April 4th, 2023
The company concludes a successful year with 104 million NIS net profit, 166 million NIS EBITDA, cash flow of 73 million NIS, and distributed a total dividend of 50 million NIS to shareholders amounting to a 5% yield.
We continue to create synergies with German company MCT, purchased about a year ago.
Development is underway on our American factory in the areas of Bondyram and Polytron, the production line for the engineering thermoplastic products was recently completed.
We have positioned the recycling sector as a growth engine and are progressing to use recycled materials through its factories in England, Germany, and Israel.
Polyram concludes 2022 with an increase in revenues of all areas of activity and a 4% growth in net profit.
The company concludes a successful year in a world of uncertainty. 104 million NIS net profit, 166 million NIS EBITDA, and a cash flow of 73 million NIS. The Polyram board of directors decided on the distribution of a 12 million NIS dividend, which amounts to a dividend yield of 5% – a total of 50 million NIS in the year 2022
Despite a challenging year following the outbreak of hostilities between Russia and Ukraine and its consequences, Polyram presents strong annual reports and pays a dividend.
“We conclude 2022 as a year of growth and strengthen our business activities in our main target markets in the US and Europe,” says Yuval Peleg, CEO of Polyram. “The company is successfully implementing a multi-year strategic plan designed to leverage its capabilities to continue rapid and profitable global growth.
The plan is based on expanding the production systems in each of the target markets in which we operate while reducing costs and shortening delivery times and increasing the share of direct customers. In 2022 we expanded the production system ours in 6 new lines and we strengthened our marketing and supply system to the full satisfaction of the customers.”
Activity development overseas
The company continues to create synergies with the German company MCT, whose acquisition we reported about a year ago. In addition, it is developing its American factory in the areas of Bondyram and Polytron, when this month (March 2023) the production line for the engineering thermoplastic products in the USA is expected to be complete. In addition, Polyram has positioned the recycling sector as a growth engine and works steadily to use recycled materials through its factories in England, Germany, and Israel.
An Impressive year
The company’s revenues in 2022 amounted to approximately 1.1 billion NIS, a growth of 21.7% compared to 2021, in which revenues amounted to approximately 907 million NIS. The company’s revenues abroad increased in 2022 to nearly NIS 200 million, with an emphasis on the main target markets with a 44% growth in sales in Europe and a growth of about 27% in the American market.
An increase in revenues as a result of an increase in quantities and an increase in prices was recorded in all of the company’s activity sectors: in the engineering thermoplastic compounds (EP) sector, revenues in 2022 increased by approximately 27% compared to 2021 and amounted to approximately 651 million NIS, of which 72 million NIS for Reunification for the first time of MCT. In the Bondyram sector, revenues increased by approximately 14% compared to 2021 and amounted to approximately NIS 349 million, and in the Polytron sector, revenues increased by approximately 15% compared to 2021, to approximately NIS 104 million.
The gross profit in 2022 amounted to about 200.5 million NIS (about 18.2% of total sales), similar to a gross profit of 200.7 million NIS (about 22.1% of total sales) in 2021. The decrease in the rate of gross profit is mainly due to an increase in the prices of raw materials. However, the scope of the gross profit in NIS was maintained.
The operating profit in 2022 amounted to 128.5 million NIS, a decrease of 7.9% compared to an operating profit of 139.5 million NIS in 2021. The operating profit was affected by an increase in sales and marketing expenses and administrative and general expenses from the first consolidation of MCT, as well as other expenses to the extent of NIS 2.6 million for the purchase of MCT.
The EBITDA in 2022 amounted to approximately NIS 166 million, similar to the EBITDA of approximately NIS 165.6 million in 2021.
The net profit in 2022 amounted to approximately NIS 104.1 million, an increase of 4.0% compared to a net profit of approximately NIS 100.0 million in 2021. The increase in net profit results from a decrease of approximately NIS 10 million in financing expenses as a result of changes in currency, as well as a reduction of approximately NIS 3.8 million in tax expenses which were offset by an increase in operating expenses for the purchase of MCT.
The cash flow from current operations in 2022 was NIS 73 million.
Dividend – The company’s board of directors decided on the distribution of a dividend of 12 million NIS. The total scope of the dividends distributed by Polyram to the shareholders for the 2022 profits amounts to 42 million NIS. From the day the company was established on July 1, 2015, until March 2023, the company distributed dividends in the total amount of NIS 332 million.
The company’s equity as of December 31, 2022 amounted to approximately NIS 594 million, compared to equity of NIS 440 million at the end of 2021.
The Polyram company, located in Moshav Ram-on in the north of Israel, deals in the compounding of plastic materials for a variety of industries, and is under the control of the Fimi Fund (30.9%) alongside Moshav Ram-on (26.35%), since 2015. The company has global distribution through 6 factories, 10 subsidiaries, and over 40 distributors. The company markets more than 1,300 products to over 800 customers. The company’s solutions are characterized by innovation and manufacturing complexity. It develops, manufactures, and markets in three areas of activity: engineering thermoplastic compounds; binders, impact enhancers, and adhesives (Bondyram); Engineering thermoplastic products that include long glass fibers (Polytron).
The 2022 figures come after an extremely successful 2021 for the company – after it reported record profits and distributed a dividend of NIS 30 million to its shareholders.
*Translated article below from link: https://plastictime.co.il/%d7%a4%d7%9c%d7%a1%d7%98%d7%99%d7%a7%d7%94-%d7%91%d7%a9%d7%95%d7%a7-%d7%94%d7%94%d7%95%d7%9f/polyram_9/
