Generation Capital Celebrates Achievement: Cash Flow Grows to Approximately NIS 122 Million

Generation Capital has published its financial statements for 2023, reporting a profit before tax of approximately NIS 345 million. The cash flow generated by the fund from its portfolio investments totaled about NIS 122 million, compared to approximately NIS 104 million in the same period in 2022.

Generation Capital has published its financial statements for 2023, as well as its fourth-quarter results for the year. According to the data presented in the report, profit before tax for 2023 amounted to approximately NIS 345 million, compared to around NIS 204 million in 2022, reflecting a 69% increase.

Additionally, FFO (Funds From Operations) for Generation Capital reached approximately NIS 335 million in 2023, reflecting a multiple of around 2.5 relative to the current stock price. Another increase was recorded in the fund’s investment return, which stood at 14.21% in 2023, compared to about 12.5% in 2022. The return on equity before tax was 17.32%, up from 11.40% in 2022. The cash flow generated by the fund from its portfolio investments totaled NIS 122 million, compared to about NIS 104 million during the same period last year. In total, the investments created a free cash flow of approximately NIS 192 million in 2023, with a significant portion reinvested into investment platforms for continued expansion.

Despite the challenging year, the fund’s investments showed improved performance, with significant progress in various projects, reflecting the stability of the investments. The fund’s assets in the fields of energy, environment, and transportation performed well and continued to demonstrate stability.

In the Energy segment, the fund launched PowerGen, a private integrated energy company in the Israeli market. PowerGen signed a memorandum of understanding with Bezeq to establish a joint venture for electricity supply, which is expected to become a significant player in Israel’s electricity market.

In the Environment segment, BlueGen advanced its initiating and growth processes during the year and expanded into the franchising (PPP) sector, including high-scale ongoing projects.

In the Transportation sector in Israel, in 2023, Bon Tour increased its market share while maintaining profitability and excellence. This growth was achieved through organic expansion across various segments and the establishment of two new clusters in Metropolitan, the Ono-Elad cluster and the renewed Sharon cluster.

In the Logistics sector, The fund operates in logistics through its investment in Friedenson Generation. In 2023, the company completed the construction of a new logistics center at the Ashdod terminal and is advancing the construction of another logistics center in Haifa.

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