Spantech: Profit for the quarter increased 4 times to 29 m – the capital market

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Spantech
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, Which manufactures non-woven fabrics for the wipes industry, reports its financial results for the last quarter of 2020 and for the entire year: Revenue for the quarter amounted to NIS 179.6 million, an increase of 18% compared to NIS 152 million in the corresponding quarter while Four or more, compared to NIS 5.5 million in the corresponding period.

In the whole of 2020, revenues accumulated to the amount of NIS 721.5 million – a growth of 19.2% from the revenue level of NIS 605.5 million in 2019. The annual net profit amounted to NIS 85.4 million, 240% higher than the NIS 25.3 million it earned a year earlier. Spantech notes that the increase in sales offset negative factors, including exchange rate differences, as well as a decrease in the prices of raw materials, which affected the sale price.

Quarterly EBITDA amounted to NIS 40.3 million, double the corresponding period, and this year it was NIS 141 million, 110% higher than in 2019. The gross profit for the quarter was NIS 52.7 million and reflected a profitability rate of 29%, double the corresponding period, when the figure was NIS 25 million and 16.5%, respectively. For the entire year, gross profit amounted to NIS 181.4 million – an increase of 89.7% compared to 2019. Operating profit for the quarter was NIS 33.7 million, almost three times the corresponding quarter – and the same for the year as a whole was NIS 110.7 million.

Back in 2020, the revenue from sales to Procter & Gamble, one of the company’s significant customers, dropped to levels of 23% of total revenue compared to 31% in 2019, and at the same time the revenue from sales to Nice Pak rose to 30% of all sales, compared to 23% last year.

The company also mentions in the report that it has signed an extension and increase of contract with another significant customer that constitutes about 10% of the company’s sales. The new agreement reflects a 250% increase in terms of quantity, and based on current raw material prices reflects a 53% increase in customer sales This is in 2020, which amounted to NIS 71.5 million – ie about NIS 100 million in accordance with the new agreement.