Shufersal reports today on the financial results for the third quarter of 2021

- Operating profit in the third quarter increased to approximately NIS 186 million and its revenue rate totaled approximately 4.9%, compared with approximately 4.6% in the corresponding quarter last year.
Published: Nov. 29, 2021 at 1:37 AM CST

TEL AVIV, Israel, Nov. 29, 2021 /PRNewswire/ --  Shufersal (TASE: SAE)Israel's leading retailer, today announced its financial results for the third quarter of 2021, ended Sep 30, 2021.

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The Group's revenues in the third quarter totaled approximately NIS 3.8 billion, compared with approximately NIS 3.9 billion last year, a decrease of approximately 3.6%, mainly attributed to the weakening influence of the corona crisis in the food retail sector.

The Group's revenues in the first nine months of the year totaled approximately NIS 11.1 billion - a decrease of approximately 1.8% compared to the corresponding period last year, which is mainly attributed to the weakening influence of the corona crisis.

-  Same branch sales (food retailing: sales floor and online) decreased by approximately 4.0% in the first nine months of the year and by approximately 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 totaled approximately NIS 1,025 million, which constitute 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 efficiency.

In the first nine months of the year, gross profit totaled approximately NIS 3,047 million, which constitute 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 trading conditions and operational efficiency.

Operating profit in the third quarter totaled approximately NIS 186 million, which constitute 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 totaled approximately NIS 567 million, which constitute approximately 5.1% of revenue turnover, compared with approximately NIS 516 million, which constituted approximately 4.5% of revenue turnover in the corresponding period last year.

Net profit in the third quarter totaled approximately NIS 82 million, which constitute about 2.2% of revenues in the quarter, compared with approximately NIS 97 million, which constituted approximately 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 approximately NIS 10 million in the corresponding period last year for 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 approximately 10% to about NIS 293 million (2.6% of revenues), compared to approximately 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 totaled approximately 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.

EBITDA in the first nine months of the year totaled approximately NIS 1,184 million, which constitute approximately 10.6%, compared with approximately NIS 1,103 million, which constituted approximately 9.7% in the corresponding period last year.

The company's sales through Shufersal Online reached approximately 19.9% of all food retail sales in the first nine months of 2021, compared with approximately 19.4% in the corresponding period last year. In the third quarter, the company's sales through Shufersal Online reached approximately 18.7% of all food retail sales, compared with approximately 20.8% in the corresponding quarter last year, a decrease due to a shortage of manpower following the corona crisis.

-  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 totaled NIS 270 million. Same branch sales in the Be network increased by approximately 15.9% compared to the same period last year. Operating profit in the third quarter totaled NIS 3 million, compared with an operating loss of NIS 5 million in the corresponding period last year.

In the first nine months of the year, revenues in the Be segment increased by 16.6% and totaled approximately 710 million compared to the corresponding period last year, mainly due to an increase in the network sales in the same branches and online. Same branch sales in the network increased by 8.4% compared to the corresponding period last year and operating profit in the nine months was NIS 6 million, compared with an operating loss of approximately NIS 19 million in the corresponding period last year.

The Private Label sales share in the last quarter was approximately 26.0% of total food retail sales, compared to approximately 25.8% in the corresponding period last year.

The Private Label sales share in the first nine months of the year was approximately 26.5% of total food retail sales, compared to approximately 25.5% in the corresponding period last year.

Yaki Vadmani, Shufersal's Chairman of the Board, and Itzik Abercohen, Shufersal's CEO, said today:

"We are presenting good results for the third quarter and the first nine months of 2021, in line with the strategic plans we have set for ourselves.

The Shufersal Group has a wide range of services and products, leading logistical and technological infrastructure, a solid and stable online network, professional human capital and diverse business activities, including in the fields of pharma, business (B2B), finance and real estate, which constitute significant growth potential.

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

For further information, please contact:
Adi Molcho-Weinstein, International Investor Relations, Shufersal
Email: ir@shufersal.co.il

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