#Israel #Caesarea #Financial Growth #Max Stock Limited #ILS

Max Stock Limited Reports Strong Financial Results for Q2 2025

Max Stock Limited (TASE: MAXO), Israel's prominent extreme-value retailer, has unveiled its financial performance for the second quarter (Q2) ending June 30, 2025. Despite facing economic challenges, the company experienced a solid increase in revenue and operational success

Financial Highlights from the Second Quarter of 2025

• - Revenue Growth: Max Stock achieved a 6.1% rise in revenue, totaling ILS 336.3 million compared to ILS 316.9 million in the same quarter of 2024.
• - Comparable Store Sales: Store sales reflected a 4.2% increase, indicating ongoing consumer demand.
• - Gross Margin: The gross margin improved significantly, escalating by 210 basis points to 43.8%.
• - Adjusted EBITDA Surge: A remarkable 26.0% leap in adjusted EBITDA brought the figure to ILS 56.5 million.
• - Dividend Declaration: The Board announced a special one-time dividend of ILS 40 million or ILS 0.29 per share, highlighting the company's strategic allocation of profits.

Detailed Examination of Financial Performance

The net income showed a 6.3% decline to ILS 27.5 million, primarily influenced by around ILS 15.9 million in interest expenses incurred from revaluating hedging positions due to fluctuations in currency exchange rates. The adjusted earnings per share also saw a decline of 6.8%, leading to a figure of ILS 0.17 per share.

Revenue Growth Drivers: A closer analysis reveals that the positive revenue growth stemmed from increased average basket sizes, heightened store traffic, and successful seasonal promotions. New store openings and sales to franchise partners contributed notably to this growth, particularly due to greater direct imports facilitated by a new logistics center.

Operational Efficiency: Gross profit increased by 11.6%, reaching ILS 147.3 million from ILS 132.1 million year-over-year. The improvement in gross margins, attributed to trade and supply chain efficiencies, underscored the impact of the logistics center along with reduced shipping costs.

First Half Performance Review

For the first half of 2025, Max Stock reported a 7.2% rise in revenue, summing up to ILS 675.4 million, up from ILS 630.1 million in first half 2024. The adjusted EPS showed a slight uptick of 2.9%, reaching ILS 0.38. This period encapsulated a robust operational foundation, exemplified by increases in store traffic and strategic expansion efforts.

Outlook

CEO Ori Max expressed confidence regarding the company’s direction, noting, “We delivered strong second quarter operating results against tough year-over-year comparisons and despite an operating environment challenged by ongoing regional tensions.” His optimism is bolstered by expectations that the diverse merchandise assortments and compelling discount offerings will resonate even more with consumers.

Max Stock continues to strategically position itself as a leader within the discount retail sector, emphasizing its commitment to providing significant value while navigating economic fluctuations and competitive landscapes.

Conclusion: The company's resilience and strategic growth initiatives highlight its potential for continued success in the evolving retail environment of Israel. Interested stakeholders are invited to attend the upcoming conference call scheduled for August 14, 2025, to further delve into Q2 results and future strategies.

For more details, visit Max Stock's Investor Relations page.