Maytronics Slumps Amid Currency Headwinds, Looks to FIMI for Rescue
Maytronics, an Israeli company that specializes in pool-cleaning robots, reported a decline in quarterly sales due to currency headwinds. The company's revenue fell by 15% compared to the same quarter last year, but excluding currency effects, its sales actually increased by 0.7%. In the first half of the year, Maytronics' sales declined by 13.3%, but again excluding currency fluctuations, there was a slight increase of 0.1%.
The company manufactures in Israel and sells most of its products abroad, mainly in dollars and euros. The strengthening of the shekel against these currencies has negatively impacted Maytronics' results. In the second quarter, the currency exchange rate reduced Maytronics' revenue by 81 million shekels, while in the first half, it was a loss of 116 million shekels.
The US market, where it's currently pool season, showed some resilience, with sales growth of 9.6% in the quarter and 12.4% in the first half. However, Europe continued to struggle, with sales plummeting by 29.5% in the quarter and 28.6% in the first half. Maytronics attributes this decline to internal operational challenges as well as competition from Chinese products diverted to the continent due to high US tariffs.