Shufersal Ltd. (TASE:SAE;Pink Sheets:SSLTF) today published its financial report for the fourth quarter and full-year of 2008. The chairmen of Israel's largest supermarket chain, Rafi Bisker and Shalom Fisher, will also forego 20% of their annual bonus in addition to a 10% pay cut.
Shufersal is a unit of Nochi Dankner's IDB Holding Corp. Ltd. (TASE:IDBH) held through Discount Investment Corporation (TASE: DISI), with a 38.1% stake. In December, Dankner instructed Shufersal to undertake streamlining measures to deal with the economic crisis, including pay cuts for executives and directors. Director Yitzhak Manor, will take the largest pay cut, amounting to 25%.
Shufersal posted NIS 2.7 billion revenue including NIS 2.68 billion retail revenue, for the fourth quarter of 2008, 4.8% more than the NIS 2.58 billion revenue, including NIS 2.56 billion retail revenue for the corresponding quarter of 2007. However, net profit fell 42% to NIS 50 million (NIS 0.25 per share) for the fourth quarter from NIS 86 million for the corresponding quarter.
For the year as a whole, Shufersal posted NIS 10.96 billion revenue including NIS 10.9 billion retail revenue, 10.3% more than the NIS 9.94 billion revenue, including NIS 9.86 billion retail revenue in 2007. Net profit rose 19% to NIS 282 million from NIS 237 million in 2007. Sales per square meter rose 10.7% to NIS 21,333 from NIS 19,279.
The voluntary 20% bonus cut at Shufersal is apparently Dankner's signal that he expects other IDB companies to follow suit. He acted similar when he instructed IDB companies to cut executive salaries by 10-15%.
In the financial report, Shufersal pointed to the competition with rival Alon Israel Oil Company Ltd. subsidiary Blue Square Israel Ltd. (NYSE: BSI; TASE: BSI). Shufersal stated, "The company believes… that the nationwide launch of the hard discount brand Mega Bull is liable to intensify competition in the retail sector and affect consumer prices."
Shufersal adds, "The company believes that, on the basis of Neilson reports, that the conversion of [Blue Square's] Super Center supermarkets to the neighborhood discount chain under the Mega Ba'Ir (Mega in the City) format has had no material effect on the company's results to date."
Published by Globes [online], Israel business news - www.globes-online.com - on February 9, 2009
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