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Rami Levy: The revenues reached a peak, so why did the net profit decrease? - Walla! Of money


Rami Levy: Revenues in 2022 grew by 9% and crossed the NIS 7 billion threshold for the first time - thanks to growth in all areas of activity, the opening of new branches and an increase in same-store sales

intends to continue expanding.

Rami Levy (Photo: Flash 90, Yonatan Zindel)

The chain of food stores, Rami Levy Marketing Sycame, last night published its financial results for 2022, which show growth in revenues in all areas of activity.

Revenues in 2022 grew by approximately 9%, crossing the NIS 7 billion mark for the first time, and totaling approximately NIS 7.04 billion, compared to approximately NIS 6.48 billion in 2021. The growth in revenues was due to the opening of new branches, an increase in revenue from same stores, an increase in revenue from the sale of Antigen tests through the Good Pharm subsidiary, as well as from an increase in the scope of activity of the subsidiaries - Kofix, Good Pharm, the customer club and the cellular activity.

Net profit was approximately NIS 192 million, compared to approximately NIS 212 million in 2021. The decrease in net profit, despite the stability in operating profit, was mainly due to an increase in net financing expenses, to approximately NIS 67 million, compared to approximately NIS 45 million in 2021. Under the influence of the declines in the fair value of the marketable securities portfolio due to the declines in the capital markets.

The EBITDA in 2022 increased by about 4% to about NIS 559 million (about 8.5% of revenues), compared to about NIS 576 million (about 8.9% of revenues) in 2021. Simultaneously with the approval of the reports, the company announced the distribution of a

dividend in the amount of NIS 45 million, which is added to the distribution of a dividend of approximately NIS 191 million during the year 2022. Since it was issued to the public in May 2007 until today, the company has distributed a dividend in the total amount of approximately NIS 1.35 billion.

Continue the activity

Over the past two years, the Good Pharm chain has opened 26 more Pharm branches across the country.

This is in accordance with the expansion strategy, so that as of today the Good Pharm chain operates 53 Pharm branches throughout the country.

In fact, since the acquisition of control of the Good Pharm chain in May 2018, 42 Pharm branches have been opened nationwide and the company intends to continue the trend of opening additional Pharm branches, alongside the continued expansion of the wholesale activity of 'Good Pharm'.

The company intends to continue expanding the activity of the discount branches - the Rami Levy Marketing Sycamore chain currently operates 56 branches (of which, 3 are franchised branches).

The company recognizes the potential for the establishment of approximately 25 additional discount branches in new areas where the chain does not currently operate and estimates that the opening of the new branches will not create cannibalization of the chain's active branches.

In addition, the chain will continue to open urban branches, including directly, as well as develop the private brand and deepen the penetration of the private brand.

In October 2022, Rami Levy launched an insurance agency, accompanied by advice and support from the 'Ihud' insurance agency from the Migdal group.

This agency offers policyholders car, home, health, mortgage and travel insurance.

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Source: walla

All business articles on 2023-03-29

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