Stock of money: Max Stock will distribute a dividend of tens of millions
It probably pays to sell cheap: Max Stock concludes the second quarter of 2022 with double-digit revenue growth and a strong operating flow, despite a decrease in net profit compared to the same period last year.
will distribute a dividend of NIS 40 million
Tuesday, August 16, 2022, 10:04 a.m. Updated: 10:20 a.m.
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Max Stock's flagship store.
Double-digit growth in profits and an unprecedented dividend (photo: Public Relations)
The Max Stock chain today published its financial results for the second quarter of 2022, which show double-digit growth in revenue as a result of opening new stores and an increase in revenue from same stores.
The company presents a gross profitability of approximately 39.3%, thanks to early stocking, which prevented damage to the company's sales due to the corona crisis and the disruptions in the global supply chain.
On the other hand, the increase in revenues and gross profit was offset by an increase in operating expenses, including expenses attributed to the opening of new branches that have not yet reached full maturity.
has become an integral part of the retail landscape in Israel (Photo: Public Relations)
The main points of the report
The company's revenues in the second quarter
of 2022 grew by about 13% to about NIS 253 million, compared to about NIS 224 million in the corresponding quarter last year.
The double-digit growth in revenues was mainly due to the opening of new stores during the period and an increase of approximately 3% in revenues from same stores.
The gross profit in the second quarter
of 2022 increased by about 16% to about NIS 99 million, compared to about NIS 86 million in the corresponding quarter last year.
The gross profit rate in the quarter rose to 39.3% of revenues, compared to 38.3% in the corresponding quarter last year.
The increase in gross profit, compared to the corresponding quarter last year, was due to the aforementioned increase in the scope of the company's activity, alongside an increase in gross profitability in the quarter due to the beneficial effect of the timing of Passover (Passover falls in the second quarter of the year, while last year the holiday fell in the first quarter).
The accounting net profit attributable to shareholders in the second quarter
of the year 2022 amounted to approximately NIS 11 million, compared to a net profit for shareholders of approximately NIS 15 million in the corresponding quarter last year.
The decrease in net profit, despite the growth in revenues, was mainly due to the aforementioned increase in operating expenses.
Adjusted net profit for shareholders
(excluding share-based payment) in the second quarter of 2022 amounted to approximately NIS 15 million, compared to approximately NIS 19 million in the corresponding quarter last year.
Main results of the first half of 2022:
The revenues in the first half of 2022
grew by about 6% to about NIS 504 million, compared to about NIS 476 million in the corresponding period last year.
The growth in revenues was due to the opening of new stores during the period, which was partially offset by a decrease of approximately 4% in revenues from same stores.
The accounting net profit attributable to shareholders in the first half of 2022
It amounted to approximately NIS 25 million, compared to a net profit for shareholders of approximately NIS 37 million in the corresponding period last year.
Adjusted net profit for shareholders
(excluding share-based payment) in the first half of 2022 amounted to approximately NIS 33 million, compared to approximately NIS 45 million in the corresponding period last year.
The Max Stock chain currently operates 55 branches nationwide.
During the last four quarters, the company opened 3 new stores in the cities of Sderot, Nahariya and Nof HaGalil;
and inaugurated 2 new branches (in place of existing branches) in Rashtrapati and Dimona. During the year the company is expected to open a store in Kfar Saba with a significant area of approximately 5,800 square meters gross instead of the existing store.
The company also signed contracts to open additional stores (in Barot Yitzhak with an area of 3,300 square meters gross and in Mishor Adumim with an area of 2,000 square meters gross) which are expected to open during the first half of 2023.
Average basket of a customer
- In the second quarter of this year, there was an increase of about 8.4% compared to the corresponding period last year in the average basket of a customer in an owned store.
The increase in the average basket was positively affected by the timing of Passover.
The increase in the average basket in the half was about 2.4%.
Dividend distribution and own purchase of shares
: Simultaneously with the publication of the reports, the company's board of directors announced the distribution of a dividend to the shareholders in the amount of approximately NIS 40 million to be paid on September 6, 2022 (the decisive day is August 22, 2022).
In addition, last June, the company's board of directors approved a plan for self-purchase of the company's shares in the amount of up to NIS 40 million, through the company and for a year.
The future purchases will be made from time to time as determined by the company's board of directors.
As of the reporting date, the company's shares were purchased as part of the program for a total consideration of approximately NIS 4.8 million.
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"We continue to establish our position as a leading player in the stock sector"
Uri Max, founder and CEO of Max Stock
: "We conclude the second quarter of the year with double-digit growth in revenue both as a result of opening new branches and growth in same-store sales.
In addition, in this quarter we presented an improvement in the gross profit rate and a strong operating flow, despite the challenging macroeconomic environment.
The Max Stock chain currently has 55 stores nationwide after opening 5 new stores over the past year.
The opening of the new stores in the quarter also affected an increase in the rate of operating expenses since those stores have not yet reached full maturity.
We believe that this impact will gradually moderate as the new stores mature over the next few quarters.
We continue to establish our position as a leading player in the stock sector and we intend to continue implementing the strategic plan to increase the scope of the company's activities by opening 3-5 new stores every year.
At the same time, we signed an agreement with the Portera Group, our local partner in Portugal, for the establishment and management of a chain of Max Stock stores in Portugal."