israel corporation ltd showcases financial agility with astounding q4 and annual results 2544


Israel Corporation Ltd. Showcases Financial Agility with Astounding Q4 and Annual Results


Lauren Miller

March 28, 2024 - 06:59 am


Israel Corporation Ltd. Triumphs with Strong Fourth Quarter and Annual Performance

TEL AVIV, Israel, March 28, 2024 /PRNewswire/ – Israel Corporation Ltd. (TASE: ILCO) ("ILCO"), a leading investment entity, proclaimed its impressive fourth quarter achievements and the full-year financial outcomes for the year concluding on December 31, 2023.

A Snapshot of Financial Excellence

Selected Financial Figures for the Fourth Quarter and 2023:

A vivid display of financial prowess, ILCO reported notable figures in its latest quarterly and annual summaries. The company's share in ICL profit for the fourth quarter stood at $29 million, which, although lower than the previous year's fourth quarter at $146 million, contributed significantly to the annual total of $285 million. This was a commendable performance considering the year-over-year comparison with 2022's notable $958 million.

In terms of amortization of excess cost, figures remained consistent in quarters four of both years at a negligible $(1) million, reflecting a minor, but consistent expense across the board. This extended into the total annual amortization, which slightly dipped to $(3) million in 2023 compared to $(4) million in the preceding year.

The expenses at the headquarters level for financing, general and administrative purposes saw an unusual turn, with quarter four of 2023 actually yielding a profit of $1 million. However, the previous year saw a loss of $(3) million. The yearly aggregate reflects a downward trend with expenses climbing to $(8) million in 2023 from a significant $(67) million in 2022.

When it came to taxes at the headquarters level, the fourth quarter of 2023 faced a mild tax expense of $(1) million, while in 2022, the expense was a steeper $(10) million. On a yearly scale, 2023 saw minimal impact from tax income or expense, while 2022 enjoyed a boost with $16 million in tax income.

The net profit from continuing activities revealed a resilient performance for the fourth quarter, garnering $28 million, down from $132 million in the same period of the prior year. Annually, this translated to $273 million in 2023, against the backdrop of an overwhelming $903 million in 2022. Meanwhile, discontinued operations did not contribute to the 2023 figures, unlike the $50 million boost experienced in 2022.

Ultimately, the net profit attributable to the company's shareholders for the final quarter of 2023 was $28 million, echoing the ongoing activities' profit and mirroring the previous year’s quarter's figure of $132 million. In the annual context, net profit showed solidity with $273 million in 2023, a slight dip from the healthy $953 million in 2022.

ILCO's Robust Liquidity Status

Liquidity at the ILCO Headquarters Level:

Ensuring a strong economic position as of December 31, 2023, ILCO's financial obligations registered at $878 million, balanced by robust investments in liquid assets amounting to $975 million, which included $8 million in pledged deposits. This financial prudence yielded a net cash position of $70 million, inclusive of the fair value of derivative transactions that added $27 million to the economic benefit of the financial liabilities. These positive numbers reflect a notable increase from the $61 million net cash position reported at the end of the previous quarter.

Tactical Corporate Maneuvers

Additional updates:

Significant corporate updates underpinned ILCO's financial strategies. November 16, 2023, marked the announcement of a share buyback program, compliant with the safe harbor regulations of Israeli law, amounting to $33 million to be carried out until March 31, 2024. The initiative reflected dedication towards shareholder value maximization, with the company repurchasing approximately $13 million worth of shares by December 31, 2023. By March 26, 2024, nearly the entire program target was met with the total share repurchase amounting to roughly $32 million.

Another strategic move came to light on March 27, 2024, when the ILCO Board of Directors sanctioned a dividend distribution of $37 million, in line with the company's dividend policy set forth in January 2023. Shareholders on record as of April 9, 2024, can expect the dividend payments to be processed on April 17, 2024.

It's noteworthy that the financial results of ILCO are intrinsically correlated to the performance of its investees. Interested stakeholders were directed to peruse the detailed financial report for a granular understanding.

ILCO's Comprehensive Asset Profile

A detailed account of ILCO’s assets was expounded upon, disclosing a robust fiscal standing as of December 31, 2023. The company's stake in ICL constituted the bulk of these assets, with approximately 567 million shares valued at a staggering $2,842 million. The portfolio also boasted a substantial holding in AKVA Group, comprising roughly 6.6 million shares with a market value securing $38 million. Other less significant investments amounted to $12 million, bringing the total assets to a colossal $2,892 million.

Accounting for liquid financials, ILCO’s net cash reserves of $70 million further solidified its financial footing. When combined with other assets, this pushed the total net assets to an impressive $2,962 million, underscoring ILCO's enduring financial prestige.

Unveiling Israel Corporation Ltd.

About Israel Corporation:

At the helm of public investment domains, ILCO stands distinguished, steering quality companies enriched by seasoned management teams and robust market approaches. A strategic shift, detailed in November 2019, unveiled ILCO's pursuit to diversify its investment portfolio focusing on sectors like food and its technologies, agriculture, healthcare, and industry 4.0. (For an extensive view of ILCO's revised strategy, please consult their Updated Strategy Presentation).

ILCO takes pride in molding company returns via vigorous board roles accompanied by its operational and managerial acumen. Core holdings underscore a c.44% interest in ICL Group (NYSE:ICL, TASE:ICL) and c.18% in AKVA Group (OB:AKVA). Public trading of ILCO on the Tel Aviv Stock Exchange (TASE) is marked by its assigned symbol, ILCO, and bears inclusion in the TA-35 Index.

For supplementary details on the company's operations and financials, the publicly accessible filings on the Tel Aviv Stock Exchange at http://maya.tase.co.il serve as a critical resource. Additionally, ILCO's dedicated website http://www.israelcorp.com provides expansive information.

Caveats and Communications

In a closing note, ILCO addressed standard protocols and cautions. The financial information in this dispatch serves as a summarized translation from Hebrew for the convenience of global audiences. For authoritative data, the original Hebrew financial statements remain binding.

Moreover, the forward-looking statements within the press release warrant caution due to their speculative nature, contingent on risks and uncertainties outside ILCO's dominion, therefore actual results may vary considerably from these projections.

Investor relations correspondence can be directed to Idan Hizki, Vice President of Business Development & Investor Relations, via phone at +972 3 684 4500 or email at [email protected] for engagement and clarifications concerning this news release.

On the regulatory front, numbered references throughout the document shed light on additional corporate movements such as the sale of 16.687% of Bazan shares (refer to IC Q3/2022 financial statements as of September 15, 2022), and market values for ICL as of December 31, 2023, for AKVA Group on December 29, 2023, and Nordic Aqua Partners information regarding shares in Nordic Aqua Partners (OB:NOAP).

SOURCE: Israel Corporation Ltd.

In conclusion, Israel Corporation Ltd. experienced a year replete with fiscal strength and targeted business operations as illustrated through their quarter and year-end financials. With a solid liquidity profile, careful market investments, and shareholder-centric decisions, it maintains its stature as a formidable force in the investment landscape while navigating dynamic market conditions. As ILCO continues to foster its core and prospective holdings, its judicious strategy beckons a promising outlook for the company and its stakeholders in the forthcoming periods.