Adika: Operating profit of NIS 4 million in the quarter – the capital market

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Reports revenues of NIS 59.3 million in the fourth quarter of 2020 and operating profit of NIS 3.9 million (6.6% of sales), an increase of 30% in revenues compared to the corresponding quarter and of 65% in operating profit (5.2% of sales at the time). The growth is mainly attributed to the international sector and the increase in the number of customers active on the site.

Profit for the quarter amounted to NIS 1.3 million, compared with NIS 184,000 in the corresponding quarter. Gross profit rose slightly to NIS 28 million, compared with NIS 26.4 million in the corresponding quarter, while gross profit rates fell to 47.2% of sales compared with 58% previously – a decrease attributed to an increase in international activity accompanied by relatively high shipping and customs costs.

In Israel, gross profit margin is about 58.4%, also a decrease compared to 2019, which is framed by a significant increase in the costs of importing products and corona closures. In addition, selling, general and administrative expenses increased to NIS 27.6 million in the quarter, compared with NIS 25.1 million in the corresponding period. Adika reports a 45% increase in the number of customers on the Israeli site to 90,000 people.

Adika also published the results for 2020 as a whole: 41% growth to a revenue level of NIS 193 million, and 43% in operating profit (NIS 13.5 million). The annual gross profit was about NIS 100 million, an increase of about 27%, and international activity experienced a 327% increase in revenue of NIS 65.3 million. Also in the year, gross profit increased while its rate was hit: about NIS 99.6 million (51.7%) compared to about NIS 78.9 million (57.7%) in 2019, for the same reasons mentioned above. The annual profit amounted to NIS 4.4 million, compared with NIS 1.5 million in 2019.

“During the year, we worked to promote business and operational moves in both physical stores and online operations in Israel and abroad, among other things, by optimizing marketing activities, tightening pricing policies and continuing to streamline the technology platform while streamlining all areas of activity. “We have also worked to strengthen international operations in the United States, which is in an accelerated growth trend and is a significant pillar in the company’s business development,” he said. Roi Hassel, CEO of Adika.