Shufersal Reports Second Quarter and First Half 2021 Financial Results

TEL AVIV, Israel, Aug. 11, 2021 /PRNewswire/ -- Shufersal (TASE: SAE), Israel's leading retailer, today announced its financial results for the second quarter and first half of 2021, ended June 30, 2021. 

-  The Group's revenues in the second quarter amounted to approx. NIS 3.6 billion compared to approx. NIS 3.7 billion last year, which constitutes a decrease of approx. 2.8%, which is mainly attributed to the influence of corona and the timing of Passover.

The Group's revenues in the first half amounted to approx. NIS 7.4 billion, similar to last year - a decrease of approx. 0.9% compared to the corresponding period last year, which is mainly attributed to the influence of corona.

-  Sales in the same branches (food retail) decreased by approx. 5.4% in the quarter and by approx. 3% in the median compared to the corresponding periods last year. The decrease is mainly affected by the weakening of the impact of corona crisis in the median and by the timing of Passover.

-  Gross profit in the second quarter amounted to approx. NIS 1,004 million, which constitutes approx. 28.0% of the revenues compared to approx. NIS 968 million in the corresponding quarter last year, which constituted approx. 26.2% of the revenues. The increase in the gross profit margin is mainly due to the timing of Passover, improved trade conditions and operational efficiency.

-  In the first half, gross profit amounted to approx. NIS 2,022 million compared to approx. NIS 1,967 million in the corresponding period last year, and constitutes approx. 27.5% of the sales turnover, compared to approx. 26.5% in the corresponding period last year. The increase in the gross profit margin is mainly due to improved trading conditions and operational efficiency.

-  The operating profit in the second quarter increased by approx. NIS 18 million (11%) and amounted to approx. NIS 183 million, constituting approx. 5.1% of the Group's revenues, compared to approx. NIS 165 million, which constituted approx. 4.5% of the Group's revenues in the corresponding quarter last year. The increase is mainly due to operational efficiency and the timing of Passover.

-  The operating profit in the first half increased by approx. NIS 45 million and amounted to approx. NIS 381 million, approx. 5.2% of the sales turnover, compared to approx. NIS 336 million in the corresponding period last year, which constituted approx. 4.5% of the sales turnover.

-  The net profit in the second quarter increased by approx. 21% and amounted to approx. NIS 97 million, which constitutes approx. 2.7% of the revenues, compared to approx. NIS 80 million, which constituted approx. 2.2% of the revenues in the corresponding quarter last year.

-  The net profit in the first half increased by approx. 24% to approx. NIS 211 million (2.9% of the sales), compared to approx. NIS 170 million (2.3% of the sales) in the corresponding period last year. The increase in net profit is mainly due to an increase in gross profit.

-  EBITDA for the quarter amounted to approx. NIS 388 million, which constitutes approx. 10.8% of the Company's total sales, compared to approx.  NIS 363 million in the corresponding quarter, which constituted approx. 9.8% of the Company's total sales last year.

-  EBITDA in the first half amounted to approx. NIS 785 million, which constitutes approx. 10.7% of the Company's total sales, compared to approx.  NIS 725 million, which constituted approx. 9.8% of the Company's total sales in the corresponding period last year.

-  The Be segment continues to significantly improve its results in accordance with the Company's work plans: The Be segmentrevenues in the second quarter amounted to approx. NIS 223 million, compared to approx. NIS 192 million in the corresponding quarter last year, an increase of 16%. This is the second quarter in which the Company shows a transition from loss to operating profit.

-  In the median, the Be segment revenues amounted to approx. NIS 439 million, compared to approx. NIS 393 million in the corresponding median last year, an increase of approx. 12%.

-  Shufersal Online sales in the second quarter reached approx. 19.1% of all food retail sales, compared to approx. 19.9% in the corresponding quarter last year. The decrease is due to a shortage of manpower following the corona crisis.

-  In the median, Shufersal Online sales share was approx. 20.6%, compared to  18.7% in the corresponding median last year.

-  The private label sales share in the quarter rose to approx. 26.1% of total food retail sales, compared to approx. 25.4% in the corresponding quarter last year.

-  The median share of private label sales was approx. 26.8%, compared to approx. 25.4% in the corresponding median last year.

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

"We are pleased to conclude the second quarter of 2021 with excellent business results reflecting the continued success of the Group in line with the implementation of the strategic plans we have set for ourselves.

We continue to invest in upgrading the supply chain infrastructure and logistics centers, in strengthening the online system and technological infrastructure, and in the Group's major business growth engines, including the "Be" chain, the private label, Shufersal Real Estate and more.

The Group places emphasis on expanding its activities in the institutional market through Shufersal for Businesses, which has been growing for several years and is one of Shufersal's important arms.

Also, in the first half of 2021, the PayBox transaction was completed epitomizing the strategic cooperation with Discount Bank, which will bring the Israeli consumer added innovative value in the field of financial services.

In line with the changing reality, we are working to continue Shufersal's growth trend while promoting innovation and bringing unique solutions that reflect its strengths and capabilities in a variety of activities, which will ensure that we continue leading the Israeli retail market in the future".

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

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SOURCE Shufersal