Electra Consumption: 33% increase in revenues – NIS 711 million – capital market

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Electra needs
+ 1.98%

Base:12,620

opening:12,240

High:12,990

low:12,240

change:6,720,598

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Publishes its results for the fourth quarter of 2020, and shows improvement in both the top and bottom line. The company’s revenues increased by 33% to NIS 711 million, and net profit (continuing embezzlement) was NIS 10.6 million. Meanwhile, the company is also recording improvements in gross and operating profitability rates.

The company’s revenues in the fourth quarter amounted to NIS 711.3 million, an increase of 32.8% compared to NIS 535.6 million in the corresponding quarter last year. The increase in revenue is attributed to an increase in sales in the electrical consumer goods segment in the field of air conditioners and in the field of brand trade, and an increase in sales turnover in the retail sector.

Bottom line, the company reports a net profit of NIS 10.6 million, a decrease of 56% compared to NIS 15.8 million in the corresponding quarter last year. This, following the sale of Golan Telecom, when the net profit from continuing operations was about NIS 10.6 million, compared with a profit of about NIS 1.2 million in the corresponding months last year.

The company’s EBITDA increased by approximately 36% and stood at approximately NIS 41 million, compared with approximately NIS 30 million in the corresponding months last year.

Improving gross and operating profitability
Gross profit amounted to NIS 161.2 million (approximately 23.2% of revenues), an increase of approximately 38.1% compared to approximately NIS 119.6 million (approximately 22.3% of revenues) in the corresponding two years last year. The improvement in the gross profit margin is attributed to an increase in the areas of activity of the electrical consumer goods sector in the area of ​​air conditioners.

Operating profit climbed to about NIS 20.9 million (about 2.9% of revenues), an increase of about 118% compared to about NIS 9.6 million (about 1.8% of revenues) in the corresponding quarter last year.

Zvika Schwimmer, CEO of Electra Consumer“We conclude 2020, which was a challenging year for Corona, with excellent results, reflecting both the strategic moves we made to deepen the company’s benefits in our areas of activity and the strong backbone the company enjoyed in light of the lifestyle and consumption habits following the Corona event.”

“Over the past year, we have strengthened the online sales network in the retail sector, and significantly streamlined the sales floor in branches through digitization. As a result, we have seen a significant increase in the segment’s business activity and profitability. “In addition, during 2020 we sold our holdings in Golan Telecom for a total consideration of more than NIS 600 million, and a significant profit, a significant portion of which the company distributed as a dividend to its shareholders.”