Golf Group Reports Transition to Net Profit in First Quarter: NIS 5.9 million

The Golf Group has announced a significant shift to net profit in the first quarter of the year, marking a notable turnaround from the same period last year. According to the company's data, the net profit for the first quarter amounted to approximately NIS 5.9 million, compared to a loss of approximately NIS 11.6 million in the corresponding quarter last year.

The transition to profit was attributed to a comprehensive efficiency program spearheaded by the company's management. Despite the absence of the positive effects typically associated with the Passover holiday, which occurred in April this year, the Golf Group managed to achieve a net profit.

Strong EBITDA and Sales Performance

The EBITDA for the first quarter reached about NIS 9.7 million, compared to a negative EBITDA of about NIS 4.9 million in the same quarter last year. Sales for the quarter totaled approximately NIS 200.6 million, slightly lower than the previous year due to the timing of Passover falling in the second half of April.

CEO Eyal Greenberg attributed the positive results to a wide-ranging streamlining plan implemented by the company, including store closures, rent reductions, and workforce optimizations. These efforts resulted in improved productivity and better trade conditions with suppliers.

Looking ahead, Greenberg emphasized the company's commitment to focusing on its core brands and implementing innovative business strategies. Plans include establishing a unified logistics center, opening new concept stores, and other initiatives aimed at strengthening the group's position in the Israeli retail market.

In the home fashion sector, sales decreased due to the timing of Passover, but a shift to profit was achieved through expense reductions as part of the efficiency plan. The gross profit rate increased mainly due to a decrease in discount rates.

As of the end of the first quarter, the Golf Group operates 304 stores nationwide, with a focus on clothing fashion and home fashion segments. Some stores operate within larger retail environments, contributing to the group's overall presence in the market.