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And thanks to Online: An excellent report for Ace, an increase in sales and profits
The company grew in the first half by 25% in sales compared to the corresponding half last year and by 46% in net profit, online revenue grew by a median of about 16% and the synergy between online and branches continues to expand.
CEO Itzik Ozana: "We are reaping the fruits of the logistical revolution we have carried out"
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Tuesday, 17 August 2021, 10:34 Updated: 10:57
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As the quarterly reports published by public companies in Israel pile up, it turns out that the second quarter of 2021, which was marked by the opening of the economy and the liberation from corona restrictions, was one of the best for almost every segment. The Ace network is also concluding a successful quarter that completes a very good median, certainly when compared to last year's data, the year of the corona.
At the same time, as will be explained below, Ace also has unique characteristics that have helped to achieve the beautiful numbers, alongside the improvement in the performance of the economy as a whole.
First, the data:
• The
company's
median revenues amounted to NIS 345 million, an increase of 25% compared to last year.
•
Gross profit
in the median amounted to NIS 158 million, compared with NIS 148 in the corresponding half last year and constitutes 45.7% of sales.
•
Operating profit
Current operations before other expenses (excluding the implementation of IFRS 16) amounted to NIS 23 million, compared with NIS 15 million in the corresponding half last year. Operating profit from operating activities constitutes 6.5% of sales turnover, compared with 5.5% in the corresponding half last year.
•
The
median
EBITDA
amounted to NIS 27 million and accounted for approximately 7.8% of sales turnover, compared with NIS 20 million in the corresponding median last year, which accounted for approximately 7% of sales turnover.
•
The
company's
net profit
in the middle amounted to NIS 15.2 million and accounted for approximately 4.4% of sales turnover, compared with NIS 10.5 million last year, which accounted for approximately 3.8% of sales turnover. Net profit grew by about 46% compared to the corresponding median last year.
•
Revenue of the Company's trading sites
Amounted to NIS 69 million, compared with NIS 60 million last year, a growth of about 15.7%, despite the closure of the chain stores which took place last year on March 25, 20-19 / 4/20 (a time when the company sold only through trading sites) .
In the whole of 2020, the revenue of the trade sites amounted to NIS 140 million.
• The company reported that it was well prepared for
the maritime transport crisis and was
equipped with an unprecedented rate of inventories, which constitutes about 39% more than the regular inventory balances during this period.
Such an inventory volume is a competitive advantage for the company in the coming months following the crisis.
•
Revenue from identical branches
jumped by 28%, as did revenue per square meter in identical branches, which grew by 24% compared with the corresponding median last year.
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Itzik Ozana, CEO of ACE: Continues to succeed, mainly thanks to the strengthening of online activity (Photo: Nimrod Ganish)
A handsome cash register despite repaying loans and stocking up
Itzik Ozana, CEO of the ACE Group
: "Ace results in the first half reflect the fruits of the realization of the strategy we have stated in the past, which includes improving logistics capabilities, growth in online sales and strengthening the synergy with the branches.
These processes create a long-term trend of growth and optimal value proposition for customers' needs while promoting innovation in services and products.
During the median, we continued the trend of expanding the activity of the e-commerce site, including entering additional categories including pharma, sports, children and leisure products.
In addition, we launched our Market Site, Market Place, in early 2020, and in the first half, the Market Place arena constitutes about 31% of the total trade site revenue, compared with 6% in the median last year.
We have continued to strengthen the synergy between the trade site and the physical stores, and today about 43% of the buyers on the site choose to collect the products independently, from the physical stores. This activity generates traffic in the physical stores that brings with it additional purchases by 36% of buyers at self-collection (compared to 12% in the corresponding half last year).
We are also reaping the fruits of the logistical revolution we carried out from the end of 2019 with the transition to self-management of the main Marlog, and during 2020 we signed lease agreements and started operating 2 more Marlogs for online operations, in Ashdod and the north of the country.
These moves enable customer availability and operational efficiency of the supply chain, and so we prepared in advance for the maritime transport crisis and equipped ourselves with inventory at a higher volume than usual (about 40% above normal inventory levels), in order to continue offering the consumer a wide range of products.
In doing so, we look ahead and build solid infrastructures for the future and consider synergistic acquisition for our areas of activity. We are constantly working to improve the customer experience and improve our sales channels. "
David Moore, CFO of the Ace Group,
said today:" The company has net cash at the end
of the half
in the amount of NIS 50 million, after the company repaid most of its bank loans during "The median acted to purchase inventories on a larger scale than usual in preparation for the maritime transport crisis and distributed a dividend in the total amount of NIS 29 million. .
The company notes that strategically, it is working to further expand the trade sites, the synergy with the stores and further development of the logistics array as well as for a synergistic acquisition that will constitute further growth for the company.
Ace Retail operates 3 chains of stores that offer products for upgrading and maintaining the house (Home Improvement), the yard and the vehicle, under the brands Ace, Auto Depot and Ace Electric.
Today, the ACE Group has 34 stores nationwide and three online commerce sites, and employs about 1,000 people.
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