Dor Alon shows an increase of about 5% in EBITDA to about NIS 414 million; during the past year, the company opened 7 new refueling complexes; will distribute a dividend of NIS 1 million
Despite the restrictions imposed in 2020 on activity in the Israeli economy and the closures that led to a 11% decrease in fuel sales during the past year, compared to last year, Dor Alon ended 2020 with a net profit of NIS 65 million and an increase of 5% in EBITDA to approximately NIS 414 million.
The company updates today with the publication of reports that immediately after the removal of the last closure in February 2021, after the reporting period, there was a rapid recovery in fuel sales, so that in the days leading up to the publication of the report sales volumes are similar to the same period last year.
A look at Dor Alon’s reports also shows that the group, which is controlled by businessman Moti Ben Moshe, managed – despite the challenges of the corona, to achieve an average growth of about 20% in store sales converted from a convenience store format to the new “Mini Super Alonit” format. 10% in sales of the am: pm chain of stores, which totaled NIS 500 million in 2020, compared with the same period last year, while the chain opens 6 new branches and continues to implement the plan to double the number of branches in the coming years, and expand its retirement outside Gush Dan.
The company states that the activity of the company’s power plant is not affected by the consequences of the corona, and the full power generation capacity of the station is marketed. Dor Alon continues to develop the company’s main real estate projects – “Aloni Yam” in Herzliya Pituach and “Aloni Kfar Saba”, while enjoying occupancy rates of about 100% in the company’s significant income-producing properties. The value of real estate in Dor Alon’s books, as of December 31, 20. stands at a total of approximately NIS 800 million.
Dor Alon’s Chairman of the Board, Israel Yaniv, stated that “thanks to Dor Alon’s diversified strategy and prudent financial policy, we were able to maintain the stability of the sources of profit and cash flow and continue the group’s accelerated business development, even during this challenging period.” Corona Challenges During 2020, the Group opened seven new refueling complexes and expanded its food and catering operations with the acquisition of BBB.
The group’s CEO, Amit Zeev, notes that “EBITDA growth by about 5% to about NIS 414 million – despite the negative effects of the Corona epidemic, stems from a combination of the power plant’s activity, continued growth in the group’s retail activity and Thanks to the implementation of an efficiency plan that adjusted the volume of expenditures for a decrease in demand for fuels following the closures.
During the year, Dor Alon won a tender to supply fuel to the Palestinian Authority, in a volume that is expected to increase the company’s total fuel sales by about 40% compared to 2020. During the reporting period, Dor Alon completed the Green Gas merger in the LPG marketing activity, expanded the deployment of our ultra-fast cargo network to electric-powered vehicles and despite the challenges of the period, we were able to register a jump in recruiting new vehicle fleets, “says Dor Alon CEO Amit Zeev.
Dor Alon’s gross profit in 2020 amounted to NIS 900 million, compared with NIS 916 million in 2019. In 2020, the company maintained a similar gross profit for a similar period, despite the effects of the Corona epidemic on the results of its operations, especially in fuel sales.
Operating profit in 2020 amounted to approximately NIS 184 million, compared with approximately NIS 258 million in 2019. The Company’s capital as of December 31, 2020 amounted to approximately NIS 1.1 billion and the Company’s value as of the date of publication of the report is approximately NIS 1.2 billion. The Company’s liquid balances as of December 31, 2020 amount to approximately NIS 450 million, and the Company has signed credit facilities in the amount of approximately NIS 920 million.
Following the publication of the reports, the company announced a dividend of NIS 50 million. In addition, during the reporting period, the company raised long-term credit totaling approximately NIS 390 million from the banking system and the capital market. During the month of February 2021, the company completed a successful raising of approximately NIS 200 million par. Series F debentures.