The receivership and sale of the Mega supermarket chain boosted the results of rival Shufersal Ltd. (TASE:SAE)in the third quarter. This morning, Shufersal reported that its gross profit margin rose from 24.7% to 25.3% in the quarter. The rise in the gross profit for the second successive quarter indicates rising consumer prices. Shufersal has been the main beneficiary of the events at Mega, both before its collapse, when the Mega chain suffered from shortages of products at its stores and from lack of clarity about its future, and afterwards. Another advantage that Shufersal gained from the troubles at Mega was a dramatic rise in sales of its purchasing coupons, which shot up to NIS 1.6-1.7 billion, making it a monopoly in this area.
Coupons, often given to employees as seasonal perks, are mostly used at food stores, and Shufersal had high customer numbers during the recent Jewish holiday season, which translated into high sales, with same-store sales rising 3.3%.
Shufersal's third quarter revenue totaled NIS 3 billion. Operating profit NIS 104 million. Sales per square meter rose from NIS 5,836 in the third quarter of 2015 to NIS 6,174 in the third quarter this year.
Gross profit in the third quarter of 2016 was NIS 771 million, which compares with NIS 739 million in the corresponding quarter of 2015. Gross profit as a percentage of sales was 25.3%, up from 24.7% in the corresponding quarter. The company attributes the rise in gross profit to a rise in the number of its franchisees, a rise in own-brand sales, and an improvement in its terms of trade.
Net profit in the third quarter this year was NIS 51 million, which compares with NIS 47 million in the corresponding quarter of 2015.
Published by Globes [online], Israel business news - www.globes-online.com - on November 15, 2016
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