Shufersal Ltd. (TASE:SAE) today reported its results for the fourth quarter of 2014 and the entire year. Fourth quarter revenue was down 4.3% to NIS 2.8 billion, mainly a result of the price cuts instituted under its new business plan. Net profit fell to NIS 42 million, amounting to 1.5% of sales turnover.
Shufersal lost NIS 107 million in 2014, with EBITDA of NIS 344 million, compared with a NIS 210 million profit in 2013. Annual revenue fell 2.6% to NIS 11.6 billion.
In reporting the results, Shufersal chairman Rafi Bisker and CEO Yitzchak Abercohen jointly stated, "Shufersal implemented a new strategic plan in 2014, including mainly deep across-the-board price cuts, streamlining and a change in work processes, closing branches and reducing non-productive space, reducing coupon discounts, and strengthening relations with customers. The changes in the retail food market in Israel over the past year and the measures introduced by Shufersal had a substantial impact on the 2014 results. At the same time, the results for the fourth quarter of 2014 published today show the what Shufersal has done, and the beginning of an upward trend in the company's gross profit."
They added, "We're confident that the series of measures implemented over the past year, combined with further tightening of relations with the customer and development of new business activities, will lead the company to growth, preservation of its status as the leading company in the Israeli retail market, and a return to appropriate profitability."
Published by Globes [online], Israel business news - www.globes-online.com - on February 25, 2015
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