Global Retail, which operates Carrefour's supermarket chain in Israel, which was launched two years ago, saw a 10% rise in revenue in 2024 to NIS 3.34 billion. The rise was mainly due to additional branches being renovated and reopened as Carrefour supermarkets after May 2023.
Global Retail, which is controlled by Electra Consumer Products (TASE: ECP), reported an operating profit of NIS 69 million in 2024 compared with a loss of NIS 37 million in 2023 but still ended the year with a heavy loss of NIS 113 million due to heavy expenditure of NIS 180 million in servicing its debt. In 2023, the loss was even higher at NIS 188 million, with NIS 111 million spent on servicing the debt.
Global Retail, which was founded to operate the Yeinot Bitan-Mega supermarket chain, currently operates 145 branches around Israel, the vast majority under the Carrefour brand.
The company's supermarkets are mainly located in neighborhoods and city centers and Global Retail also operates four online sales websites, of which the main one is Carrefour Online. In 2025, the company plans converting four more Yeinot Bitan supermarkets into Carrefour branches. According to Electra Consumer Products, the company imports 1,650 Carrefour brand products.
Electra Consumer Products CEO Zvika Shwimmer told "Globes," "We met all our promises to investors on the eve of 2024. We will continue to bring in products. Today, Carrefour is one of the most cherished brands in Israel - and for us it is a dramatic achievement."
Regarding the loss, Shwimmer, who also serves as chairman and interim CEO of Global Retail, explained that it is the cost of the heavy debt that the chain took on (including long-term lease obligations of about NIS 2 billion): "We have heavy financing expenses. On the other hand, we also have NIS 2 billion in losses for tax purposes, which is an asset."
Electra Consumer Products estimates the value of Global Retail at about NIS 1 billion - much less than the market cap of leading chains in Israel - Shufersal has a market cap of over NIS 10 billion, and Rami Levy has a market cap of NIS 3.5 billion.
Shwimmer adds, "We are examining whether to float the chain as part of a subsidiary, Electra Retail, but there are many ways to handle the debt. For example, we have seen that the KSP computer chain is currently bringing in partners and we could also bring in partners."
Electra Consumer Products to resume distributing a dividend
Electra Consumer Products, which also manages retail chains in the electronics sector (Mahsanei Hashmal and Shekem Electric) and imports and operates sportswear stores (Adidas, Columbia), alongside its traditional air conditioner activity saw revenue of NIS 7.4 billion last year, up 14% from 2023, due in part to growth in Carrefour activity, but also to an improvement in electronics sales and activity in the sports and leisure sector. The company reported net profit of NIS 52 million in 2024 compared with a net loss of NIS 101 million in 2023, and after two years it is resuming distribution of a dividend to shareholders (of NIS 40 million).
Published by Globes, Israel business news - en.globes.co.il - on March 23, 2025.
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