Specialty Ingredients Boost Frudelim Revenues, While Juice Segment Weakness Hits Profits
A surge in the specialty ingredients sector drove a 16% revenue increase for Frudelim in Q2 2026. However, stagnation in the core juice solutions business and costs associated with becoming a public company led to a decline in net profit.
A jump in activity in the specialty ingredients sector led to an increase in Frudelim's revenues in the second quarter of 2026. However, although profitability in this sector rose, the juice solutions sector — the company's core business — recorded zero growth, and its profitability was hit. Coupled with increased expenses from operational expansion and the transition to a public company, Frudelim ended the quarter with a decrease in profit.
Frudelim's revenues in the second quarter of 2026 totaled $92.5 million, a 16% increase compared to the corresponding quarter. This improvement was driven primarily by the specialty ingredients sector, where revenues rose by 132% to $22 million, up from $9.5 million. Adjusted EBITDA rose by 4% to $10.5 million. Conversely, quarterly operating profit fell by 11% to $7 million.
Net profit fell by 8% to 4.6 million shekels due to expenses related to Frudelim becoming a public company following its February IPO. Excluding one-time expenses related to the IPO and acquisitions, adjusted net profit rose by 3% to 5.3 million shekels.
Frudelim, controlled by the Berezovsky family and managed by Zvi Barak, completed an IPO on the Tel Aviv Stock Exchange in February, raising 390 million shekels at a pre-money valuation of 2.1 billion shekels.
Business Segments and Strategy
The company produces natural solutions for the food and beverage industry. The specialty ingredients sector, which now accounts for 24% of revenues (up from 12%), includes essential oils, flavor extracts (competing with firms like Turpaz), natural colors, and dietary fibers. Operating profit for this segment surged by 300% to $3.2 million, with an operating margin of 15%.
Juice solutions remain the company's primary activity, with quarterly revenues of 70.2 million shekels, unchanged from the previous year. Operating profit in this segment fell by 24% to 6.7 million shekels, and adjusted EBITDA fell by 18% to 8.4 million shekels.
Since its February debut on the Tel Aviv Stock Exchange at a valuation of 2.3 billion shekels, Frudelim's stock has fallen by 27.5%, while the TA-125 index has declined by less than 1% during the same period.
