Nutrition Supplements Segment Momentum Continues with Record Revenue of $78.1M, Reflecting Triple-Digit Growth of ~109% Versus Full-Year 2024
SDEROT and RAMAT GAN, Israel, March 26, 2026 /PRNewswire/ -- TopGum Industries Ltd. (TASE: TPGM), the leading company in the nutritional supplements market in gummy form, closes 2025 with record results and full achievement of its stated targets: crossing the $100 million revenue threshold with sharp growth of ~70%; a significant double-digit increase in adjusted EBITDA to ~$15.7 million while maintaining an adjusted EBITDA margin of ~16%; and growth of ~53.7% in operating cash flow to $10.3 million compared to $6.7 million in 2024. These results were achieved in parallel with the launch of the new facility and the completion of the Canada acquisition.
Group revenue grew ~70% to $100.95 million in 2025, compared to $59.3 million in 2024. The Group delivered consistent revenue growth throughout the year - from $17.3 million in Q1 to $31.6 million in Q4. Second-half 2025 revenue reflects an annualized run rate exceeding $120 million. Gross profit increased 58% to $32.4 million, compared to $20.5 million in 2024.
Adjusted EBITDA for 2025 also grew sharply, by ~65% versus 2024, to $15.7 million (~16% of revenue). The improvement in adjusted EBITDA was achieved despite an approximately 7% depreciation in the average USD/ILS exchange rate in 2025, the launch of the new facility in Q4 2025, and tariffs imposed on the Company's products exported to the United States.
During 2025, the Company generated operating cash flow of approximately $10.3 million, compared to approximately $6.7 million in the prior year. This ~54% increase reflects the financial resilience of the Group.
The Primary Growth Engine - Nutrition Supplements Segment
Nutrition supplements segment sales reached a record $78.1 million in 2025, triple-digit growth of ~109% versus 2024, representing approximately 77% of total group revenue, compared to ~63% in 2024 and just ~5% in 2019 - the year in which the Company first commenced supplements sales. The share of nutrition supplements in total group revenue reflects, in practice, TopGum's transformation into a leading nutritional supplements company, in line with the strategy and targets it has set.
In 2025, the Group sold nutritional supplements to 15 new customers, including brands from Europe and North America, notwithstanding the geopolitical challenges it faced.
The supplements order backlog for delivery in the coming months reached a new all-time high of approximately $47.5 million as of the date of this report, compared to $33.6 million in the same period last year.
Israel confectionery segment sales grew ~4% to approximately $22.9 million (in NIS terms, segment sales declined slightly by ~2.5%, primarily due to security tensions during the year and increased competition in the local market). The Group transferred most of the gummy confectionery production in this segment to a third-party contract manufacturer outside of Israel, in order to free up production capacity and accelerate growth in the nutrition supplements segment.
Canada Operations Exceed Acquisition-Time Projections
Following the update from January of this year, the Canadian operations achieved results significantly above the projections at the time of the acquisition, driven by stronger-than-expected business performance - a testament to the strength of the business. This led to a revision of the contingent consideration related to the acquisition and the recognition of non-recurring accounting charges in connection with the Canada acquisition totaling approximately $22.3 million.
In addition, the Group recognized further non-recurring charges related to the write-down of the remaining starchless production line balance of approximately $2.1 million - as reported at the end of 2024 - and an inventory impairment in the confectionery segment of $1.2 million. Group operating income increased to approximately $8.4 million, triple-digit growth of ~126% versus 2024. However, the recognition of these non-recurring charges - which are accounting rather than operational in nature and do not reflect ongoing business trends - resulted in a net loss of approximately $16 million.
New Manufacturing Facility Launched and Gaining Momentum
In November 2025, the Group commenced commercial operations at its new manufacturing facility in Sderot. The facility is a cutting-edge, advanced plant with automation and technology capabilities among the most advanced in its field globally, significantly greater production capacity than the existing facility, and high operational efficiency - from which the Group will benefit upon completion of the facility ramp-up starting from the second half of 2026. The new facility was launched following four years of planning and construction that included significant delays resulting from the outbreak of the Iron Swords War and the security situation that has prevailed since.
The Group is currently executing a gradual and complex transfer of nutrition supplements production from the existing facility to the new facility - a process accompanied by inherent inefficiencies that is expected to impact the Company's profitability in the first half of the year. The Group anticipates that upon completion of the transition to the new, more efficient facility, it will reach an improved level of operational efficiency, which is expected to support margin improvement in the second half of 2026 and more significantly in 2027 and the years thereafter. The Group expects to maintain a similar profitability margin in 2026 relative to 2025.
Following completion of the full transition to production at the new facility, the Company anticipates significant improvement in output and efficiency, and that all of the Group's production facilities will be able to support annual revenue of approximately $200 million in nutritional supplements at an adjusted EBITDA margin of approximately 20%.
Eyal Shohat, Chief Executive Officer, TopGum Industries : "2025 marks a step-change for TopGum with ~70% growth and crossing the $100 million revenue threshold, alongside record results across all business parameters. We delivered on our targets despite challenging conditions, and continued to strengthen the Company's business and global foundations. During the year we completed two significant strategic milestones: the Canada acquisition and the launch of the new manufacturing facility, both of which lay the foundation for continued accelerated growth and improved operational efficiency. We enter 2026 with strong demand, advanced production infrastructure, and a reinforced competitive position, on our path to becoming a leading global CDMO for healthcare products, built on advanced, enjoyable delivery systems. I would like to thank the Company's employees and Board of Directors for their significant contributions to these achievements."
About TopGum Industries
Founded in 2004, TopGum Industries Ltd. (TASE: TPGM) is a leading company in the manufacture of nutritional supplements in gummy form, with products sold worldwide. The Group's manufacturing facilities are located in Israel (Sderot) and Canada, and it currently employs over 400 people. The Company is listed on the Tel Aviv Stock Exchange. The Company's CEO is Eyal Shochat, and the Executive Chairman of the Board is Raviv Zoller. The Company's founders are Mr. Hai Hayoun, who also serves as Company President, and Mr. Roi Lusternik.
For more information, visit: https://tgum.com/
Photo - https://mma.prnewswire.com/media/2943175/TopGum_Industries_Photo.jpg
Contacts
TopGum Industries Ltd.
Nir Ogolnik, General Counsel & Company Secretary
Email: [email protected]
SOURCE TopGum Industries Ltd.
