The following are the main financial results for the fourth quarter and 2020:
The Company’s revenues after purchase tax in the fourth quarter of 2020 amounted to NIS 142 million, compared with net revenues of NIS 110 million in the fourth quarter of 2019. In 2020 as a whole, NIS 521 million, an increase of 12% compared to revenues Of about NIS 465 million in 2019.
In the smoking products segment, net revenues amounted to NIS 463 million, a growth of approximately 15% compared to the segment’s revenues in 2019, which amounted to NIS 404 million. In the confectionery and snacks sector, revenues in 2020 amounted to NIS 57.5 million, compared with revenues of NIS 60.7 million, compared with NIS 53 million in 2018. According to the company’s management, the increase in revenues from the smoking sector is largely due to the effect of the spread of the corona virus on the volume of flights by Israeli residents abroad, which led to a decrease in the volume of purchases of smoking products duty free and abroad.
Gross profit Amounted to NIS 179 million in 2020 (approximately 34.8% of total net income), an increase of approximately 9% compared to gross profit in 2019, which amounted to approximately NIS 164 million (approximately 35.4% of total net income). The improvement in gross profit in 2020 is mainly due to an increase in sales of smoking products, which was partially offset by the update of commercial terms with JTI, with which an agreement was signed to extend the contract until 2027.
Operating profit Amounted to NIS 97.5 million in 2020, an increase of about 10% compared to the operating profit in 2019, which amounted to NIS 88.5 million.
Net profit Net profit in the fourth quarter amounted to NIS 20 million, compared with a net profit of NIS 15 million in the fourth quarter of 2019. In 2020 as a whole, it amounted to NIS 72 million, an increase of 13% compared to net profit in 2019, which amounted to NIS 64 million. a million shekels.
Effects of the corona crisis: During 2020 the spread of the corona virus had no adverse effect on the company’s sales in the smoking products sector. It should also be noted that during the reporting period there was a 13% increase in the volume of sales of smoking products by the company compared to the corresponding periods last year, with the company’s management estimating the increase largely due to the spread of Corona virus on Israeli residents’ flights abroad and the volume of purchases of smoking products. Duty Free and Abroad. It should also be noted that in the confectionery and snacks sector, there was a decrease in revenue, during the reporting period, as a result of the spread of the corona virus, which is not material to the company.
In light of the ongoing and changing nature of the Corona crisis, the Company is unable to assess the occurrence of further developments and their implications for the Company’s financial and business results and scope.
Dividends – Globrands has a dividend distribution policy according to which the company will operate to distribute each year, a dividend to its shareholders at a rate that will not be less than 75% of the company’s distributable profits in that year, when the distribution will take place twice each fiscal year. , And all subject to the provisions of the Companies Act. . In accordance with this policy, Globrands announced and distributed two dividends in the aggregate amount of NIS 85 million during 2020, following the distribution of dividends in the aggregate amount of NIS 65 million in 2019.