Koorer Reports 65% Net Profit Jump Despite Revenue Dip

Koorer, the controlling shareholder of beverage company Yafura, announced a 65% surge in net profit for the second quarter, reaching approximately NIS 13.5 million, despite an 8% decrease in revenues to around NIS 187 million. The revenue decline was attributed to the timing of the Passover holiday, which fell in the first quarter this year, and a temporary halt in production lines for a new product line.

Despite the dip in income, Koorer's net profit was boosted by several factors. These included changes in raw material and packaging costs, a shift in the sales mix, and financial income of NIS 4 million from interest on the sale of its stake in the chip manufacturer Tafugen. Koorer sold its 38% holding in Tafugen to Green Lantern Capital for approximately NIS 500 million, with Koorer's share amounting to NIS 206 million. This transaction was completed earlier this year.

Sales to customers supplying the Gaza Strip also contributed significantly, estimated to account for up to 4% of Koorer's total sales volume. The company's beverage sector, Yafura, reported half-year sales of approximately NIS 377 million, consistent with the previous year. Yafura's portfolio includes popular brands such as Spring, Crystal, Tzfuzina, RC Cola, Paz, Ein Gedi, and Schweppes.

For the first half of the year, Koorer's net profit soared over fivefold to approximately NIS 122 million, largely due to the sale of its stake in Tafugen and the cessation of operations at its recycling company, Green Pet. The company's profit from ongoing operations for the first half increased by 75% year-on-year to NIS 51.7 million. Koorer now holds a sole investment in Yafura, owning 70% of the beverage company.

Koorer's stock has risen nearly 8% in the past year, valuing the company at approximately NIS 1 billion.