The Group’s revenues in the first nine months of 2021 increased by 22.5% and amounted to NIS 1.13 billion, compared with revenues of NIS 919 million in the corresponding period last year
Castro – Hoodies Group publishes results for the third quarter and the first nine months of 2021:
The Group’s revenues in the third quarter increased by 21% to NIS 424.4 million, compared with revenues of NIS 353.4 million in the corresponding quarter last year. The increase in revenue is mainly due to the effect of the corona on the group’s activity in the corresponding quarter in 2020, in which all of the group’s physical stores were closed for about 13 days. This, along with an increase in store sales, in the field of clothing, identity and accessories activities in the country.
The Group’s revenues in the first nine months of 2021 increased by approximately 22.5% and amounted to approximately NIS 1.13 billion, compared with revenues of approximately NIS 919 million in the corresponding period last year. The increase is mainly due to the fact that in the corresponding period in 2020 the company’s physical stores were closed for about 70 days while in the current period they were closed for about 51 days. In addition, an increase in sales of the same stores in the field of clothing and in the field of fashion accessories in Israel contributed to this.
Gross profit in the third quarter increased by approximately 26.5% to approximately NIS 252.9 million (59.6% of turnover), compared with gross profit of approximately NIS 199.9 million (56.6% of turnover).
Gross profit in the first nine months of the year grew to NIS 683.5 million (60.7% of turnover), compared with a gross profit of NIS 518.8 million (56.5% of turnover) in the corresponding period last year, which is an increase of 31.8%. The improvement in the rate of gross profitability in the third quarter and in the first nine months of 2021 is due to a change in the product mix, a decrease in the average discount rate, and, yes, an appreciation of the shekel against the dollar.
Operating profit in the quarter amounted to NIS 43.5 million, compared with operating profit of NIS 67.7 million in the corresponding quarter last year. In the corresponding quarter last year, the company recorded a profit from the realization of real estate in the amount of approximately NIS 34 million. Excluding this one-time profit, operating profit in the third quarter of 2021 grew by approximately 29% compared to the corresponding quarter last year. The increase is due to an increase in sales turnover, an improvement in the rate of gross profitability and the implementation of the Group’s efficiency program, as part of its response to the consequences of the corona crisis.
Operating profit in the first nine months of 2021 increased by approximately 252.8% to approximately NIS 152 million, compared with operating profit of approximately NIS 43.1 million in the corresponding period last year. Excluding a one-time profit from the realization of a real estate asset in the amount of NIS 34 million in the corresponding period last year, the company’s operating profit increased 16.7 times in the first nine months of 2021.
The net profit in the third quarter amounted to NIS 22 million, compared with a net profit of NIS 41.2 million in the corresponding quarter in 2020. Excluding a one-time profit from the realization of a real estate property in the amount of NIS 26 million in the corresponding quarter Last year, as mentioned, the net profit in the third quarter of 2021 grew 1.5 times compared to the corresponding quarter last year. It should be noted that in the third quarter, investment continued in the launch of the Group’s new growth engines, headed by Castro Home, at an expense of approximately NIS 10 million.
The company shows a net profit in the first nine months of 2021 in the amount of NIS 87.1 million, compared with a loss of NIS 13.2 million in the corresponding period last year.
Net cash, arising from operating activities in the first nine months of 2021, increased to approximately NIS 188.2 million, compared with net cash arising from current activities in the amount of approximately NIS 128.6 million in the corresponding period last year.
Currently, the group’s chain of stores has 370 stores and stalls in Israel, as well as 18 stores and stalls abroad.