Israel's largest supermarket chain Shufersal Ltd. (TASE:SAE) reported plunging net profits on flat revenue for the first quarter of 2012. Revenue edged up 0.5% to NIS 2.81 billion for the first quarter from NIS 2.79 billion for the corresponding quarter of 2011, but net profit fell 31% to NIS 38 million from NIS 55 million.
First quarter same store sales fell 1.3% compared with the corresponding quarter, and sales per square meter fell to NIS 5,117 from NIS 5,193. Operating profit fell 40% to NIS 71 million for the first quarter from NIS 118 million for the corresponding quarter.
The earlier date of Passover this year - April 6 - compared with April 18 last year, meant that some pre-holiday sales occurred during the first quarter of this year, affecting revenue and profit.
Shufersal's expenses rose 4% to NIS 675 million for the first quarter, mainly because of the increase in the minimum wage.
Shufersal is a subsidiary of Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH), held through Discount Investment Corporation (TASE: DISI). Shufersal's share price fell 1.2% in morning trading to NIS 12.12, giving a market cap of NIS 2.6 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 9, 2012
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