Shufersal reports stable Q2 sales, operating profit up 23%

Israeli retailing giant Shufersal (TASE: SAE) has reported sales of NIS 3.7 billion in the second quarter of 2023, similar to the figure for the second quarter of last year. The group’s same-store sales fell 2%.

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.

Shufersal posted a net profit of NIS 73 million in the quarter, which compares with NIS 68 million in the corresponding quarter.

For the first half year, sales grew 3.1% to NIS 7.4 billion from NIS 7.2 billion in the first half of 2022. Same store sales grew 0.8%. Net profit for the first half was NIS 130 million, up from NIS 95 million in the first half of 2022.

Shufersal’s pharmacy chain Be continued to tread water, with quarterly sales of NIS 257 million, up 0.8% on the corresponding quarter. In the first half year, Be had sales of NIS 507 million, 3.2% than the NIS 524 million for the first half of 2022. Shufersal says that the decline is mainly due to the cessation of Covid-19 tests. Excluding that activity, first half sales were up 4.7% on the first half last year, but same-store sales were down 3.1%.

Online sales accounted for 17.1% of the total in the second quarter this year, down from 18.6% in the corresponding quarter. Shufersal said this was due to the waning effect of the Covid-19 pandemic, and to a reduction in online activity in the non-food category.

Sales of products under Shufersal’s own brand were 26.6% of branch sales in the second quarter of this year, a similar proportion to the one in the corresponding quarter.

Shufersal has announced that it will bring in a partner to its financial services business, which consists of a credit card and non-bank credit, and the joint venture with Discount Bank on the PayBox platform.

Published by Globes, Israel business news – en.globes.co.il – on August 22, 2023.

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