Despite a tens of percent jump in the company’s revenues – the falls in the world’s stock markets and the weakening of the shekel cut into the net profit of the fuel and retail company Dor Alon. At the same time – the return of flights after the Corona crisis and the increase in fuel sales to the Palestinian Authority led the revenues from the direct fuel marketing sector in the last quarter of 2022 to exceed the company’s revenues from the 215 fueling complexes it owns.
Dor Alon’s total revenue in 2022 was NIS 8.1 billion – 72% more than the company’s revenue in 2021. The company’s revenue also jumped in the last quarter of the year, and amounted to NIS 2 billion, 51% more than the last quarter of 2021. The declines in the Tel Aviv Stock Exchange in 2022, where Dor Alon invests about 85% of the company’s stock portfolio (the Tel Aviv 125 index fell by about 12% during 2022). led to a decrease of approximately NIS 39 million in the value of Dor Alon’s securities portfolio, compared to an increase of NIS 84 million in the value of the portfolio during 2021. The weakening of the shekel led to another loss in the company’s investments of NIS 35 million. These decreases were strongly felt in the line of Dor Alon’s net profit – which decreased in 2022 by 88%, to an amount of only NIS 26 million. The declines led Dor Alon to a loss of NIS 18 million in the last quarter of 2022, compared to a profit of NIS 93 million in the corresponding quarter a year before.
Another change in the company’s activity is the increase in the direct sales sector of fuels, which has overtaken (in terms of revenue) the activities of the company’s gas stations and convenience stores – mainly due to the doubling of revenues from fuel sales to the Palestinian Authority to NIS 516 million in the fourth quarter of this year. During this period, the company’s revenues from the sale of jet fuel also increased by 220% – due to the end of the Corona restrictions and the return of the aviation industry to normal. All of these led the revenues of the direct marketing sector to grow by 95% in the last quarter of 2022, to NIS 982 million, while the company’s revenues from the gas stations and convenience stores (Dor Elon gas stations and Alonit stores) amounted to NIS 938 million in the last quarter of 2022 – 26% more than the company’s revenues in this sector in the last quarter of 2021.
On an annual basis, gas stations remain Dor Alon’s most profitable sector with revenues of NIS 3.86 billion (47% more than in 2021), but by a small margin from the direct marketing revenues of the fuels which stood at NIS 3.83 billion in 2022 – 132% more than the sector’s revenues in 2021.
The company’s food retail sector continues to grow – mainly thanks toAM:PM network which was responsible for approximately 70% of Dor Alon’s revenues in the food retail sector in the fourth quarter of 2022. The total revenues in the retail sector were NIS 185 million – 8.8% more than the last quarter of 2021. AM:PM network revenues increased by 6.6% in the last quarter of 2022 and amounted to NIS 128 million. Dor Alon’s total revenue in the food retail sector, which also includes the hamburger chains BBB and Moses, stood at NIS 719 million, 2.8% more than the revenues in 2021.