Revenues from sales of the clothing and home fashion segments amounted to NIS 193 million in the quarter, an increase of 7% compared to the corresponding quarter last year.
Gross profit for the quarter amounted to NIS 149 million, an increase of 6.7% compared to the corresponding quarter last year, while improving the gross profit rate in the third quarter which amounted to 63.5% compared to 60.8% in the corresponding quarter last year.
The operating profit of the clothing and home fashion segments in the quarter amounted to NIS 16.6 million, compared with NIS 15.1 million in the corresponding quarter last year.
In the first nine months of 2021, operating profit amounted to NIS 44 million, compared with a profit of NIS 19 million in the corresponding period last year.
The consolidated net profit (attributable to shareholders) in the third quarter amounted to approximately NIS 8 million and in the first nine months of 2021 to approximately NIS 41 million.
An increase of about 17% in the revenue of the clothing sector in the quarter, which amounted to about NIS 83 million, while continuing to improve the operating profit, which amounted to about NIS 8 million in the third quarter, compared with a profit of NIS 2.7 million in the corresponding quarter last year. Operating profit of approximately NIS 33.5 million against a loss of NIS 7.1 million in the corresponding period).
Revenue from the household sector in the third quarter amounted to NIS 111 million, similar to the corresponding quarter last year, segment profit in the third quarter amounted to NIS 8.6 million, compared with NIS 12.4 million in the corresponding quarter last year (cumulative since the beginning of the year). NIS 36.1 million against a profit of NIS 20.7 million in the corresponding period last year).
Golf’s online operations have been significantly expanded and currently Golf independently operates 6 online commerce sites in parallel, representing significant growth potential.
The balance of cash and the value of cash and short-term investments as of September 30, 2121, amounts to approximately NIS 121 million.
Adika is in the midst of an overall process to improve gross and operating profitability that is expected to continue over several quarters and is expected to be reflected primarily in the coming quarters.
Golf announces an additional interim dividend of NIS 10 million.
Eyal Greenberg, the company’s CEO and chief business officer, said“Golf continues to show good results in the fields of apparel and home fashion. These results have been achieved mainly thanks to the preservation of the streamlining processes we have carried out over the past year along with expanding Golf’s online operations to 6 online sites simultaneously. We continue to expand and improve technological infrastructure and The logistics system.
Adika is in the midst of an overall process to improve gross and operating profitability that is expected to continue over several quarters and is expected to be reflected mainly in the coming quarters. ”
Yael Elkana, to the golf network, Photo: Dudi Hasson
Summary of third quarter data for 2021:
The Group’s sales in the third quarter amounted to approximately NIS 235 million, compared with approximately NIS 230 million in the corresponding quarter last year, an increase of approximately 2%, mainly due to an increase in sales per square meter in the clothing fashion activity and full operation of stores throughout. The days of the quarter this year, compared to the corresponding quarter last year, during which closing days were included during the second closing period of the stores.
Sales in the clothing fashion segment in the third quarter amounted to NIS 83 million, compared with NIS 71 million in the corresponding quarter last year. The increase in sales in the third quarter compared to the corresponding period last year is mainly due to an increase in revenue per square meter of stores in the field of activity and an increase in sales of e-commerce sites in the field of activity.
Home fashion sales in the third quarter amounted to NIS 111 million, compared with NIS 110 million in the corresponding quarter last year. The increase in sales in the third quarter compared to the corresponding period last year is mainly due to the closure of stores in the corresponding quarter last year. The increase was partially offset by a decrease in revenue per square meter in the stores of this area of activity and a decrease in the online revenues of the area of activity.
The decrease in revenue per square meter was mainly due to particularly high revenue in the field of home fashion activity during the corresponding quarter last year, with the end of the first store closing period and before the second closing period.
Adika’s sales in the third quarter amounted to NIS 42 million, compared with NIS 50 million in the corresponding quarter last year. The decrease in sales in the third quarter compared to the corresponding period last year is mainly due to a decrease in sales in the country. The decline was partially offset by an increase in sales of international operations
Gross profit in the third quarter amounted to NIS 149 million (constituting approximately 63.5% of revenues), compared with approximately NIS 140 million (constituting approximately 60.8% of revenues) in the corresponding quarter last year. The increase in the gross profit rate in the third quarter of 2021 compared to the corresponding quarter last year was mainly due to a decrease in the discount rate in the third quarter and a decrease in the average exchange rate in this quarter, in the areas of home fashion and clothing fashion. The increase was partially offset by the erosion of the gross profit margin in the area of Adika activity.
Operating profit after other expenses in the third quarter amounted to NIS 12 million (constituting approximately 5% of revenues), compared with a profit of approximately NIS 16 million in the corresponding quarter last year (constituting approximately 6.8% of revenues).
The net profit in the third quarter amounted to NIS 6 million (constituting 2.6% of revenues) compared with a profit of NIS 11 million in the corresponding quarter last year.
Net income attributable to shareholders in the third quarter amounted to NIS 8 million, compared with a profit of NIS 11 million in the corresponding quarter last year.
Shareholders’ equity as of September 30, 2021 amounted to NIS 273 million, compared with NIS 253 million as of December 31, 2020. The increase in capital in the reporting period is mainly due to the net profit in the reporting period less a dividend paid.
The average revenue per square meter in the quarter (excluding the closure period) in the home fashion and clothing fashion stores amounted to NIS 1,124, compared with NIS 1,138 in the corresponding quarter last year, a decrease of 1.2%.
.