KAMADA LTD | CIK:0001567529 |

Note 24: -

Operating Segments

a.

General

The operating segments are identified on the basis of information that is reviewed by the chief operating decision maker ("CODM") to make decisions about resources to be allocated and assess its performance. Accordingly, for management purposes, the Group is organized into operating segments based on the products and services of the business units and has two operating segments as follows:

 

Proprietary Products

Develop and manufacture plasma-derived therapeutics and market them in more than 15 countries.

 

Distribution

Distribute imported drugs in Israel which are manufactured by third parties, most of which are produced from plasma or its derivative products.

 

Segment performance is evaluated based on revenues and gross profit in the financial statements.

The segment results reported to the CODM include items that are allocated directly to the segments and items that can be allocated on a reasonable basis. Items that were not allocated, mainly the Group's headquarter assets, general and administrative costs and financial costs (consisting of finance expenses and finance income and including fair value adjustments of financial instruments), are managed on a group basis.

 

The segment liabilities do not include loans and financial liabilities as these liabilities are managed on a group basis.

b.         Reporting on operating segments

		Proprietary Products				Distribution				Total
		In thousands
Year Ended December 31, 2017
Revenues		$	79,559			$	23,266			$	102,825
Gross profit		$	28,224			$	3,864			$	32,088
Unallocated corporate expenses											(24,644	)
Finance expense, net											(274	)
Income before taxes on income										$	7,170