Max Stock Reports 86 Million Shekel Profit Amid Higher Prices and Expanded Logistics

Max Stock, the Israeli discount retail chain, reported a net profit of approximately 86 million shekels for the first half of 2026, marking a 45% increase compared to the same period last year. Revenues rose by 15% to about 780 million shekels, driven by customers visiting stores more frequently and purchasing more expensive and diverse items. In the second quarter alone, the chain posted a net profit of around 36 million shekels, a 30% increase, with revenues reaching 379 million shekels, up 13%.

A key factor behind the improved profitability was the gross profit margin, which reached a record 47.1% of revenues in Q2 and 46.3% for the half-year, up from 43% in 2025 and 42% in 2024. This growth was supported by three main developments: the full operational capacity of a new logistics center in Kibbutz Shomria, which enables centralized inventory and better supplier terms; the company's exit from its loss-making operations in Portugal, reducing sales and marketing expenses; and a weaker US dollar, which lowered purchasing costs since Max Stock imports most of its goods in dollars. However, the company incurred a 32 million shekel loss in financial hedging contracts due to the dollar's decline.

The chain also saw a 12% increase in same-store sales during the first half of 2026, compared to 4.4% growth in 2025, despite Passover falling only in Q1 this year. Max Stock announced an additional dividend payout of 50 million shekels scheduled for September 9, following an 80 million shekel dividend paid in April. Total dividends distributed in 2026 amount to 130 million shekels, exceeding the half-year profit but funded by accumulated earnings and a strong cash position of about 102 million shekels net.

Since the start of the year, Max Stock opened two fully owned branches in Beersheba and Or Akiva, plus a franchise store in Hod Hasharon. Plans are underway to open five more stores by the end of 2027 in locations including Tzomet Ad Halom, Gan Yavne, Bnei Brak, Ofakim, and Tirat Carmel, along with an expansion of the Kiryat Yam branch. Founder and CEO Uri Max stated that the results reflect continued growth in store visitors and ongoing product assortment upgrades, with a focus on expanding the chain’s national footprint.