Shufersal, Israel’s leading retailer, announced its financial results for the second quarter and the first half of 2023, showing stability and diversification in its core retail activity, while improving its profitability rates.
- The group’s revenues in the second quarter totaled approximately NIS 3.7 billion, similar to the corresponding quarter last year, despite the timing of Passover and the easing of Covid-19 restrictions.
- The group’s same-store sales fell 2%, mainly due to the decline in online sales, which accounted for 17.1% of the total in the second quarter this year, down from 18.6% in the corresponding quarter.
- The operating profit grew 23% to NIS 173 million, 4.7% of sales, from NIS 141 million, 3.8% of sales, in the corresponding quarter of 2022.
- The net profit totaled NIS 73 million, up from NIS 68 million in the corresponding quarter last year, which is 2% of the group’s revenues.
- The group’s revenues in the first half increased by approximately 3.1% and totaled approximately NIS 7.4 billion, compared to NIS 7.2 billion in the corresponding period last year.
- The group’s same-store sales grew 0.8%, reflecting the strong performance of the online channel and the non-food category in the first quarter of 2023.
- The operating profit increased by approximately 45% and totaled approximately NIS 303 million, which is approximately 4.1% of the revenues, compared to approximately NIS 209 million in the corresponding period last year, which was approximately 2.9% of the group’s revenues.
- The net profit for the first half was NIS 130 million, up from NIS 95 million in the first half of 2022, which is approximately 1.8% of the group’s revenues.
Business Strategy and Outlook
Itzik Abercohen, Chairman of the Shufersal Board of Directors and Uri Waterman, CEO of the Shufersal Group, said: “The performance in the second quarter testifies to the strength of the group and its ability to navigate a challenging business environment. We are witnessing stability and diversification in the core activity in retail, while consistently improving the profit indicators. The focus on profitability has brought us to a position of strength and an improvement in the flexibility of our operating model, following the process of streamlining. We continue on a clear and consistent path of long-term growth while strengthening trade, improving the structure of expenses, establishing the technological infrastructure, promoting online trade through Shufersal Online and deepening the synergy between the group’s various activities.”
The group also reported on its progress in several strategic initiatives, such as:
- The advancement of the automatic dispatch center in Modi’in, which is expected to increase efficiency and customer satisfaction in online deliveries. As of this date, it provides approximately 3,000 deliveries per day.
- The expansion of Shufersal Express stores, which offer convenience and proximity to customers. The group currently operates 37 Express stores and plans to open more locations in urban areas.
- The development of Shufersal Finance, which consists of a credit card and non-bank credit services, as well as a joint venture with Discount Bank on the PayBox platform. The group is working to bring in a partner or investor into this activity as part of its strategy to expand its offerings in the financial sector.
