Declares ILS 40 million (~ ILS 0.29 per share) One-Time Dividend
Second Quarter Revenue Increased 6.1% to ILS 336.3 million; Comparable Store Sales Increased 4.2%; Gross Margin Increased 210 Basis Points; Adjusted EBITDA Increased 26.0%
CAESAREA, Israel, Aug. 14, 2025 /PRNewswire/ -- Max Stock Limited (TASE: MAXO) (the "Company") today reported financial results for the second quarter ended June 30, 2025.
Second Quarter 2025 Summary
- Revenue increased 6.1% to ILS 336.3 million.
- Comparable store sales increased 4.2%.
- Gross margin increased 210 basis points to 43.8%.
- Net income (100%) decreased 6.3% to ILS 27.5 million.
- The decrease reflects approximately ILS 15.9 million of interest expenses (ILS 12.2 million net of taxes) related to revaluation of hedging positions due to strengthening of the ILS vs. the USD as of June 30 th 2025
- Adjusted EPS1 (attributable to shareholders) decreased 6.8% to ILS 0.17.
- Adjusted EBITDA2 increased 26.0% to ILS 56.5 million.
First Half 2025 Summary
- Revenue increased 7.2% to ILS 675.4 million.
- Comparable store sales increased 3.6%.
- Gross margin increased 100 basis points to 43.0%.
- Net income (100%) increased 2.3% to ILS 59.4 million.
- Adjusted EPS1 (attributable to shareholders) increased 2.9% to ILS 0.38.
- Adjusted EBITDA2 increased 19.0% to ILS 104.5 million.
Note: Totals may be sightly impacted by minor rounding differences.
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 basic 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.
"We delivered strong second quarter operating results against tough year-over-year comparisons and despite an operating environment challenged by ongoing regional tensions," said Ori Max, Chief Executive Officer. "Comparable store sales increased 4.2% on top of a 14.5% gain in the year ago period while gross margins improved 210 basis points driven in part by our recent supply chain initiatives. These gains, along with meaningful operating expense leverage, fueled a 26% increase in our adjusted EBITDA, highlighting the strengths of our business model and the output of our key growth drivers. Looking ahead, we are confident that our diverse and compelling merchandise assortments and tremendous value proposition will continue to resonate strongly with consumers, fortifying our position as Israel's leading extreme discount retailer."
Second Quarter Results (2025 compared with 2024)
Revenue increased 6.1% to ILS 336.3 million in the second quarter 2025 as compared with revenue of ILS 316.9 million in the second quarter 2024. The increase over the same period last year was largely attributable to a 4.2% increase in comparable store sales driven by an increase in average basket size, increased traffic and higher seasonal sales, combined with the opening 'of new branches. Revenue growth was also attributable to an increase in sales to franchisees, due to increase in direct imports versus locally sourced inventory (made possible thanks to the new logistics center).
Gross profit increased 11.6% to ILS 147.3 million in the second quarter 2025 from ILS 132.1 million in the second quarter 2024. Gross margin was 43.8% as compared to 41.7% in the prior year period. The 210-basis point improvement in gross margin was primarily attributable to trade and supply chain efficiency gains enabled by the Company's new logistics center, combined with the strengthening of the ILS vs. the USD and lower shipping costs.
Selling, general and administrative expenses were ILS 90.5 million in the second quarter 2025 compared to ILS 88.0 million in the second quarter 2024. The increase was primarily driven by an increase in expenses associated with new store additions in the period. As a percent of sales, Selling, general and administrative expenses improved 80 basis-points and declined from 27.7% in the second quarter 2024 to 26.9% in the second quarter 2025, primarily reflecting operating leverage.
Financing expenses totaled approximately ILS 25.0 million in the second quarter of 2025 compared to ILS 7.8 million in the second quarter of 2024. The increase in financing expenses was largely attributable to ILS 15.9 million of interest expenses (ILS 12.2 million net of taxes) related to revaluation of hedging positions for the next few quarters, due to strengthening of ILS vs. USD as of June 30th 2025.
GAAP net income (100%) decreased 6.3% to ILS 27.5 million in the second quarter of 2025, as compared with GAAP net income (100%) of ILS 29.4 million in the second quarter of 2024.
Adjusted EPS attributable to shareholders decreased 6.8% to ILS 0.17 per share, in the second quarter of 2025, as compared with adjusted EPS attributable to shareholders of ILS 0.18 per share, in the second quarter of 2024.
Adjusted EBITDA increased 26.0% to ILS 56.5 million in the second quarter of 2025 from ILS 44.8 million in the second quarter of 2024. Adjusted EBITDA margin increased to 16.8% in the second quarter of 2025 compared with 14.2% in the second quarter of 2024.
First Half Results (2025 compared with 2024)
Revenue for the first half of 2025 increased 7.2% to ILS 675.4 million, compared with revenue of ILS 630.1 million in the first half of 2024. The increase in revenue was driven by a 3.6% gain in comparable store sales and the sales contribution from new branches. The increase in same stores sales was fueled by an increase in average basket size, increased store traffic and higher seasonal sales. Revenue growth was also attributable to an increase in sales to franchisees, due to increase in direct imports versus locally sourced inventory (made possible thanks to the new logistics center).
Gross profit increased 9.8% to ILS 290.6 million in the first half of 2025 from ILS 264.6 million a year ago. Gross margin was ~43.0% as compared to ~42.0% in the prior year period. The 100-basis point improvement in gross margin year-over-year was driven primarily by trade and supply chain efficiency gains enabled by the Company's new logistics center, combined with the strengthening of the ILS vs. the USD and lower shipping costs.
Selling, general and administrative expenses increased to ILS 186.1 million in the first half of 2025 from ILS 177.7 million in the first half of 2024. The increase in operating expenses was related to branch expansion which added incremental expenses related to marketing, salary and the addition of right of use assets. As a percentage of sales, selling, general and administrative expenses improved 60 basis-points and were 27.5% in the first half of 2025 compared with 28.2% in the first half of 2024, primarily reflecting operating leverage.
Financing expenses totaled approximately ILS 28.4 million in the first half of 2025 compared to ILS 15.2 million in the first half of 2024. The increase in financing expenses was largely attributable to ILS 10.9 million of interest expenses related to revaluation of hedging positions for the next few quarters, due to strengthening of ILS vs. USD as of June 30th 2025.
GAAP net income (attributable to shareholders) increased 2.3% to ILS 59.4 million.
Adjusted EPS1 (attributable to shareholders) increased 2.9% to ILS 0.38 in the first half of 2025 as compared with adjusted EPS1(attributable to shareholders) of ILS 0.37 per share, in the first half of 2024.
Adjusted EBITDA2 increased 19.0% to ILS 104.5 million in the first half 2025 from ILS 87.8 million in 2024.
Balance Sheet and Cash Flow Highlights
The Company's cash and cash equivalents balance at June 30, 2025 was ILS 92.6 million compared with ILS 97.1 million at December 31, 2024 and ILS 94.6 million at June 30, 2024. The Company ended the second quarter of 2025 with total debt of ILS 37.2 million compared with total debt of ILS 47.1 million at December 31, 2024 and ILS 19.4 million at June 30, 2024.
On August 13, 2025, the Board of Directors declared a one-time dividend of ILS 40 million or ILS 0.29 per share, payable to shareholders of record as of August 21, 2025.
Inventories at June 30, 2025 were ILS 202.6 million compared with ILS 240.6 million at December 31, 2024 and ILS 175.2 million at June 30, 2024. The year-over-year increase in inventory was due to an intentional build given the low inventory levels in 2024, new branch openings, increased scale and an increase in direct imports versus locally sourced inventory enabled by the Company's new distribution center.
Conference Call Information
The Company will host a conference call on August 14, 2025 at 8:00 a.m. Eastern Standard Time to discuss second quarter 2025 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/.
About Max Stock
Max Stock is Israel's leading extreme value retailer, currently present in 64 locations throughout Israel. 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
[email protected]
SOURCE Max Stock Limited
