First post-IPO reports for importer of Nature Valley and Häagen-Dazs: net profit jumps 31.6%
Rustic Bakery has released its first financial reports since its IPO. The company reported a 31.6% increase in net profit to 23.5 million shekels, with total sales rising 3% to 194.5 million shekels.
Rustic Bakery, owner of the Pillsbury pastry brand and importer of the Nature Valley and Häagen-Dazs brands, has published its first reports following the company's IPO on the Tel Aviv Stock Exchange last June. The company, controlled by Dan Nagel (32.59%), closed the second quarter (April-June) with an increase in sales, improved profitability, and a 31.6% jump in net profit, which totaled 23.5 million shekels.
The company's sales grew during the quarter by 3% to 194.5 million shekels. This resulted from 1.5% growth in the pastry sector to 171.4 million shekels, following the opening of new pastry stands in retail chains in the second half of 2025, and sharp growth of about 16.2% in the import sector for the Nature Valley and Häagen-Dazs brands to 23.2 million shekels, stemming from the timing of goods shipments arriving in the country and their sale to distributors.
A 10% growth in gross profit, totaling 84.2 million shekels, pushed gross profitability to 43.3% of sales compared to 40.5% in the corresponding quarter last year. The improvement was mainly due to sales growth, efficiency in production processes in the pastry sector, and a decrease in logistics costs. Gross profitability in the pastry sector stands at 44.6% of sales, while brand activity is based on gross profitability of 33.1%.
Despite an 11.4% increase in selling and marketing expenses due to higher wage costs for franchise system employees, the company recorded a 12.7% increase in operating profit, which grew to 28.6 million shekels. Operating profitability climbed to 14.7% of sales, compared to 13.4% in the corresponding quarter last year.
The company, which in June completed a capital raise of 200 million shekels at a pre-money valuation of 800 million shekels, appointed Efi Rosenhaus as an independent director last month. Last March, Rustic signed a non-binding memorandum of understanding to acquire 70% of a company specializing in the production of special doughs, based on a valuation of 100 million shekels, reflecting an EBITDA multiple of about 5.5 for the two years preceding the agreement. About two weeks ago, the parties extended the deadline for completing the transaction by 60 days.
