May 19, 2021

Elco’s net profit skyrocketed by 66% to NIS. 167 million

Elco reported an intake of NIS. 2.92 billion in Q1 / 2021, an increase of 11%  | Electra Consumer Products produced NIS. 36 million profit for the Group

16:08   19 May 2021   by Yossef Heresh

Elco Group, controlled (65%) by brothers Michael and Danny Zelkind, reported on increases in intake and profits following improved profits in its subsidiaries. Elco holds control in Electra, Electra Consumer Products, Electra Real Estate, Supergas, and Hot Cinema. Some two months ago the company advised of its acquisition of 30% in Discount Investment Corporation for some NIS. 400 million.

Elco’s reported intake of NIS. 2.92 in the first quarter of 2021, compared to NIS. 2.62 in the parallel period in 2020, is an increase of 11%. Operating profit in Q1 2021 grew by 41% to NIS. 218 million compared to NIS. 155 million in the same period in 2020.

Elco’s net profit skyrocketed by 66% in Q1 of 2021 to NIS. 167 million (of which NIS. 96m is attributed to shareholders) compared to NIS. 100.6m (NIS. 55.7m attributed to shareholders) in the same period in 2020.

Electra Consumer Products, Electra, Supergas and Electra Real Estate announced dividend distributions in the first quarter, Elco’s share being NIS. 55 million. Dividends were paid out in April. Elco distributed dividends to the tune of NIS. 40 million to investors in April. The group’s short term cash and investment position as of the close of March was NIS. 22 billion. Elco’s equity as of the end of March stood at NIS. 3.24 billion.

Electra produced a NIS. 50m profit in Q1 2021 compared to NIS. 41 million in the same quarter last year. Electra Real Estate produced a profit of NIS. 41 million in the first quarter, compared to NIS. 16 million in Question! 2021. Electra Consumer Products brought the company a profit of some NIS. 36m, compared to NIS. 27m for the same period in 2020. Supergas Energy’s profit for Q1 2021 was some NIS. 25 million compared to some NIS. 29m for the parallel period in 2020.

The rise in Electra profits from activities in the field of infrastructures and electrical contracting, and the increase in Electra Consumer Products profits from electrical appliance retailing, were the leading factors behind Elco’s overall increase in profits.

Elco’s subsidiaries are working to expand into diverse sectors. electra acquired two public transport companies in the first quarter of 2021, making it one of the largest players in the sector. Electra Real Estate established a fund for acquiring assets in the field of hoteling in the USA. Electra Consumer Products signed a controlling acquisition agreement in the current quarter with the Yeinot Bitan chain. Supergas is expanding into the sphere of renewable energy and energy storage.

Avi Israeli, Elco VP: “We are closing 2021’s first quarter with a continued growth trend in intake and profits, and ongoing business development in our subsidiaries, each in its specific sphere. During the past month Elco was green lighted by Commissioner of Competition’s to purchase 29.8% of the Discount Investment Corporation’s shares. This transaction, subject to further authorizations, corresponds to its core business and business strategy. We believe we can significantly improve the company’s value.”