Freshmarket shows a jump of about 95% in net profit in the third quarter

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The corona crisis and the start of operations in the branches purchased from Bitan Wines led to a 37% increase in sales, which amounted to NIS 409 million.

The Freshmarket supermarket chain reports its financial results and presents strong reports for the third quarter and the first nine months of 2020.

Sales in the current quarter amounted to NIS 409 million, compared with NIS 298 million in the corresponding quarter, an increase of 37%, due to an increase in the company’s volume of activity, and mainly as a result of business activity in Super Dosh branches and branches acquired in Nahum Bitan in December 2019. And as a result of the increase in sales during the period of dealing with the corona crisis.

The company shows a 95% increase in net profit in the third quarter, which amounted to NIS 28.7 million, compared with a net profit of NIS 14.7 million in the corresponding quarter, mainly due to the increase in the volume of activity.

Gross profit increased by approximately 43% in the current quarter and amounted to approximately NIS 143 million, compared with approximately NIS 100 million in the corresponding quarter. Operating profit increased by 88% to NIS 41 million, compared with operating profit of NIS 22 million in the corresponding quarter. Mainly due to the increase in the volume of activity.

In the first nine months of the year, the company shows a dramatic increase of 108% in net profit, which amounted to NIS 84 million compared to a net profit of NIS 41 million in the corresponding period, mainly due to the increase in the volume of activity.

Sales in the nine months amounted to NIS 1,204 million, compared with NIS 813 million in the corresponding period, an increase of 48%.

The company also shows a 55% increase in gross profit since the beginning of the year, which amounted to NIS 422 million, compared with NIS 272 million in the corresponding period, and a 99% increase in operating profit, which amounted to NIS 122 million, compared with operating profit. Of approximately NIS 61 million in the corresponding period. Mainly due to the increase in the volume of activity.

The Company has a positive cash flow from operating activities in the nine months of NIS 188 million, compared with a positive cash flow from operating activities for the corresponding period of NIS 93 million, mainly due to the significant increase in the volume of operations.

As of September 1, 2019, the company fully operates the four branches of the Super Dosh chain. In addition, as of the end of December 2019, the company operates three additional branches, which were acquired from companies owned by Nahum Bitan.

These acquisitions increased the chain’s total number of branches from 31 to 38 and the company’s retail space from about 22,000 square meters to about 32,000 square meters. The successful operation of the branches, as well as the improvement in the Company’s trading conditions lead to an improvement in many parameters in the Company’s financial statements.

In addition, the company has signed agreements for the acquisition of the business activity of three additional branches with Bitan Wines Ltd., and its subsidiaries, with a gross sales area of ​​approximately 3,000 square meters.

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