The Ashtrom Group, one of the largest construction groups in Israel, published its financial results for the fourth quarter and for the entire 2021:
Highlights of the fourth quarter results 2021
The Group’s revenues in the fourth quarter of 2021 amounted to NIS 1.22 billion, similar to revenues in the corresponding quarter in 2020.
The Group’s gross profit in the fourth quarter of 2021 amounted to NIS 246.5 million, compared with NIS 244.1 million in the corresponding quarter in 2020.
In the fourth quarter, the company recorded an increase in net real estate investment value, in the amount of NIS 290.1 million, compared with an increase in net real estate investment value, in the amount of NIS 103.3 million in the corresponding quarter in 2020.
The Ashtrom Group’s operating profit in the fourth quarter of 2021 grew to NIS 533.7 million, compared with NIS 222 million in the corresponding quarter in 2020.
The net profit attributable to shareholders in the quarter amounted to NIS 427.6 million (total net profit of NIS 429.5 million), compared with net profit to shareholders in the amount of NIS 142.4 million (total net profit of NIS 144.5 million) in the corresponding quarter. -2020.
In the fourth quarter of 2021, the Group presented cash flow from operating activities in the amount of NIS 414 million, compared with NIS 154 million in the corresponding quarter in 2020.
The company’s board of directors approved a dividend of NIS 200 million.
Results of main operating segments – fourth quarter 2021
In the construction and infrastructure contracting sector in Israel, revenues in the fourth quarter amounted to NIS 640 million, compared with NIS 761 million in the corresponding quarter in 2020. The segment’s gross profit in the quarter amounted to NIS 53 million, compared with NIS 99 million in the corresponding quarter in 2020, which included a one-time profit of NIS 30 million in the context of the light rail.
In the residential real estate entrepreneurship segment in Israel (through Ashdar), revenues increased by 21.4% to NIS 346 million, compared with NIS 285 million in the corresponding quarter in 2020. The company sold 283 housing units in the quarter, compared with 239 housing units in the corresponding quarter in 2020. Gross profit in the segment increased in the quarter to NIS 65 million, compared with NIS 62 million in the corresponding quarter in 2020.
In the investment and entrepreneurship real estate segment (through Ashtrom Properties), revenues in the quarter increased by 60% to NIS 230 million, compared with NIS 143 million in the corresponding quarter last year. (Office towers in the city of Bnei Brak) compared to revenues of about NIS 70 million from sales in the project in 2020. Gross profit in the quarter increased by 58% to NIS 93 million, compared with NIS 59 million in the corresponding quarter in 2020.
In the manufacturing sector, revenues in the quarter increased by 14% to NIS 212 million, compared with NIS 186 million in the corresponding quarter in 2020. Gross profit for the quarter amounted to NIS 31 million, compared with NIS 23 million in the corresponding quarter in 2020.
Main results of 2021
The group’s revenues in 2021 amounted to NIS 4.46 billion, compared with NIS 4.63 billion in 2020. The decrease in revenues is mainly due to the overseas contracting sector following the completion of works, and a delay in the receipt and commencement of new works, during the Corona period.
The gross profit in the period amounted to NIS 894 million, similar to the gross profit in 2020.
In its financial statements for 2021, the company recorded an increase in the value of investment real estate, in the amount of NIS 399 million, compared with an increase in value of NIS 106 million in 2020. The increase is due, among other things, to the revaluation of residential real estate for rent in the Gaden project. Tel Aviv in the amount of NIS 164 million, as well as the revaluation of the Kiryat Hayovel project in Jerusalem in the amount of NIS 65 million.
The group’s share in the profits of affiliated companies increased in 2021 to NIS 656.6 million, compared with NIS 21.1 million in 2020. Most of the profit in this section in 2021, in the amount of NIS 500 million, derives from the CityPass transaction, with an additional profit of NIS 85 million from the Gulf and about NIS 26 million from Hod Hasharon Towers.
The Ashtrom Group’s operating profit in 2021 increased to NIS 1.57 billion, including a profit from CityPass in the amount of NIS 500 million, compared with NIS 680 million in 2020.
The net profit attributable to shareholders in the period increased to NIS 1.23 billion, compared with net profit to shareholders in the amount of NIS 329 million, in the corresponding period last year. The net profit in the period without CityPass profits is about NIS 750 million.
In 2021, the Group showed an increase in cash flow from operating activities to the amount of NIS 1.48 billion, compared with NIS 864 million in 2020.
And about NIS 6.5 billion at the end of 2020.
In the group’s coffers and its subsidiaries, according to the consolidated balance sheet, cash, cash equivalents and short-term investments amount to NIS 2.23 billion.
As of December 31, 2021, the equity attributed to the Group’s shareholders increased to approximately NIS 4 billion (total equity amounted to approximately NIS 4.18 billion), which constitutes approximately 26% of the balance sheet volume.