The corona is reflected in the tough Fattal reports – the capital market

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Fattal Holdings
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Surely want to curse the day the word ‘corona’ came into the world. It’s hard to come to her with complaints. If there is one area that Corona has hit relentlessly throughout the year it is the area of ​​hotels and resorts. Instead of continuing to grow, Fattal recorded a very difficult year. It now hopes it can start coming out of the corona and publishes a revenue forecast in 2021 of NIS 3-3.6 billion, when according to the companyEBITDAR It is expected to range from NIS 800 million to NIS 1.15 billion, “based on a weighting between domestic and inbound tourism, in accordance with the company’s data from 2019, together with international bodies’ estimates of the expected decrease in domestic and inbound tourism in those countries / regions in 2020-2021.” .

It should be noted that this is definitely an optimistic forecast (perhaps too much) in relation to the current year. But who does not want to be optimistic after a year that has silenced the world?

80% drop in revenue in the fourth quarter. Beyond operating loss
The company’s revenues in the fourth quarter of 2020 amounted to NIS 265.2 million in comparison
To NIS 1.34 billion in the corresponding period in 2019, ie a drop of about 80%. Operating loss EBITDAR In the fourth quarter, it amounted to NIS 36.3 million, compared with operating profit EBITDAR Of NIS 471.6 million in the corresponding period last year. The company ends the fourth quarter of the year with a net loss attributed to shareholders of approximately NIS 378.3 million, compared with a loss of approximately NIS 0.82 million in the fourth quarter of 2019. Excluding IFRS 16 The company ends the fourth quarter of 2020 with a loss attributable to owners of NIS 340 million, compared with a profit of NIS 36 million in the corresponding period in 2019.

A 64% drop in annual revenue.
The company’s revenues in 2020 amounted to NIS 1.9 billion, compared with NIS 5.3 billion in the corresponding period in 2019, a drop of 64% compared to the corresponding quarter last year. Operating profit before rent, depreciation and other expenses (EBITDARIn 2020, it amounted to NIS 246.8 million, compared with NIS 1 billion in the corresponding period in 2019, a fall of 75%.

A net loss of NIS 1.3 billion
The company ends 2020 with a net loss attributable to shareholders of NIS 1.3 billion, compared with a profit of NIS 38 million in the corresponding period in 2019. The net loss attributed to shareholders in 2020 after neutralizing the effect of the standard IFRS 16 amounts to NIS 1,090 million, compared with a profit of NIS 225 million in 2019.

As of 31 December 2020 The equity of the group Amounted to NIS 2.59 billion in neutralization IFRS 16 and the Company’s fixed assets amounted to NIS 5.3 billion and its cash equivalents and cash amounted to NIS 1.3 billion.

The company managed to significantly reduce its expenses in 2020 and reduced rent payments by NIS 260 million, Reduced salary expenses and payments to suppliers by about 50%, and also reduced and deferred payments to state authorities in the countries in which it operates by about NIS 291 million. In addition, the company estimates that it will receive about 36 million euros from the German government for a decrease in revenues due to the closures in November and December 2020 and about 2 million euros per month for a decrease in such revenues from the beginning of 2021.

Shahar Aka, director and vice president of finance at the company: “The outbreak of the corona epidemic began exactly a year ago after 2019 was a record year in Fattal’s activity with revenues of NIS 5.3 billion. Hotel activity in Israel, which accounts for about a third of the company’s activity, has recently gained momentum. The rate of immunization in it, Greece and Cyprus are opening their doors to tourism and in the other European countries in which we operate, we are encouraged by government decisions to promote the rate of immunization.

“No one is surprised by the significant impact of the Corona epidemic on the company’s reports in 2020, as we all know we had to stop most of the chain’s hotel operations in Israel and abroad, but thanks to precise management and the need for our customers to go on vacation, we implemented the year. In a better-than-expected cash flow situation. “

During 2020, the company raised over NIS 1.5 billion and as of the end of the year, the company’s cash, cash equivalents and securities amounted to NIS 1.38 billion.

The Fattal hotel chain, owned by the Fattal family (63.65%), was established by David Fattal in March 1998 and specializes through corporations held by it, in the holding, operation, rental and management of hotels in Israel and Europe, as well as in the purchase and construction of new hotels.