Diplomat, whose offices are located in Kiryat Sadeh Airport near Ben Gurion Airport, is one of the leading companies in the Israeli economy in its field. The company sells its products, among others, to retail chains in the food, drugstore chains, pharmacies, containers, restaurants and wholesalers. Its is to be a leading player in the FMCG industry in all areas of its activity.
The company has many years of collaborations with international players in the consumer fields, including Procter & Gamble (P&G), Mondelez and Nestlé (Georgia). Diplomat distributes and markets leading and well-known products and brands, including: Gillette, Brown, Dorsel, Neutrilon, Lotus, Cluj, Oreo, Kikoman, Heinz, Blue-Band, Milka, Jacobs, Pringles, Ariel, Always, Tempax, Pampers, Beyond-Meat meat brands and more. In addition, the company owns the Starkist tuna brand.
Diplomat was established in 1963 as a factory for the production of razors, and in 1968 also became a distributor and marketer of toiletries, when in 1996 it sold the factory and focused on distribution and marketing activities. In 1995, it signed an exclusive representation agreement with Procter & Gamble in Israel, and later on similar collaborations with Mondelez, Heinz, Kellogg’s and other companies. These business collaborations have grown stronger over the years, and accordingly in 2008 the company also inaugurated its operations in Georgia. Subsequently, the group’s international expansion continued, and it also opened further activities in South Africa and Cyprus (both in 2011), and in New Zealand (2016).
In some of its operating countries, Diplomat Lydia received full handling of the sales and distribution system from Procter & Gamble, in light of the successful cooperation in Israel and the high operational capabilities presented by the company in the Israeli market, where it began its operations.
Diplomat recently acquired a 50% stake in Meditrend, which imports and markets health products, supplements and over-the-counter medications. In addition, the company acquired 50% of CDSL, which is held in cooperation with Chemipal, and which provides the logistics and management services of Marlog to the Super Pharm chain in Israel.
Diplomat provides its customers with a full service, which includes all parts of the supply chain, from the stage of purchasing the products to the final stage of their sale. The company has an advanced technological system, including in the logistics field, which optimally supports sales, ordering processes and costs. In parallel with the marketing and distribution activities, the company also provides its customers with TPL services (storage, collection and delivery) as an external contractor, which is one of the company’s growth engines.
Diplomat currently manages its operations in Israel through its logistics warehouse in Kiryat Sadeh Airport, and it recently signed an agreement in principle to move the warehouse to a site in an area of about 80 dunams in the industrial area of Caesarea.
Diplomat has a number of growth engines for the coming years, such as: deepening activity in its collaborations with international suppliers, expanding the brand basket, increasing activity in the field of technological solutions and services, geographical expansion and expanding activity in the field of herbal substitutes, food supplements and paramedical products.
Diplomat, managed by Noam Weiman, currently employs about 2,500 people worldwide. The company ended the first nine months of 2020 with revenues of NIS 2 billion, with EBITDA in the amount of NIS 109.2 million, compared to NIS 102 million in the corresponding period in 2019, and with a net profit of NIS 58.7 million. , Compared with NIS 44.6 million in the corresponding period in 2019. The company has adopted a dividend distribution policy, under which it annually distributes to its shareholders 50% of the net profit.
The company states in a presentation that together with the prospectus also the results of its pro forma for 2020, according to which, in the best of its estimation, it is expected to end 2020 with revenues of NIS 2.8 billion, adjusted EBITDA of NIS 150 million and net profit. In the amount of NIS 89 million (the pro forma results are less exceptional expenses, and with the inclusion of the results of the companies Meditrend and CDSL acquired at the end of 2020 and the beginning of 2021).