Just before it is sold to the company פז , Reported the Food Marketing Network Freshmarket On a decrease in sales and net profit in the third quarter of 2021. This is a broad trend that characterized the results of other retail chains in Israel and which was mainly affected by exceptional sales that were recorded in the third quarter last year.
Freshmarket operates in the field of neighborhood and municipal supermarkets and currently operates 42 branches in the centers of cities and neighborhoods in Israel. In the third quarter of 2021, Freshmarket recorded sales of NIS 391.5 million, reflecting a decrease of 4.3% compared to the corresponding quarter last year.
Entering the activity of the new branches
According to Freshmarket“The change in sales compared to the corresponding quarter last year is due to a certain decrease in the volume of activity of the company in the same stores, both because the corresponding quarter was characterized by unusually high demand as a result of the Corona crisis, and due to a decrease in sales compared to the corresponding quarter.” Due to the entry into operation of the new branches acquired at the end of 2020, as well as the branch acquired in the current quarter. “
Following the decline in sales, gross profit in the third quarter also decreased by 1.6% to NIS 141.1 million. However, its share of total revenues actually rose to 36%, compared with 35% in the corresponding quarter last year.
According to the company, “the improvement in gross profit is due to various factors, mainly, improvement in the company’s trading conditions, as well as changes in the sales mix.” Freshmarket’s operating profit decreased by 0.9% in the third quarter to NIS 41.1 million and accounted for 10.5% of total sales.
For comparison, in the corresponding quarter last year, the chain showed an operating profitability of 10.1% of revenues. The chain’s net profit fell by 1.9% in the third quarter to NIS 28.1 million (7.2% of sales).
Freshmarket is traded on the stock exchange at a value of NIS 2.1 billion and is controlled by the brothers Yossi and Shlomi Amir, who each hold 32.41% of its shares. According to the chain, its strengths are high profitability thanks to its activity in the field of urban and neighborhood branches, efficient and focused management of a lean headquarters using advanced technological tools, as well as expertise in purchasing and improving branches in attractive locations.
In August, Freshmarket entered into an agreement to sell all its shares to Paz by way of a three-way merger. The transaction was approved by a large majority by Freshmarket shareholders and is currently awaiting approval from the Competition Authority for completion.