MIRA INFORM REPORT
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Report Date : |
19.03.2011 |
IDENTIFICATION DETAILS
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Correct Name : |
SHUFERSAL LTD. |
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Formerly Known As : |
SUPER-SOL LTD |
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Registered Office : |
P.O. Box 15103, Rishon Le-Zion (75363), 30 Shmotkin Binyamin Street, Old Industrial Zone, Rishon Le-Zion 75050 |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
14.01.1957 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
A retail
marketing chain, operating a nationwide supermarket chain |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment
Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made on
e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2010
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name & address
SHUFERSAL LTD.
Telephone 972 3 948 15 15
Fax 972 3 948 09 17
Old Industrial
Zone
RISHON LE-
HISTORY & LEGAL FORMATION
Originally incorporated
as a private limited company, registered as per file No. 51-015652-4 on the
14.01.1957. Operations started in 1958.
Converted into a
public limited company and registered as such as per file No. 52-002273-
In 1980 published
a prospectus offering shares to the public on the Tel Aviv Stock Exchange.
Shares were also listed for trading on the New York Stock Exchange in 1997, and
were de-listed on 26.12.2002.
Originally
registered under the name SUPER-SOL LTD., which changed to the present name on
the 04.03.2008.
On the 25.03.2009
the merger of CLUBMARKET MARKETING CHAINS LTD.,
SHARE CAPITAL
Authorized share
capital
400,000,000 ordinary shares of
of which
217,081,322 shares amounting to
SHAREHOLDERS
1. DISCOUNT INVESTMENT CORP.
LTD. (DIC), 46.1%, a public limited company whose shares are traded on the Tel
Aviv Stock Exchange, part of the IDB Concern, controlled by Nochi Dankner (chief holder), Zvi Livnat and
Isaak Manor,
2. ISRALOM PROPERTIES LTD.,
18.6%, controlled by Matthew Bronfman and Shalom (Yakov) Fisher,
3. CLAL INSURANCE HOLDINGS LTD.,
4.9%, of the CLAL Group, also part of the IDB Concern, holding as institutional
investors,
4. SHUFERSAL ASSETS LTD., 4.1%, a fully owned
subsidiary,
5. Shares are also traded on the Tel Aviv Stock
Exchange.
In March 2007
subject's main shareholder DIC signed an agreement with the BRONFMAN – FISCHER
Group, according to which DIC will sell part of its holding - some 20% - to the
BRONFMAN – FISCHER Group in consideration of US$ 214 million, in 2 phases. In
September 2007 2nd phase concluded, in which DIC sold BRONFMAN –
FISCHER Group 5.7% of the shares in subject and in total close to 19% in both
phases. The IDB Concern holds in practice over 50%.
DIRECTORS
1. Rafael (Rafi) Bisker, Co-Chairman,
2. Shalom Yakov Fisher, Co-Chairman,
3. Nochi Dankner,
4. Haim Gavrieli,
5. Ron Hadassi,
6. Zvi Livnat,
7. Ido Bergman,
8 Avihu Olshanski,
9. Isaak Manor,
10. Yaniv Mazor,
11. Ms Sabina Biran,
12. Eliahu Cohen,
13. Alon Bachar,
14. Imri Tov.
TOP MANAGEMENT
1. Ephraim (Efi) Rosenhaus,
General Manager,
2. Richard Hunter, Chief
Business Manager,
3. Shlomo Zohar, CFO.
BUSINESS
A retail marketing
chain, operating a nationwide supermarket chain.
Subject sells food
and non-food products, which includes apparel, domestic electrical appliances, PC's
and leisure products. In 2010 above non-food products categories generated some
14.4% of total sales (was 14.6% in 2009).
Subject also sells
its own private label brand (some 1400 items under brands "Shufersal"
and "Yesh", which comprise of some 10% of total sales).
Also dealing in
yielding real estate, with overall area of 72,000 sq. meters.
Subject operates
under 4 formats of sales point (a total of 248 stores):
1. Small neighborhood
supermarkets, branded "Shufersal Shali", 107 stores,
2. Heavy discount stores, branded
"Shufersal Deal", 74 stores,
3. Heavy discount stores, branded
"Yesh", 54 stores,
4. Convenient stores branded "Shufersal
Express", 13 stores.
Also operating a
sales channel via the phone and internet "Shufersal Yashir".
Largest suppliers:
TNUVA (13% of revenues), STRAUSS GROUP (9%), OSEM (8%), UNILEVER
Among other
(non-consumer products) suppliers: DANZIV HANDLING SOLUTIONS, SALINA
INDUSTRIES, BENDA PLAST INDUSTIRES, etc.
Operating from
headquarters in 30 Shmotkin Street, Old Industrial Zone, Rishon Le-Zion,
offices and logistic center on a built area of 28,700 sq. meters (100,000 sq.
meters plot), owned by the SHUFERSAL Group, and from a total of 248 branches
nationwide as of 31.12.2010 (had 240 stores in 31.12.2009), on total stores
area operated by subject of 540,997 sq. meters (of which 117,945 sq. meters are
owned). In addition, operating from warehouses and 4 logistic centers (incl. in
Rishon Le-Zion).
Having 12,400
employees (of which some 1,800 are temporary or man-power employees) serving
the SHUFERSAL Group.
MEANS
Consolidated B/S
shows:
ASSETS 31.12.2009 31.12.2010
Current assets:
Cash
and cash equivalents 685 1,064
Negotiable
securities 216 391
Customers
1,179 1,178
Other
debtors 88 113
Other
current assets 44 -
Stock 599 614
2,811 3,360
Non-current assets
Real
estate for investment 329 400
Fixed
assets 1,937 2,096
Intangible
assets and prepaid expenses 739 754
Other
non-current assets 173 151
3,178 3,401
5,989 6,761
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LIABILITIES
Current liabilities 2,213 2,387
Non-current liabilities 2,433 3,099
Equity 1,343 1,275
5,989 6,761
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Current market
value US$ 1,238.9 million.
In November 2005,
subject completed a
In February 2007
subject issued bonds, to be traded on the Tel Aviv Stock Exchange, raising
In August 2009,
subject completed a
There
ANNUAL SALES
Consolidated
Statements of Income
Year
ended December 31st
2008 2009 2010
Revenues 10,962 11,041 11,130
Gross profit 2,955 2,874 3,015
Operating income 570 494 507
Profit before
taxes on income 300 433 435
Net income 282 323 335
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OTHER COMPANIES
Main subsidiaries:
· HANETZ IMPORTERS & EXPORTERS LTD., 100%,
· ESTATE HOLDING CO. OF SUPER SOL LTD., 100%,
· KATIF LTD., 100%, dealing in dried fruit and vegetables for subject's stores,
· GIDRON INDUSTRIES LTD., 100%, manufacturing and suppliers of bakery products for subject's stores,
· ORVANI INVESTMENTS COMPANY LTD., 100%, holds 37% of LEV HAMIFRAZ LTD.,
·
HAKIRYA CENTER (
· SHUFERSAL BIELSOL INVESTMENTS LTD., 50%,
· SHUFERSAL FINANCE MANAGEMENT LTD., 64%,
· SHUFERSAL FINANCE, LP.
BANKERS
Main account:
Bank Leumi Le’Israel Ltd., Tel Aviv Central
Branch (No. 800), Tel Aviv.
Also working with:
Israel Discount Bank Ltd., Main Branch (No.
010), Tel Aviv.
Bank Hapoalim Ltd., Central Business Branch (No. 600), Tel Aviv.
Mizrahi Tefahot Bank Ltd.,
CHARACTER AND REPUTATION
In January 2009,
the Antitrust Authority (IAA) investigators raided subject's offices and
investigated its General Manager, Efi Rosenhaus, with regard to complaints by
suppliers, who claimed subject threatens them of not cooperating with rival
BLUE SQUARE Chain in certain “sales” (the latter went on a wide “sales”
advertising). The IAA has been monitoring subject for several years, mainly
regarding binding agreements between subject and suppliers, and in particular
since the acquisition of CLUBMARKET supermarket chain (see below) in 2006, then
the IAA decreed certain limitations upon subject and
In February 2010
an indictment was filed against subject, Mr. Rosenhaus and another senior
officer to the Jerusalem District Court, regarding violations of the Antitrust
Authority limitations placed with the regard of the CLUBMARKET merger. It
should be noted that subject estimates that in the event that they are convicted,
they will be fined in a sum that will not significantly affect them.
There are several
lawsuits against subject, none of them seems to be significant, in the total
sum of
Apart from that,
nothing unfavorable learned.
Subject is the largest
retail chain in
Subject is one of
the local largest advertisers. In 2010 subject's advertizing and promotion
expenses were
Subject is part of the
local leading concern IDB, one of the largest and most influential in
Before investing in subject, the BRONFMAN-FISHER Group held minority shares
in subject's rival
Businessman Matthew Bronfman comes from the wealthy Bronfman family of
Shalom Fisher also owns the PALACE Group, with many other holdings.
In 2008 subject began
operating "Shufersal Express" convenient stores (having now 8
stores), and is intending to open between 25-40 new stores in 2010 investing
some
During 2010
subject launched it reorganization and growth plan, which includes adding an
organic and nature products sector in its stores under the name "Shufersal
Green" (some 20 stores expected to be open in 2011, erasing the
"Shufersal Big" format and converting it into "Shufersal
Deal" stores (44 stores)). Subject is also increasing its sales area by
some 100,000 sq. meters (with mega big supermarket concept, designed to compete
the new “discount supermarkets”, and opening a new logistic center. In all,
subject is reported to invest some
In February 2011
it was reported that subject is acquiring ORGANIC MARKET (controlled by the
sister, of Matthew Bronfman), which is operating the "Shufersal
Green" departments for
In 2006, subject
acquired CLUBMARKET Chain, then
In October 2006
sub launched a new credit card for its clients for non-banking credit and
benefits (60% by subject, venture co-owned with PAZ-OIL Company and BANK LEUMI,
20% each). By end of 2007 subject reported issuing over 100,000 credit cards.
In June 2008,
subject completed the deal to sell all its holdings (50%) in ISRAEL SHOPPING MALL
LTD. (owners of real estate on which a shopping mall is located) to ASHTROM,
for
In July 2008, subject completed the deal in which it gained full control
of the “Alef” supermarket chain, exercising its option for 50% for
Subject unified the Alef chain with its "Zol Po" sub-chain
(acquired from CLUBMARKET), and launched in August 2008 the “Yesh” sub chain,
for discounted stores, with 46 branches.
As part of its strategy, subject’s board decided in October 2009 on
opening 25-40 new “Express” branches (convenient stores) in the course of 2010.
The branches will be operated in the franchise basis, of 150-230 sq. meters
each with investment of
According to Central Bureau of Statistics, the total household
expenditure for private consumption in 2010 on food, beverage and cigarettes
rose 4.5% from 2009, reflecting an improvement comparing to 2009, part of the
recovery trend in the loacl market after the general slow-down in economy
earlier last year.
Expenditure on private consumption grew in
Private consumption expenditure per capita
grew in total by 3% from 2009 (after 0.2% decrease in 2009 and 1.1% growth in
2008). Per capita purchase of goods was divided into Durable Goods, which grew by
some 11% from 2009 (including some 5% rise in purchase of equipment for the
household), while in Non-Durable Goods growth summed up to circa 2.5%.
Import of food and
beverages to
SUMMARY
Good for trade engagements.
Maximum unsecured credit recommended several millions of US$.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.09 |
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1 |
Rs.72.82 |
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Euro |
1 |
Rs.63.43 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.