Quick Super Online summarizes the first nine months of 2021

by time news

Following a pilot, the company is launching a customized solution this month for customers interested in purchasing a mehadrin experience in 19 of the 30 stores in which it operates, and will begin targeted marketing for the ultra-Orthodox sector in cooperation with the Encore company.

In the third quarter of 2021, the company recorded revenue growth of NIS 39.5 million and a loss of NIS 8.1 million. The company notes that there was some damage to its revenues this quarter due to a shortage of working days in September and difficulty in hiring pickup workers.

Aviram Ganot, CEO of Quick Super Online: “During the year, we worked hard in several sectors, including the company’s technology, brand, deployment and operational capability, and further improving the value proposition and customer experience, and I am glad that we continue to lead and innovate all the time. Last year we invested a lot of resources to be able to absorb the tremendous growth due to the corona waves, and this year we are investing resources to make the work more efficient and accurate both in terms of customer experience and in terms of costs and profitability and we are very pleased to see results. We are preparing the company’s infrastructure to enable it to grow quickly and efficiently in the coming quarters. “

Quick sums up the first nine months of 2021 with a 43% growth in revenue, while working intensively and consistently to move the company to profitability. In the third quarter, the company shows an increase of about 16% compared to the corresponding quarter last year, despite the fact that this quarter was significantly affected by the decrease in the number of working days in September due to the timing of the Tishrei holidays. In addition, the Company’s profitability in the quarter was affected, in line with the general trend affecting the industry, by the manpower shortage recorded in the quarter due to the effects of the fourth wave of the corona, which led to a point increase in manpower costs and availability. Against this background, in the third quarter, Quick met demand, some of which it was unable to meet due to a shortage of employees, and the company is currently working extensively to upgrade the recruitment and training processes. Quick operates in a number of sectors to accelerate the scope of its activities, while investing in strengthening the brand, with the aim of becoming a large and profitable company in the coming years.

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Online retailer Quick Super Online Reported its financial results for the summary of the third quarter and the first nine months of 2021.

Principles of financial results

The company’s revenues in the first nine months of 2021 grew by 43.5% to NIS 124.5 million, compared with revenues of NIS 86.7 million in the corresponding period last year. The growth stems from an increase in the company’s activity, both from an increase in sales in identical stores and the opening of new stores and the closure of several stores while optimizing the geographical distribution. Growth in the quarter was achieved even though the total number of working days in September 2021 was small due to the Tishrei holidays, compared to the corresponding period last year in which the Tishrei holidays also fell in the fourth quarter.

In the first nine months of 2021, Quick shows an improvement in sales cost relative to revenue, as a result of improvements in trade agreements and operational efficiency. Accordingly, the company significantly reduced its gross loss to NIS 250,000 during the period, compared with a gross loss of NIS 5.7 million in the corresponding period last year.

It should be noted that in the fourth quarter of 2020 and the first of 2021 the company has already moved to gross profit and that this profitability eroded in the second and third quarters of 2021 due to manpower shortage. This distress was caused by the corona plague, and increased labor costs on a one-off basis, on the one hand, and did not allow for the maximization of growth potential on the other. It should also be noted that unlike other retail companies, at the level of accounting reporting, Quick’s selling cost includes all operating costs to the customer’s home, including collection, packaging and shipping costs, in addition to product purchase costs.

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Quick operating expenses – Sales, marketing, management and general, plus development expenses – amounted to NIS 29.9 million in the first nine months of 2021, compared with NIS 21.6 million in the corresponding period last year. The increase is due, among other things, to the timing of a large marketing campaign in the amount of NIS 5 million during June 2021.

Bottom line The company ended the first nine months of 2021 with a loss of NIS 30.2 million, compared with a loss of NIS 27.8 million in the corresponding period last year. The loss is mainly due to the company’s continued investment in infrastructure development and investment in marketing and sales and brand investment. The loss in the period includes, as stated, the expenditure in the amount of NIS 5 million in respect of the marketing campaign.

In the third quarter of 2021, the company recorded a 16.1% increase in revenues to NIS 39.5 million, compared to revenues of NIS 33.9 million in the corresponding quarter last year. The company’s gross loss in the quarter decreased to NIS 120,000, compared with NIS 1.5 million in the corresponding quarter last year.

The net loss in the quarter amounted to NIS 8.1 million, compared with a loss of NIS 8.4 million in the corresponding quarter in 2020. The loss-to-income ratio decreased in the quarter to about 20.6%, compared with about 24.7% in the corresponding quarter last year, a figure that reflects that the increase in revenue leads to improved profitability – and the company is working to intensify this trend and move to profitability.

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The percentage loss from ordinary activities in relation to turnover decreased in the third quarter of 2021, compared with the corresponding period last year by about 3.8% as a result of the increase in turnover and improved gross profitability, despite the increase in marketing and sales expenses. The third quarter of 2021 was significantly affected by the timing of the Tishrei holidays this year, which led to a 30% decrease in the number of working days in this month compared to the average month.

As of the end of the third quarter of 2021, the Company has cash and cash equivalents of approximately NIS 78 million and total equity of approximately NIS 75.2 million.

Recent major events:

In June 2021, the company signed a material agreement with another large retailer, the city market, in order to strengthen the company’s presence across the country with a significant quality retailer. The company has opened its first store with the retailer in the Holon industrial area and plans to open a number of additional stores in the near future.

In April 2021, the company entered into a unique cooperation agreement, for a period of 3 years, with Encore, which, among other things, develops and markets protection and filtering systems for kosher smart devices, and operates digital content systems for the entire ultra-Orthodox sector. Following the development of an appropriate technological, commercial and marketing infrastructure, and a short pilot conducted by the company in a number of centers of activity, the company will launch a customized solution for the ultra-Orthodox sector in 25 stores out of the existing 30, allowing each customer to purchase on the site freely.

To graph Quick click here

11 mutual funds holding a total of 1.35 million in Quick

Mutual funds that hold Quick.

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