Rami Levy network reported 9.9% revenue growth in the 3rd Q

The Rami Levy network reported 9.9% revenue growth in the third quarter, net income down 16.4%, mainly due to the impact of the new accounting standard IFRS 16. Excluding the effect of the standard, net income decreased by 2%. The company traded 23 times this morning on its last 12-month net profit.
Network revenues in the third quarter of 2019 grew by 9.9% to NIS 1.54 billion, compared with NIS 1.4 billion in the corresponding quarter last year. Revenue growth was mainly due to the opening of three new branches - Atarot, Ashkelon North and Ramla, the consolidation of Copix and Good Pharm sales, as well as an increase of identical stores' revenue by 1.25%.
The bottom line is the chain's third quarter with a profit of NIS 24.5 million, a decrease of 16.4% compared to NIS 29.4 million in the corresponding quarter last year. The change in net income was adversely affected by the implementation of IFRS 16 and the consolidation of subsidiary Copix Group, which amounted to a loss of NIS 1.6 million. Net income, excluding IFRS16 and consolidating the consolidated Copix results for the first time in the fourth quarter of last year, amounted to NIS 29.3 million in the quarter, a decrease of approximately 2% compared to net income in the corresponding period.
EBITDA in the third quarter increased by about 85% to about NIS 104 million (about 6.8% of revenue), compared with about NIS 56 million (about 4.0% of revenue) in the corresponding quarter last year. The increase in EBITDA was due to the implementation of IFRS16, which contributed NIS 35 million. Excluding the effects of IFRS16, EBITDA for the quarter rose to NIS 69 million.
Sales per square meter in the third quarter of 2019 rose to about NIS 17,000 per square meter, compared to about NIS 16,000 per square meter in the corresponding quarter last year.