Electra Consumer Products publishes the financial statements for the summary of the third quarter and for the first nine months of 2020. The company’s revenues in the third quarter of 2020 increased by 20.8% to NIS 741.2 million, compared with NIS 613.6 million in the corresponding quarter last year.
The increase in revenue is due to an increase in the sales turnover of the electricity retail segment and an increase in the sales turnover of the electrical consumer goods segment.
Gross profit in the third quarter of 2020 increased by approximately 41.9% to approximately NIS 182.8 million (approximately 24.7% of revenues), compared with approximately NIS 128.8 million (approximately 21% of revenues) in the corresponding quarter last year. The increase in gross profit is due to the electrical consumer goods sector and the electricity retail sector.
The company’s net profit in the third quarter of 2020 jumped by 72.2% to NIS 219.2 million, compared with a net profit of NIS 127.3 million in the corresponding quarter last year. The increase in net profit is due to the improvement in operating profit, as stated, as well as the profit recorded by the company in the quarter in respect of the sale of its holdings in Golan Telecom.
The company’s EBITDA in the third quarter of 2020 more than doubled to NIS 71 million, compared with NIS 35 million in the corresponding quarter last year.
The company’s shareholders’ equity, as of September 30, 2020, amounted to NIS 622.6 million. The Company’s net financial asset, net of a lease liability (IFRS 16), has increased and amounts, as of September 30, 2020, in the amount of approximately NIS 263 million.
The company’s revenues in the first nine months of 2020 increased by 10.7% to NIS 1.86 billion, compared with NIS 1.68 billion in the corresponding period last year. The company’s net profit in the first nine months of 2020 increased by 66.3% to NIS 281.1 million, compared with NIS 169 million in the corresponding period last year.
EBITDA in the first nine months of 2020 increased by 63.2% to NIS 160 million, compared with NIS 98 million in the corresponding period last year.
Zvika Schwimmer, CEO of Electra Consumer: “We summarize the first nine months of 2020 with a profit of more than 50% of profit in all of 2019, and with particularly strong results in the third quarter of the year. The third quarter was characterized by a significant increase in revenue, a sharp increase in net profit and an improvement in all key operating parameters.
The improvement in the company’s results is a direct continuation of the implementation of the company’s strategy, which includes deepening its technological advantages in the field of air conditioning, expanding sales channels of imported products and launching additional brands, strengthening the retail division’s website and streamlining the sales floor.
Despite the effects of the corona on the economy, Electra Consumer Products continued to enjoy an increase in demand and sales in all areas of its operations. In the retail sector, we are showing an increase in revenue, which is reflected in an increase in sales volumes in identical stores, with the sector’s activity defined in the economy as essential, and a sharp increase in sales on the company’s website.
This is due to an increase in the consumption of household appliances, which resulted from a longer stay of the population at home. We continue to work to expand retail activity, launching new stores in locations where we see significant sales potential.
During the quarter, we signed an agreement for strategic cooperation with the global BOSCH concern, as part of which a state-of-the-art plant will be established in Ashkelon, where the company will manufacture heat pumps for international markets, along with innovative air conditioning products. We consider this plant a major growth engine for the company.
In addition, we recently completed the transaction for the sale of Golan Telecom for a total consideration of more than NIS 600 million and a significant profit, a significant portion of which is distributed as a dividend to the company’s shareholders. “