Avgol reported a 620% jump in net profit driven mainly by the spread of the Corona

Avgol reported its financial results for the second quarter of 2020, showing a 1.57% increase in revenue along with a 620% jump in net profit, driven mainly by the spread of the corona virus, and the production of fabrics for virus protection masks.
The company's revenue for the second quarter of the year was $ 103 million, compared to $ 101.4 million in the corresponding quarter last year. The company notes that average sales prices were updated downwards during the period as a result of the decline in raw material indices and discounts given to the company's main customers, along with a 1% decrease in sales volumes due to the closure of the company's plant in Barkan.
The company's operating profit jumped to $ 26.7 million compared to $ 8.5 million in the second quarter of 2019, with the increase attributable to the transition to major manufacturing of fabrics for the medical market, which has higher profitability, and a 18.2% reduction in sales expenses to $ 68.5 million in the quarter. $ 83.8 million in the same quarter last year.
Net income was $ 18 million or 6 cents per share compared to $ 2.5 million or 0.9 cents per share in the second quarter of 2019. Despite the profitability, the company noted that due to the corona and its consideration of making various investments, it would not distribute dividends at this time.
The company's revenue for the entire first half was $ 193.7 million, a decrease of 7.18% compared to the company's revenue for the first half of 2019 which was $ 208.7 million. While the net profit was $ 26.1 million and is a 303% increase compared to the net profit in the corresponding half last year then stood at $ 6.5 million.
The decrease in revenue for the first half of the year is explained by the company in the decrease in sales volumes due to the closure of its plant in Barkan and due to the inactivity of the company plant in China during part of the first quarter of the year as a result of the corona events.
The nonwoven fabric company presented $ 86.6 million in cash and cash equivalents as of the end of the first half of the year compared to $ 32.7 million in cash and cash equivalents at the end of the first half of 2019.