Elco sums up the first half of 2022 with an additional surge in income and revenue; the rate of annual income is nearing 20 billion shekels. Revenues in the second quarter: 4.7 billion shekels, revenues for the first half of 2022: 9.6 billion shekels, with a rise of 140% in net profit, nearing half a billion shekels.
Walla! Finance
August 24th, 2022
Nobody really thought that the financial reports of Elco’s second quarter would indicate a slowing down. And, still, the numbers are incredible. The company, under brothers Michael (Mikey) and Daniel (Danny) Salkind continues to establish itself as a business empire, especially on the Israeli scale.
Elco sums up the first half of 2022 with additional growth in income and profits; the annual revenue rate is nearing 20 billion shekels. The group has finished the quarter with a growth of approximately 49% in income to 9.6 billion shekels and with a 140% rise in net profit - approximately 480 million shekels for shareholders.
In the second quarter of this year, Elco had a 36% growth in its income, which translates to approximately 4.7 billion shekels, and a 75% growth in net profit – 180 million shekels for shareholders.
The companies that are parts of the Salkind brothers’ puzzle
The Elco group is an entrepreneur, developer, and guide of companies and business endeavors. The group operates to seize business opportunities in Israel and abroad, both in the fields the group’s companies are involved in and in other sectors.
The main operation of the group is conducted through the subsidiaries: Electra (48%) operates in the field of services to buildings and facilities in Israel and abroad, including installing and providing services for central air conditioning systems, elevators, sanitation, infrastructure, construction of national facilities, hybrid security and protection solutions, power and plumbing, construction and management of real estate, real estate initiatives, management and maintenance of properties, and public transportation.
Electra Real Estate (60%) operates in the field of acquisitions, management, and betterment of real estate for leasing in the south-east USA – which is held directly by the company and by investment funds for real estate for lease in the United States.
Electra Consumer Products (48%) operates in the field of importation and marketing of electronic consumer products and providing services for these products, operating retail chains for selling electronic devices, and a retail food chain.
Dream Group Holdings (100%), formerly known as Elco Media, operates cinemas all over Israel, including the selling of movie tickets, food and beverages, renting movie theatres and commercial property for various purposes, and selling media (advertising on movie screens).
Discount Investments (29.8%), which holds companies in the real estate field (properties and construction), cellular (Cellcom), hi-tech initiatives (Elron), agriculture and cooling facilities (Mehadrin).
Supergas Energy (62%) operates through Supergas and includes, among other things, the marketing of LPG and natural gas for industrial clients, commerce, agriculture, and households, alongside the establishment and planning of LPG and natural gas systems.
Daniel and Michael Salkind as joint CEOs of the group
"In a thrust of Activity”
Avi Israeli, vice CEO Elco: “Elco continues to achieve significant growth in revenues and profits in the first half of 2022 and is in a thrust of activity in accordance with the group’s strategy to ensure its continued growth in the coming years.
“Electra Real Estate has witnessed peak results in this half, which reflect the successful application of the company’s strategy, which focuses on the management of Private Equity funds that invest in high-quality basic properties in markets in the USA and the UK.
“The investors’ capital which is managed by the company’s funds continues to grow and is currently at 4.3 billion dollars, and the company’s target markets remain stable, mainly due to the high demand of properties for leasing in the Sunbelt area in the United States, which is characterized by a surplus of demand and low supply. The company continues to operate to raise funds from investors in Israel and abroad at high rates and continues to establish its status as a leading player in the markets in which it operates.
In Electra Consumer Products, the processes for developing the company’s growth engines for the next several years continue. In the field of food, the company operates with intensity to complete the preparations for launching the Carrefour chain in Israel and for opening the first 7-Eleven store during the current year.
“At the same time, the company is currently drafting a plan to become more efficient and re-organize to improve the Yeinot Bitan chain’s performance as soon as in the coming few months. As part of this, in the fashion field, the company is widening its activity through the buying of the Adidas franchise in Israel. In addition, this month, the company has signed a strategic agreement to establish a credit card club, the largest in Israel, with CAL and Bank Hapoalim. The club will strengthen the connection with the company’s customers in the various fields of the company’s operation and will contribute to its profits.”
The company is currently also preparing for the beginning of the work on the Green Line of the light train in Tel Aviv, a 9 billion shekels project which is one of Electra’s landmark projects for the next few years. In the second quarter, Electra’s outcomes were influenced, among other things, by a pre-tax profit of 87 million shekels from the selling of its holdings in the Agira Sheuva project in Gilboa.
The Supergas company, led by a new CEO, is currently applying its business strategy to become a muti-field energy supplier while accelerating growth and improving profits in both Israel and the United States.”
The Elco group has published today its financial reports for the second quarter and first half of 2022, which indicate a significant growth in all operational parameters – a rise in revenues, operating profits, and bottom-line profits.