Electra Consumer Products concludes the first quarter with revenues of NIS 697 million, 36% increase

Electra Consumer Products, which is controlled by the Elkind family's Elco Group, concludes the first quarter of 2021 with an increase in net profit and operating profit following an increase in sales of electrical products, including air conditioners, and an increase in sales of the electricity storage and Shekem Electric retail chains.
The company's revenues in the first quarter of 2021 increased by 36% to NIS 697 million, compared with NIS 511 million in the corresponding quarter in 2020. Gross profit in the first quarter of 2021 increased by about 43% to NIS 180 million (25.9% of revenues), compared with about NIS 126 million (24.6% of revenues) in the quarter in 2020.
Operating profit jumped by 122% to NIS 45 million in the first quarter of 2021, compared with NIS 20 million in the corresponding quarter. Electra Consumer Products reported a net profit of NIS 35 million in the first quarter of 2021, compared with a net profit of NIS 27 million in the corresponding quarter in 2020. The net profit in 2020 included, among other things, a profit of about NIS 13 million from Golan Telecom's operations, which were sold last year.
Electra reported that sales turnover in the electrical consumer products segment, which includes import and distribution of electrical products including air conditioners, increased by 34% in the first quarter to NIS 322 million, compared with NIS 241 million, with profit from this segment amounting to NIS 33 million compared to 20 NIS 1 million in the corresponding quarter.
In the electricity retail sector, in which Electra operates through the electricity storage chains and Shekem Electric under its control, sales turnover in the first quarter of 2021 rose to 44%, which is NIS 424 million, compared with NIS 293 million in the corresponding quarter. Sales per square meter in identical stores rose to NIS 3,651 per square meter on a monthly average, compared with NIS 2,921 per square meter in the corresponding period in 2020. Profit from the electricity retail sector rose to NIS 23 million, compared with NIS 10 million in the first quarter of 2020 - A jump of about 144%.
Electra Consumer and Phoenix recently announced the acquisition of control of the Beitan Wines retail chain for NIS 260 million. As part of the transaction, Electra will hold approximately 35% of the shares of Bitan Wines and Phoenix approximately 15%. The acquisition of control of Bitan Wines is part of the company's strategy to expand its activities in the retail sector. Last April, Electra signed an agreement to acquire control (50.01%) of Saar ET. Entrepreneurship and trade for NIS 85 million. Saar ET operates in the field of sports equipment and hiking and is the franchisee of the Colombia brand in Israel. Recently it has also started operating in the real estate field.