Supermarket chain Shufersal Ltd. (TASE:SAE) released its second quarter financials this morning. Revenue in the quarter totaled NIS 3.7 billion, up 8% from NIS 3.4 billion in the second quarter of 2019. The company attributes the increase mainly to growth in online sales and its investment in that area over the years, which came to the fore in the coronavirus pandemic.
For the first half year, revenue totaled NIS 7.4 billion, up 13% from NIS 6.6 billion in the first half of 2019.
Same store sales grew 6.1% in the second quarter and 11.6% in the first half in comparison with the corresponding periods of 2019.
Gross profit in the second quarter totaled NIS 968 million, representing 26.2% of revenue, which compares with NIS 920 million, representing 26.8% of revenue, in the corresponding quarter. The decline in the gross profit margin is mainly due to the growth in online sales.
Second quarter net profit grew 67% to NIS 80 million, or 2.2% of revenue, from NIS 48 million, or 4.1% of revenue, in the corresponding quarter. The revaluation of the Lev Hamifratz Mall in Haifa cut NIS 4 million from net profit in the quarter. The growth in net profit is mainly attributable to growth in retail sales and a decline in finance expenses.
Shufersal chairman Mauricio Wior and CEO Itzik Abercohen said today, "We are delighted to present excellent results for the second quarter and first half of 2020, reflecting Shufersal's robust response to the coronavirus crisis, showing responsibility to the country, and strengthening the group's positioning as the largest retail group in Israel.
"We are proud of the fact that in this period we actually hired thousands of workers, who joined the general effort and contributed to our ability to meet the huge demand, and we were thus able to help thousands of families to earn a living in this crisis period.
"The quarterly results also demonstrate that the main principles of the strategy that the company set for itself, chiefly the investment in the future word of online sales, are correct and necessary, and we shall see the fruits of these work plans in the coming years."
Published by Globes, Israel business news - en.globes.co.il - on August 19, 2020
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