Streamlining by the Amir brothers is reflected in the first quarter financial results of Shufersal Ltd. (TASE:SAE). While the revenue of Israel’s biggest supermarkewt chain fell in the first quarter of 2025, the improvement in gross and operating profitability, due to the measures implemented by the brothers since they acquired control, led to a sharp jump in profit. At the same time, the company has erased the financial debt that has weighed it down in recent years.
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Shufersal revenue in the first quarter was NIS 3.53 billion, down 7% from NIS 3.79 billion in the corresponding quarter of 2024. The fall in revenue is attributed to steps taken by the chain to improve profitability, as well as the decrease in consumption, as the impact of war subsides, a shortage of workers in the retail industry, and due to an extra day in the corresponding quarter last year (a leap year).
Net profit was NIS 156 million, up 77% from NIS 88 million in the corresponding quarter last year. The improvement in net profit was due to an increase in gross profit, which was NIS 1.05 billion (29.7% of revenue), compared with NIS 1.03 billion (27.1% of revenue) in the corresponding quarter last year. Gross profit increased mainly due to the focus of commercial and marketing activities in the retail sector, along with progress in operational efficiency measures.
A similar improvement was also recorded in operating profit, which rose by 39% to NIS 230 million (6.5% of revenue) in the first quarter, compared with NIS 165 million (4.4% of revenue) in the corresponding quarter last year. At the same time, an increase was also recorded in EBITDA, which rose 13% to NIS 462 million (13.1% of revenue).
Another achievement that can be credited to the Amir brothers is the closing of the financial debt, which was NIS 1.22 billion at the end of 2023. In the first quarter, Shufersal presented a net cash surplus of NIS 312 million, compared with a financial debt of NIS 1.06 million at the end of the corresponding quarter last year.
Published by Globes, Israel business news – en.globes.co.il – on May 29, 2025.
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