Revenue Increased 12.0% to record ILS 313.2
million; Gross Profit Increased 14.5% to ILS 132.5 million
CAESAREA, Israel, May 22, 2024
/PRNewswire/ -- Max Stock Limited (TASE: MAXO) (the "Company")
today reported financial results for the first quarter ended
March 31, 2024.
First Quarter 2024 Summary
- Revenue increased 12.0% to ILS 313.2 million.
- Gross profit increased 14.5% to ILS 132.5 million.
- Comparable store sales increased 4.0%.
- Comparable store sales for the period January –
April 2024 (no holiday timing impact)
increased 10.3%.
- Adjusted Net income1 (attributable to shareholders)
increased 24.1% to ILS 26.0 million.
- Adjusted EPS1 (attributable to shareholders)
increased 23.8% to ILS 0.19.
- Adjusted EBITDA2 increased 16.8% to ILS 42.9
million.
Ori Max, Chief Executive Officer,
stated, "Our new fiscal year is off to a good start highlighted by
revenue and adjusted EBITDA increasing in the low double digits and
mid-teens on a percentage basis, respectively. We continue to
capture market share through new store development as well as our
merchandising and pricing strategies which helped fuel a 10.3%
increase in same store sales for the period January – April 2024. At the same time, we realized
procurement, logistics and supply chain efficiencies, allowing to
increase gross margin by 90 basis points and offset higher expenses
related to our growing store base. We move forward with a strong
balance sheet to support our future growth plans and continue our
track record of returning value directly to our shareholders."
First Quarter Results (2024 compared with 2023)
Revenue increased 12.0% to ILS 313.2 million in the first
quarter 2024 as compared with revenue of ILS 279.6 million in the
first quarter 2023. The increase over the same period last year was
largely attributable to the opening of new branches combined with a
4.0% increase in comparable store sales driven by higher store
traffic and an increase in seasonal Purim sales compared to the
year-ago period. Sales in the period were impacted by a shift in
timing of the Passover holiday into the second quarter of 2024,
compared to being included in the first quarter of 2023. Comparable
store sales increased 10.3% for the period January – April 2024 compared to January – April 2023 (no holiday timing impact).
Gross profit increased 14.5% to ILS 132.5 million in the first
quarter 2024 from ILS 115.8 million in the first quarter 2023.
Gross margin was 42.3% as compared to 41.4% in the last year
period. The 90-basis point increase in gross margin over Q1 2023
was primarily attributable to trade and supply chain
efficiencies.
Selling, general and administrative expenses increased to ILS
89.7 million in the first quarter 2024 from ILS 78.7 million in the
first quarter 2023, primarily driven by incremental expenses
resulting from the addition of new right of use assets, along with
an increase in salary and marketing expenses, also related to our
new operations in Portugal.
Adjusted net income (100%) increased 19.2% to ILS 28.7 million
in the first quarter of 2024, as compared with adjusted net
income (100%) of ILS 24.1 million in the first quarter of 2023.
Adjusted EPS attributable to shareholders increased 23.8% to ILS
0.19 per share, in the first quarter of 2024, as compared with
adjusted EPS attributable to shareholders of ILS 0.15 per share, in
the first quarter of 2023.
Adjusted EBITDA increased 16.8% to ILS 42.9 million in the
first quarter of 2024 from ILS 36.7 million in the first quarter of
2023. Adjusted EBITDA margin increased to 13.7% in the first
quarter of 2024 compared with 13.1% in the first quarter of
2023.
Balance Sheet and Cash Flow Highlights
The Company's cash and cash equivalents balance at March 31, 2024 was ILS 149.4 million compared
with ILS 128.9 million at December 31,
2023 and ILS 116.9 million at March
31, 2023. The Company ended the first quarter of 2024 with
total debt of ILS 31.0 million compared with total debt of ILS 33.0
million at December 31, 2023 and ILS
46.0 million at March 31, 2023.
Inventories at March 31, 2024 were
ILS 170.5 million compared with ILS 144.6 million at December 31, 2023 and ILS 163.5 million at
March 31, 2023.
Conference Call Information
The Company will host a conference call on May 22, 2024 at 7:30 a.m.
Eastern Time to discuss first quarter 2024 results (link).
The conference call will also be accessible
at https://ir.maxstock.co.il/en/event-en/. There will be a
slide presentation that accompanies the call. The slides will be
accessible at
https://ir.maxstock.co.il/en/presentation-en/. An archived webcast
of the conference call will be available at
https://ir.maxstock.co.il/en/presentation-en/.
1 As used throughout this release, adjusted Net
Income (attributable to shareholders) defined as Net Income +
Share-based payment, multiplied by the portion attributable to
shareholders. Adjusted EPS (attributable to shareholders) is then
divided by the number of shares.
2 As used throughout this release, adjusted EBITDA Pre
IFRS 16 defined as Net Income + Income Tax Expenses + Net Interest
Expenses + D&A + Other Expenses – the impact of IFRS 16 +
Share-based payment.
About Max Stock
Max Stock is Israel's leading extreme value retailer,
currently present in 64 locations throughout Israel and 2 locations in Portugal that opened in 2023. We offer a broad
assortment of quality products for customers' everyday needs at
affordable prices, helping customers "Dream Big, Pay
Small". For more information, please visit
https://ir.maxstock.co.il
Forward-Looking Statements
It should be emphasized that this report includes
forward-looking information as defined under the Securities Law,
5728-1968. Forward-looking information is uncertain information
regarding the future, including forecasts, projections, estimates
or other information which refer to a future event or matter, the
eventuation of which is uncertain and/or not within the Company's
control. The forward-looking information included in this report is
based on the current information held by the Company or its current
assessments, as of the publication date of this report.
Company Contacts:
Talia Sessler,
Chief Corporate Development and IR Officer
talia@maxstock.co.il
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SOURCE Max Stock Limited