Shufersal doubles profit

CEO Yitzchak Abercohen: The results reflect continuous efforts in sales, streamlining, and savings, while cutting prices.

Shufersal Ltd. (TASE:SAE), Israel's largest supermarket chain, doubled its net profit for the third quarter of 2012, despite only slightly higher sales.

Retail sales rose 1.3% to NIS 3.02 billion for the third quarter from NIS 2.98 billion for the corresponding quarter, although same-store sales declined 0.4% and sales per square meter fell 0.8% to NIS 5,511 from NIS 5,555. Real estate income boosted total revenue 1.3% to NIS 3.04 billion for the third quarter.

Operating profit from retail operations rose 34% to NIS 95 million for the third quarter from NIS 71 million for the corresponding quarter, partly by keeping its sales and general administrative expenses unchanged. Net profit rose 118% to NIS 70 million (NIS 0.33 per share) for the third quarter from NIS 33 million for the corresponding quarter.

Shufersal CEO Yitzchak Abercohen said, "The third quarter results were much better compared with the corresponding quarter along all operating variables. The results reflect the company's continuous efforts in sales, streamlining, and savings, while cutting prices."

In a separate matter, sources inform ''Globes'' that Shufersal subsidiary Gidron Bakeries has acquired Maayan Baking Industries Ltd. for NIS 8 million.

Published by Globes [online], Israel business news - www.globes-online.com - on October 31, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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