Electra Consumer Products (Tase: ECP) reports a moderate increase in net income and profits in the first quarter of this year, thanks to the improvement in the activity of the Carrefour-Brand supermarket chain opera through Israel. The company, headed by ZVI Shwimmer, registered only a slight increase in revenues in its food sector, which consists mainly in Carrefour, in 1.1% in the first quarter of NIS 799 million, but the gain in the sector totaled Nis 42 million, 5.3% of the participation, and the highest gain of net sales of net sales. Branches turned into the Carrefour format.
The Global Retail subsidiary, which is Essentialy Carrefour, registered a net gain of NIS 5.2 million in the first quarter of this year, which compares with a net loss of Nis 34 million in the corresponding quarter.
The Carrefour chain “continues to present impressive results, to maintain a margin of sector gains or around 4%, and has registered a third successive quarter of net profits and substantial growth in income and Ebitda,” Shwimmer said this morning. “We have completed the conversion process of the branches, and the chain now has 144 branches, with a target of 150 branches for the end of the year.”
The Electra Consumer Product business also consists of the retail sale of electrical products, through the hashmal chains of Shekem Electric and Mahsanei, the air conditioning and the sportswear and leisure chains Adidas and Columbia. The revenues of the first quarter of the company totaled NIS 1.76 billion, 2.7% more compared to the first quarter of 2024. The net profit was 21 million, 11% higher than in the corresponding quarter, mainly thanks to the lowest operating expenses.
The price of Electra Consumer Product shares has fallen by 6% so far this year, but has still increased 43% in the last twelve months, an increase mainly registered last November, since the Carrefour franchise gradually ceased to incur great losses for the company. The company’s market capitalization at this morning’s opening was 2.4 billion.
Electra Consumer Products’ strategic partnership with Carrefour is yielding positive financial results. In the first quarter of 2024, Electra reported a net income of NIS 2.6 million, a significant turnaround from a net loss of NIS 52.7 million in the same period the previous year. This improvement is largely attributed to the performance of the Carrefour-branded stores. (ecp.co.il)
The transformation began in 2022 when Electra acquired the Yeinot Bitan and Mega supermarket chains and rebranded them under the Carrefour name. By the end of 2024, Electra had opened 90 Carrefour stores across Israel, introducing over 1,400 Carrefour products to the local market, including 800 kosher items. (Wikipedia, ctech)
Financially, the Carrefour segment generated a profit of NIS 5.2 million in the first quarter of 2024, up from NIS 820,000 in the third quarter of 2023. Additionally, Electra’s EBITDA increased by 66% year-over-year, reaching NIS 162 million, with the food retail segment being a significant contributor. (Globes, ecp.co.il)
This successful integration of Carrefour into Electra’s operations highlights the effectiveness of their expansion strategy and positions them for continued growth in Israel’s retail sector.(Carrefour)
