Financial expenses, net in 2012 were NIS 234 million (US$ 63 million), a decrease of 20% compared with NIS 294 million. The decrease was mainly due to the lower level of average debt in 2012 compared with 2011 (see Funding and Investing Review below), together with a lower level of expenses linked to changes in the consumer price index (“CPI”) of 1.4% over 2012 compared with 2.6% over 2011.
In Q4 2012, financial expenses, net, totaled NIS 38 million (US$ 10 million), a decrease of 31% compared with NIS 55 million in Q4 2011, reflecting a lower level of expenses linked to changes in the consumer price index (“CPI”) of -0.7% in Q4 2012 compared with -0.2% in Q4 2011, as well as the lower level of average debt.
Net profit in 2012 was NIS 478 million (US$ 128 million), an increase of 8% compared with reported net profit in 2011 of NIS 443 million, including the impact of the impairment in the amount of NIS 311 million, and a decrease of 37% compared with net profit in 2011 before the impact of the impairment.
Q4 2012 net profit was NIS 102 million (US$ 27 million), compared with a reported net loss of NIS 188 million in Q4 2011 including the impact of the impairment, and a decrease of 17% compared with a net profit of NIS 123 million before the impact of the impairment.Based on the weighted average number of shares outstanding during 2012, basic earnings per share or ADS, was NIS 3.07 (US $ 0.82), an increase of 8% compared to NIS 2.85 in 2011. The effective tax rate of the Company for the fourth quarter was 13% compared to an average of 26% for the first three quarters of the year. The effective tax rate for 2012 was 24%, compared with 29% in 2011 (before the impact of the impairment). The decrease in the tax rate as above was mainly due to the utilization of previously unrecognized tax losses and other temporary differences against taxable income.
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