Electra Consumer Products (TASE: ECP) reports a moderate rise in revenue and net profit in the first quarter of this year, thanks to improvement in the activity of the Carrefour-brand supermarket chain that it operates throughout Israel. The company, headed by Zvi Shwimmer, posted only a slight rise in revenue in its food sector, which mainly consists of Carrefour, by 1.1% in the first quarter to NIS 799 million, but the profit in that sector totaled NIS 42 million, 5.3% of turnover, and sharply higher than the net profit of NIS 3 million (0.4% of turnover) in the corresponding quarter of 2024. The improvement stemmed from higher sales in branches converted to the Carrefour format.
Subsidiary Global Retail, which is essentially Carrefour, posted a net profit of NIS 5.2 million in the first quarter of this year, which compares with a net loss of NIS 34 million in the corresponding quarter.
The Carrefour chain “continues to present impressive results, to maintain a sectoral profit margin of over 4%, and has recorded a third successive quarter of net profits, and substantial growth in revenue and EBITDA,” Shwimmer said this morning. “We have completed the process of converting the branches, and the chain now numbers 144 branches, with a target of 150 branches by the end of the year.”
Electra Consumer Products’ business also consists of electrical goods retailing, through the Shekem Electric and Mahsanei Hashmal chains, air conditioning, and the sportswear and leisure-wear chains Adidas and Columbia. The company’s first quarter revenue totaled NIS 1.76 billion, up 2.7% in comparison with the first quarter of 2024. Net profit was NIS 21 million, 11% higher than in the corresponding quarter, mainly thanks to lower operating expenses.
Electra Consumer Products’ share price has fallen 6% so far this year, but is still up 43% over the past twelve months, a rise mainly recorded last November, as the Carrefour franchise gradually stopped incurring heavy losses for the company. The company’s market cap at this morning’s opening was NIS 2.4 billion.
Published by Globes, Israel business news – en.globes.co.il – on May 27, 2025.
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