Carrefour Israel swings to profit despite debt

Supermarket chain Carrefour Israel (formerly Yeinot-Bitan-Mega) continues to present improved business results, after initial huge losses during the conversion to the new chain for its controlling shareholder Electra Consumer Products (TASE: ECP), managed by CEO Zvika Shwimmer.

More than two years since the French supermarket brand was launched in Israel in May 2023, Carrefour has 148 branches after selling five branches since the start of the year. Carrefour’s revenue totaled NIS 840 million in the second quarter of 2025, up 3.4% from the corresponding quarter of 2024.

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Same-store sales at Carrefour branches increased by 4.9% in the second quarter compared with the corresponding quarter last year and amounted to NIS 31,500 per square meter, compared with NIS 30,000 per square meter in the corresponding quarter last year.

In the second quarter of 2025, the Global Retail Group (which owns Carrefour) reported an operating profit of NIS 52 million (up 70% from the corresponding quarter last year) and a net profit of NIS 5 million, compared with a loss of NIS 17 million in the corresponding quarter last year. The company has a capital expenditure of NIS 425 million, linked to the prime interest rate, which generates heavy financing expenses that erode profit.

Electra Consumer Products, which has a 49.5% stake in Global Retail, reported a quarterly net profit of NIS 43 million in the food sector, compared with NIS 30 million in the corresponding quarter last year. The company notes that the improvement in the sector’s profits was mainly due to “an increase in sales in branches that were converted to the Carrefour brand, the sale of five branches during the reporting period, and as a result of streamlining the sector’s expenses.” Carrefour, whose branches are spread over 170,000 square meters and employ nearly 4,000 people, is managed by CEO Michael Loboshitz.

Electra Consumer Product’s share price has risen more than 50% over the past year, giving a market cap of NIS 3 billion.

Published by Globes, Israel business news – en.globes.co.il – on August 27, 2025.

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