The largest stock chain in Israel has recorded growth in sales, and distributes a dividend to shareholders of NIS 40 million • The company announces that it will soon open branches in Portugal, and is considering entering Spain

The MaxStock chain, the largest in the country of its kind, released its financial results for the first half of this year. In the second quarter of 2022, the Company’s revenues increased by roughly 13% to NIS 253 million from NIS 224 million in the equivalent quarter the previous year. According to the company, the rise in revenue was mostly attributable to the opening of new stores during the period and to an increase of around 3% from the same store sales. In comparison to the Q2, 2021, there was a decline of 21% in the net profit (19 million vs 15 million).

In relation to the gross profit, the company delivered an increased of 39.3% in Q2.

In the first half of the year, during which the company’s stock fell by about 40%, revenues grew by about 6% to about 504 million shekels, compared to about NIS 476 million in the corresponding period of the last year. Additionally, the opening of new stores during the time contributed to the increase in revenues, which was somewhat offset by a decrease of around 4% in the revenues from the same stores.

The first half of 2022 saw an adjusted net profit attributed to shareholders of about 33 million shekels, down from about NIS 45 million in the same time the previous year.

However, even though the reported results are nothing to be shouted about, the company keeps focus on expanding to Europe beginning in Portugal. Based on its dealings in this southern European country, the decision will be made about the move into Spain. Max Stock and Portera, a local partner in Portugal, signed an agreement, where a new corporation have been formed of which Max Stock owns 75% and Portera the remaining 25%. The initial investment of 5 million euros includes the establishment of the stores, maintenance and inventory.

The choice in Portugal is not accidental. The nation of 10 million people happens to lack organized stock chains that exist other European countries. To the extent that the move to establish the first stores in Portugal is successful, the company will consider to other European countries with Spain being the next candidate, the market of around 47 million residents with another approximately 100 million tourists visiting it each year.