Israel's largest supermarket chain Shufersal Ltd. (TASE:SAE) has announced disappointing financial results for 2022. Revenue last year was NIS 14.66 billion, slightly down from NIS 14.76 billion in 2021. But net profit plunged in 2022 to just NIS 2 million from NIS 393 million in 2021.
Shufersal said that the sharp fall in net profit was due to a decline in operational profit, a one-time expense of NIS 182 million for the streamlining plan, offset by an NIS 18 million re-evaluation of the company's real estate assets compared with 2021.
"Coping with a changing reality
Shufersal chairman Itzik Abercohen and CEO Ori Watermann said in a statement. "2022 saw a decrease in demand in the food retail chains worldwide due to the exit from the Covid epidemic period and the return to normality, as well as the increase in the prices of inputs and wages, along with difficulty in hiring staff. However, the group's revenue last year reflects a high and stable level of demand in the retail sector, and we believe that the investment measures we made and the streamlining plan we implemented starting in the fourth quarter of the year, put Shufersal in a very good starting position for 2023.
"The past year was an important milestone in the group's activities. In the second half of the year, the seeds were sown for continued growth with the appointment of a CEO and new management, which is working to adapt the organization to cope with a changing reality and to continue the significant expansion of the growth engines, alongside the strengthening of core activities."
Published by Globes, Israel business news - en.globes.co.il - on March 21, 2023.
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