Super-Sol Profits Hit

Israel's leading retailer Super-Sol has reported Q408 profits of ILS50mn (US$12.4mn), which represent a 41.86% year-on-year (y-o-y) decline despite 5% y-o-y sales growth. The company attributes the sharp decline to higher financing expenses, which stem from a rise in Israel's inflation rate in 2008. Despite the decline in profits, BMI remains bullish about the retailer's long-term prospects in the country. With a dominant market share of more than 40%, the company is well placed to capitalise on our forecast that mass grocery retail (MGR) sales will grow by a respectable 17.39% between 2009 and 2013.

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