The air conditioner company Tadiran Group Continues to show strong financial results. In 2021, the company’s revenues grew by 46% to NIS 1.45 billion, and management estimates that the growth will continue in the current year as well, with revenues of over NIS 2 billion.
This target, which the company expected to achieve only in 2025, reflects projected growth of more than 38% in the current year, thanks in part to the acquisition of activities in the field of solar energy equipment with an investment of hundreds of millions of shekels made in the past two years.
The growth in revenues in 2021 was also largely due to the first consolidation of solar activity, which is concentrated under the subsidiary Tadiran Solar. During 2021, Tadiran acquired control (75%) of Eliran Solar, and later also acquired Aviam Systems in Israel and VP Solar in Italy.
Tadiran’s net profit last year was NIS 134 million, a 33% jump compared to 2020. In the fourth quarter, shareholders’ net profit grew by 81% to NIS 29 million, while an 86% jump in quarterly revenues to NIS 371 million.
According to Moshe Mamrod, CEO of Tadiran Group and controlling shareholder, “We are concluding a record year, during which we have significantly expanded our activities to other areas in the world of renewable energy. We established a large energy arm within about a year, which we estimate will expand to about 50% of the group’s activities.
“We believe that this activity will continue the significant growth trend along with the continued increase in core activity in the field of mergers, and are three years ahead of the original goal set in the strategic plan for 2020 – to bring Tadiran to sales of over NIS 2 billion in 2025. We estimate this goal Will be achieved as early as 2022. “
“Examining investments in Israel and abroad”
In 2021 the renewable energy activity of Tadiran Group Revenues of NIS 438 million, which constituted about 30% of the group’s total revenues. According to the company’s management, in 2022, renewable energy activity is expected to expand to 50% of total revenues.
Meanwhile, the activity of consumer products (mainly air conditioners) generated revenues of about NIS 1 billion in 2021, ie about 70% of the company’s total revenues. According to Mamrod, “We are working to further implement the strategic plan in the field of air conditioners as well, while examining a variety of collaborations and investments in Israel and abroad in the various activities.”
Tadiran Group is mainly engaged in the import, production, marketing, distribution, and sale of air conditioners and air conditioning systems for the domestic, commercial and industrial markets, and the group is also responsible for providing warranty and maintenance services for these products. As of 2021, the company is engaged in the field of energy, including the design, processing, distribution and trade of products and solutions for solar systems.
The solar field currently includes the distribution and sale of solar panels made by JINKO and optimization systems (converters and optimizers) made by Solaredge, along with the import of raw materials and processing in Israel. In addition, this field also includes Aviam, a company that distributes and sells UPS (uninterruptible power supply) systems, special power supplies and batteries for storing electricity to domestic, commercial and institutional customers.
Will distribute a dividend of about NIS 34 million
The growth in net profit in the fourth quarter is attributed to the sharp growth in revenues and to the recognition of profit from an increase in the value of investment in the Southern Israel Bridging Fund Two fund and the first consolidation of the results of Tadiran Solar and Aviam.
Simultaneously with the publication of the reports, the company announced that it would distribute a dividend of NIS 34 million to its shareholders during the current month. In total, Tadiran Group announced dividends of approximately NIS 67 million for 2021 profits, which constitute approximately 50% of the company’s net profit in 2021 to shareholders.
Tadrian is traded on the stock exchange at a value of NIS 3.9 billion, after its share has yielded a return of about 500% in the last three years. The controlling shareholder of Merod holds 64.4% of the company’s shares worth NIS 2.5 billion.
In a recent interview with Globes, Mamrod referred to the jump in company value and the question of whether he would work to realize some of his holdings: “I do not think Tadiran’s stock values are high relative to where our business is. Looking ahead I see very strong numbers in the coming years.
“When we reached a value of NIS 1 billion, they told me, ‘You better exercise, it will not come back.’