Stock Elbad Fell 8% during the day (Monday) after the company, which manufactures and markets damp cloths and non-woven fabrics and is controlled by Moshav Mesuot Yitzhak, reported a heavy quarterly loss of NIS 45.8 million, compared to a net profit of NIS 41.3 million in the corresponding quarter. Elbad is traded on the stock exchange at a value of NIS 336 million after its share fell by almost 60% in the past year.
Elbad recently warned of an expected loss of about $ 10 million in the US wipes sector, due to “existing exposure due to the partial existence of a contract with a US distributor”, after the second quarter of the year reduced the volume of demand and created an excess supply in the US wipes .
In the third quarter reports, Alved recorded a provision for impairment of inventory and doubtful debt in the United States of NIS 35 million, and at the same time recognized a decrease of NIS 11 million due to a decrease in the value of fixed assets in the United States, as a result of declining sales of antiseptic products. As a result, in the third quarter, the wet wipes segment moved to an operating loss of NIS 46.7 million, compared with an operating profit of NIS 46.7 million in the corresponding quarter.
The company notes that last year, against the backdrop of the corona crisis and the rise in demand for disinfectant products in the US, it contracted with an American distributor to distribute its disinfectant products, but this year demand fell and at the same time there was a delay in paying the distributor $ 8 million. Which are facing the collection of the distributor’s debt and the reduction of its damages. “
Decrease in revenues in all areas of activity
In total, revenues from the wet wipes sector in the quarter amounted to NIS 334 million, a decrease of 6.7% compared to the corresponding quarter, and from the beginning of the year revenues decreased by 4.5% to NIS 988 million.
The company also operates in the fields of fabrics and feminine hygiene, where revenues have also declined. Revenues from fabrics fell by 25.8% in the quarter to NIS 69.6 million and by 10% from the beginning of the year to NIS 238 million, and revenues from feminine hygiene fell by 11.9% in the quarter to NIS 34.8 million and by 7.8% from the beginning of the year to NIS 112 million . The company’s total revenues in the quarter amounted to NIS 371 million, a decrease of 8.3% compared to the corresponding quarter. In January-September 2021, revenues shrank by 5.5% compared to the corresponding period to NIS 1.1 billion.