Mehadrin: Revenues fell by 11% in the quarter – the capital market

Fruit exporter

Mehadrin
-2.11%

Base:14,690

opening:14,420

High:14,510

low:14,330

change:1,971,451

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In bad quarterly reports: Revenues in the fourth quarter amounted to NIS 258.4 million, compared with the corresponding quarter last year in which revenues amounted to NIS 291 million, a drop of 11.3%. Operating profit for the quarter amounted to NIS 4.4 million, compared with the corresponding quarter last year when operating profit amounted to NIS 13.5 million, a drop of 70%. The drop is attributed to the effects of the Corona virus, which has led to damage to maritime transport channels due in part to closures at Mehadrin destinations in Italy and Scandinavia and a slowdown in activity at other destinations. In addition, during the closures, the company experienced a severe shortage of manpower and raw materials, as well as an increase in packaging and transportation prices.

Results for 2020
Revenues in 2020 amounted to NIS 1.175 billion – a decrease of 9% compared to revenues of NIS 1.2 billion in 2019. Average appreciation of the shekel in 2020 compared with the corresponding period of about 2% against the euro, about 3% against the dollar and the pound. And about 10% against the Norwegian krone led to a decrease in revenues in NIS terms of about NIS 25 million.

EBITDA, excluding the sale of real estate, in 2020 amounted to NIS 70 million – an increase of 77% compared to EBITDA of NIS 39.5 million in the corresponding period. Operating profit in 2020 amounted to NIS 19 million, compared with NIS 37 million. NIS 1 million in 2019, a decrease of about 48.6%.

Mehadrin says that in 2020 “the company conducted a re-examination of its strategic plan in accordance with market developments throughout the value chain in which the company operates. In accordance with the updated business strategy, Mehadrin intends to exhaust the entire amount of Israeli fruit it can sell, while increasing its international fruit activity The increase in activity is expected to be done both in the fruit trade and as a grower abroad.

Today, the company is traded at about NIS 482 million and employs close to no one. Mehadrin is the largest exporter of fruit in Israel and its main activity is in the field of agriculture. The company is engaged in the processing and maintenance of orchards and orchards, as well as in the field of cold stores, where it provides refrigeration services for cooling fruits, vegetables, dairy products and products in the freezer.

Strictly two other areas of activity: income-producing real estate (owns 44,500 square meters of land and buildings – the vast majority of which is used by the group) and the water sector (supplies water to orchards for irrigation that is pumped from the company’s wells and external water sources. 44.48%) and Benjamin Baron (20%).