The company controlled by Elco of the Salkind brothers published results for the months of July-August: net profits rose by 56% to NIS 211 million during this period, and revenues increased by 24% to NIS 510 million; In August, Electra Consumer Products completed the sale of Golan Telecom to Cellcom, its share in the consideration amounting to NIS 573 million

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Electra Consumer Products concludes the months of July-August with a net profit of approximately NIS 210 million, compared to a profit of approximately NIS 135 million in the corresponding months of last year, as arising from the financial statements published this morning by the company. Publication of partial statements results from the board’s resolution to distribute dividends in the amount of NIS 300 million following the profit recorded by Electra Consumer Products from the sale of its holding in Golan Telecom to Cellcom.

Operating profit climbed to NIS 41 million, compared with NIS 8.5 million in the corresponding two years last year, an increase of 379%. EBITDA increased by approximately 142% to approximately NIS 52 million, compared with the corresponding months of last year. The company's equity amounted to NIS 913 million, as of the end of August.

The company reported in August the completion of the transaction for the sale of Golan Telecom to Cellcom, for a consideration set at approximately NIS 640 million. In accordance with its holding rate in the Golan (90.01%) and after deducting options for employees at Golan, Electra Consumer Products' share in the consideration is approximately NIS 573 million.

Electra Consumer Products is controlled by the Elco Group (54.1%) owned by the brothers Danny and Mikey Salkind (65.5%). The effective date for the value of the dividend is September 21 and the payment date is September 30. In August, the company announced a distribution of dividends in the amount of NIS 30 million, distributed at the beginning of September 2020. This dividend is in addition to a NIS 30 million dividend distributed by the company in April 2020 and dividends totaling NIS 46 million distributed by the company in the course of 2019.

According to the aforesaid reports for the months of July-August, the company's revenues in this period increased by approximately 23.6% compared to July-August 2019 and amounted to NIS 510 million. The increase in revenue is due to growth in the sales volume of the electricity retail segment and an increase in the sales volume of the consumer electronics segment. Gross profits increased by approximately 49.6% to approximately NIS 127 million compared to the corresponding months of last year. The increase in gross profits is mainly due to the consumer electronics sector, thanks to a growth in the air conditioners sector in Israel.

Operating profits climbed to approximately NIS 41 million, compared to approximately NIS 8.5 million in the corresponding months of last year, an increase of approximately 379%. EBITDA increased by approximately 142% to approximately NIS 52 million, compared to the corresponding months of last year. The company's shareholders' equity amounted to approximately NIS 913 million, as of the end of August.

The company's net financial assets at the end of August amounted to approximately NIS 452 million, compared to a net financial debt of approximately NIS 627 million at the end of 2019. The change is mainly due to the sale of Golan Telecom and the termination of the consolidation of its financial statements.

In the consumer electronics segment, sales in July-August increased by approximately 10% to approximately NIS 251 million, compared to the corresponding months of last year. Sectoral profit climbed to approximately NIS 26.2 million, compared to approximately NIS 7.5 million in the corresponding months of last year. In the electronics retail sector, in the framework whereof the company operates the Mahsanei Hashmal and Shekem Electric chains, sales in July-August increased by approximately 37.5% to approximately NIS 291 million compared to the corresponding months of last year. Sectoral profit increased to approximately NIS 20.3 million, compared to approximately NIS 6.3 million in the corresponding months of last year.

Zvika Schwimmer, CEO of Electra Consumer Products stated: "Today we are publishing, in an exceptional manner, the financial results for the summer months of July-August 2020, which show a significant improvement in the company's business, both in the consumer electronics sector - which enjoyed increased profitability and revenue from the air conditioners business and from the increase in brand trade activity, as well as in the electricity retail sector, where we see the fruits of the operational moves we have implemented and the growth engines that are reflected, along with the positive impact of changing customer tastes following the new life habits that arose during the corona period."