The company has signed with Carrefour and will rebrand the food retail chains, the results include the results of the food group Beitan Wines, Office Duty and the sports and leisure chain Saar Entrepreneurship, which were merged for the first time.
Electra Consumer Products publishes the financial statements for the summary of the fourth quarter and the year 2021 as a whole.
Highlights of the fourth quarter results for 2021
The company’s revenues in the fourth quarter of 2021 grew by 110% to NIS 1.5 billion, compared with NIS 711.3 million in the corresponding quarter in 2020. The increase in revenues is due to the consolidation of the results of Bitan Wines, Office Duty and Saar Entrepreneurship, in the amount of NIS 809 million, offset by a decrease in sales in the electrical consumer goods segment, as a result of the sale of a granddaughter company in France.
Gross profit in the fourth quarter of 2021 increased by approximately 161% to approximately NIS 431.6 million (approximately 28.8% of revenues), compared with approximately NIS 165.2 million (approximately 23.2% of revenues) in the corresponding quarter in 2020. The consolidation of the results of the acquired companies contributed approximately NIS 270 million to the gross profit. The increase in the gross profit margin was due to the gross profitability of the new activities first consolidated during the reporting period.
Operating profit in the fourth quarter of 2021 increased by approximately 170.7% to approximately NIS 56.6 million, compared with approximately NIS 20.9 million in the corresponding quarter in 2020. The consolidation of the results of the acquired companies contributed approximately NIS 27 million to the operating profit for the quarter. The increase in operating profit was mainly due to the increase in gross profit.
The company’s net profit in the fourth quarter of 2021 grew to NIS 13.1 million, compared with a net profit of NIS 10.6 million in the corresponding quarter in 2020. It should be noted that the net profit in the fourth quarter of 2021 included tax expenses in the amount of NIS 6.5 million for previous years.
The company’s EBITDA in the fourth quarter of 2021 increased by 209% to NIS 128 million, compared with NIS 41 million in the corresponding quarter last year.
The company’s shareholders’ equity, as of December 31, 2021, amounted to NIS 1.23 billion.
Sector results
In the electrical consumer goods sector, Sales in 2021 increased by about 7% to about NIS 1.24 billion, compared to about NIS 1.16 billion in 2020. The increase in revenues was mainly due to an increase in the field of air conditioner activity in Israel and an increase in the field of brand trade. The increase was achieved despite a decrease in revenues in the field of air conditioners’ operations abroad as a result of the sale of the granddaughter company in France at the beginning of the second quarter of the year (which contributed NIS 29 million in turnover and NIS 126 million in the same period last year). About 34% to about NIS 119 million (about 9.6% of sales in the segment), compared to about NIS 89 million (about 7.7% of the segment’s revenues) in 2020. The improvement was mainly due to an increase in sales and an improvement in gross profit. Results of the subsidiary’s subsidiary in France The sectoral profit increased from NIS 85 million in 2020 to NIS 119 million in 2021, an improvement of about 40%.
The segment’s sales in the fourth quarter of 2021 grew by 8.9% to NIS 280 million, compared with NIS 257 million in the corresponding quarter in 2020. The increase in revenues was due to an increase in the field of air conditioners in Israel, as well as an increase in brand trade. The increase was partially offset by a decrease in the activity of air conditioners abroad as a result of the sale of the granddaughter company in France, which in the corresponding quarter contributed about NIS 32 million. Profit in this segment amounted to NIS 18 million NIS (approximately 2.7% of the segment’s revenue) in the corresponding quarter in 2020. The increase in profit was mainly due to an increase in sales and an improvement in gross profit.
In the electricity retail sectorAs part of which the company operates the electricity storage and Shekem Electric chains, sales in the segment in 2021 increased by 15.2% to NIS 1.78 billion, compared with NIS 1.55 billion in 2020. The increase was due to the opening of 13 new branches during the period (along with the closure of two branches) and the company’s entry into operation of a duty-free store.
The segment profit in 2021 this year increased to NIS 88 million (approximately 4.9% of sales in the segment), compared with approximately NIS 82 million (approximately 5.3% of sales in the segment) in 2020.
The segment’s sales in the fourth quarter of 2021 increased to NIS 490 million, compared with NIS 486 million in the corresponding quarter in 2020. The increase was due to the opening of such new branches.
The segment profit in the fourth quarter amounted to NIS 26 million (approximately 5.3% of sales in the segment), compared with approximately NIS 27 million (approximately 5.5% of sales in the segment).
In the food retail sector, The company operates the Bitan Wines Group and consolidates it in its financial results as of May 27, 2021. The sales turnover since the beginning of the merger amounts to approximately NIS 1.7 billion and the segment profit amounts to approximately NIS 46 million. Revenue turnover in the segment in the fourth quarter amounted to NIS 702 million and segment profit to NIS 8 million.
In the investment real estate sectorRevenues of NIS 12 million and segment profit of NIS 63 million were recorded in 2021, compared with revenues and segment profit of NIS 10 million in 2020. The increase in segment profit was mainly due to a revaluation of investment real estate following the signing of The agreement with the reality fund under which the company sold to the reality fund half (50%) of the company’s ownership rights in real estate in Rishon Lezion.