MIRA INFORM REPORT

 

 

Report Date :

07.08.2014

 

 

 

IDENTIFICATION DETAILS

 

Name :

HAMAMA MEIR TRADE (1996) LTD.

 

 

Registered Office :

P.O. Box 50434, Tel Aviv (6150302) 4 Koifman Street, Sharbat House Tel Aviv6801296     

 

 

Country :

Israel

 

 

Financial As On :

31.12.2013

 

 

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,

 

 

No. of Employees

57

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. Between 2004 and 2011, growth averaged nearly 5% per year, led by exports. 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. In 2010, Israel formally acceded to the OECD. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. The economy has recovered better than most advanced, comparably sized economies, but slowing demand domestically and internationally, and a strong shekel, have reduced forecasts for the next decade to the 3% level. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds this past decade. The massive Leviathan field is not due to come online until 2018, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and is expected to contribute 0.5% growth in 2014. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. Israel's income inequality and poverty rates are among the highest of OECD countries and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. 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. In May 2013 the Israeli government, in a politically difficult process, passed an austerity budget to reign in the deficit and restore confidence in the government's fiscal position. Over the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only 9% of the workforce, with the rest employed in manufacturing and services - sectors which face downward wage pressures from global competition

 

Source : CIA

 

 

 


Company name and 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 14,326,157 shares amounting to NIS 14,326,157.00 were issued.

 

 

SHAREHOLDERS

 

1.         Eliyahu Hamama, 37.5%,

2.         Meir Hamama, 32.6%,

3.         Josef Hamama, 7.3%,

4.         EXCELLENCE INVESTMENTS LTD., 7.6%, an institutional inventor,

5.         PSAGOT TRUST FUNDS LTD., 5.6%, an institutional inventor,

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

 


 

DIRECTORS

 

1.         Zvika Amit, Chairman,

2.         Avi Diamant,

3.         Yehonatan Shamir,

4.         Ms. Shoshana Shif.

 

 

GENERAL MANAGER

 

Eliyahu (Eli) 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 2013, 91.6% of sales were sold to clients in Israel, 7.2% to the Palestinian market, and the rest, 1.2% for export.

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

Most (89.7%) 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 and government institutes.

 

Purchasing (of finished goods, no raw materials) are both locally and from abroad, some 150 suppliers, mainly from Ethiopia, Turkey, North America, Argentina, Far East (India, Thailand, China).

Among local suppliers are corn growers, etc.

 

Operating from rented offices, owned by sister company, in 4 Koifman Street, Sharbat House, Tel Aviv, and an additional rented office on an area of 625 sq. meters in Champion Tower, Bnei Brak, 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.

 

Having 57 employees (had 54 employees in the end of 2012).

 

 

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$ 31.8 million.

 

In July 2013 subject raised NIS 81,000,000 issuing bonds on the TASE.

 

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)

31.12.2013        31.03.2014

ASSETS

Current assets:

            Cash and cash equivalents         1,354                582

            Customers                                175,990 180,188

            Other debtors                            2,433                6,944

            Stock                                        176,653 198,135

                                                            356,430 385,849

Non-current assets:

            Customers                                1,720                1,761

            Fixed assets, net                       3,395                3,479

            Other non-current assets              1,280              1,315

                                                                6,395                6,555

                                                            362,825 392,404

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

 

LIABILITIES

Current liabilities                        177,037 205,520

Non-current liabilities                  81,186              80,976

Equity                                       104,602 105,908

                                                362,825 392,404

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

 

 

REVENUES

 

Consolidated Statement of Income

NIS (thousands)

Year ended 31.12

2011                 2012                 2013

Sales                            444,410 480,763 529,584

 

Gross profit                   40,821              40,326              44,282

 

Operating income           23,364              21,255              27,754

           

Pre-tax income              11,770              14,817              21,687

 

Net income                    8,923                12,914              16,184

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

 

 

Consolidated revenues for the first 3 months of 2014 were NIS 133,624,000 (3.6% increase compared to the parallel period in 2013), making a gross profit of NIS 12,056,000, an operating income of NIS 7,459,000, and a net income of

NIS 4,306,000.

 

 

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.

 

In April 2014 subject's storage facilities in Kiryat Gat did not meet the Ministry of health regulations. In May 2014 subject reported that the appopriate mesures were taken and the facilty received a storage permit for the next 6 months in which a re-inspection will take place.

 

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 20% (was 15% in 2010, 2011 & 2012).

 

In 2000, HAMAMA Group sold all activities of MILOUMOR OIL INDUSTRIES (1992) LTD., processors of oil, to SHEMEN Group, for 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.

 

Sales for exports by the food & beverages industries grew by 1.5% in 2013 from 2012, with sales reaching US$ 1,072.5 million (in $ terms, though fell 5% in NIS terms), after remaining stagnant in 2012 and 17% rise in export in 2011.

 

According to Central Bureau of Statistics (CBS), import of food and beverages to Israel in 2013 reached NIS 6,946 million, rising by mere 0.7% (in NIS terms, 7.4% rise in $ terms), continuing the upward growth trend from 2012 (14% rise), 2011 and 2010.

The Central Bureau of Statistics data shows that import of raw food products to Israel in 2013 summed up to NIS 8,552.7 million, 6.4% decrease from 2012 (in NIS terms, was stagnant in $ terms). That continues the downwards trend from 2012, when it fell by 2.7% from 2011, whereas in both 2011 and 2010 import rose by around 20% in each of the years. Over 50% of import is from the EU.

 

From the CBS National Accounts for 2013, it turns that expenditure by local households on private consumption grew by 3.7% from 2012, after rising by 3.2% in 2012 and by 3.8% in 2011. Expenditure on food, beverage & tobacco increased by 3.8% (after 3.5% rise in 2012).

Per capita expenditure for private consumption on non-durable goods rose in 2012 by 1.4% per-capita (1.3% rise in 2011). This rise reflects increases by 1.3% in expenditure on food, beverage & tobacco and 4.5% expenditure on clothing, footwear and personal effects.

 

 

SUMMARY

 

Good for trade engagements.

 

Note: Since February 2013 Israel Post has started using a new area code method of 7 digits (the old method of 5 digits is no longer valid).

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.34

UK Pound

1

Rs.103.44

Euro

1

Rs.81.96

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIS

 

               

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.