MIRA INFORM REPORT

 

 

Report No. :

330476

Report Date :

09.07.2015

 

IDENTIFICATION DETAILS

 

Name :

HAMAMA MEIR TRADE (1996) LTD.

 

 

Registered Office :

30 Sheshet Hayamim Street, Champion Tower, Bnei Brak 5120261

 

 

Country :

Israel

 

 

Financials (as on) :

31.12.2014

 

 

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 :

53 Employees (2014)

 

 

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 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Israel

B1

B1

 

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 2013, 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. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Slowing demand domestically and internationally and reduced investment due to uncertainties caused by the Gaza conflict in summer 2014 have reduced GDP growth to about 2% during 2014. 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 expected to come online no sooner than 2017, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and a 0.5% boost 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 and has started splitting up the oligopolies to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. 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

Fax           972 3 510 70 10

30 Sheshet Hayamim Street

Champion Tower

BNEI BRAK 5120261 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 14,333,450 shares amounting to NIS 14, 333,450.00 were issued.

 

 

SHAREHOLDERS

 

1.    Eliyahu Hamama, 37.49%,

2.    Meir Hamama, 32.55%,

3.    Josef Hamama, 7.34%,

4.    EXCELLENCE INVESTMENTS LTD., 7.49%, an institutional inventor,

5.    PSAGOT TRUST FUNDS LTD., 5.58%, 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 2014, 88.2% of sales were sold to clients in Israel, 8.1% to the Palestinian market, and the rest, 3.7% for export.

 

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

Most (86.3%) 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 premises, on an area of 700 sq. meters in 30 Sheshet Hayamim Street, Champion Tower, Bnei Brak (to where subject moved from 4 Koifman Street, Sharbat House, Tel Aviv in March 2015), from logistic center in Kiryat Gat (owned by sister company) on an area of 15,720 sq. meters (8,500 sq. meters are built), as well as using storage facilities throughout Israel according to need.

 

Having 53 employees as of end of 2014 (had 57 employees in the end of 2013).

 

 

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$ 18.7 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)

                                                                                       31.12.2014           31.03.2015

ASSETS

Current assets:

     Cash and cash equivalents                                                   999                    3,291

     Customers                                                                    171,334                 171,709

     Other debtors                                                                   3,315                    7,035

     Stock                                                                            226,835                 220,644

                                                                                         402,483                 402,679

Non-current assets:

     Customers                                                                        2,185                    2,100

     Fixed assets, net                                                              5,724                    6,683

     Other non-current assets                                                   1,894                    2,597

                                                                                            9,803                  11,380

                                                                                         412,286                 414,059

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

 

LIABILITIES

Current liabilities                                                                 240,007                 246,755

Non-current liabilities                                                            65,878                  65,866

Equity                                                                               106,401                 101,438

                                                                                         412,286                 414,059

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

 

 

REVENUES

                                                                       Consolidated Statement of Income

                                                                                         NIS (thousands)

                                                                                      Year ended 31.12

                                                                         2012                 2013                 2014

Sales                                                                 480,763            529,584            525,268

 

Gross profit                                                         40,326              44,282              39,400

 

Operating income                                                 21,255              27,754              20,448

 

Pre-tax income                                                     14,817              21,687               6,695

 

Net income                                                           12,914              16,184               4,963

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

 

 

Consolidated revenues for the first 3 months of 2015 were NIS 129,212,000 (3.3% decrease compared to the parallel period in 2014), making a gross profit of NIS 4,136,000, an operating loss of NIS 478,000, and a net loss of NIS 1,963,000. Main cause for loss is deduction for decrease in stock value.

 

 

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., Principal Branch Tel Aviv (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. The Ministry of Health revoked subject's stortage for a month until these defalts were taken care of. In May 2014 subject reported that the appopriate mesures were taken and the facilty received a storage permit. Subject invested some NIS 1 million these mesures.

 

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% in 2014 (same as in 2013, 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.

 

According to survey from 2013, the local food market, manufacturing, import and trade, rolls NIS 80 billion per annum. There are some 1,700 food plants in Israel (some also import) and hundreds of importers in the food, beverage and consumer products, supplying raw materials and finished goods to the food market.

 

According to StoreNext Market Research survey, in 2014 sales in the FMCG bar-coded market noted 1.7% decrease in terms of price (despite the decrease in the prices index), representing a reverse in the rise trend in the last 3 years. The decrease in the quantity aspect was milder – by 0.6%.

 

Food products sale witnessed 1.5% drop in money terms and totaled NIS 29.09 billion, coping with slight quantity decrease of 0.4%.

 

The volume of FMCG bar-coded market totaled NIS 38.94 billion in 2014, and was divided into: 75% for food, 11% for beverages (-2.7% in money summing up at NIS 4.24 billion, -2.8% in quantity), and 7% for personal care goods (-3.8% in money summing up at NIS 2.72 billion, -1.7% in quantity), and 7% for home care goods (-1% summing up at NIS 2.88 billion, though rose 1.4% in quantity).

 

Sales for exports by the food products & beverages industries grew by 1.9% in 2014 from 2013, with sales reaching US$ 1,100 million (in $ terms, grew 1% in NIS terms), after 2.2% grow in 2013. A 10.4% plunge in export in $ terms was noted in the first 5 months of 2015, compared to the parallel period in 2014 (in NIS term there was a 1.3% increase).

 

According to Central Bureau of Statistics (CBS), import of food and beverages to Israel in 2014 reached NIS 7,688 million, an impressive rise by 10.7% from 2013, continuing the upward growth trend in the last years (0.7% in 2013, 14% in 2012). The positive trend continued into 2015, with import rising by 12.5% in the first 5 months compared to the parallel period in 2014.

 

Local food industry employs directly 62,000 workers in some 1,550 plants, 72% of which are considered small plants (with sales of up to NIS 10 million).

 

According to the CBS data, investments in machinery & equipment from import for the food industry in 2014 increased by 18.6% from 2013 and summed up to NIS 559 million (after couple of years import decreased, by 14.4% in 2013 and by 21.5% in 2012), while investments in machinery & equipment from import for the beverage & tobacco industries witnessed a fall by 21% in 2014 to NIS 129.7 million (after plunging by 14.5% in 2013 and a 2% increase in 2012).

 

From the CBS National Accounts for 2014, it turns that private consumption expenditure, in fixed prices, grew by 4% from 2013 (rose 3.3% in 2013 and 3.1% in 2012). Current local households' expenditure grew in 2014 by 2.8% (rose 3% in 2013), of which expenditure on Food, Beverage & Tobacco increased in 2014 by 3.5% (after 3.7% rise in 2013, 3.2% in 2012).

 

Per-capita expenditure in 2014 rose by 2% (after rise of 1.4% in 2013 and 1.2% in 2012).

 

 

SUMMARY

 

Good for trade engagements.

 

Note: The telephone number you provided (+972 3 5106969) is no longer relevant to subject.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.57

UK Pound

1

Rs.98.22

Euro

1

Rs.69.93

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

 

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.