Palerm: A jump in net profit to 63 m for the quarter – the capital market

The net profit of

Palram
+ 1.28%

Base:3,045

opening:3,063

High:3,180

low:2,982

change:3,130,978

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Jumped to NIS 63 million, compared to NIS 8 million in the corresponding quarter last year. The increase in profit is due to three main reasons: a decrease in the price of raw materials, internal efficiency and an increase in the follow-on products segment. The company’s sales totaled NIS 417 million, compared with NIS 328 million in the corresponding quarter. Operating profit amounted to NIS 85 million, compared with NIS 17 million in the corresponding quarter.

Results for 2020
Revenues amounted to NIS 1.7 billion, compared with NIS 1.4 billion last year. Operating profit amounted to NIS 320 million, compared with NIS 54 million last year, and net profit to shareholders amounted to NIS 227.3 million, compared with NIS 8.4 million last year.

Plastic companies are benefiting from significant declines in oil prices since the spread of the corona virus, as it is a major raw material for production. For example, in polycarbonate – the CPI component in the first nine months of 2020 was about 49% compared to about 58% in the corresponding period last year. The CPI component in the first nine months of 2020 was about 43% compared to about 46% in the corresponding period last year.

Since the discovery of the corona vaccine, the price of crude oil has risen by almost 22%. So the coming quarters will be more challenging for Palerm in maintaining a high operating profit margin as it has shown in recent months. The wise management ability of the company management in products with wide profit margins may help with this.