Entry into the field of energy activity continues to push forward Tadiran Group (TASE: TDRN), controlled by CEO Moshe Mamrud. The company reported record revenue of NIS 1.19 billion in the first half of 2022, up 75% from the first half of 2021.
The sharp growth in revenue stems mainly from consolidation of VP Solar, the Italian company acquired by Tadiran at the start of the year. VP Solar provides equipment for building photovoltaic power stations and its acquisition was made to expand Tadiran's activities in solar energy in Europe.
During first half of the year, the company ended with EBITDA of NIS 153.8 million, a rise of 42% compared with the corresponding period of 2021. Net profit in the first half of the year amounted to NIS 79 million, a rise of 20% compared with the first half of last year. Tadiran also announced it would be distributing a dividend of NIS 40 million to shareholders.
Tadiran Group continus to be engaged in its traditional activities of importing, manufacturing, marketing, distribution, and selling of air conditioners and air-conditioning systems for the household, commercial and industrial markets, as well as white electrical goods for the household market. But two years ago it entered the solar energy sector and this has high growth potential, and includes import, distribution and commercial activity for solar energy products, uninterrupted power systems (UPS), and energy storage systems as well as managing charging of vehicles in Israel and energy streamlining solutions. In the energy sector, Tadiran operates through subsidiaries, some of which were acquired over the past two years, such as Aviem (energy storage) and VP Solar (solar energy solutions in Italy and other countries in Europe).
As of today, energy activity reflects about 54.4% of the Group's activities in the first half of the year, compared with about 30% in all of 2021. In 2022 energy activities will continue to expand and the rate of its contribution will rise above 50%, and revenue is expected to exceed NIS 2 billion.
Tadiran Group CEO and controlling shareholder Moshe Mamrud said, "We are delighted to present another quarter of record revenue as a result of the continued successful realization of our growth strategy. The results of VP Solar, the Italian company that we acquired, are strong and encouraging and we see major potential for continued growth.
"We are in the middle of the summer, for which we prepared ahead of time with larger inventory than usual, allowing us to successfully meet the high demand typical of this season. We recently announced the signing of major agreements for supplying energy storage systems to two leading companies in the field of green energy. We are proud that they chose us and see in this a vote of confidence in the Group's professionalism and its abilities."
Tadiran Group's quarterly results were also strong. Revenue in the second quarter grew by about 76% compared with the second quarter of 2021 to about NIS 681 million, and this was mainly due to revenue growth in the energy sector, and the first consolidation of the results of Italian company VP Solar. EBITDA was NIS 92.2 million in the second quarter, up 46% from the corresponding quarter of 2021 and net profit in the second quarter was NIS 41 million, up 9% from the corresponding quarter of 2021.
Published by Globes, Israel business news - en.globes.co.il - on August 10 2022.
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