Shufersal Reports Today on the Financial Results for the Second Quarter and the First Half of 2022

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Aug 17, 2022, 03:20 ET

The operating profit for the quarter amounted to NIS 107 million, which constitute approximately 2.9% of the Group's revenues, and the net profit amounted to approximately NIS 68 million, which constitute approximately 1.8% of total revenues.

Private label sales in the second quarter rose to approximately 26.7% of total food retail sales as compared to approximately 26.1% in the corresponding quarter last year.

The BE sector revenues grew by approximately 14.3% and amounted to approximately NIS 255 million as compared to NIS 223 million in the corresponding quarter last year.

The growth trend continues in Shufersal Business activity, the real estate sector and the credit card club, which has approximately 675 thousand cards.

The transaction for the purchase of the Dan Deal Group has been completed.

TEL AVIV, Israel, Aug. 17, 2022 /PRNewswire/ -- Shufersal (TASE: SAE), Israel's leading retailer, announced today financial results for the second quarter of year 2022.

The Group's revenues in the second quarter amounted to approximately NIS 3.7 billion as compared to NIS 3.6 billion last year, which constitute an increase of approximately 3.3%, which is mainly due to the effect of seasonality and the expansion of business market activity, and on the other hand, to an accelerated return to normality as part of the exit from the coronavirus pandemic.
The timing of Passover is reflected in the effect, among other things, on the volume of sales and the power of the promotions that took place in the second quarter of this year as compared to the corresponding quarter last year.
The Group's revenues in the first half of the year amounted to approximately NIS 7.2 billion as compared to NIS 7.4 billion in the corresponding period last year. The decrease is mainly due to an accelerated return to normality as part of the exit from the coronavirus pandemic, the increase in flights abroad by the Israeli residents, who for the first time leave the country's borders after a long period when this was not possible, and the opening of wider consumption options for the public in accordance with the overall global trend.
Same branch sales (food retailing) increased by approximately 1% in the quarter and by approximately 4.7% in the median as compared to the corresponding periods last year.
Gross profit in the second quarter amounted to NIS 973 million, which constitute approximately 26.3% of revenues as compared to approximately NIS 1,004 million in the corresponding quarter last year, which constituted approximately 28.0% of revenues. The decrease in total gross profit was mainly due to the deepening of the promotions for customers and the increase in operating expenses.
In the first half, the gross profit amounted to approximately NIS 1,898 million, compared to approximately NIS 2,022 million in the corresponding period last year, and it constitutes approximately 26.3% of the sales turnover as compared to about 27.5% in the corresponding period last year. The decrease in gross profit was due to a decrease in the group's revenues and an increase in operating expenses.
The operating profit in the second quarter amounted to approximately NIS 107 million, which constitute approximately 2.9% of the group's revenues as compared to approximately NIS 183 million, which constituted approximately 5.1% of the group's revenues in the corresponding quarter last year. The decrease in operating profit was due to an increase in total expenses as a result of an increase in the group's activity, the increase in the price of factors of production and the effect of inflation.
The operating profit in the first half of the year amounted to approximately NIS 209 million, approximately 2.9% of the sales turnover as compared to approximately NIS 381 million in the corresponding period last year, which constituted approximately 5.2% of the sales turnover.
The net profit in the second quarter amounted to approximately NIS 68 million, which constitute approximately 1.8% of the revenues as compared to approximately NIS 97 million, which constituted approximately 2.7% of the revenues in the corresponding quarter last year.
The net profit in the half amounted to approximately NIS 95 million (approximately 1.3% of sales) as compared to approximately 211 million NIS (2.9% of sales) in the corresponding period last year.
EBITDA for the quarter amounted to approximately NIS 334 million, which constitute approximately 9% of the company's total sales as compared to approximately NIS 388 million in the corresponding quarter, which constituted approximately 10.8% of the company's total sales last year.
EBITDA in the first half amounted to NIS 650 million, which constitute 9% of the company's total sales as compared to approximately NIS 785 million, which constituted approximately 10.7% of the company's total sales in the corresponding period last year.
The operating profit in the real estate sector in the second quarter amounted to approximately NIS 41 million as compared to approximately NIS 37 million in the corresponding quarter last year. Also, a profit was recorded in the real estate sector due to approximately NIS 95 million adjustments.
Revenues from the Be sector in the second quarter amounted to approximately NIS 255 million as compared to approximately NIS 223 million in the corresponding quarter last year, an increase of approximately 14.3%. The operating profit in the Be sector amounted to approximately NIS 2 million, similar to the corresponding quarter last year.
Same branch sales increased by approximately 11.2% in the quarter and by approximately 16.2% in the median as compared to the corresponding periods last year.
In the first half, revenues from the Be sector totaled approximately NIS 524 million as compared to approximately NIS 439 million in the corresponding period last year, an increase of approximately 19.4%. The operating profit in the Be sector amounted to approximately NIS 3 million, similar to the corresponding half last year.
Shufersal Online sales in the second quarter amounted to approximately 18.5% of all food retail sales as compared to approximately 19.5% in the corresponding quarter last year.
In the first half of the year Shufersal Online sales amounted to approximately 20.1% as compared to approximately 21% in the corresponding period last year.
Private label sales in the second quarter rose to approximately 26.7% of total food retail sales as compared to approximately 26.1% in the corresponding quarter last year.
In the first half of the year, private label sales amounted to approximately 27.1% as compared to approximately 26.8% in the corresponding period last year.

Itzik Abercohen, Chairman of Shufersal's Board of Directors, and Uri Waterman, CEO at Shufersal, said today:

"The results of the second quarter reflect the return to normalcy and the exit from the period of coronavirus closures.

The company is preparing to adjust the group's expenses in a way that will allow it to return to the profitability rates that characterized the previous quarters and, at the same time, continues accelerated activity to promote various business areas.

The company continues to strengthen the core of activity in the chain's branches and promote its growth strategy, primarily the online activity, the Be network, Shufersal Business activity, Shufersal Finance, the customer club, the private label and more. Through them the company works to improve its value proposition to the Israeli consumer while promoting innovation and differentiation in the market in which it operates."

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SOURCE Shufersal