Elden’s net profit in 2020 grew to NIS 94.7 million

Eldan Transportation Ltd., one of the leading leasing and car rental companies in the economy, published its financial reports for the fourth quarter and for the entire year 2020 tonight (Friday), with a net profit for 2020 that jumped to NIS 94.7 million, compared to NIS 18.9 million. In 2019.

Highlights of the results for 2020: The company’s revenues during the year amounted to NIS 1.41 billion, compared with NIS 1.62 billion in 2019. In the operating leasing segment, revenues from external customers amounted to NIS 1.06 billion during the period, without a significant change compared to 2019. Revenues were mainly affected by a decrease in rents attributed to the segment’s activity, offset by an increase in revenue from the sale of vehicles used for the segment’s activity. The decrease in rental income was due to a decrease in the number of rental days, offset by an increase in the average return on the vehicle. The increase in revenue from the sale of vehicles was mainly due to an increase in the number of vehicles sold offset by a decrease in the average return on the vehicle. The segment’s profits during the period increased to NIS 185.1 million, compared with NIS 136.2 million in 2019.

In the vehicle rental sector, revenues from external customers in the period amounted to NIS 251.5 million, compared with NIS 328.2 million in the previous year. The decrease was mainly due to a decrease in rental income as well as a decrease in income from the sale of vehicles associated with the sector. The decrease in rental income was due to a decrease in the number of rental days for the segment’s customers. The decrease in revenue from the sale of vehicles was due to a decrease in the number of vehicles sold, offset by an increase in the average return on the vehicle. The segment’s profits amounted to NIS 5.2 million, compared with a profit of NIS 6.6 million in 2019.

In the trade sector, revenues from external customers during the period amounted to NIS 88.8 million, compared with NIS 219.5 million in the previous year. The decrease in revenue was mainly due to a decrease in the number of vehicles sold, offset by an increase in the average return on the vehicle. The segment’s profits amounted to NIS 0.8 million, compared with NIS 1 million in 2019.

Gross profit in the period increased by 3.2% to a total of NIS 288.6 million (approximately 20.5% of revenues), compared with approximately NIS 279.4 million in 2019 (approximately 17.2% of revenues). The increase in gross profit in 2020 was mainly affected by an increase in the profitability of vehicle sales. Operating profit in the period grew by approximately 35.4% to approximately NIS 153.8 million (approximately 10.9% of revenues), compared with approximately NIS 113.5 million in the previous year (approximately 7% of revenues). The increase in operating profit and its rate is due to the increase in gross profit, along with a decrease in sales and marketing expenses, mainly as a result of a decrease in salary expenses due to a decrease in the number of jobs, as well as a decrease in salary expenses, maintenance and advertising.

In 2020, the company recorded net financing expenses of NIS 30.2 million, compared to net financing expenses of NIS 88.2 million in 2019. The change was mainly affected by financing income of NIS 41 million, mainly due to self-purchases of commercial securities and bonds. Performed by the company. In addition, the Company recorded a decrease in financing expenses as a result of a decrease in the average raising interest rate, changes in the consumer price index in respect of index-linked liabilities, and a decrease in the average credit for the period.

In 2020, the company recorded a 400% jump in net profit to NIS 94.7 million, compared with NIS 18.9 million in 2019. Total profit in 2020 climbed to NIS 90.4 million, compared with NIS 19.3 million the previous year. Vehicle fleet utilization (average occupancy rate) rose in 2020 to about 87.1%, compared with about 85.7% in 2019.

Main results for the fourth quarter of 2020:

The company’s revenues in the fourth quarter amounted to NIS 341.1 million, compared with NIS 384.2 million in the corresponding quarter last year. Gross profit for the quarter increased by 11% to NIS 73.1 million (approximately 21.4% of revenues), compared with NIS 65.8 million in the corresponding quarter last year (approximately 17.1% of revenues). Operating profit in the quarter grew by approximately 51.4% to a total of NIS 38.9 million (approximately 11.4% of revenues), compared with approximately NIS 25.7 million in the corresponding quarter last year (approximately 6.7% of revenues). The increase in operating profit is due to the increase in gross profit, as stated, as well as a decrease in sales and marketing expenses, mainly as a result of a decrease in salary expenses due to a decrease in the volume of jobs, as well as a decrease in salary expenses, maintenance and advertising.

Net financing expenses: The company concludes the quarter with net financing expenses of NIS 18.2 million, compared with net financing expenses of NIS 19.1 million in the corresponding quarter last year. The company ended the quarter with a sharp increase in net profit to NIS 16.2 million, compared with only NIS 4.9 million in the corresponding quarter last year. Total profit in the quarter grew by 95.6% to NIS 17.6 million, compared with NIS 9 million in the corresponding quarter last year. As of December 31, 2020, the company’s equity increased to NIS 510.4 million and constitutes approximately 18.4% of the company’s balance sheet. As of December 31, 2020, the company has cash and cash equivalents in the amount of NIS 326.2 million.