Pool Robot Maker Meteronic Faces Financial Woes Amid Sale Talks
Pool cleaning robot manufacturer Meteronic, currently in preliminary talks for a controlling stake sale to FIMI fund, has reported another quarter of declining revenues and a shift to net loss. The company, majority-owned by Kibbutz Yizrael (56%), announced an additional efficiency program to meet its obligations.
In the second quarter, Meteronic's revenues fell approximately 15% year-over-year to about NIS 437.5 million. For the first half of the year, revenues were around NIS 747 million, a 13% decrease. The company attributes the decline to a weak private pool cleaner market, exacerbated by a strengthening shekel against the dollar, reduced sales in Europe due to "internal operational challenges" and increased competition.
The company posted a net loss of approximately NIS 8 million for the second quarter, compared to a profit of NIS 14.6 million in the same period last year. The first half of the year resulted in a loss of about NIS 34.5 million, partly due to U.S. tariffs and sales channel mix.
Looking ahead, Meteronic's outlook remains challenging. The order backlog stood at approximately NIS 98.5 million at the end of the quarter, a 3.4% decrease year-over-year, though it shows a 9.5% increase when currency fluctuations are excluded. Meteronic anticipates third-quarter revenues between NIS 260-290 million, a projected 19% drop from the previous year's third quarter.
In response to the situation, the company's management has approved cost-cutting measures, improved working capital, and strengthened liquidity through further efficiency programs. These efforts aim to ensure the company can meet its commitments. The disappointing results and efficiency plan come shortly after the company disclosed initial talks with FIMI fund, which could end Kibbutz Yizrael's long-standing control. At its peak, Meteronic was valued at around NIS 9 billion, with each of the kibbutz's 300 members holding shares worth NIS 17 million. However, the stock has since plummeted, falling about 40% in the past year and over 96% in the last five years, with the company now valued at approximately NIS 280 million, reflecting about NIS 500,000 per kibbutz member.
