Shufersal, Israel’s largest supermarket chain, shared financial results from the second quarter and first half of 2021 earlier this month. The chain reported an increase in profits, along with a raise in sales of its private label products. Shufersal operates 272 branches in Israel, and employs over 13,500 people.
The operating profit in the second quarter increased by 11% to roughly NIS (New Israeli Shekel) 183 million compared to NIS 165 million in the corresponding quarter last year. Net profit in the second quarter increased by 21% to NIS 97 million compared to NIS 80 million in the second quarter of 2020. Shufersal says the increase in the profit margin is mainly due to improved trading conditions and operational efficiency.
Private label sales in the quarter rose to 26.1% of total food retail sales, compared to 25.4% in the corresponding quarter last year. Shufersal offers about 1,700 private label products including general food items, cleaning supplies, baked goods, beverages, frozen products and more.
The net profit in the second quarter of 2021 increased by 21% and amounted to approximately NIS 97 million, which is 2.7% of the revenues, compared to approximately NIS 80 million, which made up 2.2% of the revenues in the corresponding quarter of 2020.
The net profit in the first half of 2021 increased by 24% to NIS 211 million, 2.9% of the sales, compared to NIS 170 million, 2.3% of the sales, in the first half of 2020. The increase in net profit is mainly due to an increase in gross profit.
“To Be,” a drugstore chain under the Shufersal company that sells private label cosmetics, continues to significantly improve its results. Revenues increased in the second quarter by 16% and amounted to NIS 223 million in total sales compared to NIS 192 million in the second quarter of 2020.
“We are pleased to conclude the second quarter of 2021 with excellent business results reflecting the continued success of the group in line with the implementation of the strategic plans we have set for ourselves,” Yaki Vadmani, Chairman of the Shufersal Board of Directors. “We continue to invest in upgrading the supply chain infrastructure and logistics centers, in strengthening the online system and technological infrastructure, and in the group's major business growth engines, including the "To Be" chain, the private label, Shufersal Real Estate and more.”