Shufersal reports today on the financial results of the first quarter of year 2022

Rhea-AI Summary

Shufersal reported its Q1 2022 financial results, showing a revenue decline to NIS 3.4 billion, down from NIS 3.8 billion last year, reflecting a 7% decrease. Operating profit fell to NIS 102 million (2.9% of revenues) from NIS 198 million (5.3%). Net profit was NIS 27 million (0.8% of revenues), down from NIS 114 million (3.0%). Despite challenges, the Be network reported a 25% revenue increase to NIS 269 million. The company's online sales constituted 21.8% of total retail sales, a slight decrease from last year.

Positive

• Be network revenues grew by 25% to NIS 269 million.
• Private Label sales share increased to approximately 27.6%.

Negative

• Total revenues decreased by 7% compared to last year.
• Gross profit fell to NIS 925 million, a decrease from NIS 1 billion.
• Net income decreased to NIS 27 million from NIS 114 million.
• Operating profit dropped to NIS 102 million from NIS 198 million.
• EBITDA declined to NIS 316 million from NIS 397 million.

Operating profit for the quarter amounted to NIS 102 million, which constitute approximately 2.9% of the Group's revenues, and net profit amounted to approximately NIS 27 million, which constitute approximately 0.8% of total revenues

The Be network's revenues grew by approximately 25% as compared to the corresponding quarter last year. They amounted to approximately NIS 269 million in the first quarter as compared to approximately NIS 216 million in the corresponding quarter last year

TEL AVIV, Israel, May 31, 2022 /PRNewswire/ -- Shufersal (TASE: SAE), Israel's leading retailer, announced today financial results for the first quarter of year 2022.

The Group's revenues in the first quarter amounted to approximately NIS 3.4 billion as compared to NIS 3.8 billion last year.

The Group's revenues in the first quarter amounted to NIS 3.5 billion as compared to NIS 3.8 billion last year. The decrease of about 7% is mainly due to the fact that the first quarter of last year was characterized by a closure that significantly affected the Group's revenues, and also due to the timing of the late Passover this year and the days of preparation for it, which were mainly concentrated during the second quarter.

Gross profit in the first quarter amounted to NIS 925 million, which constitute approximately 26.4% of revenues as compared to approximately NIS 1 billion in the corresponding quarter last year, which constituted approximately 27.0% of revenues. The decrease in total gross profit was mainly due to a decrease in the Group's revenues. The rate of gross profit from total revenues is approximately 26.4% as compared to approximately 27.0% in the corresponding quarter last year, which is due to an increase in the rate of operating expenses.

Operating profit in the first quarter amounted to approximately NIS 102 million which constitute approximately 2.9% of the Group's revenues as compared to approximately NIS 198 million, which constituted approximately 5.3% of the Group's revenues in the corresponding quarter last year.

Net income in the first quarter amounted to approximately NIS 27 million, which constitute approximately 0.8% of revenues as compared to approximately NIS 114 million, which constituted approximately 3.0% of revenues in the corresponding quarter last year.

EBITDA for the quarter amounted to approximately NIS 316 million, as compared to approximately NIS 397 million in the corresponding period last year, and constitutes approximately 9.0% of the Group's total revenues as compared to approximately 10.5% in the corresponding quarter last year. The decrease is mainly due to a decrease in operating profit.

Sales in the same branches in the Group decreased by approximately 8.4% as compared to the corresponding quarter last year mainly due to the weakening of the influence of coronavirus and the effect of the closure in the first quarter last year as well as the timing of Passover.

The Be network continues to improve its results in accordance with the company's work plans. The Be network revenues in the first quarter amounted to NIS 269 million as compared to NIS 216 million in the corresponding quarter last year, which constitutes an increase of 25%.

The operating profit of the Be network in the first quarter of 2022 amounted to approximately NIS 1 million, similar to the corresponding quarter last year.

Shufersal Online's sales in the first quarter amounted to approximately 21.8% of total retail sales as compared to approximately 22.4% in the corresponding quarter last year. The decrease in the online sales share of the company's total sales is mainly due to the fact that online sales in the first quarter of last year were particularly substantial in light of peak demand resulting from the closure.

Private Label sales share in the first quarter was approximately 27.6% of total food retail sales as compared to approximately 27.4% in the corresponding quarter last year, constituting an increase of about 0.2% as compared to the corresponding quarter last year.

Ran Gottfried, Chairman of the Board of Shufersal and Ofer Bloch, CEO of the Shufersal Group, said today: "The first quarter continued the trend of exiting the coronavirus closure period that characterized the previous year. The company's sales that fell in the quarter as well as the timing of Passover are a direct result of a return to routine in Israel and around the world. In particular, there is a return to routine among the general Israeli public who have resumed flying abroad, which significantly affects the comparison between the quarters.

The company continues to strengthen its core business in the chain's branches and promote its growth strategy, including online operations, the Be network, Shufersal Business activities, Shufersal Finance, the Customer Club, the Private Label and more. Through them the company is improving its value propositions to the Israeli consumer while promoting innovation and differentiation in the market in which it operates.

The company is getting ready as part of a return to routine, while carrying out operational preparations and streamlining processes that will allow it to return to the profitability rates which characterized the previous quarters".

For further information, please contact:
ir@shufersal.co.il

 

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SOURCE Shufersal

FAQ

What were Shufersal's Q1 2022 earnings results?

Shufersal reported Q1 2022 revenues of NIS 3.4 billion, a 7% decline from NIS 3.8 billion in Q1 2021.

What caused the decline in Shufersal's revenues in Q1 2022?

The revenue decline is attributed to a return to routine post-coronavirus, timing of Passover, and last year's significant impact from closures.

What was Shufersal's net profit in Q1 2022?

Shufersal's net profit in Q1 2022 was approximately NIS 27 million, down from NIS 114 million in the same quarter last year.

How did the Be network perform in Q1 2022?

The Be network experienced a revenue increase of 25% to NIS 269 million in Q1 2022 compared to NIS 216 million in Q1 2021.

What percentage of sales came from Shufersal Online in Q1 2022?

Shufersal Online contributed approximately 21.8% of total retail sales in Q1 2022.