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Max Stock Limited Reports Strong Q1 2025 Financials

Max Stock Limited, a leading retailer in Israel, has unveiled its financial results for the first quarter of 2025, reflecting a robust performance despite challenging market conditions. The report covers the period ending March 31, 2025, and highlights several key indicators of growth and stability for the company.

Key Financial Highlights

According to the released figures, Max Stock's revenue surged by 8.3%, reaching ILS 339.1 million. This was bolstered not only by the opening of new locations but also by a 3.0% increase in comparable store sales. The company attributed part of this success to an earlier than expected Passover holiday, which positively impacted seasonal sales compared to the previous year. Notably, from January to April 2025, comparable store sales increased by 3.3%, indicating an acceleration in growth, particularly in April.

Gross profit for the quarter also saw a commendable rise, climbing 8.1% to reach ILS 143.3 million, with a stable gross margin maintained at 42.3%. This achievement was driven by enhancements in logistics and efficient supply chain operations, resulting from the inauguration of a new logistics center that enabled an increase in direct imports.

Profitability and Operating Efficiency

Net income for the first quarter saw an increase of 11.0%, amounting to ILS 31.8 million, compared to ILS 28.7 million during the same quarter in 2024. Adjusted Earnings Per Share (EPS) climbed by 12.6% to ILS 0.21, demonstrating the company’s ability to enhance shareholder value effectively. Furthermore, Adjusted EBITDA rose 11.7% to ILS 47.9 million, contributing to an improved adjusted EBITDA margin of 14.1%.

Despite increased expenditures associated with new store openings, selling, general, and administrative expenses grew at a slower pace. These costs increased from ILS 89.7 million in Q1 2024 to ILS 95.6 million in Q1 2025, but as a percentage of sales, they decreased from 28.6% to 28.2%, indicating operational efficiency and effective cost management.

The company's financial performance is also underscored by a strategic dividend distribution of ILS 70 million in April 2025, showcasing its commitment to delivering value to shareholders while continuing to invest in growth.

Balance Sheet and Cash Flow Summary

On the balance sheet front, Max Stock reported an increase in cash and cash equivalents, which stood at ILS 132.1 million at the end of March 2025 compared to ILS 97.1 million at the end of December 2024. The company's total debt notably decreased to ILS 43.8 million from ILS 47.1 million.

Inventory levels as of March 31, 2025, were recorded at ILS 208.2 million. This represents a strategic buildup in inventory directly attributable to the recent openings of new stores and an increase in direct imports. Such adjustments were made considering the historically low inventory levels experienced in 2023.

Looking Ahead

CEO Ori Max expressed optimism about the company's future, stating, "Our growth accelerated as the quarter progressed, and we are excited for what lies ahead. Our strategies in merchandising, customer experience, and expansion are yielding positive results."

Max Stock Limited's sound financial health, combined with strategic initiatives, positions it favorably for ongoing success in the retail landscape. The company is set to host a conference call on May 27, 2025, to discuss these results further, inviting stakeholders to engage in this significant dialogue.

For additional information about Max Stock's activities and strategic plans, visit Max Stock's official website.