Dor Alon: Closure and price reduced profit – capital market

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Dor Alon
+ 1.99%

Base:7,632

opening:7,632

High:7,848

low:7,632

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Reports net sales of NIS 746.5 million and an operating profit of NIS 32 million, a decrease of 26% from the level of revenues of NIS 1 billion and a 44% increase in operating profit of NIS 57 million in the corresponding quarter. In addition to gas stations, the company also owns Alonit convenience stores, markets cooking gas and deals in income-producing real estate.

On the other hand, Dor Alon notes a relatively low 1% impact on gross profit, which amounted to NIS 231.4 million in the quarter, since the decline in the fuel sector was partially offset by an increase in gross profit of independent stores and convenience stores . EBITDA in the period amounted to NIS 102 million, similar to the corresponding quarter, and the profit attributed to shareholders shrank by 75% to NIS 8.5 million, compared with NIS 34 million in the corresponding period. The company announced a dividend of NIS 50 million.

Dor Alon, part of the Blue Square Alon Group controlled by Moti Ben Moshe, also owns a power plant in Kiryat Gat with a capacity of 75 megawatts. In addition to the convenience store activity next to the gas stations, the company has 85 supermarkets under the brands am: pm, Sofer Alonit and Alonit in the kibbutz / moshav and Sofer the stall in Gan Shmuel. The income-producing real estate activity is spread over about 30 sites where the company has 22,000 square meters. The company notes an increase in food retail activity for revenues of NIS 1.26 billion throughout the year, partly due to a 10% increase in am: pm sales totaling NIS 500 million, and the conversion of convenience stores to a super-Aloni mini format that led to an average 20% growth in sales The same stores in relation to 2019.

Nevertheless, the annual results at Meuhed were affected by the main parameters: net sales of NIS 1.3 billion compared to NIS 1.4 billion in 2019, a gross profit of NIS 900 million compared to NIS 916 million, and an operating profit of NIS 184 million. To 258 million, and a profit of about 65 million compared to about 148 million shekels. On the other hand, EBITDA increased by 5% to NIS 414 million.

Dor Alon estimates that 7-9 new refueling complexes will be opened this year, and 20 Alonit branches will be converted to “Mini Super”. The company also says that with the exit from the last closure, the volume of fuel sales in recent days is similar to the corresponding period last year. As for am: pm, Dor Alon intends to double the number of branches to about 100 in the coming years, while expanding its spread outside Gush Dan as well. The company also mentions winning a tender for the supply of fuel to the Palestinian Authority, in a volume that is expected to increase the company’s total fuel sales by about 40% this year compared to 2020. In this context it will also be mentioned that the company recently acquired half of the shares of the BBB hamburger chain.