Metals Firm Scoops Chairman Becomes Paper Billionaire Amid Share Surge
Scoops chairman Shmuel Shila becomes a paper billionaire as surging share prices lift his holdings past 1.5 billion shekels, driven by strong global performance and American acquisitions.
The local stock exchange boom in recent years, alongside the strong performance of some of its companies, has significantly increased the wealth of numerous controlling shareholders in local enterprises. While some chose to capitalize on the rising share prices to realize part of their holdings and cash in, others charted a different course. One such figure is Shmuel Shila, controlling shareholder and chairman of the metals company Scoops, who watched the continuous surge in the share price transform him into a paper billionaire.
A rally of approximately 105% in the share price over the past year brought it close to peak levels recorded last July, reaching a market value of about 3.8 billion shekels. Consequently, the value of Shila's holdings (representing 40% of the capital), managed far from the spotlight, jumped to over 1.5 billion shekels. He even chose to increase his stake over the past year, acquiring shares for a relatively small scope of about 5 million shekels despite the price appreciation.
Global Expansion and American Acquisition
Founded in 1980, Scoops operates independently and through subsidiaries in Israel and abroad, engaging in the import and marketing of raw materials in the metals sector, primarily aluminum, steel, and nickel (stainless steel), as well as engineering plastics. These products are sold to customers primarily within the industrial sector domestically and globally.
Additionally, at the beginning of this year, the company entered the distribution of steel products and special metals for the oil and gas industry through the acquisition of the American company North American Metals (NAM) for approximately 23 million dollars. This consideration may increase by up to 6 million dollars depending on the company meeting various profitability targets.
Revenue Growth and Overseas Strength
Behind the continuous rise in the share price lie primarily strong results presented by the company. Scoops concluded the first half of the year with revenues of approximately 1.27 billion shekels, a growth of about 23% compared to the corresponding period last year, attributed to rising demand for its products and a change in the sales mix. This was further bolstered by the results of the acquired activity (NAM), which generated revenues of about 105 million shekels during the period, a threefold surge compared to the parallel period last year.
This growth also translated into the bottom line, with a jump of about 31.5% in net profit, which stood at approximately 103 million shekels at the close of the half. These figures were also influenced by improvements in gross and operating profitability presented by Scoops, thanks to the shift in the product mix sold during the period.
The company's overseas activity contributed significantly, accounting for about 75% of its revenues in the first half (compared to about 69% in the corresponding period last year). The bulk of the company's overseas operations is conducted through its subsidiary Hadco, operating in the United States and South Korea.
Institutional Gains and Executive Compensation
Alongside controlling shareholder Shila, a series of institutional bodies hold shares in the company, led by the insurance company Phoenix with 8% of the capital valued at about 303 million shekels. Alongside it, insurance companies Menora, Migdal, and Harel each hold a stake of about 7% (valued at about 260 million shekels), and the investment house Meitav holds about 5% (about 200 million shekels).
Since 2008, CEO Gil Haber has led the company alongside Shila, previously serving as the company's controller. In 2023, Haber's name made headlines after the company decided to grant him stock options, contrary to the decision of the shareholders' meeting which opposed the move. Following criticism and a legal request for disclosure, Haber decided to waive the options.
Despite the cancellation of the options, Haber remains the highest-earning executive in the company with a total compensation cost of approximately 4.4 million shekels.
