Shufersal Ltd. (TASE:SAE;Pink Sheets: SSLTF) today published its financial report for the fourth quarter and full-year of 2009. Israel's largest supermarket chain posted a 56% increase in net profit to NIS 78 million (NIS 0.38 per share) for the fourth quarter from NIS 50 million for the corresponding quarter of 2008.
Shufersal posted NIS 2.75 billion revenue for the fourth quarter, 2% more than the NIS 2.7 billion revenue for the corresponding quarter. Retail revenue rose 1.8% to NIS 2.73 billion from NIS 2.68 billion over the same period.
Operating profit (before real estate valuations, the sale of property, and goodwill adjustments) fell 4% to NIS 127 million for the fourth quarter from NIS 132 million for the corresponding quarter. Operating profit was 4.7% of revenue.
Shufersal also announced huge executive bonuses. Former CEO Efi Rosenhaus received NIS 2 million in 2008, and he will get a NIS 4.5 million bonus for 2009. Shufesal VP trade and marketing Eli Gidor, who is under investigation by the Israel Tax Authority for forging invoices for the import of antique cars, will get a bonus of NIS 530,000.
In the notice to the TASE about the bonuses, Shufersal said, "The bonus to Rosenhaus is in recognition for his extraordinary personal contribution to Shufersal's business and profits. Rosenhaus achieved record profits at a time of economic recession."
For the year as a whole, Shufersal posted NIS 11.04 billion revenue, 1% more than the NIS 10.96 billion revenue in 2008. Net profit rose 15% to a record NIS 323 million in 2009 from NIS 282 million in 2008.
Shufersal's debt to the banks and bondholders reached NIS 2.42 billion, including interest, at the end of 2009, 24.7% more than a year earlier.
Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH) unit Discount Investment Corporation (TASE: DISI) owns 38.1% of Shufersal. Shufersal's share rose 1.1% in morning trading to NIS 20.97, giving a market cap of NIS 4.48 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on February 10, 2010
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