The giant chain sold in a massive deal presents: revenue of about one billion shekels

Multi Retail, owner of the brands ACE, Auto Depot, Betili, Dubele, and Urban, publishes today, Thursday, the results for the first half of 2026, presenting a significant improvement in operating results and profitability. The reports are published about two weeks after the signing of the agreement for the acquisition of control of the company by businessman Ronen Ganon, who heads the Ganon Group, from the Kedma fund.

In the first half of 2026, the company's revenue totaled 461.3 million shekels, compared to 440.6 million shekels in the corresponding period last year, an increase of 4.7%. Same-store sales grew by 8.9%.

The most significant improvement was recorded in the profitability line. EBITDA, excluding the impact of IFRS 16, totaled 17.6 million shekels, compared to 6.4 million shekels in the first half of 2025, a jump of about 175%.

Operating profit also improved. Excluding the impact of IFRS 16, it totaled 11.1 million shekels, compared to an operating loss of about 1.1 million shekels in the corresponding period last year.

Bottom line, the company moved from a loss to a profit. Net profit in the first half of 2026 totaled 7.4 million shekels, compared to a loss of about 4.5 million shekels in the corresponding half last year, an improvement of about 12 million shekels in net profit.

A look at the last 12 months shows the change in Multi Retail's activity pace. The company's revenue during this period totaled about one billion shekels, excluding VAT.

Net profit in the last 12 months (LTM) totaled 16.6 million shekels, compared to a net profit of about 4.7 million shekels in all of 2025. The company's EBITDA, excluding IFRS 16, totaled 43.8 million shekels during this period.

Based on the LTM calculation derived from the data reported today to the stock exchange, and considering the value set in the deal and the company's net financial asset, the deal value reflects an EV/EBITDA multiple of about 5.2.

As of June 30, 2026, Multi Retail presented a net financial asset of about 13.6 million shekels, compared to a net financial debt of about 47.5 million shekels a year earlier.

The improvement in the company's results was recorded in several areas of activity. The home and car upgrade sector, which includes the activity of ACE and Auto Depot in branches, showed a 7.6% increase in same-store sales and a significant improvement in profitability.

The home design sector, which includes Betili and Urban, continued the improvement process. Same-store sales, which also include the sector's e-commerce sites, grew by 15.6%, and the sector moved from negative EBITDA in the corresponding half to positive EBITDA in the first half of 2026.

ACE Online activity also continued to grow and show improvement in profitability, with revenue of about 83.2 million shekels for the half-year.

The improvement in results comes after a series of moves carried out by the company's management in recent years, including a transition to more efficient formats in some home design stores, expansion of franchise activity, and reduction of logistics costs.

Multi Retail currently operates 55 branches nationwide and holds a customer club that includes about 1.8 million members. According to the company's internal estimate, the number of visits to the group's branches stands at about 10 million per year.

The agreement for the acquisition of control in Multi Retail by the Ganon Group was signed during August, and the completion of the deal is subject to receiving the required approvals.

Uri Einan, Chairman of the Board of Directors of the company and founding partner of the Kedma fund, said:

"I am proud of the company's results in the current half. The actions led by the company's management headed by CEO Itzik Ozana in the last year have boosted profitability, including profitability in the home design sector where the company closed loss-making stores and opened new stores with a more efficient model."

"The company's success comes at a time when the real estate market is still in difficulties. I am sure that with the return of the real estate market to growth, the company's management will know how to lead the company to even greater successes."