May 17th, 2022; 9:40AM
Electra Consumer Products has published its outcomes in the first quarter of 2022 with both top-line and bottom-line growth. The company’s revenues increased by 108%, along with a rise of 17% in net profit, which amounted to approximately 41.8 million shekels. In the meantime, the company stated that it had reached a general agreement to establish a credit card club with Cal and Bank Hapoalim, which will offer its customers appealing deals for any purchase from the Electra brands.
The company’s revenues in the first quarter amounted to approximately 1.45 billion shekels, a 108% growth compared to approximately 697 million shekels in the same quarter last year. The growth in revenues is attributed to the inclusion of Yeinot Bitan’s outcomes, which contributed approximately 688 million shekels this quarter. This adds to the small rise in the sales in the electrical consumer products sector, as the revenues in the first quarter amounted to approximately 324.6 million shekels, compared to approximately 322.3 million shekels in the same quarter last year. In contrast, the company reported a reduction in revenues from the electrics retail sector, where revenues for the first quarter amounted to 420.7 million shekels compared to 423.5 million shekels in the same quarter last year. The company explained that the reduction in sales stems mainly from the timing of Passover and election day that took place in the same quarter last year.
At the bottom line, the company reports a net profit of approximately 41.9 million shekels, a 17.6% increase compared to the net profit of approximately 35.6 million shekels in the same quarter last year.
The company’s EBITDA amounted to approximately 125 million shekels – a leap of 85% compared to approximately 67 million shekels in the same quarter last year.
Improved operating and gross profits
The company’s gross margin has grown during the quarter by approximately 133.9% and amounted to approximately 421.8 million shekels (about 29.1% of revenues), compared to approximately 180.3 million shekels (about 25.9% of revenues) in the same quarter in 2021. The growth in the gross margin results from the gross profits of the new activities, which were incorporated in the report’s period for the first time, both from the retail sector and other sectors.
The company’s operating profit has increased during this quarter by approximately 85.7% and amounted to about 85.7 million shekels, compared to approximately 45.5 million shekels in the same quarter in 2021. The growth in operating profit stemmed mostly from the growth in gross profits.
Outcomes by sector
In the sector of electrical consumer products, the revenues in the first quarter increased to approximately 324.6 million shekels, compared to approximately 322.3 million shekels in the same quarter last year. The growth in revenues mainly resulted from the increase in sales in the field of heating systems for exportation, in the air conditioning field in Israel, and in the field of solar systems, which operation began at the start of the fourth quarter of last year, and which was offset by the decrease in the field of brand trade, chiefly due to the timing of Passover. The sector’s profit in this quarter has increased by approximately 7.4% to about 38.8 million shekels, compared to approximately 36.1 million shekels in the same quarter last year. The growth in revenues mainly resulted from the growth in sales.
In the electrical products retailing sector (Grab and Go and Shekem Electric), the revenues for the first quarter amounted to approximately 420.7 million shekels compared to approximately 423.5 million shekels in the same quarter last year. The decrease in sales resulted mainly from the timing of Passover as well as elections day, which took place in the same quarter last year. The sector’s profits in the first quarter of 2022 amounted to about 17 million shekels (approximately 3.9% of sales in the sector), compared to about 23 million shekels (approximately 5.5% of sales in the sector) in the same quarter last year.
In the food retailing sector (Yeinot Bitan), the sales turnover and the sector’s revenues in the first quarter of 2022 amounted to approximately 688 million shekels and about 4.4 million shekels, respectively.
Zvika Schwimmer, CEO of Electra Consumer Products: “During the first quarter and later on, we held on to the momentum of the significant business growth in order to strengthen Electra Consumer Product’s position as the leading company in Israel in the field of consumer products. We have recently signed a strategic and exclusive franchising agreement to operate the stores of the Yeinot Bitan chain under the international brand Carrefour, as well as another significant franchising agreement which we had signed in October with the 7-Eleven chain. These are two leading international retailing brands, which will offer groundbreaking value for the Israeli consumer and will put the company on the map as a central, diverse player in the Israeli food market.”