Israeli supermarket chain Shufersal Ltd. (TASE:SAE) has returned to profit in the wake of its streamlining plan, which say layoffs and branches closed. The company reported its financial results for the third quarter today which included net profit of NIS 47 million, compared with a net loss of NIS 24 million in the corresponding quarter. Revenue was NIS 2.99 billion, similar to the corresponding quarter.
Sales per square meter of commercial space were NIS 5,836 in the third quarter of 2015, up 6.8% from NIS 5,464 in the third quarter of 2014, mainly due to the reduction in commercial space. The rate of growth profit rose from 21% in the third quarter of 2014 to 24.7% in the third quarter of 2015. The better performance also reflected the expansion of Shufersal's private label operations.
Shufersal chairman Rafi Bisker announced he is stepping down after eight years in the position.
Bisker and CEO Itzhak Abercohen said in a statement, "The quarter's results reflect the continued trend of the company's improved performance and a return to adequate levels of profit. This trend is a consequence of implementation of the company's growth strategy, business development and innovation as well as operational and real estate streamlining and reduction in expenditure. During the past quarter, the company continued to promote its private brand to offer customers a cheaper, quality alternative to branded products."
Published by Globes [online], Israel business news - www.globes-online.com - on November 4, 2015
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