Shufersal: Decrease in revenues and net profit - Walla! Of money

2021-11-29T06:23:40.455Z

The Group presented its third quarter reports. Operating profit in the third quarter increased to NIS 186 million, revenues decreased by NIS 1 million

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Shufersal: Decrease in revenues and net profit

The Group presented its third quarter reports.

Operating profit in the third quarter increased to NIS 186 million, but revenues decreased by NIS 1 million and net profit fell to NIS 82 million

Winning Twist: Thai salad with Tamara Aharoni sirloin

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The operating profit line has grown, the other lines have not.

Shufersal (Photo: Reuven Castro, Ruby Castro)

The main points of the report

The Group's revenues in the third quarter amounted to NIS 3.8 billion, compared with NIS 3.9 billion last year, a decrease of 3.6%, which is mainly attributed to the weakening effect of the corona crisis in the food retail sector.
The group's revenues in the first nine months of the year amounted to NIS 11.1 billion - a decrease of 1.8% compared to the corresponding period last year, which is mainly attributed to the weakening of the corona effect.
Sales in the same branches (food retailing: sales floor and online) decreased by 4.0% in the first nine months of the year and by 6.2% in the third quarter, compared with the corresponding periods last year with the economy returning to routine (in the shadow of the corona).
Gross profit in the third quarter amounted to NIS 1,025 million, which constitutes approximately 27.0% of total revenues, compared with approximately NIS 1,029 million in the corresponding quarter last year, which constituted approximately 26.1% of total revenues.
The increase in the gross profit margin is mainly due to an improvement in trading conditions and operational efficiencies.
In the first nine months of the year, gross profit amounted to NIS 3,047 million, which constitutes approximately 27.3% of total revenues, compared with approximately NIS 2,996 million, which constituted approximately 26.4% in the corresponding period last year.
The increase in the gross profit margin is mainly due to an improvement in terms of trade and operational efficiency.
Operating profit in the third quarter amounted to NIS 186 million, which constitutes approximately 4.9% of total revenues, compared with NIS 180 million, which constituted approximately 4.6% of revenues in the corresponding period last year.
Operating profit in the first nine months of the year amounted to NIS 567 million, which constitutes approximately 5.1% of revenue turnover, compared with NIS 516 million, which constituted approximately 4.5% of revenue turnover in the corresponding period last year.
Net income in the third quarter amounted to NIS 82 million, which constitutes about 2.2% of revenues in the quarter, compared with NIS 97 million, which constituted about 2.5% of revenues in the corresponding quarter last year.
The decrease in net profit in the quarter is mainly due to the cancellation of a provision of NIS 10 million in the corresponding period last year in respect of a property that the company leases in Netanya, an increase in financing expenses and the start of PayBox digital wallet operations.
Net profit in the first nine months of the year increased by about 10% to NIS 293 million (2.6% of revenues), compared with NIS 267 million (2.4% of revenues in the corresponding period last year).
The increase in net profit is due to an increase in the volume of the Company's activity.
EBITDA for the quarter amounted to NIS 399 million, which constitutes approximately 10.5% of the Company's total revenues, compared with approximately NIS 376 million in the corresponding quarter last year, which constituted approximately 9.5% of the Company's total revenues last year.
The Be segment continues to significantly improve its results: Revenues increased by 25.5% in the last quarter compared to the corresponding quarter last year and amounted to NIS 270 million.
Sales in the same branches in the Be chain increased by about 15.9% compared to the same period last year.
Operating profit in the third quarter amounted to NIS 3 million, compared with an operating loss of NIS 5 million in the corresponding period last year.

Shufersal CEO Itzik Aberkhan (Photo: Reuven Castro, Ruby Castro)

Yaki and Damani, Chairman of the Board of Shufersal and Itzik Aberkhan, CEO of Shufersal, said today: "We present good results for the third quarter and the first nine months of 2021, in accordance with the strategic plans we have set for ourselves. The Shufersal Group has a wide range of services and products. Leadership, a solid and stable online network, professional human capital and diverse business activities, including in the areas of pharma, business (B2B), finance and real estate, which constitute significant growth potential.

"We continue to lead the retail market in Israel, and we will continue to make strategic moves and additional investments in order to preserve this status in accordance with the changing reality."