Opening five new stores helped Israeli Rami Levi supermarket chain deal with the decline in the local food market over the past year, Calcalist reported.
Company sales grew 6% to $860 million from $810 million the year before. And while the rest of the Israeli food market experienced a decline of 1.7%, Rami Levi’s store sales increased by 0.5% compared with 2013.
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But despite the increase in sales and gross profit — Rami Levi’s operating and net profit suffered from a 12% increase in the costs of selling, marketing, general and administrative expenses, which totaled $153 million.
The increase in expenses is primarily due to the opening of six new branches during 2014 and early 2015.
The company’s net profit in 2014 totaled $23.83 million, compared with $30.48 million in 2013 — a drop of 22%. Net income as a percentage of sales decreased from 3.78% in 2013 to 2.77% in 2014.
The company’s top 5 salaries for 2014 came to $840 thousand combined. Rami Levi himself took out of that $690 thousand.
