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