Zanlahl management decides to return approximately 30 million shekels to the public
Zanlahl reported a net profit of 26 million shekels for the first half of 2026. Growth in the dairy sector offset the impact of imports in the vegetable segment, enabling the company to announce dividend distributions.
The food company Zanlahl has published its financial results for the second quarter and the first half of 2026, highlighting a clear shift in its business mix. While the traditional vegetable and canning sector faces fierce competition from imports, the Golan Heights Dairy has emerged as the group's primary profitable growth engine.
The dairy sector has been the company's most significant focus since its acquisition in 2023. In the second quarter, the dairy reported a 13% increase in revenue, amounting to approximately 47 million shekels.
The improvement is most evident in the operating profit, which jumped to 5.4 million shekels from 1.7 million shekels in the same quarter last year. Consequently, the operating profit margin in this sector rose to 12% of total sales (up from 4% last year). For the first half of the year, the dairy sector recorded a 21% revenue increase, reaching 94 million shekels.
Conversely, the vegetable division (including the Yakhin and Pri Mevorach brands) is navigating a challenging competitive environment. Revenue in this sector for the first half fell to 178 million shekels (compared to 188.5 million shekels in the same period last year), with operating profit dropping to 32.1 million shekels. These declines are attributed to increased import competition, primarily from China, the strengthening of the shekel, and the timing of Passover holiday supplies.
Despite lower revenue in the vegetable sector, Zanlahl improved its consolidated gross profit margin to 31.7% in the second quarter. The company's equity grew by 18% during the half-year to 265.8 million shekels, representing 53.2% of the balance sheet. Cash flow from operations turned positive at 17.8 million shekels for the half-year.
Following these results, the board of directors announced a dividend distribution of 14 million shekels. Further market confidence was demonstrated in May, when five leading hedge funds purchased shares totaling 16 million shekels.
Pini Gurvich, CEO of Zanlahl:
"The results of the second quarter and the first half of 2026 continue to reflect the progress of our multi-year growth plan and the importance of the two core sectors for the group's activity. The Golan Heights Dairy continues to develop as a significant growth engine for Zanlahl, with double-digit growth in sales and profitability."
Gurvich added:
"At the same time, in the vegetable sector, we are dealing with a more challenging operating environment, including competition from imports, mainly from China. Despite rising costs, we are showing higher gross profit margins across the company's entire activity. We will continue to promote our multi-year growth plan in both sectors to ensure long-term value."
