Hagai Shalom CEO Tiv Ta’am (Photo by Assaf Lev, Magma Images)
Tiv Ta’am is one of the chains that manages to differentiate itself from the players’ gate in the field of food retail and that does it good. The company published its financial statements for the third quarter of the year which show that it is able to improve all its indices – which is significant in an area that is in fierce competition.
In a boxed article, we will say that so far the name of “Tiv Ta’am” has not been linked in the price coordination case that led to the opening of a criminal investigation by the Competition Authority. We will also mention that while in the discount field there is fierce competition between the various chains, in the upper part of the market there is not so much competition except for the Paz Yellow convenience store chain that acquired Super Yoda branches and merged with Freshmarket and intends to enter the city centers – especially Tel Aviv.
The chain’s reports show that revenues in the third quarter grew by 5.1% and amounted to NIS 410.9 million, compared with NIS 390.9 million in the corresponding quarter last year. Revenues in the first 9 months of the year increased by about 3.5% compared to the corresponding period last year and amounted to about NIS 1.2 billion.
Revenue and average revenue per square meter in identical stores in the third quarter increased by about 3.5% and by about 8%
Respectively compared to the same period last year.
Operating profit in the third quarter of the year jumped by about 30.9% compared to the corresponding quarter last year and amounted to about NIS 30.5 million. Operating profit in the first 9 months of the year increased by approximately 32.7% compared to the corresponding period last year and amounted to approximately NIS 88.8 million.
Net profit in the third quarter increased by approximately 38.9% compared to the corresponding quarter last year and amounted to approximately NIS 19 million. Profit in the first 9 months of the year increased by about 48.9% compared to the period
The equivalent last year and amounted to NIS 54.7 million.
The customer club has grown by about 37% compared to last year and includes about 428,000 members. The company announced a quarterly dividend of NIS 5.7 million and the company intends to repurchase the company’s shares up to NIS 20 million.
Hagai Shalom, CEO and controlling shareholder, said: “We conclude a strong quarter with an improvement in all parameters in accordance with the company’s strategic plan. The results of the quarter were affected in light of an increase in the volume of activity, the timing of the Tishrei holidays, as well as an increase of approximately 37% in our customer club, which includes approximately 428,000 members.
“During the quarter there has been an increase in revenue and revenue per square meter in identical stores and we continue to maintain an operating profit rate that is above the industry average. We continued to deepen the process of lowering prices, which came to strengthen the viability of daily online shopping, while maintaining the benefits that characterize the network.
“The results of the quarter were affected by the price reduction process that began in early 2020 and received the trust of customers, which is reflected in a significant increase in the number of club members, as noted above and a disciplinary increase in sales per square meter, at 35% since the start.”
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