Terminal X reports an increase of over 300% in operating profit before share-based payment in 2023, which amounted to approximately NIS 9.3 million.
In its reports for the 4th quarter of 2023, it presents a jump in cash flow (from current operations) that amounted to approximately NIS 47 million compared to approximately NIS 2.5 million last year. In addition to the above-mentioned increases, it shows a decrease of about 3% in sales and marketing expenses as a percentage of turnover, and this is as a continuation of the implementation of the efficiency plan that it has set as a goal. Nir Horowitz, CEO of TERMINAL X: "We are proud to publish the results of the fourth quarter and 2023.
The company moved to an operating profit and shows a significant increase in the company's revenues, in the average basket height and in the amount of orders made by repeat customers. We implemented our work plans which included, among other things, efficiency measures that led to a decrease in sales and marketing expenses and also presented a significant improvement in the bottom line. Terminal X continues to lead the online fashion market in Israel with a unique e-commerce experience and increasing the variety offered to our customers."
The company's revenues in 2023 amounted to approximately NIS 423.7 million compared to approximately NIS 383 million last year, an increase of approximately 10.6%. This increase was mainly due to an increase in the number of visits to the company's websites, in the average transaction, the number of active customers and the addition of Sisteraz sales, which was consolidated for the first time as of November 1, 2022. The company's revenues in the fourth quarter of 2023 amounted to approximately NIS 137.1 million compared to approximately NIS 120.3 million in the corresponding quarter Last year, an increase of about 14%. The gross profit in 2023 amounted to approximately NIS 185.6 million (43.8% of sales) compared to approximately NIS 172.4 million (45.0% of sales) last year.
The increase in gross profit is mainly due to an increase in the company's sales, while the decrease in the rate of gross profit is mainly due to the deepening of promotions and a change in the mix of products sold. The gross profit in the fourth quarter of 2023 amounted to approximately NIS 56.9 million (41.5% of sales) compared to approximately NIS 54.8 million (45.6% of sales) last year.
Sales and marketing expenses in 2023 totaled approximately NIS 169.9 million compared to approximately NIS 164.0 million last year. Their percentage of the total turnover decreased to 40.1% compared to 42.8% in the corresponding quarter last year. In the fourth quarter, sales and marketing expenses totaled approximately NIS 49.3 million compared to approximately NIS 47.5 million in the corresponding period last year.
The operating profit before share-based payment in 2023 amounted to approximately NIS 9.3 million compared to approximately 2.2 million shekels last year. Operating profit before share-based payment in the fourth quarter of 2023 amounted to approximately NIS 5.5 million compared to approximately NIS 5.4 million in the corresponding period last year.
The operating profit after share-based payment amounted in 2023 to approximately NIS 2.4 million compared to a loss of approximately NIS 10.5 million last year. In the fourth quarter of 2023, the operating profit after share-based payment amounted to approximately NIS 3.8 million compared to approximately NIS 2.1 million in the corresponding quarter last year.
The loss in 2023 amounted to approximately NIS 0.35 million compared to a loss of approximately NIS 7.7 million last year. In the fourth quarter of 2023, the company recorded a net profit of approximately NIS 1.5 million compared to a loss of approximately NIS 0.9 million in the corresponding period last year. Cash flow resulting from current operations during the reporting period amounted to approximately NIS 47 million. Inventory decreased by approximately NIS 21.2 million compared to December 31, 2022, and amounted to approximately NIS 121.9 million, reflecting 137 days of inventory for the fourth quarter of 2023, compared to 192 days of inventory for the quarter The fourth for the end of 2022.