2023-12-03 06:07:27
Kibbutz Jezreel’s Investment in Mitronics Pays Off, Despite Recent Setbacks
In February 2012, Kibbutz Jezreel faced a pivotal decision regarding the sale of control of the pool cleaning robot manufacturing plant, Mitronics. Despite a tempting offer from American competitor Hayward, which offered NIS 180 million for the kibbutz shares, the members ultimately voted against the sale. Fast forward almost 12 years, and Kibbutz Jezreel’s investment in Mitronics has paid off handsomely, with their shares now worth more than 10 times the initial offer.
Despite the recent success, the company’s impressive journey has hit a rough patch. Mitronics recently saw a significant drop in the value of its shares, losing more than half of their peak value two years ago following market deterioration. This loss has also resulted in a rare event for the company, with a reported loss in the third quarter, marking a significant deviation from its typical financial performance.
Mitronics, a world leader in the development and marketing of robots for cleaning private and public swimming pools, primarily generates its revenue through exports, with 98% of sales and services occurring abroad. The company traditionally sees the bulk of its revenue and profit in the first half of the year, in preparation for the summer pool season.
Despite the recent challenges, analysts and company management remain cautiously optimistic about the future. CEO Sharon Goldenberg has hinted at potential improvements for the fourth quarter, and analysts believe that the nature of Mitronics’ business, combined with positive performance in the southern hemisphere, could lead to a turnaround.
As Mitronics grapples with market conditions and a shifting distribution chain, the company is facing a complex year. However, the inherent strength of its business and potential for future growth continue to provide hope for investors and members of Kibbutz Jezreel.
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