The chain of food stores, Rami Leuper, has published its financial results for 2021, which show stability in revenues, although 2020 was characterized by a positive increase in consumption with the outbreak of the corona virus, an improvement in operating profitability and an increase in profits.
From the beginning of 2021 until today, the Good Pharm chain has opened 17 additional Pharm branches throughout the country, in accordance with the expansion strategy, so that currently the Good Pharm chain operates 44 Pharm branches throughout the country and has actually doubled the number of Pharm branches within two years.
In December 2021, the company launched a new logistics center in the north as part of “Rami Levy for Business” which is marketed to businesses using the cash and carry method and the company intends to open 4 more centers to reach a nationwide distribution.
Highlights of the fourth quarter of 2021:
The revenues of the Rami Levy Sycamore Marketing chain in the fourth quarter of 2021 amounted to NIS 1.63 billion, compared with NIS 1.65 billion in the corresponding quarter last year. The change is mainly attributed to increased consumption due to the corona crisis in the corresponding quarter last year.
Gross profit in the fourth quarter of 2021 increased to NIS 403 million, compared with NIS 386 million in the corresponding quarter last year. The gross profit margin for the quarter rose to 24.75%, compared to 23.37% in the corresponding quarter last year.
Rami Levy’s operating profit in the fourth quarter of 2021 increased to NIS 93 million (5.74% of revenues), compared with NIS 90 million (5.44% of revenues) in the corresponding quarter last year. The company showed a significant improvement in the operating profitability of the subsidiaries in the quarter.
The net profit of the Rami Levy Sycamore Marketing chain in the fourth quarter of 2021 amounted to NIS 61 million, compared with NIS 63 million in the corresponding quarter last year. The decrease in net profit, despite the increase in operating profit, was affected by an increase in the financing expenses of the subsidiary Kopix.
EBITDA in the fourth quarter of 2021 amounted to NIS 159 million (approximately 9.8% of revenues), compared with approximately NIS 152 million (approximately 9.2% of revenues) in the corresponding quarter last year
Rami Levy, CEO of the Rami Levy Sycamore Marketing chain: “In 2021, for the first time, we crossed the NIS 200 million net profit threshold for a single year. The subsidiaries include the Good-Pharm network, Kopix, the cellular activity and the club. We continue to adhere to the business strategy and vision from the day the network opens: to offer the cheapest product basket to the customer not at the expense of quality and service. This strategy is becoming particularly important these days when there is a lively and important dialogue around the issue of the cost of living in Israel.
The year 2021 was a milestone, we increased Good Pharm’s activity with the opening of 12 new stores, continued the opening and establishment of discount branches, launched the digital wallet that will be the chain’s financial arm and strengthen the chain’s connection to its customers and launched Marlog in the north of the country. Levy for Business “which will start working on April 1, 2222, which allows us to expand our activities to the institutional market. In addition, we opened an advanced robotic center in Be’er Sheva to expand the online sales arm, signed an agro-tech deal to establish agricultural farms in containers Autonomous sale. We believe that these actions will contribute and bring value in the coming years as well. These days, we are summing up 15 years from the date of the IPO on the Tel Aviv Stock Exchange and during this period In the beneficial business results with customers, investors and the company, and in the process we distributed a dividend to our shareholders in the amount of approximately NIS 1.25 billion. We are currently hearing about the possible entry of international retail brands into Israel. We believe that this entry will not harm the company but on the contrary – it will emphasize the advantages of our network in relation to the consumer and our advantages over suppliers and also strengthen our private label. On this occasion, I would like to wish the Israeli public a happy Passover and thank the network’s employees who work with great dedication and bring the company to its achievements over the years. “