Eyal Greenberg, CEO of the company’s Chief Business Officer of Golf, added: “The Corona crisis and closures have forced us into extensive streamlining processes and significant structural changes. We have upgraded our online activity, closed and will continue to close losing stores, and on the other hand we have opened and will continue to open quality stores in places where we were not present. We intend to penetrate new and tangent areas using the significant operating flow to finance the said activity.
I am excited to take up my position in the coming days and am convinced of my ability to march the company to the place it deserves in the Israeli retail world.
Emphasis for 2020 results
* The Group’s sales in 2020 amounted to approximately NIS 835.8 million, compared with approximately NIS 935.7 million in the corresponding year last year, a decrease of approximately 10.7%, mainly due to the closure of the physical stores due to the Corona virus. The decrease was partially offset by an increase in sales in the field of delicate activities and golf courses.
Sales in the clothing fashion segment in 2020 amounted to approximately NIS 245.9 million, compared with approximately NIS 337.6 million in the corresponding year last year. The decrease in sales in the reporting period compared to the corresponding period last year was mainly due to the closure of stores due to the effects of the corona virus.
Sales in the home fashion segment in 2020 amounted to NIS 397.2 million, compared with NIS 461.3 million in the corresponding year last year. The decrease in sales in the reporting period compared to the corresponding period last year was mainly due to the closure of stores due to the effects of the corona virus. The decrease was partially offset by an increase in sales of online golf sites belonging to the field of activity, as well as an increase in revenue per square meter in the same stores in the field of activity, as detailed in Chapter A of the periodic report.
Adika’s sales in 2020 amounted to approximately NIS 192.8 million, compared with approximately NIS 136.8 million in the corresponding year last year. The increase was due to growth in the day – to – day operations of the field, both in domestic and international operations, which is translated, among other things, into an increase in the customers active at the Adika site.
* Gross profit in 2020 amounted to approximately NIS 496.7 million (constituting approximately 59.4% of revenues), compared with approximately NIS 577.8 million (constituting approximately 61.7% of revenues) in the corresponding year last year. The decrease in the gross profit rate in 2020 compared to the corresponding period last year was mainly due to a decrease in the gross profit rate in the area of Adika activity, an increase in the provision for a decrease in inventory value (mainly in the field of clothing) and an increase in discounts during the period.
* Operating profit in 2020 amounted to NIS 48.8 million, compared with NIS 32.3 million in the corresponding year last year. The increase in operating profit is mainly due to the decrease in sales and marketing expenses and the decrease in administrative and general expenses.
* The net profit for 2020 amounted to NIS 17.8 million (constituting 2.1% of revenues) compared to a net profit of NIS 4.4 million in the corresponding year last year. Excluding the effect of Standard 16, the profit in 2020 amounts to approximately NIS 12.3 million.
* The capital as of December 31, 2020 amounted to approximately NIS 253 million, compared with NIS 237 million as of December 31, 2019. The increase in capital in the reporting period is mainly due to the profit in the reporting period.
Summary of data for 2020:
| 1-12.2020 | 1-12.2019 | explanation | |
| Revenue from sales | 835.8 | 935.7 | The decrease in sales in 2020 compared to the corresponding period last year was mainly due to a decrease in sales in the physical stores during the period of store closures, due to the effect of the corona virus. |
| The decrease in sales was partially offset by an increase in sales in the field of delicate activities and an increase in sales of golf courses. | |||
| Gross profit | 496.7 | 577.8 | |
| Gross profit margin from sales | 59.40% | 61.70% | The decrease in the gross profit rate in 2020 compared to the corresponding period last year was mainly due to a decrease in the gross profit rate in the area of Adika activity, an increase in the provision for a decrease in inventory value (mainly in the field of apparel) and an increase in discounts during the period. |
| Operating Profit | 48.8 | 32.3 | The increase in operating profit in 2020 compared to the corresponding period last year is mainly due to the decrease in selling and marketing expenses due to the closure of stores due to the effects of the Corona virus as well as streamlining and cost savings taken in the operation of stores in light of the Corona crisis. |
| The decrease in expenses was partially offset by an increase in marketing expenses and support for international activities in the field of Adika activities. | |||
| There was also a decrease in administrative and general expenses, mainly due to cost-saving measures taken by the company in light of the closure of stores due to the effects of the Corona virus, as well as additional efficiency measures. | |||
| The rate of operating profit from sales | 5.80% | 3.50% | |
| Pure profit | 17.8 | 4.4 | The net profit after neutralizing Standard 16 amounts to NIS 12.3 million |
| Net profit margin from sales | 2.10% | 0.50% |
Summary of fourth quarter data for 2020:
| 10-12.2020 | 10-12.2019 | explanation | |
| Revenue from sales | 229.7 | 263.3 | The decrease in sales in the fourth quarter of 2020 compared to the corresponding period last year was mainly due to a decrease in sales of the physical stores in the areas of home fashion activity and clothing fashion during the period of store closures due to the effects of the corona virus. |
| The decrease was partially offset by an increase in sales in the field of delicate activities and sales of online golf sites. | |||
| Gross profit | 133.2 | 161.2 | |
| Gross profit margin from sales | 58.00% | 61.20% | The decrease in the gross profit margin in the fourth quarter of 2020 compared to the corresponding period last year was mainly due to a decrease in the gross profit margin in the Adika segment and an increase in the provision for a decrease in inventory value (mainly in the field of apparel fashion). |
| Operating Profit | 30 | 14 | The increase in operating profit in 2020 compared to the corresponding period last year is mainly due to the decrease in sales and marketing expenses due to the closure of stores due to the effects of the Corona virus as well as streamlining and cost savings taken in the operation of stores in light of the Corona crisis. |
| The decrease in expenses was partially offset by an increase in marketing expenses and support for international activities in the field of Adika activities. | |||
| There was also a decrease in administrative and general expenses, mainly due to cost-saving measures taken by the company in light of the closure of stores due to the effects of the Corona virus, as well as additional efficiency measures. | |||
| The rate of operating profit from sales | 13.10% | 5.30% | |
| Pure profit | 18.4 | 8.5 | The net profit after neutralizing Standard 16 amounts to NIS 12.2 million |
| Net profit margin from sales | 8.00% | 3.20% |