The entry into the field of energy equipment continues to push the company’s activity Tadiran Group , under the control of Moshe Mamrod. Today the company reported record revenues of NIS 1.19 billion in the first half of 2022, reflecting a sharp growth of 75% compared to the same period last year.
This sharp growth was mainly due to the consolidation of the results of the Italian company VP Solar, which was acquired at the beginning of 2022. The Italian company provides equipment for the construction of photovoltaic power plants (plants that generate electricity by absorbing the sun’s rays), and its purchase was intended to expand Tadiran’s activities in the field of solar energy to Europe.
Thanks to the sharp growth in revenues, the company also presented a 42% increase in EBITDA (earnings before financing expenses, tax, depreciation and amortization) to NIS 154 million in the first half. The net profit increased in the first half by 20% to NIS 79 million and after its presentation the company announced the distribution of a dividend of NIS 40 million to the shareholders.
The share of energy activity in total revenues jumped to 54%
Tadiran’s well-known old field of activity is the consumer goods sector, which includes the import, marketing, distribution and sale of air conditioners and air conditioning and treatment systems for the domestic, commercial and industrial markets. Also, this sector also includes the distribution of white electrical products for home use.
Less than two years ago, Tadiran entered the energy sector for the first time by launching activities and acquiring companies for the import, distribution and trade of photovoltaic (solar) energy products, uninterruptible power systems, energy storage systems, as well as vehicle charging management in Israel and solutions for energy efficiency. In the energy sector, Tadiran operates through subsidiaries, some of which, such as Aviam and VP SOLAR, it has acquired in the last two years.
Elo purchases increased the share of the energy activity in Tadiran Group’s total revenues to 54.4% in the first half of 2022, compared to approximately 30% in the whole of 2021. According to Tadiran’s management, in 2022 the energy activity will continue to expand, and its contribution rate will exceed 50%, when the company’s total revenues will exceed NIS 2 billion.
Moshe Mamrod, the company’s CEO and controlling owner, stated that “We are happy to present another quarter with record revenues as a result of the continued successful implementation of our growth strategy. The results of VP Solar, the Italian company we acquired, are strong and encouraging and we see great potential for continued growth.
“We are in the midst of summer, for which we prepared ahead of time with larger stocks than usual, allowing us to successfully meet the high demand that characterizes this season. We recently announced the signing of significant agreements for the supply of energy storage systems to two leading companies in the field of green energy. We are proud of their choice in us and see this as An expression of confidence in the group’s professionalism and abilities.”
Strong results even in a quarterly perspective
In the second quarter of 2022, Tadiran’s revenues grew by 76% to NIS 681 million, compared to the corresponding quarter last year. This growth was recorded mainly thanks to an increase in revenues from the energy sector, and a consolidation for the first time of the results of the Italian company VP Solar whose acquisition was completed in January of this year.
The growth in the revenue line seeped into the profit lines, and the group ended the second quarter of the year with an EBITDA of NIS 92.2 million, which reflects an increase of about 46% compared to the corresponding quarter. As a result of the completion of the purchase of VP Solar, the company in the second quarter and the first half as a whole also recorded a substantial increase in financing expenses, which resulted from the valuation of contingent consideration and a commitment for a put option for rights that do not confer control against the background of the strengthening of the euro against the shekel.
The net profit for the shareholders in the second quarter amounted to NIS 41 million, and reflected a growth of 9% compared to the corresponding quarter. Tadiran Group is currently traded on the stock exchange at a value of NIS 4.4 billion, after its stock climbed 18% since the beginning of the year and 312% in the last three years.