Feb. 19--Shufersal Ltd. (TASE:SAE), Israel's largest supermarket chain controlled by IDB Holding Corp. Ltd. (TASE:IDBH), today reported double-digit profit growth on single-digit revenue growth for the fourth quarter of 2013.
Fourth quarter revenue rose 4.1% to NIS 2.94 billion from NIS 2.82 billion for the corresponding quarter of 2012. Operating profit rose to NIS 129 million for the fourth quarter from NIS 93 million for the corresponding quarter, and net profit rose 39% to NIS 78 million from NIS 56 million.
Full-year revenue rose 3% to NIS 11.9 billion from NIS 11.6 billion in 2012. Same-store revenue growth was 1%. Operating profit rose to NIS 438 million in 2013 from NIS 375 million in 2012, and net profit rose 5% to NIS 210 million (NIS 0.99 per share) from NIS 200 million.
Shufersal will distribute a dividend of NIS 70 million.
"During 2013, especially during the fourth quarter, Shufersal undertook several pricing measures, the most important of which was to strengthen the discount stores and reposition the company in terms of prices," said Shufersal CEO Itzik Abercohen. "This effort included the Yesh chain for the religious community and the Yes in the Neighborhood chain of small stores, and the Yesh Hesed chain for the haredi (ultra-orthodox) community."
Abercohen added, "The price updates and the relaunch of Shufersal Online, as well as the private label, are strategic tools for lowering consumer prices. The emphasis on lowering prices at the discount and neighborhood stores will continue in 2014, even as service will continue to improve and the company's growth engines will move forward."
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