Most Israeli consumers do not know the name Diplomat, but they are certainly very familiar with the brands that Diplomat imports into Israel and distributes. The company’s activities include food, cleaning, toiletries, canned fish, and other sectors and brands that it imports include Kellogg’s, Heinz, Beyond Meat, Kikkoman, Pampers, Gillette, Head & Shoulders, Pantene, Ariel and other Proctor & Gamble companies. Brands, Duracell and much more. Diplomat is the sixth largest player in the Israeli food sector and also owns Starkist, through which it controls 40% of the market for canned tuna sales in Israel. Related materials The diplomatic importer plans to go public in TASE IPO at a price of 1b shekels As of yesterday not much was known about the financial data of Diplomat, but now that the company has applied for an initial public offering (IPO) on the Tel Aviv Stock Exchange (TASE) we can study Profitability. In 2020, Diplomat’s revenue in Israel grew 6%, reaching 1.2 billion shekels in the first nine months of the year, despite the Covid-19 pandemic that has hurt business sales. This could partly be attributed to the new products introduced to the market. In the prospectus, Diplomat has succeeded in avoiding categorizing its profitability in the categories in which it operates, but the way in which the numbers are presented according to the countries in which it operates highlights the relatively high profitability in the Israeli market. Diplomat’s operating profit in the first nine months of 2020 was 68 million shekels, an increase of 10% and representing 6% of sales in the domestic market. With the exception of Cyprus, which has an operating margin of 10% of total sales, Israel at 6% is Diplomat’s most profitable market, followed by South Africa and New Zealand, with margins of 3% each, and Georgia with 2%. In explaining the high profit margins in Cyprus, Diplomat says this is due to “the size of the market, which is much smaller than the rest of the regions.” The prospectus also reveals that Diplomat’s total annual revenue from all countries is NIS 2.7 billion and the cost of CEO Noam Wyman’s reward is NIS 9 million per year. In the IPO, Diplomat is looking to raise 250-300 million shekels, valuing a company worth 1-1.2 billion shekels. Founded in 1963, the company employs 2,500 employees, including 700 in Israel. 58% of the revenues for diplomats are in Israel, 25% in South Africa, 8% in Georgia, 6% in New Zealand, and 3% in Cyprus. In addition to its sales, Diplomat also provides logistics, warehousing, packaging and transportation services. Posted by Globes, Israel business news – en.globes.co.il – on February 15, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021
The Israeli importer reveals the reason for the high prices of Gillette and Pampers
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