The company certainly made an improvement and managed to move to a profit of about 5 million, however the financing expenses jumped due to the revaluation of a securities portfolio, the dive is due to the fact that the company is not worth 3.5 billion NIS as it opened this morning
The Company’s revenue in the first quarter of 2022 amounted to NIS 287 million, compared with NIS 173 million in the corresponding quarter last year, an increase of 66%. The increase in revenue is due to an increase in sales in all segments: Nike’s revenue increased by 118%, -33% and Dream Sports revenues increased by about 26%.
It should be noted that the increase in sales turnover in the first quarter, compared to the corresponding period last year is mainly due to the increase in trading areas in Dream Sport and Pot Locker chains in Israel and Nike in Europe and an effect of 51 closing days in the corresponding quarter last year. From last year’s closure in Israel and a slowdown in sales in the current quarter due to the spread of the Omicron variant and the restrictions imposed on trade.
Gross profit in the first quarter of this year amounted to NIS 144 million (50.1% of turnover) compared to NIS 83 million (47.8% of turnover) last year, an increase of 74%. The increase in gross profit is due to an improvement in gross profit in the operating segments – Pot Locker and Nike.
Operating profit in the first quarter of 2022 amounted to approximately NIS 17 million (5.9% of sales) compared to approximately NIS 12.2 million (7.1% of sales) last year, an increase of approximately 39.5%.
Excluding the IFRS16 accounting standard, operating profit in the first quarter of the year amounted to NIS 14.8 million (5.2% of sales), compared with NIS 11.9 million (6.9% of sales) in the corresponding period last year.
The increase in operating profit compared to last year is due to an improvement in Nike’s results, which were offset by an increase in sales expenses in Pot Locker due to an increase in trading areas, due in part to European activity (which began in the fourth quarter of 2020) and savings in operating expenses.
The net profit in the first quarter of 2022 amounted to NIS 4.7 million, compared with a loss of NIS 11.7 million last year. Excluding a one-time accounting revaluation for an option last year, the net profit last year amounted to NIS 6.6 million. Net securities and interest income, in the amount of NIS 5.7 million, partially offset by an increase in the Company’s operating profit.
Excluding the IFRS16 accounting standard, the net profit in the first quarter of 2022 amounted to NIS 6.6 million, compared with a loss of NIS 10.2 million last year. Excluding the one-time accounting revaluation for an option last year, the net profit last year amounted to NIS 8.1 million.