Shufersal 2017 profit up 5%

Supermarket chain Shufersal Ltd. (TASE:SAE) reported a 5% rise in net profit for 2017, in comparison with 2016, to NIS 275 million. The increase in profit was achieved thanks to improvements in gross profit and operating profit, with sales unchanged at NIS 11.9 billion.

In the fourth quarter of 2017, however, Shufersal's profit was down 20% in comparison with the corresponding quarter of 2016, at NIS 77 million, because of a rise in the finance item, attributed to "a decline in the fair value of the investment in the wholesale market and a change in the treatment of credit transactions following implementation of accounting rules."

Shufersal's fourth quarter revenue rose 2% to NIS 2.9 billion. The chain, controlled by Discount Investment of Eduardo Elsztain's IDB group, also reported improvement in quarterly gross profit and operating profit.

Shufersal declared a dividend of NIS 160 million.

Published by Globes [online], Israel business news - www.globes-online.com - on March 26, 2018

Shufersal 2017 profit up 5%

The rise was achieved despite stagnation in sales, thanks to improved gross and operating profit performance.