Increasing consumption during the Corona crisis, along with the acquisition of 7 branches of Bitan Wines, jumped Victory’s results in the year-end summary – the chain reported today doubling its net profit line in 2020 to NIS 58.1 million.
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Victory operates under the management of Eyal Ravid, one of the controlling owners of the chain, which has 59 branches – the group ended the past year with a growth of 36.1% in sales to NIS 2.38 billion.
Sales in the same stores grew by 13.5% during the same period – a figure that mainly indicates the large contribution to the results of the new branches purchased from Pavilion Wines during 2019. These branches are not included in the line of identical stores, which refers to active branches for more than a year.
The company’s online sales grew to 3.5% of sales and the company intends to increase its share of online activity, both by converting a store in Tel Aviv into a collection warehouse and by establishing a dedicated warehouse for collecting online orders.
The expansion strengthened Victory’s purchasing power vis-à-vis suppliers: gross profit grew slightly more (37.5%) than the increase in sales and allowed the company to increase gross profit to 25.4% of sales compared to 25.1% in 2019.
The increase in sales contributed to lowering the rate of expenses, despite a jump in salary expenses and a doubling of advertising expenses. Accordingly, the operating profit line was doubled to NIS 105.3 million and the profitability rate jumped to 4.4% compared to 3.1% in 2019. Net profit climbed by 113.1% – as stated to NIS 58.1 million.
The growth in Victory is expected to continue, as the chain signed a memorandum of understanding about two weeks ago to purchase 6 more stores from their pavilion for NIS 75 million.
The salary cost of the company’s 5 senior executives amounted to NIS 11.6 million. The salary cost of Eyal Ravid, who serves as the company’s CEO, amounted to NIS 3.9 million, of his brother Avi, who serves as VP of operations, to NIS 3.5 million, and of the family father, Haim, who serves as the company’s president, to NIS 3 million.