Gad Dairies: Profit jumped 47% and market share rose; stock is surging
The company's revenue grew by approximately 10% to 210 million shekels, while retail activity drove improved profitability. A decrease in milk prices and the weakening of the euro contributed to cost reductions alongside continued expansion into new areas.
Gad Dairies concluded the second quarter of 2026 with a notable improvement in results, particularly regarding profitability. The company's revenue rose by approximately 10% to 210 million shekels, while net profit grew at a much faster pace—by 47% to 17.1 million shekels.
According to StoreNext data, Gad's market share rose from 6.4% to 6.9%. Retail activity was the primary driver of this improvement: sales in this sector increased during the quarter to 133.5 million shekels, compared to 119.3 million shekels in the corresponding period, and sectoral profit jumped to 13.5 million shekels compared to 8.8 million shekels. The company attributes this performance to increased sales around the Shavuot holiday, organic growth, and improved raw material costs.
One of the factors aiding profitability was the cost side. The weakening of the euro saved Gad about 3.5 million shekels in the first half of the year, and in June, the target price of milk fell by 5.15%. The company estimates that this change alone will reduce the cost of purchasing raw milk in the third quarter by approximately 2.3 million shekels compared to the second quarter.
Against this background, Gad decided not to implement a planned 1.9% price increase on non-regulated products. Simultaneously, Gad continues to expand beyond its core dairy operations. In April, it completed the acquisition of 51% of the Weiler farm for about 42.8 million shekels, and in July, it began distributing its products. Additionally, it launched Gad Feel, a new brand in the milk substitutes category featuring 11 products. As of the end of June, Weiler had contributed only about 5.2 million shekels to revenue and about 182,000 shekels to net profit, meaning the bulk of the quarterly improvement still stemmed from Gad's existing operations.
