Tiv Taam Reports Best Quarter in Its History

Tiv Taam has summarized its second quarter and first half of 2026 with improvements across most business indicators, with the company defining the second quarter as the "best quarter in its history." The results indicate strengthening in both retail operations and the trade and import sector, alongside increased profitability and continued investment in online activities.

Company revenues in the second quarter totaled approximately 555.8 million shekels, an increase of about 3% compared to the same quarter last year. Sales in identical stores recorded a 0.7% increase for the quarter, while growth for the first half of the year totaled 5.2%.

Gross profit grew by approximately 5.4% to reach 193.5 million shekels, representing about 34.8% of revenues. The company attributes this improvement to increased sales, an optimized product mix, supply chain efficiencies, and improved commercial agreements with suppliers.

Operating results also strengthened, with operating profit jumping by 10.6% to approximately 42.8 million shekels, bringing the operating profit margin to 7.7%. Net accounting profit totaled 25.4 million shekels, an increase of 3.2%. Excluding a one-time financing expense of 2.6 million shekels related to the arbitration process surrounding the acquisition of "Mizrach VeMa'arav," net profit reached approximately 28 million shekels, a 13.9% increase.

The EBITDA index grew by 5.4% to approximately 73 million shekels, or 13.1% of turnover. Concurrently, the company announced a dividend distribution of approximately 7.6 million shekels to shareholders.

In retail, food sector revenues rose by about 1% in the second quarter to 425 million shekels. Growth was driven by the expansion of the TivClub customer loyalty program, which reached approximately 706,000 members (a 9.1% increase), as well as stronger online and Wolt delivery sales. Sector revenues grew by 5.7% in the first half of the year.

Trade and import activity also showed significant improvement, with sector revenues rising by 6.5% in the second quarter to 160.4 million shekels. This growth was largely due to the expansion of "Mizrach VeMa'arav" product sales. Operating profit in this sector jumped by 53.6%, aided by the strengthening of the shekel, which reduced import costs. Sector revenues for the first half of the year rose by approximately 29.4%.

CEO Hagai Shalom attributes these results to the combination of retail and trade activities, which he defines as two "strong legs." In the online sector, the company launched a new automation system called "Autostore" during the quarter, which is already showing positive results and is expected to contribute to further growth.

Tiv Taam plans to expand its Asian food offerings through dedicated sales corners within large branches, following the integration of "Mizrach VeMa'arav." The company continues to explore additional business opportunities for integration into its existing operations.

The company is currently traded at a market value of approximately 1.1 billion shekels.