MIRA INFORM REPORT

 

 

Report Date :

25.09.2012

 

IDENTIFICATION DETAILS

 

Name :

HAMAMA MEIR TRADE (1996) LTD.

 

 

Registered Office :

P.O. Box 50434, Tel Aviv (6150302), 4 Koifman Street, Sharbat House, Tel Aviv 6801296

 

 

Country :

Israel

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

20.11.1996

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Traders, importers, exporters, marketers and distributors in dried foodstuff, mostly commodities, including cereals, dried fruits, nuts, rice, legumes, sesame, coffee, spices, etc.

 

 

No. of Employees :

52 employees

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 


 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Israel

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

israel - ECONOMIC OVERVIEW

 

Israel has a technologically advanced market economy. It depends on imports of crude oil, grains, raw materials, and military equipment. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals - following years of prudent fiscal policy and a resilient banking sector. The economy has recovered better than most advanced, comparably sized economies. In 2010, Israel formally acceded to the OECD. Natural gasfields discovered off Israel's coast during the past two years have brightened Israel's energy security outlook. The Leviathan field was one of the world's largest offshore natural gas finds this past decade. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. The government formed committees to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands.

 

Source : CIA

 

 

 

Company name & address

 

HAMAMA MEIR TRADE (1996) LTD.

Telephone                  972 3 519 55 55; 510 69 69

Fax                            972 3 510 70 10

P.O. Box 50434, Tel Aviv (6150302)

4 Koifman Street, Sharbat House

TEL AVIV                   6801296            ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-239801-7 on the 20.11.1996.

 

Subject was incorporated in view of continuing the trade in food activities of HAMAMA BROS. & CO. LTD., owned and founded by the Hamama family in 1951 (incorporated in 1972), which turned into a real estate holding company.

 

In May 2007 published a prospectus offering shares to the public through the Tel Aviv Stock Exchange, following which subject converted into a public limited company and its shares started trading on 07.06.2007 (keeping same registration number).

 

 

SHARE CAPITAL

 

Authorized share capital NIS 20,000,000.00, divided into -

              20,000,000 ordinary shares of NIS 1.00 each,

of which 14,300,000 shares amounting to NIS 14,300,000.00 were issued.

 

 

SHAREHOLDERS

 

1.    Eliyahu Hamama, 36.6%,

2.    Meir Hamama, 32.6%,

3.    Josef Hamama, 7.4%,

4.    EXCELLENCE INVESTMENTS LTD., 8.2%, an institutional inventor,

5.    PSAGOT TRUST FUNDS LTD., 6.8%, an institutional inventor,

6.    Shares are also traded on the Tel Aviv Stock Exchange.

 

 

DIRECTORS

 

1.    Zvika Amit, Chairman,

2.    Meir Hamama, President,

3.    Eliyahu (Eli) Hamama, General Manager,

4.    Avi Diamant

5.    Yehonatan Shamir,

6.    Ms. Shoshana Shif,

7.    Ido Hamama.

 

                                                                                                                        

BUSINESS

 

Traders, importers, exporters, marketers and distributors in dried foodstuff, mostly commodities, including cereals, dried fruits, nuts, rice, legumes, sesame, coffee, spices, etc.

Subject is selling, mostly wholesale, some 50 families of products, imported from different countries.

In 2011, 91.7% of sales were sold to clients in Israel, 5.4% to the Palestinian market, and the rest, 2.9% - for export.

Subject has some 450 local customers, divided into 4 sectors:

Most (some 90%) of the local clients are from the Commercial market: mostly to wholesalers, supermarket chains, packing and roasting houses, as well as food manufacturers and retailers. The reminder, is sold to the Institutional market: government institutes.

 

Purchasing (of finished goods, no raw materials) are both locally and from abroad, some 120 suppliers, mainly from Ethiopia, Turkey, North America, Argentina, Far East (India, Thailand, China).

Among local suppliers are corn growers, etc.

 

Operating from offices, owned by sister company, in 4 Koifman Street, Sharbat House, Tel Aviv, from logistic center in Kiryat Gat (owned by sister company) on an area of 15,720 sq. meters (8,500 sq. meters are built), a rented (from 3rd party) storage facility on an area of 1,700 sq. meters in Kiryat Gat, and from bonded warehouses, rented according to needs, in the Ashdod Port, as well as cold storage facilities according to need.

Subject intends to establish a new logistic center (currently in search for a location).

 

Having 52 employees, as of end of 2011 (same as in the end of 2010).

 

 

MEANS

 

In May 2007 subject made a public offering of its shares and bonds, raising a gross proceeds of NIS 91.5 million.

 

Current market value US$ 16.4 million.

 

There are 7 charges for unlimited amounts registered on the company’s assets in favor of Bank Leumi Le’Israel Ltd., The First international Bank of Israel Ltd., and Mizrahi Tefahot Bank Ltd. (last charge placed August 2008).

 

 


B/S shows

                                                                                               NIS (thousands)

                                                                                       31.12.2011            30.06.2012

ASSETS

Current assets:

     Cash and cash equivalents                                                   543                    1,167

     Customers                                                                    149,001                 151,317

     Other debtors                                                                   1,822                    1,057

     Stock                                                                            138,753                 166,728

                                                                                         290,119                 320,269

Non-current assets:

     Customers                                                                        1,989                    1,864

     Fixed assets, net                                                              2,900                    2,891

     Other non-current assets                                                   1,466                    1,564

                                                                                            6,355                    6,319

                                                                                         296,474                 326,588

                                                                                      =======              =======

 

LIABILITIES

Current liabilities                                                                 203,386                 235,009

Non-current liabilities                                                            17,466                    9,470

Equity                                                                                 75,622                  82,109

                                                                                         296,474                 326,588

                                                                                      =======              =======

 

 

SALES

                                                                       Consolidated Statement of Income

                                                                                         NIS (thousands)

                                                                                      Year ended 31.12

                                                                         2009                 2010                 2011

Sales                                                                 390,442            388,652            444,410

 

Gross profit                                                         27,528              27,686              40,821

 

Operating income                                                   7,347              11,467              23,364

 

Pre-tax income (loss)                                              (143)                5,615              11,770

 

Net income (loss)                                                    (362)                4,267               8,923

                                                                       =======          =======         =======

 

Consolidated first 6 months of 2012 sales were NIS 235,568,000 (9% increase comparing to the parallel period in 2011), making a gross profit of

NIS 21,388,000, an operating income of NIS 13,847,000, and a net profit of

NIS 6,475,000.

 

OTHER COMPANIES

 

Subject has non-active wholly-owned subsidiaries, which participate in the Ministry of Agriculture tenders for receiving import licenses:

FOOD–TRONICS LTD., A.A. SHIBOLET LTD., GRICIA LTD., SHAKED HAKESEM LTD., BOTEN HAMAHATZ LTD., MAZON SAME'ACH LTD., TE'ENAT CAN'AN LTD.

 

Other companies owned by Hamama family:

TENE NEGEV LTD., marketers and exporters of peanuts

HAMAMA MEIR DEVELOPMENT AND INVESTMENTS CO. (1991) LTD.,

HAMAMIT LTD.,

TENE PEANUTS LTD.,

TENE PEANUTS 91 SORTING AND MARKETING LTD.

HAMAMA BROTHERS & CO. LTD., real estate,

MILGAD LTD.,

HAMAMA TENE HAI PEANUTS 1997 LTD.

POLIVA LTD., 12%, traders, importers and marketers of raw materials and substances for bakeries.

S. HAMAMA HOLDINGS INDUSTRY & HI-TECH LTD.

 

 

BANKERS

 

·         Bank Leumi Le’Israel Ltd., Tel Aviv Central Branch (No. 800), Tel Aviv.

·         Union Bank of Israel Ltd., Main Branch (No. 063), Tel Aviv.

 

Above 2 banks are the main ones. Also working with:

 

The First International Bank of Israel Ltd., Industrialists' House Branch (No. 057), Tel Aviv.

 

 

CHARACTER AND REPUTATION

 

In January 2011 subject received a claim that it violated a lease agreement and is seued for NIS 3.8 million. In September 2012 matter ended in a comprmise, in which subject will pay NIS 160,000 and all claimes will be dropped.

 

Nothing unfavorable learned apart from the above.

 

Subject is veteran, one of the two leading companies in their field in the local market, with an estimated market share of 15% (2010/2011/2012).

 

In 2000, the HAMAMA Group sold all activities of MILOUMOR OIL INDUSTRIES (1992) LTD., processors of oil, to the SHEMEN Group, for sum of US$ 10 million.

 

In March 2006 subject sold its rights in a plot in Kiryat Gat, including the structures, to a third party in consideration of NIS 20.78 million.

 

According to Ministry of Agriculture data from February 2009, 3,600 tons of pistachio and 3,100 tons of almonds are imported to Israel each year.

The whole local nuts/almonds and dried fruits market rolls some NIS 600 million annually. Most of it arrives from import from Turkey, China, USA, Far East countries and South Africa.

 

In 2011 sales for exports by the food & beverages industries rose by 16.6%, reaching US$ 929.8 million (rose 9.8% in 2010 after falling by 11% in 2009).

 

Import of food and beverages to Israel in 2011 summed up to US$ 2,358.2 million, rising by 18.7% from 2010, which comes after a by 15.5% increase in 2010 from 2009 (when import decreased by 9.4% comparing to 2008 due to the slow-down in local economy). However, the trend has shown a reverse in 2012 first half, with a decrease in import of food.

 

The Central Bureau of Statistics (CBS) data shows that import of raw food products to Israel in 2011 summed up to US$ 2,062.6 million, 23% increase from 2010 (a similar growth trend to 2010 from 2009, a year which witnessed a 20% decrease from 2008). Over 50% of import is from the EU.

 

According to the CBS, the total household expenditure for private consumption in 2011 on food, beverage and tobacco rose 3.7% from 2010, after 4% rise in 2010 from 2009, reflecting an improvement trend in the loacl market after the general slow-down in economy in 2009.

 

 

SUMMARY

 

Good for trade engagements.

 

 

Note: Since the beginning of 2012 Israel Post started using a new area code method of 7 digits (the old method of 5 digits will still be valid till end of 2012).

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.29

UK Pound

1

Rs.86.44

Euro

1

Rs.68.95

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.