Shufersal Ltd. (TASE:SAE) is still jousting with Unilever. Shufersal co-chairman Rafi Bisker referred saracastically to Unilever coupons granting substantial discounts for its products in the dispute between Unilever and Shufersal over the price of products.
"I see that Unilever is giving out coupons with 20% and 30% discounts. I invite it to continue giving out coupons in order to lower the cost of living. Our private brand is much cheaper than their 20% discount, so we don't need coupons," Brisker commented.
Shufersal today reported its second quarter results. Retail sales totaled NIS 2.746 billon, down 8%, compared with the corresponding quarter last year, mostly due to the timing of the Passover holiday, lower prices, reduced retail space, and intensified competition. The drop in seasonally adjusted (for the date of the Passover holiday) revenue was only 2.8%.
Same store sales, which were fully active in the second quarter this year and in the corresponding quarter last year, dropped 7.4%, due to the timing of the Passover holiday, lower prices, and intensified competition. The decline in seasonally adjusted (for the date of the Passover holiday) revenue was only 2.7%.
Sales per sq.m. in stores totaled NIS 5,327 in the second quarter, compared with NIS 5,468 in the corresponding quarter last year, a 2.7% decrease. Revenue from the real estate sector amounted to NIS 44 million in the second quarter, the same as in second quarter in 2014.
NIS 42 million Q2 operating profit
Shufersal's operating profit in the retail sector totaled NIS 42 million, 1.5% of revenue, compared with a NIS 183 million loss, 6.1% of revenue, in the second quarter of 2014,
The company's operating profit after other expenses amounted to NIS 72 million in the second quarter, 2.6% of revenue, compared with a NIS 156 million loss , 5.2% of revenue, in the corresponding quarter in 2014.
In the bottom line, Shufersal reported a NIS 16 million net profit in the quarter, compared with a NIS 157 million net loss in the corresponding quarter of last year.
Published by Globes [online], Israel business news - www.globes-online.com - on August 5, 2015
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