Shufersal: decrease in revenues and profits, increase in expectations for 2023 - voila! Of money

Itzik Abarkhan, chairman of Shufersel (photo: Reuven Castro, Robbie Castro)

Shufersal Group reports today the financial results of the year 2022 and of the fourth quarter of this year:

the revenues in 2022 amounted to approximately NIS 14.66 billion, a decrease of 0.7% compared to approximately NIS 14.76 billion in 2021.

The group is implementing an investment plan of approximately NIS 1 billion In the engines of growth for the coming years (of which about NIS 700 million is investment in the automatic shipping warehouses of the online activity).

Revenues in the fourth quarter amounted to approximately NIS 3.65 billion, an increase of approximately 1% compared to approximately NIS 3.61 billion in the corresponding quarter last year.

Operating profit before other revenues/expenses in 2022 amounted to approximately NIS 394 million, which constitutes approximately 2.7% of revenues; The company presented a net profit of NIS 2 million in 2022, this after a one-time expenditure of approximately NIS 182 million for the efficiency plan.

The private label sales associated with the retail sector in 2022 grew to approximately 27.2% of total sales in Shufersal shipping centers and branches, compared to approximately 26.6% in 2021. According to the

group's statement, the year 2022 is a significant milestone for Shufersal, which formed a new management, launched an automated shipping warehouse in Kadima, opened a new retail store for the institutional market with an investment of approximately NIS 27 million, purchased the Dan Deal stock chain at a value of approximately NIS 182 million, signed a memorandum of understanding for cooperation with the retail giant SPAR in the amount of approximately NIS 28 million, approved and implements an efficiency plan of approximately NIS 250 million and appointed a CEO for Shufersal Real Estate, which is a growth engine.

In addition, the company mentions that the chain worked to reduce the cost of living in the fight against the major suppliers, which led to a delay in the price increases in the chain's branches and announced a 'download-lock' sale on a selected basket of products,

Uri Waterman, CEO of Shufersal (Photo: Elad Gutman)

Itzik Abarkhan, Chairman of the Shufersal Group Board of Directors and Uri Waterman, CEO of the Shufersal Group

, said today:

"The year 2022 was characterized by a decrease in demand in the food retail chains all over the world in light of the exit from the epidemic period and the return to normality, as well as, by the increase in the prices of inputs and wages, along with difficulty in recruiting manpower However, the group's revenues in the past year reflect a high and stable level of demand in the retail sector, and we believe that the investment moves we have taken and the efficiency plan we have implemented starting from the fourth quarter of the year, place Shufersal in a very good starting position for the year 2023. The past year was an important milestone in the group's

activities In the second half of the year, the seeds for continued growth were sown with the appointment of a CEO and a new management avenue, which works to adapt the organization to deal with a changing reality and to continue the significant expansion of the growth engines, alongside strengthening the core activity.

We continue even more intensively in the extensive work to create value for our customers by strengthening and improving the group's activity in all its fields of activity while leveraging the synergy between the group's companies.

Through the strong technological infrastructure, the optimization of the online system and the introduction of modern technologies to the branches while taking advantage of our large customer club, Shufersal will continue to grow, develop and lead the food retail market in Israel."

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