November 25, 2021

The Salkind brother's empire is expanding: Elco's revenues jumper to 4.2 billion shekels

Daniel and Michael Salkind, Elco's owners Photo: Israel Hadari

Financial Statements

Various acquisitions by Group companies, including the acquisition of Yeinot Bitan by Electra Consumer Products, have increased Elco's revenues significantly ■ The Company has received dividends of approximately 110 million shekels since the beginning of the year

Yosef Hersh ♦ 10:51 November 25, 2021

The Elco Group, which is owned by the brothers Danny (Daniel) and Mickey (Michael) Salkind, has expanded into an abundance of fields this year – and its revenues have increased by 31% to approximately 10 billion shekels in the first nine months of 2021 according to the reports, which were published today (Thursday). Elco controls Electra (211850 +1.52%), Electra Consumer Products (16450 +0.55%), Electra Real Estate (6326 +0.41%), The Theater of Dreams (which operates cinemas) and it also has a holding of approximately 30% in Discount Investments (1084 +0%), which controls, inter alia, Cellcom (1418 -1.18%) and Property & Building.

Since the beginning of the year, the companies in the Elco Group have expanded into various fields: Electra Consumer Products has acquired control in Yeinot Bitan; Electra has entered the transportation field through the acquisition of Afikim and Egged Ta'avura; Electra Real Estate has entered the hostelry field in the United States; and Supergas (6500 -1.78%) has entered the renewable energy field.

These acquisitions have increased Elco's revenues significantly, however the biggest profit in the last quarter was generated specifically by Electra Real Estate, which is engaged in the real estate field in the United States, deriving primarily from success (promote) fees and from an increase in the value of the assets in the United States.

Electra Real Estate's profit has jumped by 280% in the third quarter

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Elco's revenues increased by approximately 46% to approximately 4.2 billion in the third quarter of 2021, as compared with approximately 2.9 billion shekels in the comparative quarter of 2020. The operating oncome jumped by approximately 78% to approximately 373 million shekels in the third quarter of 2021 and the EBITDA (Earnings before interest, taxes, depreciation and amortization) grew by approximately 107% in the quarter, reaching approximately 549 million shekels, as compared with approximately 265 million shekels in the comparative quarter in 2020. The net income in the third quarter of 2021 fell be approximately 6% to 260 million shekels.

Electra Real Estates' revenues amounted to 187 million shekels in the third quarter of 2021, of which the company contributes profit of 133 million to Elco, as compared with profit of 35 million shekels in the comparative quarter in 2020. Electra's revenues in the quarter amounted to approximately 2.3 billion shekels, and it contributes a profit of 54 million shekels to Elco. Electra Consumer Products recorded revenues of 1.56 billion shekels in the quarter and the profit for Elco amounted to 61 million shekels. Supergas recorded revenues of 137 million shekels and its contribution to Elco fell by approximately 60% to 4 million shekels, as compared to the comparative quarter in 2020.

Elco (22840 -0.22%) received dividends of approximately 110 million shekels from Group companies in the first nine months of 2021. Elco is traded at a value of approximately 6.2 billion shekels and its share price has risen by approximately 45% since the beginning of the year.

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