Haggag Group Reports Soaring Profits Amid Mixed Sales Performance
Haggag Group announced its second-quarter financial results, revealing a significant increase in revenue and net profit. The company sold a total of 66 housing units in the quarter, bringing the first-half total to 131 units. Sales growth was notably driven by the Masterpiece Bavli project in Tel Aviv, which sold 17 units in the second quarter after selling 3 in the first. The Alon project in Yavne also saw increased sales, with 27 apartments sold in the second quarter compared to 8 in the first.
However, the Infinity-Somayel project in Tel Aviv experienced a sales slump, with no apartments sold in the second quarter following the sale of just one unit in the first. In response, Haggag Group launched a sales promotion two weeks prior, offering buyers the option to pay NIS 1 million upon contract signing and the remainder three years after occupancy, interest-free and without linkage. The company also guarantees rental of these units for the first two years post-occupancy, with returns of 24%-52% on the initial payment.
Following the reporting period, 11 additional agreements were signed for the Infinity-Somayel project. The FIRST project in Shefayim sold 13 apartments in the second quarter, down from 23 in the first quarter, and a projected 132 for the full year 2025. The average price per square meter rose to NIS 63,100 from NIS 61,700 in the previous quarter. An additional 29 agreements were signed post-reporting.
Haggag Group also addressed soil contamination concerns at the Shefayim site, noting that a Ministry of Environmental Protection report indicated PFAS contaminants in only a small portion of the sampled areas, following an update to threshold values. The company estimates the remediation effort will be negligible in scope and cost, with no impact on project timelines.
Overall, Haggag Group's revenue grew by 26% year-over-year, and net profit surged to NIS 35 million from NIS 15 million in the previous quarter and approximately NIS 13 million in the same quarter last year. Co-CEOs Tzachi and Ido Haggag attributed the strong results to the company's diversified strategy and commitment to its standards, highlighting impressive performance in the current market.
