Max Stock posts record results: 19% revenue growth and a 32% increase in net profit in 2024. The network surpassed NIS 1.3 billion in annual revenue, driven by a 10% rise in same-store sales.
Max Stock concluded 2024 with strong growth across all business metrics, according to the financial reports the company published today. The network's revenue grew by 19%, reaching a record NIS 1.33 billion, and net profit soared by 32%, reaching a record NIS 121 million.
The strong revenue growth is attributed to two main factors: A 10% increase in same-store sales, primarily due to growth in the number of customers visiting the stores, and the continued strategy of expanding the national network by opening new stores.
In the fourth quarter of 2024, the company also posted exceptionally strong results, with a 21% increase in revenue to approximately NIS 328 million, supported by a 13% rise in same-store sales. Net profit in the fourth quarter rose by 28% to approximately NIS 29 million.
Alongside the report, the company’s board announced a NIS 70 million dividend, which will be paid to shareholders in April 2025.
Uri Max, founder and CEO of Max Stock, said: "The fourth quarter is a powerful end to an excellent year, during which we posted record sales alongside strong double-digit growth in all profitability metrics. These results reflect the continued growth in the number of customers visiting our stores, along with the consistent implementation of our network expansion strategy."
Max added: "We continue to focus on providing exceptional value to all our customers, and we believe this strategy will support the continued development of the company even in changing market conditions. Additionally, in June 2024, we launched a new logistics center in Kibbutz Shomeria, a move that is expected to contribute in the future to improving the company's operational efficiency and support our growth strategy in Israel."
Gross profit for 2024 increased by 19% to approximately NIS 556 million, while the gross profit margin remained stable at approximately 41.8% of revenue, similar to the margin in 2023. This was due to improved inventory management and trade conditions, despite the increase in shipping prices and higher logistics expenses, primarily from operating the new logistics center alongside the existing centers.
Operating profit in 2024 rose by 24% to approximately NIS 184 million, with the operating profit margin improving to approximately 13.8%, compared to about 13.3% in 2023. This was the result of a decrease in operating, sales, marketing, and general management expenses as a percentage of revenue, thanks to the growth in activity volumes.
As of now, Max Stock operates 65 branches nationwide. Since the beginning of 2024, the company has opened 4 new company-owned branches (one of which replaced an existing store) and expanded one existing store, totaling about 5,600 square meters of net commercial space, representing a 9% increase in retail space compared to the end of 2023. At the same time, the company opened one franchise branch in Rehovot and closed two franchise branches.
At the end of 2024, the company announced its decision to end the operations of its joint venture in Portugal due to the results of the operations and the entry of new competitors into the Portuguese market. The company estimates that the process of closing the operation will continue until the end of 2025.