Bottled water company Eden Springs Ltd. (Maayanot Eden) (TASE: MEYD) today notified the Tel Aviv Stock Exchange (TASE) that it expects NIS 22-25 million in lost revenue and NIS 10 million in lower earnings before interest, taxes, depreciation and amortization (EBITDA) due to the temporary halt in pumping of water from the company's spring.
The company added that future financial losses could be greater, but that it cannot estimate them at this time.
Last month, the company stopped pumping water, after a routine test discovered levels of microbial contaminants exceeded the permitted standard. Rival bottled water company Neviot - Nature of Galilee Ltd. (TASE: NVIO) also suspending pumping from its well for the same reason.
The Ministry of Health has now ruled that Eden Springs' spring water is compliant with the standards, and has allowed it to resume pumping and marketing of its water.
The main beneficiaries from the shut down of Eden Springs and Neviot were Ein Gedi Mineral Water from Kibbutz Ein Gedi at the Dead Sea, and Italy's San Benedetto. In a comparison of market shares the week before the crisis, with the first week in March, Eden Spring's market share fell from 39.3% to 20.8% and Neviot's market share fell from 25.1% to 22.4%, while Ein Gedi's market share rose from 23.8% to 33.1%, San Benedetto's market share rose from 3.9% to 9.6%, and Israeli brand Aqua Nova's market share rose from 3.9% to 8.2%. Tempo Beer Industries (TASE: TMPO) distributes both San Benedetto and Aqua Nova.
Published by Globes [online], Israel business news - www.globes-online.com - on March 18, 2009
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