Shufersal Group reports today on financial results for 2021 and the fourth quarter of this year

TEL AVIV, Israel, March 22, 2022 /PRNewswire/ -- Shufersal (TASE: SAE), Israel's leading retailer, announced today financial results for the fourth quarter and full year 2021.

• Group's revenue in 2021 was ~ NIS 14.8 billion compared to ~ NIS 15.2 billion in 2020, representing a decrease of ~ 3.1%, mainly due to the weakening of the impact of the COVID crisis in the food retail sector and the economic rebound as a result of the improved health situation.
• Group's revenue in the fourth quarter of 2021 was NIS 3.6 billion, down 6.7% compared to the corresponding quarter, which was a record quarter in 2020. The decline was mainly due to the food retail sector, which was affected by the easing of the COVID crisis and the economic rebound.
• Sales in the same industries (food retail: retail and online) decreased by 5.6% in 2021 and by 9.5% in the fourth quarter compared to the corresponding periods in 2020. The decline is mainly due to the weakening of the impact of the COVID crisis in the food retail sector and the economic rebound as the company estimated.
• Gross profit in 2021 was NIS 4.021 million, accounting for ~ 27.2% of total revenue, compared to ~ NIS 4.043 million last year, accounting for ~ 26.5% of total revenue. The increase in gross profit is mainly due to the improvement in the terms of trade and changes in the income structure.
• In the fourth quarter, gross profit was NIS 974 million compared to NIS 1,047 million in 2020, representing ~ 27.0% of total revenue, which is similar to the gross profit of total revenue in the fourth quarter of last year.
• Operating profit in 2021 was ~ NIS 726 million, about 4.9% of total revenue, compared to ~ NIS 718 million, about 4.7% of revenue in 2020.
• Operating profit in the fourth quarter of 2021 was about NIS 159 million, representing ~ 4.4% of revenue turnover, compared to about NIS 202 million in the fourth quarter of 2020, representing ~ 5.2% of revenue turnover.
• Operating profit after other income in 2021 was ~ NIS 779 million, which is ~ 5.3% of revenue, compared to ~ NIS 745 million, which is ~ 4.9% of revenue in 2020.
• Net profit in 2021 increased by about 2% to about NIS 393 million, which is about 2.7% of revenue, compared to about NIS 387 million, which is about 2.5% of revenue in 2020.
• Net income in the fourth quarter of 2021 was NIS 100 million, down 17% from the net income of NIS 120 million in the corresponding quarter of 2020. The decline is mainly due to an increase in finance costs and investment in PayBox operations.
• EBITDA in 2021 was about NIS 1,559 million, which is ~ 10.6% of the company's total revenue, compared to about NIS 1,514 million in 2020, which is ~ 9.9% of the company's total revenue. The growth was mainly due to an increase in operating profit.
• EBITDA in the fourth quarter of 2021 was ~ NIS 375 million, which is ~ 10.4% of the company's total revenue, compared to ~ NIS 411 million, which is ~ 10.6% of the company's revenue in the corresponding quarter of 2020.
• Sales under private label in 2021 amounted to NIS 3.8 billion, which is ~ 26.6% of total food retail sales, compared to about NIS 3.9 billion, which is ~ 25.8% of the total retail food sales in 2020.
• Shufersal Online's sales in 2021 amounted to NIS 2.8 billion and represent ~ 20.5% of total food retail sales compared to ~ 20.3% in 2020.
• The Be chain of stores continues to significantly improve its results in 2021, with revenue of ~ NIS 966 million compared to ~ NIS 815 million in 2020, an increase of ~ 18.5%.
• The Be chain revenue in the fourth quarter of 2021 was about NIS 256 million compared to ~ NIS 206 million in 2020, an increase of ~ 24.3%, mainly due to the opening of new branches, an increase in online activity, an increase in sales of similar stores and new Covid-19 testing activities.
• Sales at the similar stores of the Be chain in 2021 increased by ~ 10.6% compared to 2020.
• The Be network had an operating profit of NIS 9 million in 2021 compared to an operating loss of NIS 19 million in the previous year. The transition to profit was driven by increased revenue, operational efficiency and deepened operational synergies with the company.
• The operating profit of the Be chain in the fourth quarter of 2021 was NIS 3 million compared to the operating balance in the corresponding quarter of last year.

Yaki Vadmani, Chairman of Shufersal, and Itzik Abercohen, CEO of Shufersal, said today:

"Shufersal Group concludes 2021 and the fourth quarter of this year, with results that reflect the continuation of its leadership in the Israeli retail market, while preserving business results that are the result of implementing the company's multi-year strategy. This strategy enables the company to position itself as the largest retail group in Israel, which leads this field while entering new areas, in addition to the core areas in which it has been operating for many years.

"The year 2021 was largely characterized by the exit of the State of Israel from the period of lockdowns due to Covid-19, that characterized the year preceding it, and yet the company managed to reach results similar to last year's record results.

"The company's sales, which declined throughout the year, are a direct result of a return to routine for much of the year, compared to the three lockdowns that characterized 2020. Considering the characteristics of 2020, the group's profitable results during 2021 are impressive results expressing trust and loyalty from the company's customers.

"The company continues to strengthen its core growth strategies, including online operations, the Be chain, Shufersal Business, Shufersal Financial, the customer club, the private label and more. Through them, the company works to improve its value propositions to the Israeli consumer while promoting innovation and differentiation in the market in which it operates.

"The company continues its activities to promote innovation in its fields of endeavor, including new products and services, digital assets, experience in the physical branches, the supply chain and customer service. At the same time, the company is working to promote operational efficiency and cost savings.

"We believe that thanks to the quality and professional human capital of the Shufersal Group, thanks to the experience and knowledge, the technological and logistical infrastructure, and thanks to the innovation and excellence that characterize the Shufersal, we will be able to respond to changes and developments and continue to lead the company towards success and prosperity."

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For further information, please contact:
Adi Molcho-Weinstein 
International Investor Relations, Shufersal
[email protected]

SOURCE Shufersal