Quick: The net loss in the quarter amounted to NIS 8.1 million, compared to a loss of NIS 8.4 million in the third quarter in 2020

by time news

Quick Super Online publishes financial results according to which 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. According to the company, the growth stems both from the increase in sales in identical stores and from the opening of new stores in the face of the closure of several stores, while optimizing the geographical distribution. The company emphasizes that growth in the quarter was achieved even though the total number of working days in September was small due to the Tishrei holidays, compared to the corresponding period last year when the Tishrei holidays slipped into the fourth quarter.

Quick shows in the first nine months of 2021 an improvement in sales cost relative to revenue, she said as a result of improved trade agreements and operational efficiencies. Accordingly, the company 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.

In the fourth quarter of 2020 and the first quarter of 2021, the company had already moved to gross profit but profitability eroded in the second and third quarters of this year, which the company attributes to a manpower shortage, against the backdrop of the corona plague.

It should also be noted that 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 the purchase costs of the products.

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Quick’s operating expenses, sales, marketing, management and general expenses, 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. 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 about NIS 30.2 million, compared to a loss of about NIS 27.8 million in the corresponding period in 2020. The loss is mainly due to the company’s continued investment in infrastructure development and investment in marketing, sales and branding. 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 an increase of approximately 16.1% in revenues to approximately NIS 39.5 million, compared with revenues of approximately 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 ratio in relation to revenues decreased in the quarter to approximately 20.6%, compared with approximately 24.7% in the corresponding quarter last year. The company notes that this figure reflects the fact that the increase in revenues leads to an improvement in profitability and therefore the company is working to intensify this trend.

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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 approximately 3.8% as a result of the increase in turnover and the improvement in gross profitability. This is despite the increase in total marketing and sales expenses and general and administrative expenses. The third quarter of 2021 was significantly affected by the timing of the Tishrei holidays this year.

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.

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