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Ended 2021 with stability in revenues amounting to NIS 6.45 billion, compared to NIS 6.47 billion in 2020. Gross profit increased to NIS 1.52 billion in 2021, compared to NIS 1.46 billion in 2020. The increase in gross profit was mainly due to logistical efficiencies. Added in Marlog, from the improvement in terms of trade, the private label and the improvement in the profits of the subsidiaries.
Operating profit increased by 14% to NIS 321 million, compared to NIS 282 million in 2020. Operating profit increased to 4.98%, compared to 4.36% in 2020. Bottom line, the Rami Levy Sycamore Marketing chain concludes the year 2021 with an increase of about 20% in net profit to about NIS 212 million, compared to about NIS 176 million in 2020.
EBITDA in 2021 increased by about 10% to NIS 576 million (approximately 8.9% of revenues), compared with approximately NIS 523 million (approximately 8.1% of revenues) in 2020.
Highlights of the fourth quarter of 2021:
Revenues in the fourth quarter 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 rose 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.
Operating profit 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 for the quarter 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 approximately 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.
Simultaneously with the approval of the reports, the company announced a dividend distribution of NIS 64 million, which is in addition to a dividend distribution of NIS 176 million from the beginning of the year. Since it was issued to the public in May 2007 until today, the company has distributed a dividend totaling NIS 1.25 billion.
In January 2022, the subsidiary Good Pharm won a tender from the Ministry of Health to provide rapid test kits for diagnosing corona in the total amount of NIS 250 million. The company is expected to record a significant increase in sales volume in the first quarter of 2022.
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.
The company intends to continue expanding its discount branch operations – the Rami Levy Sycamore Marketing chain currently operates 56 branches (of which 3 are franchised) and intends to open additional discount branches this year. The company recognizes the potential for establishing about 20 additional discount branches in new areas where the chain does not currently operate and estimates that the opening of the new branches has not created cannibalization for the chain’s active branches. In addition you will continue to develop the private label and deepen the penetration of the private label.
The Rami Levy Sycamore Marketing chain, managed by Rami Levy, has been operating for 45 years as a chain of discount stores in the fields of food and toiletries. The chain operates in both the retail and wholesale sectors, and currently operates 56 supermarket branches (of which 3 are franchised). At the same time, the company is working to expand its operations into city centers both through the opening of new municipal branches and through the acquisition of active urban chains. The company has about 290,000 cellular subscribers as a virtual cellular operator
Rami Levy, CEO of the Rami Levy Sycamore Marketing chain: “In 2021, we crossed the NIS 200 million threshold in net profit for a single year for the first time. The increase in profits is not at the expense of the consumer but as a result of a number of actions we led, including an improvement in terms of trade with suppliers, further logistical efficiencies at Marlog and also as a result of a sharp increase in subsidiaries including Good-Pharm, Kopix, cellular and club operations. To adhere to the business strategy and vision from the day the chain opens: to offer the cheapest product basket to the customer not at the expense of quality and service.
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. “