Rami Levy: Net profit decreased by 12.5% ​​and amounted to NIS 42 million

Posted on Nov 29, 2021 by Ifi Reporter

Rami Levy published its report for the third quarter of 2021, and like competitors Shufersal and Freshmarket, which also published their reports earlier, it also shows a decrease in sales and profits, along with a dividend of NIS 36 million. This is in addition to the distribution of a dividend of NIS 140 million from the beginning of the year.
Levy can take solace in the high dividend of which 40% will go into his pockets, having recently been forced following public criticism, to give up his demand for a 40% wage increase. The chain's cash register contains NIS 978 million, compared with a financial debt of only NIS 13 million.
Net profit decreased by 12.5% ​​and amounted to NIS 42 million, compared with NIS 48 million in the corresponding quarter last year. There was also a decrease in sales from NIS 1.66 billion in the corresponding quarter to NIS 1.62 billion in the current quarter. This is in continuation of the reduction in the revenue of identical stores by 7% - according to the chain, due to the shortage of working days in the month of Tishrei, the deepening of promotions and discounts for the holiday.
Its gross profit remained almost stable - rising from 22.6% in the same quarter to 22.7% in the third quarter of this year, and is the lowest of the food chains reported so far: Victory 25.3%, Yohannoff 27.1%, Shufersal 27% and Freshmarket 35.6%.
The operating profit margin decreased and amounted to 4.19% of revenues compared to 4.63% in the corresponding quarter.
According to Levy, the company announced that it is allocating a sum of half a billion shekels from its fund for strategic investment in a new category that will lead to an increase in the average shopping basket of its customers. The chain currently operates 56 branches and intends to open up to 20 more branches next year. "Deepening the promotions during the Tishrei holidays has hurt profitability, but the benefit with the consumer," Levy said.


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