Plastics materials maker Kafrit Industries Ltd. (TASE:KAFR) today published its financial report for the second quarter of 2007. The company posted a net profit of NIS 3 million, compared with NIS 17,000 for the corresponding quarter of 2006 and a loss of NIS 5.6 million for the first quarter of 2007. Revenue rose 4.7% to NIS 111 million for the second quarter from NIS 106 million for the corresponding quarter.
The company posted a gross profit of NIS 18 million for the second quarter, compared with NIS 10.8 million for the corresponding quarter. Operating profit totaled NIS 5.5 million, compared with an operating loss for the corresponding quarter. Earnings before interest, taxes, depreciation and amortization (EBITDA) doubled to NIS 8 million for the second quarter from NIS 4 million.
Kafrit chairman Eli Hadomi said, “Time will be needed for Kafrit and its shareholders to recover from the lost years during which the company’s level of service and profitability were eroded by a lack of focus on its core business, while the company focused on its derivatives portfolio, which is unrelated to the company’s business activity.”
Hadomi said that the appointment of Avi Zaltzman as CEO to lead the company to its goal of becoming a leader in its field both in Israel and internationally was generating high expectations. Hadomi and Zaltzman said that the closing of the company’s derivatives portfolio was an important milestone that would greatly reduce its financial risk and enable management to focus on its industrial activity.
Published by Globes [online], Israel business news - www.globes.co.il - on August 23, 2007
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