Having recently acquired Yeinot Bitan and Saar Enterprises, the company closed Q1/21 with a 37% increase in revenue to NIS. 597m and operational profits skyrocketed by 122% to NIS. 45.5m
Orna Yeffet 09 May 21
Electra Consumer Products reviews the first quarter: the electrical appliances retailer owned by the Zelkind family is closing the first quarter of 2021 with a 36.5% growth in revenue to NIS. 697 million, partly due to the increase in sales of electrical appliances and the sales turnover in the Mahsanei Hashmal and Shekem Electric retail chains.
Improved revenues have resulted in both a 43.3% increase in gross profit for a total of NIS. 180 million, and a spurt in the sales rate at 26% compared to 24.6% for the same period last year. The company successfully improved gross profit through its launch of a new series of air conditioners and by adjusting the mix of sales in Mahsanei Hashmal stores.
Sales and marketing costs for this quarter totaled some NIS. 121m compared to NIS. 99m for the parallel period last year. This quarter’s higher figures are primarily sourced in salary costs in the electrical retail sector, credit card commissions, and an increase in rental costs following the opening of new branches.
As far as operational profit, Electra Consumer Products showed a strong increase of 122% to NIS. 45.5 million. The company closed Q1 2021 with a clear profit of NIS. 35.6 million compared to NIS. 27.3 million for Q1 2020.
During the first quarter of 2021, the company entered the retail food market and the leisure apparel market. Last week Electra Consumer Products signed an agreement to acquire control in the food chain which encompasses 150 branches of Yeinot Bitan, Mega, and Mehadrin Market for NIS. 193 million. At the same time, Electra acquired control in Saar Enterprises & Trade, the franchise holder of the leisure wear brand “Colombia” valued at NIS. 130 million.
Tzvika Schwimmer, CEO, Electra Consumer Products
(Photography: Orel Cohen)