Rami Levy closed the first quarter with a 62% increase in net profit

Rami Levy closed the first quarter with a 62% increase in net profit, along with an improvement in gross and operating profitability - despite a decrease in sales. The company announced NIS 40 million in dividend dividends.
Although it opened two new stores and despite the timing of Passover, which contributed to sales, Rami Levy Sycamore Marketing ended the first quarter with a 1% decrease in revenue, which amounted to NIS 1.61 billion. This is due to a decline in food chain sales. On the other hand, there was an increase in Good Pharm activity.
Food chain sales fell 1.5% to NIS 1.473 billion. Excluding the contribution of the new stores, the same stores that also operated in the first quarter last year recorded a 2.9% decrease in sales.
Private label sales fell 19.88% in sales in the quarter, compared to 21.21% in the same quarter last year. On the other hand, the share of online activity grew to 11.43%, compared with 7.64% in the first quarter last year.
Good Pharm sales grew by 25% to NIS 69 million, compared to NIS 55 million last year. Kopix sales decreased by 10.3% to NIS 69 million.
Improving terms of trade with suppliers and logistical efficiencies, resulting from the move to the company's new logistics center, allowed Levy to record a 4% increase in gross profit, despite the aforesaid decrease in revenues, which amounted to NIS 367 million. Following the increase in gross profit, along with the decrease in sales, the company improved its gross profit margin to 22.7%, compared to 21.67% last year.
The said upgrade in gross profit, along with a reduction in expenses, pushed operating profit by 30.2% to NIS 68.8 million - and its share of sales rose sharply to 4.27% compared to 3.24% in the corresponding quarter. The profit line, which as mentioned jumped by 61.9% (also thanks to a positive financing item), was NIS 46.9 million.