Rami Levy on a roll: Profit jumped by 14%, distributed dividends in the billions of shekels
The food chain concludes an exceptionally strong half-year and announces a significant dividend distribution, alongside the opening of dozens of neighborhood branches and new pharmacy and stock branches across the country.
The food store chain, Rami Levy Hashikma Marketing, has published its financial results for the first half of 2026, indicating continued growth in activity volumes due to an increase in customer traffic and an accelerated pace of branch openings. The company reports a sharp increase in profits driven by improved operational efficiency, even as gross margins remained stable.
Second Quarter 2026 Results
Revenues for the second quarter of 2026 grew by approximately 3% to 2.07 billion shekels, compared to 2 billion shekels in the same quarter last year. This growth was driven by new food retail branches, pharmacies, and the launch of the first stock branch. Results were partially offset by a 2.4% decrease in same-store sales, largely due to the timing of the Passover holiday.
Gross profit rose by 6% to 487 million shekels, with the gross margin improving to 23.6% from 22.9% a year earlier. Operating profit increased by 8% to 98 million shekels, representing a 4.7% operating margin.
Net profit for the second quarter stood at 59 million shekels, compared to 62 million shekels in the previous year. The decline was primarily due to increased financing expenses related to dollar-shekel exchange rate fluctuations from a concluded hedging transaction.
First Half 2026 Results
Revenues for the first half of the year grew by 9% to 4.18 billion shekels. Gross profit rose by 9% to 974 million shekels. Operating profit saw a 16% increase, reaching 209 million shekels, with an operating margin of 5.0%.
Net profit for the half-year rose by 14% to 133 million shekels. The company's EBITDA increased by 14% to 391 million shekels (9.4% of revenues).
Strategic Outlook and Dividends
As of June 30, 2026, the company holds approximately 894 million shekels in cash and short-term investments. The board of directors has announced a dividend distribution of 50 million shekels. Since its 2007 IPO, the company has distributed over 2 billion shekels in total dividends.
The chain currently operates 62 discount branches and identifies potential for 25 additional locations. Plans for the coming year include opening 10 pharmacy branches and 3 new stock branches. The "Rami Levy in the Neighborhood" brand continues to expand, now operating 36 locations.
Furthermore, the company recently launched the SuperFly club in partnership with Isracard and Israir, integrating retail, tourism, and financial benefits. The Rami Levy cellular service continues to grow, reaching 493,000 subscribers.
