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Tiv Ta'am: The results are "impressive", the stock is down - Walla! Of money

2021-08-25T10:24:53.196Z


Tiv Ta'am Group concludes the second quarter and first half of the year with mixed results: Decrease in revenue and profit in the second quarter of the year compared to the corresponding quarter of 2020


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Taste: The results are "impressive", the stock is down

The Tiv Ta'am Group concludes the second quarter and first half of the year with mixed results: a decrease in revenue and profit in the second quarter of the year compared to the corresponding quarter of 2020, which does not erase a positive first half.

Hagai Shalom: "Impressive results".

The stock market was less impressed and the stock is reacting to the decline

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Wednesday, 25 August 2021, 12:11 Updated: 13:16

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Tiv Ta'am published the quarterly reports that the company defined as "good" despite a decrease in revenue and profit compared to the corresponding quarter last year. The results of the first half of 2021 are called "impressive" by the controlling shareholder and CEO, Hagai Shalom, but they are mainly based on the excellent first quarter.



In any case, investors in the stock market were a little less impressed: share fell by nearly 3.5% (at the time of writing).




Hagai Shalom, CEO and controlling shareholder

, said: "we conclude the first half with impressive results, indicating continued growth, despite the second quarter was without a material impact beams. revenue per Identity stores in the first half of the year grew by about 34.6% compared to revenue per square meter in the same period in 2019 and we continue to maintain an operating profit rate of about 7% which is above the industry average.



The numbers leave no room for doubt that the results are mainly the result of in-depth moves made by the group, on a broad level, and do not necessarily stem from the corona crisis.



"

We continued to deepen the process of lowering prices, into 2021 and the continuation of this move, came to strengthen the viability of daily shopping online, while maintaining the benefits that characterize the network.



Tiv Taam will continue to consolidate its position and growth, while developing growth engines in core areas, retail and manufacturing, and reducing as much as possible, the effects return to normal life after the corona, as there are signs of 2021 ".



As mentioned above, investors interpreted otherwise the results and the share price reacted to the decline, After beautiful increases it has achieved since the beginning of the year,



however, the decrease in a number of key parameters in the second quarter will not prevent the distribution of a quarterly dividend in the amount of NIS 5.5 million.

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Hagai Shalom, CEO and controlling shareholder of Tiv Ta'am. Interprets the data differently from investors (Photo: Assaf Lev)

Notable items in the report for the second quarter of 2021:

Revenues from the food retail sector in the second quarter of the year decreased by approximately 5.5% and amounted to approximately NIS 341.7 million, compared with revenues of approximately NIS 361.8 million in the corresponding quarter last year.



In the first half of the year, revenues amounted to NIS 695.9 million, an increase of 3.9% compared to revenues of NIS 669.7 million in the corresponding period last year.



Revenue and revenue per square meter in identical stores in the second quarter of the year decreased by 6.7% and 2.7%, respectively, compared with the corresponding quarter last year.



In the manufacturing sector, total revenues in the second quarter of the year amounted to NIS 80.8 million, compared to NIS 83 million. H. in the corresponding quarter last year. According to Tiv Ta'am, the decrease is attributed to a proactive cessation of fresh fish activity, which was not profitable, along with a significant increase in the categories of wine and alcohol and thermal meat products (sausages, pastrami, etc.). About 10.1%



Compared to revenue in the corresponding quarter last year. In the first half of the year, revenues from the manufacturing sector amounted to NIS 161.2 million, compared with revenues of NIS 167.1 million in the corresponding period last year. Excluding the revenues of the fresh fish activity, as stated above, there is an increase in revenues of approximately 12.8% compared to revenues in the corresponding period last year.



The Group's total revenues in the second quarter of the year amounted to NIS 392.3 million, compared with NIS 410.8 million in the corresponding quarter last year, a decrease of 4.5%. In the first half of the year, the Group's revenues amounted to NIS 793 million, compared to NIS NIS 772.5 million in the corresponding period last year, an increase of 2.7%



The gross profit of the food retail sector in the second quarter of the year amounted to NIS 110.6 million (32.4% of revenue) compared to NIS 114.8 million (31.7% of revenue In the corresponding quarter last year.



The gross profit of the manufacturing sector in the second quarter of the year amounted to NIS 19.1 million (approximately 23.7% of revenue turnover), compared with NIS 18.6 million (approximately 22.4% of revenue turnover) compared with the corresponding quarter last year. The increase in the gross profit margin was mainly due to the focus on the core categories, which have high profit margins. In the first half of the year, gross profit amounted to NIS 39.7 million (approximately 24.6% of revenue), compared with NIS 36.6 million (approximately 21.9% of revenue) in the corresponding period last year.



The Group's gross profit in the second quarter of this year amounted to NIS 130.1 million (approximately 33.2% of revenue), compared with NIS 133.6 million (32.5%) in the corresponding quarter last year. A decrease of approximately NIS 3,502 thousand and a rate of approximately 2.6% was mainly due to the retail sector.



In the first half of the year, gross profit amounted to NIS 264.2 million (rate of 33.3%), an increase of 7.2%, compared with gross profit of NIS 246.5 million (31.9% of revenue turnover) in the corresponding period last year. .



Company's operating income for the second quarter totaled NIS 28.4 million, a rate of approximately 7.2% of revenues, compared to NIS 27 million and a rate of approximately 6.6% of revenues in the same quarter last year. In the first half of the year, operating profit amounted to NIS 58.4 million and a rate of 7.4% of revenues, an increase of 33.6%, compared with operating profit of NIS 43.7 million and a rate of 5.7% of revenues in the corresponding period last year.



According to the company, the operating profit rate is a continuation of the trend of profit rates that characterized the Tiv Ta'am Group, during 2020 and resulted from the reduction of inputs in the retail and manufacturing sectors - closing fresh operations characterized by high operating costs, while streamlining and rebuilding the industrial sector



Profit for the period in the second quarter increased by approximately 16.6% and amounted to approximately NIS 18.3 million, compared with profit for the period in the amount of approximately NIS 15.7 million in the corresponding quarter last year. In the first half of the year, profit for the period amounted to NIS 35.7 million, an increase of 54.9% compared to profit for the period of NIS 23 million in the corresponding period last year.

The Tiv Ta'am Group, controlled by Hagai Shalom (45.4%), operates in the field of food retail and is the largest in the non-kosher field.

Tiv Ta'am was founded in 1990 and has about 1,400 employees.



The company's securities are traded on the Tel Aviv Stock Exchange and are included in the 60 SME index at a value of approximately NIS 1 billion, close to the date of publication of the results of the second quarter of 2021.

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Source: walla

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