Makhteshim Agan Industries Ltd. (TASE: MAIN) today published its financial report for the second quarter of 2007. Strong crop prices has boosted demand for the company’s pesticides and herbicides, boosting revenue and profits.
Makhteshim Agan posted $549.9 million revenue for the second quarter, up 20% on the corresponding quarter of 2006, which was double the growth rate of its rivals. Net profit rose 30% on the corresponding quarter to $52.3 million.
The company posted a gross profit of $188.7 million, 34.3% of revenue, down slightly from 34.8% for the corresponding quarter. Part of the growth was due to the appreciation of the euro and Brazilian real against the dollar.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 25.4% to $100.6 million, figures to which both investors and analysts are paying particular note. Deutsche Bank said in March that Makhteshim Agan’s restructuring plan, led by chairman and CEO Avraham Bigger, was unclear, but noted that the lack of precise financial targets was a good thing, because they could not turn into an onus on management.
Bigger said, “Makhteshim Agan continues to demonstrate impressive growth performance in all areas of its business.” He added that the company’s restructuring program, launched in March, was making better progress than planned. “I believe that we can meet the plan’s targets ahead of time,” he said.
Citigroup has given Makhteshim Agan a very warm recommendation, including the company in 21 global stock picks.
Makhteshim Agan is a sub-subsidiary of IDB Holding Corp. Ltd. (TASE:IDBH) held through Koor Industries Ltd. (TASE:KOR).
Published by Globes [online], Israel business news - www.globes.co.il - on August 14, 2007
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