Israel's Victory Supermarket Reports Record-high Growth

Business in Brief | Dor Alon’s Q1 net profit up 301% on reevaluation of Herzliya land ■ Malam Team reports 11% jump in Q1 profits ■ Fox reports NIS 15.7 million in Q1 profits

File photo: A Victory Supermarket in Tel Aviv.
Oren Ziv

Dor Alon’s Q1 net profit up 301% on reevaluation of Herzliya land

Dor Alon Energy reported a 75 million shekel ($21 million) net profit on Tuesday for the 1st quarter of this year, a whopping 301% increase over the quarter last year. The main reason for the sharp jump was the reevaluation of land held by a company subsidiary in the southern portion of the Herzliya industrial zone following approval for the development of commercial property on the site. Overall Dor Alon reported a 4% increase in 1st quarter revenues, which rose to 953 million shekels, as a result of the rise in fuel prices and brisker business at the company’s filling station convenience stores. Revenues at its stand-alone retail outlets, which include its AM:PM convenience stores and Alonit stores that are not located at filling stations, rose 2.7% in the 1st quarter to 113 million shekels. Revenues at AM:PM stores alone were up 2.5% to 89 million, but profits there were down 3.7% to 2.6 million shekels. Dor Alon shares jumped 5% on the news on Tuesday to 44.98 shekels.  (Yoram Gabison)

Victory Supermarket reports record results

The 1st quarter financial results reported on Tuesday by food retailer Victory Supermarket Chain showed continued rapid growth along with record profits of 7.4 million shekels ($2.1 million), a 13% increase over the quarter last year. The company’s operating profits for the 1st quarter were up 39% at 11.7 million shekels.  Revenues at Victory, which has 45 locations, were 8.3% higher for the quarter at 415 million shekels, thanks to a 12% increase in the retail space that the company had compared to a year earlier and a 3.8% increase in same store revenues. Victory’s controlling shareholder, Eyal Ravid, acknowledged that 20% of the sales growth could also be attributed to the timing of Passover this year compared to last, and said that when sales at two stores that were sold to Super-Sol in May of last year are excluded, the company’s sales growth was 11.75%. Same-store sales growth, he added was the result of higher turnover at 17 Mega supermarket stores that Victory purchased in 2015 and 2016 and more moderate competition after Mega’s business as a whole was sold to Yeinot Bitan. (Yoram Gabison) 

Malam Team reports 11% jump in Q1 profits

Shares of information technology group Malam-Team, which is indirectly controlled by Shlomo Eisenberg,  edged up just 0.8% to 371.40 shekels ($104.33) per share on Tuesday following the company’s release of its 1st quarter financial results. Over the past five years, the company’s share price has risen about 610%, creating a market capitalization of 813 million shekels. The company reported 1st quarter revenues of 497 million shekels, up 5.8% over the 1st quarter of last year, and 1st quarter net profits of 16.7 million shekels, coming in 11.3% higher than the comparable quarter last year. Revenues from the Petah Tikva-based company’s software and projects operations grew 27.2% in the 1st quarter to 97 million shekels, which Eisenberg said was the most notable source of increased revenues in the quarter. (Eran Azran)

Fox reports NIS 15.7 million in Q1 profits

Clothing retailing group Fox-Wizel seemed to show that it is still possible to compete with online shopping when it comes to winning the hearts of Israeli clothing buyers. The group, whose brands include Fox, Fox Home and Laline, as well as a number of franchise operations,  reported a 1st quarter profit of 15.7 million shekels ($4.4 million), a major improvement over the 17.9 million shekel loss that the company suffered in the 1st quarter of last year. The company has also managed to maintain its profit margins, due in part to the variety and diversification of the retail brands under its management. The group reported 1st quarter revenues of 423 million, 21.6% higher than the quarter last year. Fox also reported same-store revenues – meaning locations that were fully operational during the 1st quarter of this year and last – of 331 million shekels, compared to 315 million shekels in the first three months of 2017. Shares of Fox-Wizel jumped 6.1% on the Tel Aviv Stock Exchange on the company’s financial results, closing at 70.01 shekels. (Eran Azran)

Shares slip on the TASE

Stock prices generally slid in Tuesday trading on the Tel Aviv Stock Exchange. The benchmark Tel Aviv-35 index was down 0.5% to 1,519.96 points while the Tel Aviv-125 slipped 0.4% to 1,368.24. The Banks-5 index dropped 1.1% to 2,090.33 points. Trading volume for the day was 1.098 billion shekels ($308 million). Among stocks of note were Dor Alon and Fox-Wizel, which jumped on earnings reports. (See stories above). Shares of Union Bank, on the other hand, plummeted 8.3% to 15.95 shekels as regulators consider whether to approve the acquisition of the bank by Mizrahi Tefahot Bank. On the bond market, the largest bond series of IDB Development, the Series Tet bonds, were trading during the day at yields of 9%. The bond price has seen major declines recently. IDB Development is indirectly controlled by Eduardo Elsztain of Argentina, a country that has seen major financial problems. (Jasmin Gueta)