Businessman Rami Levy's company ended the first quarter of 2022 with a net profit of NIS 81 million

Businessman Rami Levy's company ended the first quarter of 2022 with a net profit of NIS 81 million - an increase of 72% compared to the corresponding quarter. The dramatic increase in profit was contributed by a 15% increase in sales of all the company's activities, which totaled NIS 1.8 billion, mainly thanks to the growing subsidiary, the Good Pharm chain, which won a tender from the Ministry of Health to supply corona (antigen) testing imported from China. NIS 1 million, which was reflected in the current quarter.
Good Pharm, which turns out to be one of Rami Levy's successful investments, was acquired by him about four years ago - 50.1% for $ 4.5 million - when it still had one single branch in Tel Aviv. It currently operates about 55 branches throughout the country. In the current quarter, the subsidiary contributed to the operating profit of Rami Levy a total of NIS 48 million, as a result of which the operating profit of the entire Rami Levy Group increased by 50% and amounted to NIS 103 million, and the operating profit increased to 5.25% - the highest rate recorded. The group in recent years (in the corresponding quarter last year the rate was 4.27%). However, Rami Levy's gross profit fell from 22.8% in the corresponding quarter last year to 22.2% in the current quarter. The company explains that the gross profit in the Ministry of Health tender, due to its large volume, was relatively low, and in addition the increase in private label sales, whose gross profitability is lower due to its cheap prices relative to brands.
Sales in identical stores decreased by 6.25% - a small decrease compared to competitors, since the reports published by Victory and Yochananoff show a decrease in sales in identical stores of 8.4% and 9.2%, respectively.
Results by segments: In the food retail sector alone, no growth was recorded: sales in the first quarter amounted to NIS 1.4 billion, compared with NIS 1.47 billion in the corresponding quarter. It should be noted that two new stores opened in the first quarter, so that Rami Levy operates a total of 56 branches throughout the country. The "others" segment, which includes Kopix's customer club and communications services, contributed NIS 10 million to operating profit.
Rami Levy's gross profit fell from 22.8% in the corresponding quarter last year to 22.2% in the current quarter. The company explains that the gross profit in the Ministry of Health tender, due to its large volume, was relatively low, and in addition the increase in private label sales, whose gross profitability is lower due to its cheap prices relative to brands.
Sales in identical stores decreased by 6.25% - a small decrease compared to competitors, since the reports published by Victory and Yochananoff show a decrease in sales in identical stores of 8.4% and 9.2%, respectively.
Results by segments: In the food retail sector alone, no growth was recorded: sales in the first quarter amounted to NIS 1.4 billion, compared with NIS 1.47 billion in the corresponding quarter. It should be noted that two new stores opened in the first quarter, so that Rami Levy operates a total of 56 branches throughout the country. The "others" segment, which includes Kopix's customer club and communications services, contributed NIS 10 million to operating profit.
Rami Levy: "We are opening 2022 with record sales and profit data and approaching a turnover of NIS 2 billion per quarter. Our investment in ancillary activities is paying off and is bearing fruit."