ROSH HA'AYIN, Israel, May 25 /PRNewswire-FirstCall/ -- - The Company Maintained Gross Profit Compared to the Corresponding Quarter Last Year Despite the Decrease in the General Food Consumption in Israel
Blue Square-Israel Ltd. (NYSE and TASE: BSI) today announced its financial results for the first quarter ended March 31, 2009.
Results for the First Quarter of 2009
Revenues for the first quarter of 2009 were NIS 1,764.8 million (U.S.(A) $421.4 million), compared to NIS 1,821.2 million in the corresponding quarter of 2008 - a decrease of 3.1 %. Supermarket same store sales (SSS) for the period decreased by 7.1% due to the decrease in stores that were converted to "Mega Bool" Format Hard Discount, which is characterized by low prices. On the other hand, the decrease in sales was offset by the opening of eleven new stores during the 12-month period of approximately 12,600 square meters; in addition, the sales of BEE Group increased during the quarter compared to the corresponding quarter last year and that is due to Passover that this year was celebrated on April 8 compared to April 20 last year.
Gross Profit of the first quarter of 2009 amounted to NIS 503.1 million (U.S. $ 120.1 million) (28.5 % of revenues) compared to gross profit of NIS 503.6 million (27.6% of revenues) in the first quarter of 2008. The increase in the gross profit margin derives from an increase in sales of BEE Group characterized with relatively higher gross profit margins relative to those acceptable in the food retail sector and the change in the sales mixture and increase in the contribution of the formats characterized by higher gross profit margin ("Mega" "Mega In Town" and "Eden Teva Market") over the HD formats (Mega Bool and "Shefa Shuk"). Gross margin was also affected by improved supplier agreements and discounts, part of which relate to the conversion process of Mega Bool.
Selling, General, and Administrative Expenses for the first quarter of 2009 amounted to NIS 442.9 million (U.S. $ 105.7 million) (25.1% of revenues) compared to NIS 426.1 million (23.4% of revenues) in the corresponding quarter, an increase of 4%. The increase reflects: 1) increased expenses associated with the opening of eleven new stores during the last year, including the expenses associated with the accelerated opening of five branches of the Eden Teva Market format during the last twelve months; 2) expenses associated with the launch of the Mega Bool format; 3) an increase in the operating expenses of identical branches due to the increase in the expenses linked to the CPI such as rent and municipal taxes; and 4) an increase in selling and administrative expenses of the BEE Group, due to the timing of the holiday and the intensive sales, as above-mentioned.
Operating Income in the first quarter of 2009 amounted to NIS 62.3 million ($ 14.9 million) (3.5% of revenues) compared to the operating income of NIS 88.9 million (4.9% of revenues in the first quarter of 2008 and NIS 33.6 million (1.9% of revenues) in the fourth quarter of 2008.
Appreciation of Investment Property: During the first quarter of 2009, the Company did not record gain or loss from appreciation of investment property compared to NIS 12.7 million in the corresponding period of the previous year.
Other Gains (losses), Net: In the first quarter of 2009, the Company recorded other gains, net of NIS 2.2 million (U.S. $ 0.5 million), compared to other losses, net of NIS 1.2 million in the corresponding quarter of the previous year. The other gains included, in this quarter, an income of NIS 2.5 million ($ 0.6 million) in respect of a gain deriving from purchasing 8% of Naaman shares that were held by minority.
Operating Income before Other Gains (losses) and Appreciation of Investment Property in the first quarter of 2009 was NIS 60.2 million (U.S. $ 14.3 million) (3.4% of revenues) compared to NIS 77.5 million (4.2% of revenues) in the corresponding quarter and NIS 44.3 million (2.5% of revenues) in the fourth quarter of 2008. The decrease in the operating income mainly derived from a decrease in sales, and from an increase in selling and administrative expenses, as mentioned above.
Financial Expenses (net) for the first quarter of 2009 were NIS 12.0 million (U.S. $2.8 million) compared to financial expenses (net) of NIS 8.2 million in the corresponding quarter of the previous year. The increase in financial expenses, net in this quarter compared to the corresponding quarter last year mainly derives from the effect of the change in the value of derivative financial instruments and hedging transactions on the index that contributed in the current quarter income of NIS 1 million ($0.2 million) compared to an income of NIS 14 million in the corresponding quarter last year and from decrease in financial income from short term deposit and marketable securities of NIS 4 million (U.S $1.0) in the current quarter compared to the corresponding quarter last year. The increase in the financial expenses was offset in the current quarter compared to the corresponding quarter last year mainly from the decrease in financial expenses on debentures and CPI linked loans, NIS 14 million ($ 3.4 million) in the current quarter compared to NIS 27 million in the corresponding quarter last year, due to the decrease in the known index compared to the corresponding period last year.
Taxes on Income for the first quarter of 2009 were NIS 17.9 million (U.S. $4.3 million) (35.6% effective tax rate compared to a statutory tax rate of 26%) compared to NIS 15.8 million (effective tax rate of 19.6% compared to a statutory tax rate of 27%) in the corresponding quarter. The increase in the effective tax rate reflects primarily the losses of the Eden Teva Market and Dr. Baby formats and recording financial expenses from revaluation of the conversion component in convertible debentures of the company for which no deferred taxes were recorded.
Net Income for the first quarter of 2009 was NIS 32.3 million (U.S. $ 7.7 million) compared to the net income of NIS 65.0 million in the first quarter of 2008 and NIS 18.1 million in the fourth quarter of 2008. The decrease in the net income in this quarter compared to the corresponding quarter last year derives from decrease in operating income, increase in the financial expenses and increase in income tax expenses, as mentioned above. The portion of the net profit attributable to shareholders, as calculated in accordance with the IFRS, was NIS 26.5 million (U.S. $6.3 million), or NIS 0.61 per ADS (U.S. $ 0.15), while the portion attributable to the share of minority interests was NIS 5.8 million (U.S. $1.4 million).
Cash Flows
Cash Flows from Operating Activities: Net cash flows deriving from operating activities in the first quarter of 2009 amounted to NIS 30 million ($ 7.2 million) compared to NIS 24.5 million in the corresponding period last year. The increase in cash flows from operating activities derives mainly from the change in the working capital.
Cash Flows from Investing Activities: Net Cash flows used in investing activities in the first quarter of 2009 amounted to NIS 59.7 million ($13.8 million) compared to net cash flows of NIS 21.7 million deriving from investing activities in the corresponding quarter last year. Cash flows used in investing activities in the first quarter of 2009 included mainly purchase of property and equipment, intangible assets and investment property in a total amount of NIS 57 million. Cash flows deriving from investing activities in the first quarter of 2008 included mainly proceeds from realization of short term deposit and marketable securities in the amount of NIS 116 million, net of purchase of property and equipment, intangible assets and investment property in a total amount of NIS 103.5 million.
Cash Flows from Financing Activities: Net Cash flows used in financing activities in the first quarter of 2009 amounted to NIS 2.9 million ($ 0.7 million) compared to net cash used in financing activities of NIS 47.1 million in the corresponding quarter last year. Cash flows used in financing activities in the first quarter of 2009 included mainly repayment of long term loans of NIS 30.5 million ($ 7.3 million) and paid interest of NIS 35.4 million ($ 8.5million), net of increase in short term credit of NIS 59.4 million ($ 14.1 million). Net Cash flows used in financing activities in the first quarter of 2008 included mainly repayment of long term loans of NIS 23.3 million and paid interest of NIS 32.7 million.
Additional Information
Supermarkets: As of March 31, 2009, the Company operated 199 supermarkets in the following formats: Mega In Town -115; Mega Bool - 39; Mega - 19; Shefa Shuk - 19; Eden Teva Market - 7.
EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization): For the first quarter of 2009, the EBITDA (earnings before Interest, Taxes, Depreciation, and Amortization) was NIS 102 million (U.S. $ 24.4 million) (5.8 % of revenues) compared to NIS 114 million (6.3% of revenues) in the corresponding quarter of last year and NIS 83 million (4.7% of revenues) in the fourth quarter of 2008.
In 2003, the Board of Directors has resolved that dividends will not be distributed in a quarter when the ratio of financial obligations (as defined by S&P Maalot in its rating for BSI's debentures issued in 2003) to EBITDA for the prior four quarters exceeds 3, or if the ratio of the cost of unencumbered fixed assets to financial obligations is below 1.2. This is in accordance with definitions established by the rating company Standard & Poor's Maalot in its rating analysis of the Company's debentures issued in 2003.
According to the Company's unaudited financial reports as of March 31, 2009, the ratio of its financial obligations to EBITDA was 3.6 and the ratio of its unencumbered fixed assets to the financial obligations was 1.6.
Updating the rating of debentures (Series A and B): on May 22, 2009, Maalot S&P announced the downgrade of the rating of the debentures (Series A and B) issued by the company on August 2003 from ilAA to ilA+ with a stable rating forecast and the removal of the company from negative Credit Watch. The main considerations in determining the rating by Maalot S&P were published in an immediate report by the company on May 22, 2009.
Events During the First Quarter of 2009
In the first quarter of 2009, the implementation of Stage A of the strategy plan, the conversion of 39 branches of "Mega" and "Shefa Shuk" to the new chain "Mega Bool" was completed. During the reported quarter, we opened 5 branches: 2 "Mega in Town" 1 "Shefa Shuk" and 2 branches of "Eden Teva Market" in a total area of 5,000 square meters, whereby the company continues the strategy of strengthening the holding in the city centers. The company successfully launched new products as part of the private brand name of "Mega" in the course of the first quarter while meeting the sales targets.
Mr. Zeev Vurembrand, Blue Square's President and CEO, referred to the financial results and said: "In this quarter, we present better results considering the increasing competition and the prevailing recession due to the material strategic actions we have taken.
We have successfully launched the"Mega Bool" chain and we turned to be a significant and leading player in the HD sector. We continue our strategy and during the second and third quarters we shall issue new membership card and we shall reorganize the headquarters of BEE Group, thereby resulting in utilizing the synergy and cutting costs.
In the same time we shall expand the "everything for the house (houseware)" areas in Mega branches as well as independent stores based on products, know how and intensity of the brands "Naaman" "Vardinon" and "Sheshet".
NOTE A: Convenience Translation to Dollars
The convenience translation of New Israeli Shekel (NIS) into U.S. dollars was made at the exchange rate prevailing at March 31, 2009: U.S. $1.00 equals NIS 4.188. The translation was made solely for the convenience of the reader.
Blue Square is a leading retailer in Israel. A pioneer of modern food retailing in the region, Blue Square currently operates 199 supermarkets under different formats, each offering varying levels of service and pricing.
This press release contains forward-looking statements within the meaning of safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, plans or projections about our business and our future revenues, expenses and profitability. Forward-looking statements may be, but are not necessarily, identified by the use of forward-looking terminology such as "may," "anticipates," "estimates," "expects," "intends," "plans," "believes," and words and terms of similar substance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual events, results, performance, circumstance and achievements to be materially different from any future events, results, performance, circumstance and achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, the following: the effect of the recession in Israel on the sales in our stores and on our profitability; our ability to compete effectively against low-priced supermarkets and other competitors; quarterly fluctuations in our operating results that may cause volatility of our ADS and share price; risks associated with our dependence on a limited number of key suppliers for products that we sell in our stores; the effect of an increase in minimum wage in Israel on our operating results; the effect of any actions taken by the Israeli Antitrust Authority on our ability to execute our business strategy and on our profitability; the effect of increases in oil, raw material and product prices in recent years; the effects of damage to our reputation or to the reputation to our store brands due to reports in the media or otherwise; and other risks, uncertainties and factors disclosed in our filings with the U.S. Securities and Exchange Commission, including, but not limited to, risks, uncertainties and factors identified under the heading "Risk Factors" in our Annual Report on Form 20-F for the year ended December 31, 2007. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except for our ongoing obligations to disclose material information under the applicable securities laws, we undertake no obligation to update the forward-looking information contained in this press release.
BLUE SQUARE - ISRAEL LTD. CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2009 (UNAUDITED) Convenience translation December 31, March 31, March 31, ----------- ------------------- ----------- 2008 2008 2009 2009 ----------- --------- --------- ----------- (Unaudited) -------------------------------------------- U.S. NIS dollars ------------------------------- ----------- In thousands -------------------------------------------- Assets CURRENT ASSETS: Cash and cash equivalents 95,325 53,196 58,433 13,952 Investment in marketable securities 171,849 187,044 178,105 42,527 Short-term bank deposit 206 1,834 207 49 Restricted deposit - - 470,000 112,225 Trade receivables 729,970 802,856 834,361 199,227 Other accounts receivable 87,624 300,514 326,210 77,892 Income taxes receivable 74,446 25,013 72,347 17,275 Inventories 497,080 556,592 581,049 138,741 --------- --------- --------- --------- 1,656,500 1,927,049 2,520,712 601,888 --------- --------- --------- --------- NON-CURRENT ASSETS: Investments in associates 4,915 5,076 4,831 1,154 Derivative instruments 5,248 5,250 4,908 1,172 Prepaid expenses in respect of operating lease 192,426 198,181 191,515 45,729 Other long-term receivables 1,554 2,874 1,395 333 Property, plant and equipment 1,701,222 1,652,829 1,732,124 413,592 Investment property 434,232 388,098 432,668 103,311 Intangible assets and deferred charges 404,422 287,945 406,366 97,031 Deferred taxes 44,508 39,022 48,413 11,560 --------- --------- --------- --------- 2,788,527 2,579,275 2,822,220 673,882 --------- --------- --------- --------- Total assets 4,445,027 4,506,324 5,342,932 1,275,770 --------- --------- --------- --------- BLUE SQUARE - ISRAEL LTD. CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2009 (UNAUDITED) Convenience translation December 31, March 31, March 31, ----------- ------------------- ----------- 2008 2008 2009 2009 ----------- --------- --------- ----------- (Unaudited) -------------------------------------------- U.S. NIS dollars ------------------------------- ----------- In thousands -------------------------------------------- Liabilities and equity CURRENT LIABILITIES: Credit and loans from banks 210,901 167,338 735,062 175,516 Current maturities of debentures and convertible debentures 25,999 70,987 28,334 6,766 Trade payables 1,006,386 1,024,668 1,110,030 265,050 Other accounts payable and accrued expenses 426,217 601,216 696,187 166,233 Income taxes payable 6,933 4,480 7,861 1,877 Provisions for other liabilities 43,397 43,400 41,003 9,791 --------- --------- --------- --------- 1,719,833 1,912,089 2,618,477 625,233 --------- --------- --------- --------- NON CURRENT LIABILITIES: Long-term loans from banks, net of current maturities 341,586 236,264 313,665 74,896 Convertible debentures, net of current maturities 130,525 145,688 129,351 30,886 Debentures, net of current maturities 985,844 776,684 980,230 234,057 Other liabilities 39,925 12,180 44,026 10,512 Derivative instruments 21,074 11,619 15,800 3,772 Accrued severance pay, net 49,911 37,023 49,923 11,920 Deferred taxes 60,327 61,299 66,291 15,829 --------- --------- --------- --------- 1,629,192 1,280,757 1,599,286 381,872 --------- --------- --------- --------- Total liabilities 3,349,025 3,192,846 4,217,763 1,007,105 --------- --------- --------- --------- EQUITY: Equity attributable to equity holders of the Company: Ordinary shares 57,094 57,094 57,094 13,633 Additional paid-in capital 1,018,405 1,018,405 1,018,405 243,172 Other reserves (261) 2,189 5,647 1,348 Accumulated deficit (154,719) (48,456) (125,499) (29,966) --------- --------- --------- --------- 920,519 1,029,232 955,647 228,187 Minority interest 175,483 284,246 169,522 40,478 --------- --------- --------- --------- Total equity 1,096,002 1,313,478 1,125,169 268,665 --------- --------- --------- --------- Total liabilities and equity 4,445,027 4,506,324 5,342,932 1,275,770 --------- --------- --------- --------- BLUE SQUARE - ISRAEL LTD. INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS PERIODS ENDED MARCH 31, 2009 (UNAUDITED) Convenience translation For the three Year three months months Ended Ended March December 31, Ended March 31, 31, 2008 2008 2009 2009 --------- --------- --------- --------- Unaudited ---------------------------------------------- U.S. NIS dollars --------------------------------- --------- In thousands (except share and per share data) ---------------------------------------------- Revenues from sales, net 7,429,121 1,821,158 1,764,788 421,392 Cost of sales 5,369,149 1,317,604 1,261,701 301,266 --------- --------- --------- --------- Gross profit 2,059,972 503,554 503,087 120,126 Selling, general and administrative expenses 1,794,720 426,067 442,919 105,759 --------- --------- --------- --------- Operating profit before changes in fair value of investment property and other Gains and losses 265,252 77,487 60,168 14,367 Other gains 12,233 226 2,725 651 Other losses (14,716) (1,479) (563) (134) Changes in fair value of investment property, net 19,067 12,745 - - --------- --------- --------- --------- Operating profit 281,836 88,979 62,330 14,884 Finance income 60,700 29,227 10,979 2,621 Finance expenses (166,295) (37,471) (22,977) (5,486) Share in profit (losses) of associates (33) 127 (84) (20) --------- --------- --------- --------- Income before taxes on income 176,208 80,862 50,248 11,999 Taxes on income 43,806 15,824 17,900 4,274 --------- --------- --------- --------- Net income for the period 132,402 65,038 32,348 7,725 ========= ========= ========= ========= Attributable to: Equity holders of the company 104,586 58,109 26,535 6,337 --------- --------- --------- --------- Minority interests 27,816 6,929 5,813 1,388 --------- --------- --------- --------- Net income per Ordinary share attributed to Company shareholders or ADS: Basic 2.41 1.34 0.61 0.15 --------- --------- --------- --------- Fully diluted earnings 1.62 0.85 0.61 0.15 --------- --------- --------- --------- Weighted average number of shares or ADS used for computation of income per share: Basic 43,372,819 43,372,819 43,372,819 43,372,819 ---------- ---------- ---------- ---------- Fully diluted 45,037,692 44,793,242 43,372,819 43,372,819 BLUE SQUARE - ISRAEL LTD. INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW FOR THE THREE MONTHS ENDED MARCH 31, 2009 (UNAUDITED) Convenience translation for the year Three months Three months Ended December Ended March 31, Ended March 31, 31, --------- -------------------- ----------- 2008 2008 2009 2009 --------- --------- --------- ----------- Unaudited ---------------------------------------------- NIS U.S dollars ------------------------------- ----------- In thousands CASH FLOWS FROM OPERATING ACTIVITIES: Income before taxes on income 176,208 80,862 50,248 11,999 Income tax paid (94,212) (18,634) (15,133) (3,614) Adjustments required to reflect the cash flows from operating activities (a) 318,087 (37,759) ( 4,981) (1,188) --------- --------- --------- --------- Net cash provided by operating activities 400,083 24,469 30,134 7,197 --------- --------- --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment (211,646) (59,789) (53,331) (12,735) Purchase of investment property (69,749) (32,173) (2,329) (556) Purchase of minority shares in subsidiaries (186,403) - (6,607) (1,578) Purchase of intangible assets (20,682) (11,499) (4,013) (958) Proceeds from collection of short-term bank deposits, net 101,281 100,000 - - Collection of long-term receivables 1,250 176 - - Proceeds from sale of property, plant and equipment 1,559 317 501 120 Proceeds from investment property 6,567 6,567 5,700 1,361 Proceeds from marketable securities 185,104 65,756 34,203 8,167 Investment in marketable securities (169,747) (49,651) (33,393) (7,974) Interest received 17,778 2,034 1,583 378 --------- --------- --------- --------- Net cash provided by (used in) investing activities ( 344,688) 21,738 (57,686) (13,775) --------- --------- --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: Dividend paid to shareholders (150,000) - - - Issuance of debentures 121,259 - - - Dividend paid to minority shareholders of subsidiaries (22,077) - - - Receipt of long-term loans 231,398 8,709 4,000 955 Repayment of long-term loans (130,571) (23,250) (30,488) (7,280) Repayment of long term credit from trade payables (1,740) (435) (435) (104) Short-term credit from banks, net 15,689 526 59,418 14,188 Interest paid (89,244) (32,698) (35,384) (8,449) --------- --------- --------- --------- Net cash used in financing activities (25,286) (47,148) (2,889) (690) --------- --------- --------- --------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND BANK OVERDRAFT 30,109 (941) (30,441) (7,268) BALANCE OF CASH AND CASH EQUIVALENTS AND BANK OVERDRAFT AT BEGINNING OF PERIOD 53,029 53,029 83,138 19,851 --------- --------- --------- --------- BALANCE OF CASH AND CASH EQUIVALENTS AND BANK OVERDRAFT AT END OF PERIOD 83,138 52,088 52,697 12,583 ========= ========= ========= ========== BLUE SQUARE - ISRAEL LTD. - INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW THE THREE MONTHS ENDED MARCH 31, 2009 (CONTINUED) (UNAUDITED) Convenience translation for the year Three months Three months Ended Ended March December 31, 31, Ended Ended December 31, March 31, --------- -------------------- ----------- 2008 2008 2009 2009 --------- --------- --------- ----------- Unaudited ---------------------------------------------- NIS U.S dollars ------------------------------- ----------- In thousands (a) Adjustments required to reflect the cash flows from operating activities: Income and expenses not involving cash flows: Depreciation and amortization 153,882 34,592 39,774 9,497 Increase in fair value of investment property, net (19,067) (12,745) - - Share in profits losses (gain) of associated company 33 (127) 84 20 Share-based payment 8,175 269 2,685 641 Loss (gain) from sale and disposal of property, plant and equipment and provision for impairment of property, plant and equipment, net 5,989 (254) (358) (85) Loss (gain) from changes in fair value of derivative financial instruments (19,247) (13,666) (2,556) (610) Linkage differences on principal of long-term loans and other liabilities, net 59,669 5,307 (7,310) (1,745) Capital loss (gain) from realization of investments in subsidiaries (11,176) 1,479 (2,544) (607) Accrued severance pay, net 263 1,148 12 3 Decrease in value of marketable securities deposit and long-term receivables, net 11,169 (86) 2,296 548 Interest paid, net 71,466 30,664 33,801 8,071 Changes in operating assets and liabilities: Decrease (increase) in trade receivables and other accounts receivable 50,277 (225,332) (346,642) (82,770) Increase in inventories (43,136) (102,648) (83,969) (20,050) Increase in trade payables and other accounts payable 49,790 243,640 359,746 85,899 --------- --------- --------- --------- 318,087 (37,759) ( 4,981) (1,188) ========= ========= ========= ========= BLUE SQUARE - ISRAEL LTD. INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW FOR THE THREE MONTHS ENDED MARCH 31, 2009 (CONTINUED) (UNAUDITED) Convenience translation for the year Three months Three months Ended Ended March December 31, Ended March 31, 31, ----------- ------------------- ------------ 2008 2008 2009 2009 ----------- -------- ---------- ------------ Unaudited ----------------------------------------------- NIS U.S dollars -------------------------------- ------------ In thousands (b) Supplementary information on investing and financing activities not involving cash flows: Conversion of convertible debentures of subsidiaries 6,655 - - - ========= ========= ========= ========= Purchasing property, plant and equipment on credit 14,797 11,602 15,707 3,750 ========= ========= ========= ========= Dividend pay to minority in a subsidiary - - 3,667 876 ========= ========= ========= ========= Restricted deposit Against receipt of a short term loan - - 470,000 112,225 ========= ========= ========= ========= BLUE SQUARE - ISRAEL LTD. SELECTED OPERATING DATA FOR THE THREE MONTHS PERIODS ENDED MARCH 31, 2009 (UNAUDITED) Convenience translation for the three months ended For the three months ended March 31 March 31, 2008 2009 2009 --------- --------- ----------- U.S.$ --------- --------- ----------- In millions -------------------------------------- Unaudited -------------------------------------- Sales 1,821.2 1,764.8 421.4 Operating income before other gains and losses increase in fair value of investment property 77.4 60.2 14.3 EBITDA 114 102 24.4 EBITDA margin 6.3% 5.8% 5.8% Increase (decrease) in same store sales 1.1% (7.1)% NA Number of stores at end of period 188 199 NA Stores opened during the period 3 5 NA Total square meters at end of period 346,900 359,500 NA Square meters added (less) during the period, net 4,200 5,000 NA Sales per square meter 4,954 4,562 1,089 Sales per employee (in thousands) 237 232 55 Contact: Blue Square-Israel Ltd. Dror Moran, CFO Toll-free telephone from U.S. and Canada: +1-888-572-4698 Telephone from rest of world: +972-3-928-2220 Fax: +972-3-928-2299 Email: cfo@bsi.co.il
Blue Square Israel Ltd
CONTACT: Contact: Blue Square-Israel Ltd., Dror Moran, CFO, Toll-free
telephone from U.S. and Canada: +1-888-572-4698, Telephone from rest of
world: +972-3-928-2220, Fax: +972-3-928-2299,Email: cfo@bsi.co.il
