Shufersal Q1 profit up 45%

Israel's largest supermarket chain posts net profit of NIS 55 million in first quarter of 2013, up from NIS 38 million a year earlier

Reuters|Published: 05.09.13 , 07:48

Shufersal, Israel's largest supermarket chain, reported a 45% jump in quarterly net profit on Tuesday due to rising sales in its discount stores and cost cutting measures.

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Shufersal posted first-quarter net profit of NIS 55 million ($15 million), up from NIS 38 million ($10.5 million) a year earlier. Revenue increased 6.3% to NIS 2.98 billion ($840 million).

Same store sales rose 4% in the quarter from a year ago due to the timing of the week-long Passover holiday, which occurred in the first quarter this year.

Shufersal in March set up a separate wholly owned subsidiary for most of its real estate assets. It transferred 68 branches valued at NIS 1.7 billion ($480 million) to the subsidiary as well as properties for investment worth NIS 383 million ($107 million) and five branches in the process of being built.

This move is aimed at enabling the company to develop and increase the value of its real estate.

Shufersal is controlled by IDB Holding Corp, the conglomerate owned by Israeli businessman Nochi Dankner.