Shai Dahan (photo by Eldan website)
Aldan Transportation Ltd., one of the leading leasing and car rental companies in the economy, published the financial reports for the fourth quarter and for the year 2022, showing an increase in gross and operating profitability, and a sharp increase in net and total profit.
Highlights of the results for 2022: The revenues in 2022 amounted to approximately NIS 1.4 billion, compared to approximately NIS 1.6 billion the previous year.
– In the operational leasing sector, revenues from external customers amounted to approximately NIS 1.1 billion in 2022, compared to approximately NIS 1.2 billion the previous year. The change in income from this sector was mainly due to a decrease in income from the sale of vehicles used for the sector’s activity as a result of a decrease in the amount of vehicles sold, offsetting an increase in the average price for the vehicle. On the other hand, there was an increase in rental income attributed to the sector’s activity mainly as a result of an increase in the average value for the car, offsetting a decrease in the number of rental days for the sector’s customers. The sector’s profits increased in the period to approximately NIS 291.3 million, compared to approximately NIS 216.1 million in 2021.
– In the vehicle rental sector, revenues from external customers increased to approximately NIS 256.4 million, compared to approximately NIS 245.2 million the previous year. The increase in income was due to an increase in rental income attributed to the sector’s activity mainly as a result of an increase in the average value for the car, offsetting a decrease in the number of rental days for the sector’s customers. On the other hand, there was a decrease in revenues from the sale of vehicles used for the sector’s activities, which resulted from a decrease in the amount of vehicles sold, offsetting an increase in the average value for the vehicle. The sector’s profits jumped to about NIS 46.5 million, an increase of about 160% compared to about NIS 17.9 million in 2021.
– In the trade sector, revenues from external customers amounted to approximately NIS 45.9 million, compared to approximately NIS 157.4 million in 2021. The decrease in revenues from this sector was mainly due to a decrease in the amount of vehicles sold to the sector’s customers, mainly as a result of the global shortage in the supply of vehicles. The segment’s profits amounted to approximately NIS 2.9 million compared to approximately NIS 3.8 million the previous year.
Gross profit in the period grew by approximately 32.7% to approximately NIS 457.3 million (approximately 32.8% of revenues), compared to approximately NIS 344.7 million in the previous year (approximately 21.9% of revenues). The increase in gross profit in 2022 was mainly influenced by an increase in the profitability of vehicle sales. Operating profit increased in the period by approximately 53.4% to approximately NIS 323 million (approximately 23.1% of revenues), compared to approximately NIS 210.6 million (approximately 13.4% of revenues) in 2021. Financing expenses, net, amounted in 2022 to approximately NIS 91.1 million, Compared to approximately NIS 79.6 million in 2021.
The company recorded an increase of approximately 69.8% in total profit in 2022 to approximately NIS 220.6 million, compared to approximately NIS 129.9 million in 2021. The increase is mainly due to an increase in activity as well as profit as a result of the revaluation of investment real estate and fixed assets (attributed mainly to the fourth quarter) Offsetting the increase in financing expenses, net as mentioned, the utilization of the vehicle fleet (average occupancy rate) amounted in 2022 to approximately 87.7%, compared to approximately 86.6% the previous year.
The main results for the fourth quarter of 2022
Revenues in the quarter amounted to approximately 337.4 million shekels, compared to approximately 385.4 million shekels in the corresponding quarter in 2021. Gross profit in the quarter increased by approximately 17.2% to approximately 110.8 million shekels (approximately 32.8% of revenues), compared to approximately 94.5 million shekels (approximately 24.5 % of revenues) in the corresponding quarter in 2021. Operating profit in the quarter grew by approximately 42.7% to approximately NIS 92.2 million (approximately 27.3% of revenues), compared to approximately NIS 64.6 million (approximately 16.8% of revenues) in the corresponding quarter of the previous year.
Financing expenses, net, amounted in the quarter to approximately NIS 21.9 million, compared to approximately NIS 17.9 million in the corresponding quarter last year. The company ended the fourth quarter of 2022 with an increase of about 55.5% in profit for the period which amounted to about 55.2 million shekels compared to about 35.5 million shekels in the corresponding quarter in 2021.
The company recorded an increase of approximately 49% in total profit in the fourth quarter of 2022 to a record of approximately NIS 94.7 million, compared to a profit of approximately NIS 63.6 million in the corresponding quarter in 2021. The sharp increase in total profit in the quarter is due to the increase in profit for the period, as mentioned, as well as the recognition of profit Other inclusive in the quarter in the amount of approximately NIS 39.5 million (mainly from the revaluation of fixed assets, net of tax) and this compared to the recognition of an other inclusive profit in the amount of approximately NIS 28.1 million recorded in the corresponding quarter in 2021.
More in-
Additional highlights:
The company’s equity as of 12.31.2022 increased to approximately NIS 705 million and constitutes approximately 24.8% of the company’s balance sheet. As of December 31, 2022, the company has cash and cash equivalents totaling approximately NIS 113 million. In January 2023, Alden raised approximately NIS 560 million through the issuance of 2 new bond series, Series H and Series IX, which were rated ilA+ by Maalot S&P. In Series H, the company raised approximately NIS 255 million at an interest rate of 3.23 %. In the ninth series, the company raised about 305 million shekels at an interest rate of 5.65%.
– In October 2022, the company’s long-term rating was raised and set at ilA and the short-term rating was set at “ilA-1” The company’s senior secured debt rating stands at “ilA+1”. The rating increase was made due to an improvement in the company’s financial profile. Rating forecast – stable.
– In October 2022, the company completed the expansion of Series G bonds for a consideration of approximately NIS 195 million, by way of a private placement for classified investors.
– In June 2022, the company completed the expansion of Series E bonds for a consideration of approximately NIS 92.5 million, by way of a private offering to classified investors.
– In February 2022, the company raised approximately NIS 224 million as part of the issuance of a new series of bonds – Series G. In light of the high demand, the fundraising was locked in at a price that reflects a return of approximately 0.71%, with a maturity of approximately 3.8 years. On the eve of the issuance, the bond series received an A rating by the rating company S&P Maalot. In June 2022, the company completed the expansion of the said bond for a consideration of approximately NIS 38.5 million, by way of a private placement to classified investors.
Shai Dahan, joint CEO of Alden: “We conclude 2022 with good results, which include an improvement in profitability, and the presentation of record profits – both on an annual level and in the fourth quarter. Eldan continues to take active management while adapting its activities to current trends in the automobile market. In this context, Eldan leads the field of electric vehicles, in the leasing market, vehicle rentals as well as in the sale of new and used electric vehicles. At the same time, we continue to maintain and strengthen Alden’s strength and financial flexibility, as manifested, among other things, in the continuous improvement in the ratio of capital to the balance sheet. We also continue to cultivate the company’s positive reputation and strengthen its position in the automobile market.”
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