Max Stock Reports 86 Million Shekel Profit Amid Changing Israeli Shopping Habits

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. The company’s revenues rose by about 15% to 780 million shekels, driven by customers shopping more frequently and purchasing higher-priced, more diverse items. In the second quarter alone, Max Stock earned a net profit of 36 million shekels, a 30% increase, with revenues of 379 million shekels, up 13%.

A key highlight in the financial report 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 improvement was attributed to three main factors: 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 most goods are imported in dollars. However, hedging contracts to protect against currency fluctuations caused a 32 million shekel financing loss in the first half, including 27 million shekels in Q2 alone.

Same-store sales grew by about 12% in the first half of 2026, compared to 4.4% in 2025, despite Passover falling only in Q1 this year. Max Stock also announced a second dividend payment of 50 million shekels to shareholders, scheduled for September 9, bringing total dividends paid in 2026 to 130 million shekels, exceeding the half-year profit but supported by accumulated reserves and a strong cash position. After dividends, the company holds a net cash balance of around 102 million shekels.

Since the start of 2026, Max Stock opened two fully owned branches in Be’er Sheva and Or Akiva, plus a franchise store in Hod Hasharon. Additional new branches are planned for junction Ad Halom, Gan Yavne, Bnei Brak, Ofakim, and Tirat Carmel, along with an expansion of the Kiryat Yam store. Founder and CEO Uri Max stated that the results reflect continued growth in store visitors and ongoing product mix improvements, with plans to open five more owned stores by the end of 2027.