Robotic pool cleaner maker Maytronics Ltd. (TASE:MTRN) today published its financial report for the fourth quarter of 2007 and for the year as a whole. The company posted NIS 225.7 million revenue in 2007, up 8% on the NIS 208.4 million in 2006. Net profit totaled NIS 60.1 million in 2007
The company's high gross profit margin stands out, considering rising prices for raw materials and the shekel's appreciation against the euro. 79% of sales were in Europe (NIS 178.2 million), compared with 16.7% in the US (NIS 37.7 million).
Maytronics has quintupled its market cap since its IPO in 2004. The company's profitability improved further in 2007, thanks to streamlining of manufacturing and outsourcing. The company has also benefited as pool owners have switched from manual cleaners to robotic ones in the past two years.
Another notable figure was a 48% increase in sales and marketing costs, caused by the establishment of a US subsidiary in the second half of the year. The move came after Maytronics' two-year effort to buy 51% of its US distributor failed. The set-up costs caused a gross loss of NIS 4 million and a net loss of NIS 9.5 million for the fourth quarter. Fourth quarter revenue totaled NIS 6.7 million.
Maytronics CEO Offer Shachar said, "The American market offers the greatest potential for the expansion of the company's business. That was why, two years ago, we decided to take over control of the distribution system. In states like Florida, Texas, and California, where half of the private swimming pools in the US are located, Maytronics now has a 10% market share."
Published by Globes [online], Israel business news - www.globes-online.com - on March 12, 2008
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