The Arad water meter company ended the first quarter of 2022 with record revenues of $ 77.5 million – a growth of 9% compared to the first quarter last year. Simultaneously with the publication of the reports, the company announced an exceptional remuneration to the CEO, a month after the shareholders rejected the offer to grant him a bonus.
Most of Arad’s revenue for the quarter came from its activity in the US market, which grew by 26% compared to the same period and amounted to almost $ 40 million.
Arad was affected by rising prices of electronic components following global supply chain disruptions, but the effect was offset by the growth in U.S. sales and rising product prices. The group’s net profit was $ 5.5 million, almost unchanged from the same quarter last year.
Arad Group develops, manufactures and markets advanced and traditional products used for water measurement, which enable the management of the water economy in real time. It operates in 60 markets around the world and has plants in Israel as well as in China, the United States, Italy, Spain and Mexico.
The group is controlled by the Ramot Menashe and Dalia kibbutzim and the Milestones group. The group’s CEO is Gabi Jankovic and its chairman is Hugo Chaufen. The two said today (Wednesday) in reference to the quarterly reports that “the global climate crisis has optimally emphasized the importance of conserving water resources and the business environment is characterized by an increase in demand for products and solutions in the field.”
Due to the global shortage of electronic components, the components have become more expensive and their delivery time has lengthened. Arad noted that it is taking a series of actions with the aim of minimizing the impact on delivery times to the boards.
Meanwhile, the group reported today that the Remuneration Committee and its board of directors approved the granting of a NIS 600,000 bonus to CEO Yankovich. Which stands at NIS 70,000 per month, and constitutes a deviation from the ceiling set in its remuneration policy.
In a report to the stock exchange today, the group stated that its remuneration committee and the board of directors have the authority to discuss the matter despite the decision of the meeting and that the consideration of paying the bonus to the CEO is a special case that justifies it.
Arad’s management explained its considerations in its desire to reward Jankovic for his contribution to the group’s performance and achievements, in part because the group’s remuneration policy has not been updated for a decade, a time when there was a 25% increase in executive pay. The group also explained that Jankovic’s basic salary is low compared to the salaries of CEOs of similar companies in the economy.
Arad shares climbed 3.1% today on the Tel Aviv Stock Exchange against the background of the publication of the reports.