Revolution in medical cannabis: a jump of millions of shekels in profit
Despite a slight decrease in revenue in the first half of the year, the company shows a dramatic improvement in profitability indicators and reports exceptionally high liquidity of tens of millions of shekels in cash.
The medical cannabis company Shiah Medical Group has published its financial reports for the second quarter and the first half of 2026, revealing an impressive trend: alongside a slight decrease in revenue, the company recorded double-digit improvement in all profitability and operational efficiency indicators.
According to the data, revenues in the first half of the year totaled approximately 75.3 million shekels, compared to 78.1 million shekels in the same period last year, a decrease mainly attributed to a change in the product mix.
Despite the decline in top-line revenue, net profit attributable to shareholders for the half-year jumped by approximately 128% to total 9.7 million shekels. In the second quarter alone, net profit stood at 4.2 million shekels, a jump of approximately 39% compared to the corresponding quarter. The increase in profitability was driven by a rise in the gross profit margin, which reached 40% in the second quarter, compared to 31.1% last year, thanks to a reduction in procurement and production costs and the expansion of the company's factory operations.
In parallel with the growth in profits, the company demonstrates high financial strength with a positive cash flow from current operations of approximately 15 million shekels in the first half. As of the end of June 2026, Shiah Medical holds high liquidity of approximately 33 million shekels in cash and money market funds, alongside unused credit lines amounting to approximately 24 million additional shekels.
The company's CEO, Yogev Sharid, noted:
"The expanding results are the fruit of operational excellence and hard work throughout the value chain, which have proven themselves even in competitive and complex market conditions."
