Max Stock Limited Reports Fourth Quarter and Fiscal 2024 Full Year Financial Results
Declares ILS 70 Million, ~ ILS 0.50 per share One-Time Dividend
Fourth Quarter Revenue Increased 20.5% to ILS 328.1 million; Comparable Store Sales Increased 12.6%; GAAP Net Income Increased 28.0%
2024 Revenue Increased 18.9% to ILS 1.33 billion; Comparable Store Sales Increased 9.9%; GAAP Net Income Increased 31.6%
CAESAREA, Israel, March 19, 2025 /PRNewswire/ -- Max Stock Limited (TASE: MAXO) (the "Company") today reported financial results for the fourth quarter and year ended December 31, 2024.
Fourth Quarter 2024 Summary
- Revenue increased 20.5% to ILS 328.1 million
- Comparable store sales increased 12.6%
- Gross margin was 41.9%
- GAAP net income increased 28.0% to ILS 28.8 million
- Adjusted Net income1 (attributable to shareholders) increased 26.0% to ILS 25.8 million
- Adjusted EPS1 (attributable to shareholders) increased 26.2% to ILS 0.19
- Adjusted EBITDA2 increased 18.4% to ILS 46.5 million
2024 Full Year Summary
- Revenue increased 18.9% to ILS 1.33 billion
- Comparable store sales increased 9.9%
- Gross margin was 41.8%
- GAAP net income increased 31.6% to ILS 121.1 million
- Adjusted Net income1 (attributable to shareholders) increased 35.2% to ILS 109.0 million
- Adjusted EPS1 (attributable to shareholders) increased 35.0% to ILS 0.78
- Adjusted EBITDA2 increased 26.0% to ILS 190.8 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. |
Ori Max, Chief Executive Officer, stated, "We delivered strong fourth quarter results to conclude an outstanding year for Max Stock. Our recent performance was highlighted by a double-digit increase in comparable store sales, which along with our successful store expansion strategy, fueled top-line growth of more than 20%. This allowed us to offset some gross margin pressure from temporary costs associated with our distribution center consolidation to maintain adjusted EBITDA margins in the mid-teens. While our fourth quarter results were impressive, our teams performed at a high level all year. These efforts resulted in the strongest annual topline and adjusted EBITDA results in our corporate history -- a great result that far surpassed our initial expectations.
Looking ahead, we remain focused on managing the business for the long-term, an approach that has generated significant shareholder value since our IPO in 2020. While 2024 results are a high comparison, we are confident in the fundamentals of the business and our long-term ability to execute our core growth strategies."
Fourth Quarter Results (2024 compared with 2023)
Revenue increased 20.5% to ILS 328.1 million in the fourth quarter 2024 as compared with revenue of ILS 272.3 million in the fourth quarter 2023. The increase over the same period last year was driven by a 12.6% increase in comparable store sales driven by higher store traffic and an increase in seasonal sales compared to the year-ago period combined with the opening of new stores. The seasonal sales increase was aided by a shift of the Jewish new year holiday season in Q4 2024, as opposed to it falling in Q3 in 2023. Additionally, the temporary closure of the Company's stores at the onset of the Swords of Iron War and subsequent operating hours reduction in October of 2023, impacted comparability to the current year period.
Gross profit increased 17.9% to ILS 137.4 million in the fourth quarter 2024 from ILS 116.6 million in the fourth quarter 2023. Gross margin was 41.9% as compared to 42.8% in the last year period. The 90-basis point decrease in gross margin over Q4 2023 was primarily attributable to an increase in logistics expense related to the temporary, concurrent operation of the Company's existing and new logistics centers.
Selling, general and administrative expenses increased to ILS 90.4 million in the fourth quarter 2024 from ILS 80.2 million in the fourth quarter 2023, primarily driven by an increase in expenses associated with new store additions in the period, partially offset by a decrease in store expenses associated with Portugal operations which were discontinued in the period. Other expenses totaled approximately ILS 1.2 million in the period due to the derecognition of fixed assets related to the closing of Portugal operations.
GAAP net income increased 28.0% to ILS 28.8 million.
Adjusted net income attributable to shareholders increased 26.0% to ILS 25.8 million in the fourth quarter of 2024, as compared with adjusted net income attributable to shareholders of ILS 20.5 million in the fourth quarter of 2023.
Adjusted EPS attributable to shareholders increased 26.2% to ILS 0.19 per share, in the fourth quarter of 2024, as compared with net income of ILS 0.15 per share, in the fourth quarter of 2023.
Adjusted EBITDA increased 18.4% to ILS 46.5 million in the fourth quarter of 2024 from ILS 39.3 million in the fourth quarter of 2023.
Full Year Results (2024 compared with 2023)
Revenue increased 18.9% to ILS 1.33 billion in fiscal 2024 as compared with revenue of ILS 1.12 billion in fiscal 2023. The year-over-year increase in revenue was driven by the addition of new branches combined with a 9.9% increase in comparable store sales driven by higher store traffic and an increase in seasonal sales compared to the year-ago period.
Gross profit increased 18.8% to ILS 556.1 million in fiscal 2024 from ILS 468.2 million in fiscal 2023. Gross margin was 41.8% for fiscal 2024 as compared to 41.8% for fiscal 2023.
Selling, general and administrative expenses increased to ILS 367.3 million in 2024 from ILS 319.8 million in 2023. This increase was primarily driven by incremental expenses resulting from the addition of new right of use assets, an increase in expenses associated with new stores, higher advertising and marketing expenses and an increase in professional services.
GAAP net income increased 31.6% to ILS 121.1 million.
Adjusted net income attributable to shareholders increased 35.2% to ILS 109.0 million in fiscal 2024, as compared with adjusted net income of ILS 80.6 million in fiscal 2023.
Adjusted EPS attributable to shareholders increased 35.0% to ILS 0.78 per share in fiscal 2024, as compared with ILS 0.58 per share in fiscal 2023.
Adjusted EBITDA (pre IFRS 16) increased 26.0% to ILS 190.8 million in fiscal 2024 as compared to ILS 151.4 million in fiscal 2023.
Balance Sheet and Cash Flow Highlights
The Company's cash and cash equivalents balance at December 31, 2024 was ILS 97.1 million compared with ILS 128.9 million at December 31, 2023. The Company ended the year with total debt of ILS 47.1 million compared with total debt of ILS 33.0 million at the end of fiscal 2023.
Inventories at the end fiscal 2024 increased 66.4% to ILS 240.6 million compared with ILS 144.6 million at the end fiscal 2023. The increase in inventory was due to an intentional build given the low inventory levels in 2023, new branch openings and increased scale and some increase in direct imports versus locally sourced inventory that ships from suppliers directly to stores.
Conference Call Information
The Company will host a conference call on March 19, 2025 at 9:00 a.m. Eastern Standard Time to discuss fourth quarter and full year fiscal 2024 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 65 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
talia@maxstock.co.il
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SOURCE Max Stock Limited