Prodalim Announced its Q1’2026 Results Presenting Accelerated Growth in the Specialty Ingredients & Solutions Activity

Prodalim Announced its Q1’2026 Results Presenting Accelerated Growth in the Specialty Ingredients & Solutions Activity

SIS revenues (Specialty Ingredients & Solutions) grew 64% in

 Q1 into 19.7 million dollars (growth of 27% on a LFL[1] basis).

Group revenue for the quarter grew 4% into 91.5 million dollars.

Adjusted EBITDA[2] for the SIS activity grew 95% into 3.6 million dollars, reflecting an adjusted EBITDA margin of 18%.

Adjusted net profit grew 19% into 3.9 million dollars.

Cash flow from operating activities surged into 15.0 million dollars.

Tsahi Barak, Chairman of the Board and CEO of the Company, stated:

“We are pleased to report a strong quarter during which we continued to successfully implement the company’s business strategy, which emphasizes, among other things, significant and profitable growth in the Specialty Ingredients & Solutions activity and the expansion of Solos’ infrastructure, our dealcoholization division. We believe that the positive momentum in this activity will continue throughout the year, as we continuously work to leverage the many opportunities across the various markets. The company is very active across several strategic initiatives and since the beginning of the year, we have announced several business developments, including the acquisition of the Brazilian natural extracts company Sylvestre, whose contribution is not yet reflected in our reported financial results. We are in an excellent position to continue realizing opportunities to accelerate the Company’s growth and strengthen its position as a leading global player in its field. The overall strength of the company, financial stability, global market positioning, well-established reputation, and above all, the outstanding team we have built, enable us to continue executing our accelerated profitable growth strategy in the world of natural solutions. This strategy combines synergistic mergers and acquisitions alongside strong organic growth that outpaces overall market growth.”

Highlights of Q1’2026 Results:

• Sales in the Specialty Ingredients & Solutions (SIS) segment grew by 64% into 19.7 million dollars, compared to 12 million dollars. Growth of 27% on an LFL basis. Adjusted EBITDA grew 95% into 3.6 million dollars (representing an adjusted EBITDA margin of 18.2%).
  In the specialty ingredients & solutions segment, the revenue over the last 12 months, on a pro forma[3] basis for the group as of the first quarter of 2026, reached $77 million, reflecting a compound annual growth rate (CAGR) of 47% over the past five years.

• Sales of the Juice Solutions (JS) revenue in Q1 reached 71.5 million dollars, compared to 75.4 million dollars. The slight decline was primarily attributable to timing differences between quarters in actual supply under the framework agreements. Adjusted EBITDA reached at 8.3 million dollars (representing an adjusted EBITDA margin of 11.6%), compared to 9.7 million dollars.
• Revenue from the new de-alcoholization solutions activity (Solos) grew 34% into 394 thousand dollars, compared to 294 thousand dollars.
• Total Prodalim revenue in Q1 grew 4% into 91.5 million dollars, compared to 87.7 million dollars. The increase was partially offset by the slight decline in the JS activity due to the timing of actual supply under the framework agreements, as detailed above.
• Total gross profit grew by 5% during Q1 into 17.3 million dollars (18.8% of revenue), compared to 16.5 million dollars (18.8% of revenue).
• Adjusted EBITDA reached 10 million dollars during Q1 (representing an adjusted EBITDA margin of 10.9%), an increase of 1%, while adjusted net profit grew by 19% into 3.9 million dollars.
• Cash flow from operating activities during the quarter grew into 15.0 million dollars.

Business Developments Since the Beginning of 2026:

• March 2026, the acquisition of the Brazilian natural extracts company Sylvestre was completed for approximately 31 million dollars. Sylvestre’s revenues in 2025 totaled approximately 9.5 million dollars, with adjusted EBITDA of approximately 3.2 million dollars. Prodalim is actively advancing cross-selling projects to drive synergies and maximize the value of its Sylvestre product offerings, primarily intended for the rapidly growing functional beverages market, which are expected to begin contributing from the second half of 2026. Sylvestre’s results are not yet included in Prodalim’s first quarter results.
• The integration of the French flavor company Rene Laurent (which was acquired in December 2025), is progressing successfully, alongside accelerated company growth, cost savings achieved through the consolidation of operational functions, the launch of several cross-selling projects, and productive management of commercial activities.
• New Solos facilities were inaugurated in Valencia (Spain) in January 2026 and California (USA) in April 2026. The facilities have a combined production capacity of 31 million liters and are expected to contribute significantly to profitable growth in Solos’ de-alcoholization operations for the wine and liquor markets, following 34% growth in Solos activity during Q1.
• A cross-selling project was initiated with global leading beverage companies, combining Rene Laurent’s flavor formulation capabilities with Prodalim’s beverage solution development expertise based in Rotterdam.
• Several strategic R&D investments were recently completed: an advanced application laboratory for colors was inaugurated in Slovenia, along with two application laboratories for beverages, dairy, bakery, and confectionery in Valencia (Spain) and Florida (USA).
• The acquisition of Better Juice activity was recently completed: Better Juice developed a unique technology for sugar reduction in juices and fruit-based products. The acquisition positions Prodalim at the forefront of healthy and clean-label solution technologies and will accelerate Prodalim’s entry into the reduced-sugar beverages market in the United States.
• The acquisition assets from VDB was recently completed: an operational site in the Netherlands that will enable the company to significantly expand its production capacity in Europe and support the continued accelerated growth of the Juice solutions and beverage solution activities.

Summary Table of Profit and Profitability – Q1’2026:

About Prodalim

Prodalim is a global leader in juice and specialty ingredients solutions, harnessing the power of nature to create healthier products. With its vertically integrated supply chain from field to shelf and a broad global footprint, the group develops innovative and sustainable solutions for the food and beverage industry, significantly impacting both people and the environment.

Prodalim operates through three dedicated divisions supported by with its vertically integrated supply chain based on circular economy principles. Through this approach, Prodalim enables food and beverage companies to develop and manufacture products that integrate sustainability, functionality, and transparency at the core of their operations

• Juice Solutions – a one-stop-shop for juice producers, covering sourcing, logistics, formulation and blending
• Specialty Ingredients & Solutions – delivering taste and functional ingredients such as FTNF aromas, flavors, essential oils, natural colors, bothanical extracts, citrus fibers, all supported by enhanced in-house R&D capabilities.
• SOLOS – a premium, patent-based de-alcoholization platform serving the fast-growing NoLo segment

Founded in 1987, Prodalim employs approximately 570 employees and supplies more than 1,200 products to approximately 700 customers worldwide across 60 countries. Prodalim’s products serve a wide range of industries, including food and beverages, flavor and fragrance extracts, pharmaceuticals, medicinal herbs, nutraceuticals, functional foods, dietary supplements, and cosmetics. Prodalim has a global presence in approximately 50 countries, with a network of production facilities and offices in leading strategic markets worldwide. This footprint enables the company to provide professional, fast, and tailored service to its customers, while maintaining a deep understanding of local market needs.

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[1] LFL (like-for-like) – assuming Rene Laurent’s results had been included in the first quarter of 2025.

[2] Adjusted net profit and EBITDA – by one-time expenses, mostly IPO related expenses & stock-based compensation during the quarter

[3] LTM ended in Q1’2026 on a pro-forma basis (including René Laurent& Sylvestre)