Tadiran shifted to quarterly profit — energy sector sales grew by 34%
Tadiran concluded the second quarter with a net profit of 15 million shekels, reversing last year's loss. Revenue rose by 15.1%, driven by a 34% surge in the energy sector.
Tadiran, controlled (64.41%) by Moshe Mamrod, concluded the second quarter with an increase in sales and a shift to a net profit attributable to shareholders of 15 million shekels, compared to a net loss of 44.8 million shekels in the same quarter last year.
The company's sales grew during the quarter by 15.1% to 551.7 million shekels, following a 34% increase in sales in the energy sector, which totaled 250.3 million shekels. Within this sector, the company engages in the import and distribution of products for photovoltaic systems, uninterruptible power supply systems, electric vehicle charging systems, and storage systems. This growth was offset by a 5.6% decline in the consumer products sector, where sales totaled 216.1 million shekels. The decline was attributed to the negative impact of Operation Lion's Roar and a decrease in the average price per air conditioner, partly due to the decline in the dollar exchange rate.
The company's gross profit grew by 15% to 89.9 million shekels, maintaining a margin of 18.7% of sales. This growth was recorded in both operating segments and was attributed to improved procurement costs and the weaker dollar. A significant improvement was recorded in operating profit, which grew by 46.6% to 22.9 million shekels, raising the operating margin to 6.4% of sales compared to 5% in the same quarter.
In the second quarter, the company recorded a loss of 5 million shekels from the revaluation of liabilities regarding a put option to purchase VP Solar due to exchange rate fluctuations. Regarding the Electricity Authority's recent 140-day freeze on processing requests for 8-megawatt AC server farms, the company noted that the decision does not apply to projects already in technical coordination, though it cannot yet estimate the impact on its Data Centers business.
Meanwhile, the board of directors approved extending the company's option plan for an additional 10 years and granted 9,000 options to two employees in a subsidiary. The benefit value is estimated at approximately 318,000 shekels for each employee.
