The share of the construction and infrastructure company Danya Cebus was today one of the most prominent shares in the Tel Aviv-125 index. The main one of Ahuzat Beit is against the background of the first quarter reports of the year that it published.
The reports of Danya Cebus – headed by Ronen Ginzburg and headed by Arik Shapir – show that the company’s revenues in the first quarter of 2022 amounted to NIS 1.03 billion – an increase of about 2% compared to the same period in 2021.
Net income fell by 62% from NIS 108.7 million in the corresponding quarter in 2021 to NIS 41 million in the first quarter of 2022. The difference is due to a one-time profit recorded by the company in the first quarter of 2021 due to the separation from Africa Residential to a subsidiary. .
Although revenues remained similar to the corresponding quarter in 2021, operating income continued and EBITDA jumped. Profit from continuing operations amounted to NIS 40 million – a jump of 45% compared to the corresponding quarter in 2021. The profit reflects an annual rate of NIS 160 million compared to NIS 132 million last year. EBITDA (profit before interest, taxes and deductions) jumped by about 40% from NIS 48 million to NIS 67 million – an annual rate of NIS 268 million, while in 2021 it amounted to NIS 218 million.
This dissonance is mainly explained by a 53% jump in gross profit from NIS 43 million in the corresponding quarter last year to NIS 65.8 million in the first quarter of 2022. This is a gross profit margin of 6.3%, while in the corresponding quarter it amounted to 4.1%. The improvement in gross profit is due to a focus on more profitable projects.
The growth in the company was led by the residential development sector, in which revenues jumped 9.5 times to NIS 128.2 million, and gross profit jumped 18 times to NIS 18.3 million. The gross profit margin was about 14% – compared to 6% -4% in the other sectors. The gross profit of the non-residential infrastructure and construction sectors increased at a more modest rate, while the gross profit of the residential construction sector decreased.
The reports also show that Danya Cebus is prepared to make large investments in infrastructure – an area in which the government intends to invest NIS 100 billion over the next five years according to the “Infrastructure for Growth” plan published in December – as it has liquid funds (cash, deposits and marketable collateral) NIS 770 million, and has almost no credit obligations.