Israel Corp. Reports Results for Fourth Quarter of 2023
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Insights
The financial results of Israel Corporation Ltd. reflect a notable decrease in net profit from continuing activities year-over-year, from $903 million in 2022 to $273 million in 2023. This significant drop might raise concerns among investors regarding the company's profitability and operational efficiency. The reduction in the company's share of ICL profit is a key factor in this decline.
Additionally, the company's liquidity position appears stable with net cash totaling $70 million and investments in liquid assets outstripping financial liabilities. The initiation of a buyback program and the declaration of a dividend are signals that management is confident in the company's financial health and committed to delivering shareholder value. These actions often have the potential to positively influence the stock price by reflecting a bullish outlook from the company's board.
However, it's important to monitor the company's future earnings and cash flow to ensure that these shareholder-friendly activities are sustainable in the long term, especially in light of the decreased profitability.
Israel Corporation Ltd.'s strategic decisions, such as the share buyback program and the dividend distribution, are reflective of its capital allocation strategy and may influence investor sentiment. Share buybacks can be viewed as a method to increase earnings per share by reducing the number of shares outstanding, which can be attractive to investors looking for capital appreciation.
The dividend payout aligns with the company's announced dividend policy and provides a direct return to shareholders. It could attract income-focused investors and support the stock price, especially if the company can maintain or grow its dividend over time. The market's response to these announcements will depend on broader market conditions and investor perception of the company's long-term growth prospects.
Considering the company's assets, including significant holdings in ICL and AKVA Group, the portfolio diversification might provide a cushion against sector-specific risks. However, the reliance on investee results suggests that ILCO's financial performance is closely tied to the performance of these entities, which could be a double-edged sword depending on the investees' market conditions.
Selected Financial Figures for the Fourth Quarter and 2023: | ||||
$m | Q4/23 | Q4/22 | 2023 | 2022 |
IC share in ICL profit | 29 | 146 | 285 | 958 |
Amortization of excess cost | (1) | (1) | (3) | (4) |
Financing, G&A and other expenses at IC headquarter | 1 | (3) | (8) | (67) |
Tax income (expense) of IC Headquarters | (1) | (10) | (1) | 16 |
Net Profit from continuing activities | 28 | 132 | 273 | 903 |
Net Profit from discontinued operations1 | - | - | - | 50 |
Net Profit to company's shareholders | 28 | 132 | 273 | 953 |
Liquidity at the ILCO Headquarters Level2
As of December 31, 2023, total financial liabilities were
Net cash1 as of December 31, 2023, totaled
Additional updates
On November 16, 2023, ILCO announced the initiation of a buyback program of
On March 27, 2024, ILCO Board of Directors decided on distribution of dividend at the sum of
ILCO financial results of ILCO are mainly affected by the results of its investees. For more details see detailed financial report.
ILCO Total Assets, Net | |
$m | 31/12/2023 |
Assets | |
ICL (~567m shares, market value3) | 2,842 |
AKVA Group (~6.6m shares, market value2) | 38 |
Other4 | 12 |
Total Assets | 2,892 |
Net Cash | 70 |
Total Assets, net | 2,962 |
About Israel Corporation
Israel Corporation Ltd. (TASE: ILCO) ("ILCO") is a reputable public investment company, which owns and invests in high quality companies with established managements and go-to markets.
In November 2019, ILCO announced its updated strategy, ILCO plans to expand its portfolio through new investments over the next few years. ILCO plans to focus mainly on the food (inc. tech), agriculture (inc. tech), healthcare and industry 4.0 sectors. For more details please see the following link to ILCO updated Strategy Presentation
ILCO strives to generate return on its investment through active board participations and its operational and managerial expertise.
ILCO current core holdings include c.
For further information on ILCO, see ILCO's publicly available filings, which can be found on the Tel Aviv Stock Exchange website at http://maya.tase.co.il.
Please also see ILCO company website http://www.israelcorp.com for additional information.
Convenience Translation
The financial information found in this press release is an English summary based on the original Hebrew financial statements and is solely for the convenience of the reader. The binding version is the original in Hebrew.
Forward Looking Statements
This press release may contain forward-looking statements, which may not materialize and are subject to risks and uncertainties that are not under the control of ILCO, which may cause actual results to differ materially from those contained in the disclosures.
Investor Relations Contacts
Idan Hizki
Vice President, Business Development & Investor Relations
Tel: +972 3 684 4500
idanh@israelcorp.com
[1] For more details on the sale of
[2] Israel Corp and its wholly owned and controlled headquarter companies.
[3] As of December 31, 2023, for ICL and December 29, 2023, for AKVA Group and Nordic Aqua Partners
[4] Includes 1.513m shares in Nordic Aqua Partners (OB:NOAP)
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SOURCE Israel Corporation Ltd.
FAQ
What were Israel 's net profits from continuing activities in Q4/23?
How much were the total financial liabilities at ILCO Headquarters as of December 31, 2023?
When did ILCO initiate a buyback program and how much did they purchase by December 31, 2023?
What was the sum of the dividend distribution decided by ILCO Board of Directors on March 27, 2024?
What are the main factors affecting ILCO's financial results?
