Adaq fashion company released its 2019 financial statements late on a trend. The company ended the year with a profit of NIS 1.4 million, compared with a profit of NIS 11.4 million in 2018. Net profit for the quarter amounted to NIS 200,000, compared with NIS 1.9 million in the corresponding quarter last year.
Revenues for the quarter increased by 50.3% to NIS 50.8 million and by 2019 as a whole to 41.2% and NIS 153.8 million. The increase is due to growth in current activity and, among other things, an increase of NIS 15.3 million in revenues from international sector activity.
Sales, administrative and general expenses in 2019 amounted to NIS 72.2 million, accounting for 52.8% of sales. Online retail activity increased from the closing of the malls on March 16 to the publication of the report by 50% over the same period.
After the directive to close the commercial centers took effect in Israel, Adica closed its stores in Israel and New York. The activity is now based on the online trading platforms it operates. The significant impact on revenue from store closures is compensated by online activity.
CEO Daddy Schwarzberg said: “Given the positive results and significant growth rates in international operations, we are continuing the brand insertion program, with adjustments we are making as part of the changes we have forced from the spread of the Corona virus.
“The management has taken and continues to take steps to mitigate the effects of the Corona crisis. The company operates in a limited format, with most of the company’s employees vacationing free of charge, with the exception of exceptions. We work many days with limited staff to deliver orders these days.”
