Retail chain Shufersal (TASE: SAE) has reported a rise in sales in the second quarter of 2022 and a decline in net profit, as business returned to routine after two years of the Covid-19 pandemic.
Second quarter sales rose 3.3% to NIS 3.7 billion in the second quarter of 2022 from NIS 3.6 billion in the corresponding quarter of 2021. The company explains the rise by the return to normal after the pandemic, expansion of its activity in the corporate market, and the timing of the Passover holiday, which fell in the second quarter this year.
The first half year saw a 2% decline in sales revenue to NIS 7.2 billion from NIS 7.4 billion in the first half of last year.
Shufersal posted a net profit of NIS 68 million for the second quarter of 2022, down 30% in comparison with the second quarter last year, and representing 1.8% of sales. In the second quarter of last year, the net profit of NIS 97 million was 2.7% of sales. For the first half of 2022, net profit was NIS 95 million, 55% less than the NIS 211 million net profit in the first half of 2021.
Operating profit in the first half of 2022 showed a decline of 45% in comparison with the first half of 2021, to NIS 209 million, 2.9% of sales, from NIS 381 million, 5.2% of sales.
In the first half of 2022, online sales represented 20% of the total, which compares with 21% in the first half of 2021, and Shufersal’s own brand accounted for 27% of sales, which compares with 26.8% in the first half of 2021.
Shufersal chairperson Itzik Abercohen said, "The second quarter result reflect the return to routine and the emergence from the Covid-19 period restrictions. The company is preparing to adjust the group’s expenses in a way that will enable it to return to the profit margins that characterized previous quarters, and along with this it continues to act energetically to advance its different areas of business."
Shufersal's share price is down 2.54% on the Tel Aviv Stock Exchange this morning.
Published by Globes, Israel business news - en.globes.co.il - on August 17, 2022.
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