Israel Corporation Ltd. Strengthens Financial Position with Robust Q2 2023 Performance

2025-12-31 10:00:29

TEL AVIV, August 15, 2023 – Israel Corporation Ltd. (TASE: ILCO), a prominent holding company with diversified investments across multiple sectors, has released its second quarter financial results for the period ending June 30, 2023, demonstrating solid operational performance underpinned by its core portfolio holdings.

Financial Performance Highlights

The company’s net profit attributable to shareholders reached $70 million in the second quarter of 2023, compared to $212 million in the corresponding period of 2022. The sequential quarter-to-quarter performance was driven primarily by Israel Corporation’s proportional share in ICL Group’s earnings, which contributed $73 million during the quarter against $248 million in Q2 2022.

After accounting for amortization of excess acquisition costs and expenses at the holding company level, net profit from continuing operations totaled $70 million. The company realized no net profit from discontinued operations during this reporting period, marking a shift from the previous year’s $16 million loss.

Solid Balance Sheet and Liquidity Management

As of June 30, 2023, Israel Corporation maintained a strengthened liquidity position at its headquarters level. Total financial liabilities stood at $906 million, while liquid investments reached $961 million, of which $11 million represents pledged deposits. The company’s net cash position improved to $21 million as of quarter-end, reflecting the fair value impact of derivative financial instruments that enhanced economic value by $34 million.

This represents a meaningful improvement from the net debt position of $47 million recorded as of March 31, 2023, signaling effective capital management during the quarter.

Investment Portfolio Composition

Israel Corporation’s asset base reflects its strategic positioning as an investment vehicle:

Total Assets Breakdown (as of June 30, 2023):

ICL Group holdings (~567 million shares, market-valued at $3,080 million): Representing the company’s largest portfolio concentration
AKVA Group and Nordic Aqua Partners combined stake: $50 million
Consolidated total net assets: $3,152 million

The company maintains approximately 44% ownership in ICL Group and roughly 18% stake in AKVA Group, positioning these as foundational holdings within its portfolio architecture.

Strategic Capital Allocation and Shareholder Returns

In January 2023, Israel Corporation’s Board of Directors formalized a comprehensive dividend policy. Beginning with calendar year 2023, the company intends to distribute annual dividends equivalent to 45% of consolidated net cash flow received from investee companies, after deducting an annual reserve of $75 million. All dividend distributions remain subject to final Board approval and cash flow realization.

Additionally, management signaled consideration of a share repurchase program during 2023 contingent upon the completion of pending asset sales. The potential buyback scope would approximate half of the consideration proceeds received from these transactions, reflecting management’s confidence in shareholder value creation.

Corporate Strategy and Market Position

Israel Corporation operates as a publicly traded investment company on the Tel Aviv Stock Exchange under ticker ILCO and maintains inclusion in the TA-35 Index. The company emphasizes active board participation and operational expertise to generate returns across its portfolio.

Since implementing its updated strategic framework in November 2019, Israel Corporation has positioned itself to pursue targeted expansion across high-growth sectors including food technology, agricultural innovation, healthcare solutions, and Industry 4.0 technologies. This disciplined approach focuses on acquiring established enterprises with proven management teams and developed market presence.

The company’s investment strategy underscores its commitment to value creation through both portfolio optimization and active stakeholder engagement, with its multi-sector positioning providing diversification benefits across economic cycles.

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