Delta Israel Brands 2021: Net profit of NIS 138 million - 55% more than in 2020

Delta Israel Brands shares have jumped 60% in the past year. The company, which is about to bring the lingerie brands Victoria's Secret to Israel, announced today (Wednesday) to investors that it has concluded its activity in 2021 with a net profit of NIS 138 million - 55% more than in 2020. Delta Israel Brands managed to increase its revenues in 2021 in all sales channels, and as a result, its revenues grew by about 26% compared to 2020 and amounted to NIS 906 million.
Following the publication of the reports, the company, which has a dividend distribution policy amounting to approximately 30% of the net profit, announced that it will distribute a dividend of NIS 24.89 million out of the 72 million shekels that are eligible for distribution. 2021
Delta designs, markets and sells through 205 stores spread across Israel - from Kiryat Shmona to Eilat - lingerie products for women, men and children, homewear, sports and leisure clothing, children's clothing, socks and footwear (mainly under the FIX and Delta brands). Some of the company's products are sold under well-known brands and trademarks like Disney in accordance with franchise agreements and royalties signed by the company. In early 2022, Delta announced the establishment of a new sportswear chain called Panta Rei, and it currently has 1.12 million members in the customer club.
Similar to 2020, in 2021 most of Delta's revenues - about 53% of total revenues, which constitute NIS 482 million - were from the female customer base. Sales to men accounted for 22% of total revenue and sales to children - about 25% of total revenue. Delta managed in 2021 to increase by 9% the sales made through the company's websites, even though in 2021 there were two months of closure and in 2020 four months of closure due to the corona plague.
Sales through the websites in 2021 amounted to NIS 142 million, compared to NIS 130 million in 2020. After the offering raised NIS 256 million, Delta closed 2021 with NIS 356 million in cash. Its strategic decision to stock up on high inventory balances due to disruptions in the supply chain led to the value of the inventory held by the company at the end of 2021 amounting to NIS 178 million - about 62% more than the value of inventory in 2020 reports.
In the fourth quarter of 2021 Delta managed to meet its strategic plan to continue to show growth to investors. Compared to the corresponding quarter, its revenues grew by 30% to NIS 301 million, gross profit improved by 25% to NIS 180 million and accounted for about 60% of total sales compared to 62.5% of total sales in 2020. The decrease in the rate of profit was caused by the increase in shipping costs. As a result of the increase in sales, the company's operating profit in the fourth quarter of 2021 amounted to $ 63 million - about 20% more than in the corresponding quarter in 2020. The company posted a net profit of NIS 49.8 million, about 21% more than in the corresponding quarter. The company's cash flow from operating activities in the fourth quarter grew by 62% to NIS 50 million
The salary cost of Anat Bogner, CEO of Delta Israel Brands, amounted to NIS 2.1 million in 2021. Bogner concludes: "The company concludes its first year as a public company, a record year with an impressive increase in revenue and profitability, which expresses the company's strength Growth in all sales channels, retail and online, while maintaining operational efficiency. "
Bogner also noted that the company is implementing the growth strategy with advances in the development of the robotic marlog (in which the company invests NIS 100 million; NIS), which will support future organic growth as well as bringing the world's leading brand in lingerie - Victoria's Secret - with two stores and a website. Online in early 2023, and the opening of the Panta Rei sportswear chain that will include seven new stores and an online site in March 2022.
The salary cost of Eyal Israeli, former VP of sales at the Delta chain, amounted to NIS 981,000; the salary cost of Yael Bass, VP of trade, amounted to NIS 828,000; The salary cost of Ofir Lustman, the former VP of finance, amounted to NIS 730,000; and the salary cost of Eyal Amit, VP of marketing, amounted to NIS 693,000.