The third quarter financial results of Carrefour-Yeinot Bitan, which is operated by Electra Consumer Products (TASE: ECP) show revenue growth and a narrowing loss.
Electra Consumer Products, controlled by Daniel and Michael Salkind's Elco (TASE: ELCO), reported revenue of NIS 2.3 billion, in the first nine months of 2023, up 7.6% from the corresponding quarter of 2022. Third quarter revenue was NIS 865 million, up 17.2% from the corresponding quarter of 2022.
In the third quarter of 2023, dozens of Carrefour Israel branches were operating. According to the results, sales in the branches that had been converted from Yeinot Bitan branches to the French chain rose 47.1%. Sales per square meter in the food sector in the third quarter, which also included branches of the 7-Eleven convenience store franchise, but is mainly focused on Carrefour Israel, amounted to NIS 28,000 per square meter on an average annualized basis, up from NIS 23,800 in the corresponding quarter of 2022.
Electra Consumer Products reported that sales per square meter of just Carrefour Israel branches between May and September, on an average annualized basis, was NIS 39,500 per square meter, up 45% from before the stores were converted.
The positive surprise from Electra Consumer Products point of view was that in the third quarter of 2023, the loss in the food retail sector narrowed to just NIS 7 million, compared with NIS 51 million before the stores were converted to Carrefour. Electra Consumer Products that the loss in the third quarter was aggravated by the 7-Eleven convenience stores, which are still being refurbished ahead of their opening.
According to the company, there are currently 72 Carrefour stores in Israel and three more branches will be opened by the end of the year.
Published by Globes, Israel business news - en.globes.co.il - on November 27, 2023.
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