Shufersal, the largest retail group in Israel, published its 2020 reports yesterday, according to which it ended the year with record revenues of NIS 15.2 billion and a net profit of NIS 387 million (of which a profit of NIS 120 million in the fourth quarter).
According to the data, private label sales amounted to NIS 3.9 billion and account for 25.8% of sales; Shufersal Online’s sales amounted to NIS 3 billion and constitute 19.9% of sales. Moreover, the Pharm Be chain first reached operational balance, in the fourth quarter of 2020.
“Because of the closure of restaurants and banquet halls, a question mark has arisen where the retail and food industry is going. Despite the concerns, I estimated that it would be a good year, but I admit I could not predict what the numbers would be.” Shufersal Itzik Aberkhan.
The company’s chairman, Yaki Vadmani, adds: “It is true that Shufersal benefited from the corona crisis and it is true that we received a boost, but even before that, extensive fieldwork and execution of the plans was done until the last stop. The success would have happened even without the Corona. “
According to Abercrombie, despite the results, the company does not intend to rest on its laurels. “We are looking forward with B2B and container sharing, real estate and of course finance sharing Discount. The company also promotes the ‘Market Place’ project, which will operate an online market for the sale of non-food products: electricity and electronics, garden, leisure, textiles and perfumes. ”
Regarding the level of prices ahead of Passover, the CEO says: “We promised in 2020 that we would not raise prices. Towards the beginning of 2021, manufacturers’ inquiries began to increase the price of basic products such as oils, sugars, flour and cereals due to rising world prices. There were also inquiries about the price of fruits and vegetables and poultry. We postponed everything and until the holiday they will not become more expensive. We are absorbing the increases, and the price level during the holiday will not be high compared to 2020. “
Itzik Aberhahn, CEO of Shufersal (Photo: Sivan Farage)Thanks to the results, Shufersal will distribute a dividend to shareholders in the amount of NIS 140 million. The company’s senior executives, headed by Aberkhan, will receive bonuses, and the CEO’s salary will be NIS 8.7 million – of which an annual grant of NIS 2.4 million.
The company also announced yesterday a plan to raise NIS 700 million in an “uneven” issue of shares (the company will have the right to choose). Following the disclosure of the company’s operations in English, the current offering will also include foreign investors.