularly prominent in the trading sector, Baladi's core activity. The sector's revenue rose by about 3.3% to approximately 288 million shekels, but operating profit jumped from about 30.7 million shekels to 52.5 million shekels. The operating profit margin in the sector rose from about 11% to 18%. On the other hand, the group's manufacturing plant revenues decreased in the quarter by 8.8% to 68.1 million shekels, but an improvement in profitability was recorded there as well.

After the balance sheet date, Baladi approved an investment of approximately 47 million shekels in equipment and automation systems for its new logistics center, and in August, a full building permit for the project was also received. In parallel, the company approved an additional dividend distribution of 20 million shekels, following two distributions of 10 million shekels each earlier this year.