Ayelet Zarfati Rosen (photo by Shay Kedem)
Icon Group has published its financial results for the fourth quarter and for the entire year 2022. The company is, among other things, the distributor of Apple products, and distributes Lenovo, HPE and Asus products in Israel through the company Visual, as well as the owner of the iDigital (iDigital) and goodiz iDigital store chain.
The main financial results for 2022:
Revenues in 2022 grew by about 7% to about NIS 1.5 billion, compared to revenues of about NIS 1.4 billion in the corresponding period last year. The increase is mainly due to the increase in revenues in the field of distribution as a result of the consolidation of the Visual subsidiary beginning in March 2022. The gross profit in 2022 increased by approximately 4% to approximately NIS 175.2 million (11.5% of revenues), compared to approximately NIS 168.4 million (11.8% of revenues ) in the corresponding period in 2021. The increase was due to the consolidation of Visual.
The operating profit in 2022 amounted to approximately NIS 82.3 million, compared to approximately NIS 98.1 million in the corresponding period in 2021. The change results, among other things, from the recording of accounting expenses for reducing cost excesses, capital compensation and a provision for contingent payment attributed to the purchase of Visual in the amount of approximately NIS 7 million, from expenses recorded for the opening of 5 new stores, as well as from relatively low costs recorded last year due to limited activity of the stores during the closure period. These expenses are a result of the company’s investment to create additional growth engines that will allow for increased revenue and profit in the years to come.
Financing expenses in 2022 increased due to exchange rate differences arising from high volatility in the dollar exchange rate and the revaluation of dollar liabilities accordingly, an increase in the scope of bank credit and the prime interest rate and financing expenses added for a subsidiary that was consolidated for the first time. The group’s net profit in 2022 amounted to approximately NIS 46.9 million compared to approximately NIS 68.6 million, in the corresponding period last year. The decrease was due to the aforementioned increase in financing expenses and the factors that affected the operating profit as mentioned. The company’s equity, as of December 30, 2022, amounts to NIS 217.1 million and constitutes about 35% of the assets.
More in-
The main financial results for the fourth quarter of 2022:
The group’s revenues in the fourth quarter of 2022 amounted to 385 million shekels, compared to revenues of approximately 392.2 million shekels in the corresponding quarter last year and 307 million shekels in the third quarter of 2022. The gross profit in the fourth quarter of 2022 amounted to approximately 46.4 million shekels, compared to 47.3 1 million shekels in the corresponding period in 2021 and 37.8 million shekels in the previous quarter.
The operating profit in the fourth quarter of 2022 amounted to approximately 22.1 million shekels, compared to approximately 26.4 million shekels in the fourth quarter of 2021 and 14.1 million shekels in the previous quarter. The group’s net profit in the fourth quarter of 2022 amounted to approximately NIS 10.3 million, compared to a profit of NIS 19.3 million in the corresponding quarter last year and NIS 6.6 million in the previous quarter.
– In May 2022, the validity of the APR premium reseller agreement for the marketing of Apple products, with iDigital Store Ltd. and iDigital Solutions Ltd., was extended for a period of three years until May 31, 2025. Also, the validity of the distribution agreement with Icon Group Ltd. was extended from the distribution of Apple products, for a period of three years until May 31, 2025, compared to one-year extension periods that applied until May of this year.
– During the reporting period, four iDigital goodiz stores were opened in Modi’in, Ashkelon, Birka and Givataim.
– In November 2022, an iDigital Smart store was opened in Eilat.
– During the period of the report, a memorandum of understanding was signed regarding the lease of an iDigital store in the Big Fashion Gillot complex, the construction of which is expected to be completed during the year 2023, in addition, the company is conducting negotiations to open an iDigital store in Hadera.
– In March 2022, the company signed an agreement to purchase 85% of Visual, which operates in the field of distribution, for approximately NIS 69 million.
– During the second quarter, Visual received a license to distribute Lenovo products in the consumer sector, a move that the company estimates is expected to increase its revenues in the coming quarters.
Roni Israeli and Ayelet Farfati Rosen, joint CEOs of Icon Group: “The company concludes the year 2022 with growth in revenues and with the continued expansion of operations through the opening of new stores and entry into new areas of activity. The purchase of the Visual company in March last year bore fruit during the year, and was a significant factor in the company’s growth and profitability. The purchase fits well into the company’s distribution sector, alongside the activity in the field of Apple products, and provides an impetus for the continuation, when Visual recently received a license to distribute Lenovo Consumer products, a move that is expected to contribute to an increase in revenues in 2023. At the same time, we continued to expand our retail operations through the expansion of the goodiz iDigital network which also appeals to the audience of Android consumers and already has 7 branches. Also, this year we successfully launched a new store in Eilat, iDigital’s 19th. Today, the iDigital chain has 26 branches and we continue to work to establish the growth and profitability of the company for the long term.”
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