Shufersal Reports Sharp Revenue and Profit Decline, Shares Plunge Over 7%
Translated & summarized from N12 by baba
Shufersal reported a 7.5% revenue drop and a 31% net profit decline in Q2 2026, citing holiday timing and reduced campaign impact. Shares fell over 7% following the report. The company plans a 180 million shekel dividend payout despite financial pressures.
The story in 6 lines · by baba
- Shufersal's Q2 2026 revenue fell 7.5% to 3.41 billion shekels, net profit dropped 31% to 135 million shekels.
- Identical store sales declined 8.5% in Q2 and 2.7% in the first half of 2026.
- Company attributes decline to Passover timing and reduced impact of 'Roar of the Lion' campaign.
- Operating profit plunged 36% to 170 million shekels in Q2, signaling sharp earnings pressure.
- Working capital deficit increased to 813 million shekels, but liquidity remains stable per management.
- Board approved a 180 million shekel dividend payout to shareholders, payable October 1.
Shufersal, Israel's largest supermarket chain, reported a significant drop in revenue and profits for the second quarter of 2026, causing its shares to fall more than 7% in stock trading. The company's revenue declined by 7.5% to 3.41 billion shekels compared to the same quarter last year, while operating profit plummeted 36% to 170 million shekels. Net profit fell 31% to 135 million shekels. Identical store sales, a key performance indicator, dropped 8.5% in the quarter and 2.7% over the first half of the year, signaling a sharp slowdown in customer purchases amid Israel's high cost of living.
Shufersal attributed the downturn primarily to the timing of the Passover holiday, which concentrated its impact in the first quarter, and a reduced effect from the "Roar of the Lion" campaign that boosted sales in March and early April. Despite the weak quarterly results, the half-year figures showed a smaller decline with revenues down 1.6% to 7.1 billion shekels and net profit down 12% to 310 million shekels. The company also noted an increase in private label sales, which rose to 19.7% of total sales in the quarter and 20.4% for the half-year, as part of a strategy to improve profitability.
Financially, Shufersal reported a working capital deficit of 813 million shekels at the end of June, up from 653 million shekels a year earlier, indicating increased short-term liquidity pressure. However, management assured that available cash reserves and credit lines prevent liquidity problems. Despite the disappointing results, the board declared a dividend payout of 180 million shekels to shareholders, scheduled for October 1. The report highlights challenges facing Shufersal amid economic pressures and changing consumer behavior in Israel's retail sector.
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