Q3 2024 Max Stock Ltd Earnings Call Transcript
Key Points
- Max Stock Ltd (XTAE:MAXO) reported a third-quarter revenue of ILS373 million, marking an 18% growth compared to the same period in 2023.
- Comparable store sales increased by 9.2%, driven largely by volume growth.
- The company achieved a 25% increase in adjusted EBITDA and a 35% increase in adjusted EPS attributed to shareholders.
- Max Stock Ltd expanded its gross margin by approximately 270 basis points over a three-year period, reaching 41.3%.
- The company has generated significant free cash flows, with a cash conversion rate of 53% on average since 2017, and actively returns this to shareholders through dividends and share repurchases.
- Gross margin experienced a 60-basis-point decline due to higher logistic costs related to the new distribution center.
- The closure of branches and reduced operating hours during the Swords of Iron War negatively impacted same-store sales in October 2023.
- The company's operations in Portugal have been underperforming, leading to a strategic decision to cease operations there.
- The closure of the Portugal operations has negatively impacted adjusted pre-IFRS 16 EBITDA by approximately ILS3.2 million year to date.
- The transition to a new logistics and distribution center has temporarily impacted cash flows due to intentional inventory build and increased CapEx.
Good morning and good afternoon, everyone, and thank you for joining us today. I'm Talia Sessler, Chief Corporate Development and IR Officer. And with me on the call today is Nir Dagan, our Deputy CEO and Head of Finance. Nir start with a review of our third-quarter and first nine months 2024 results, and I will be presenting the second part of the presentation.
Before we start. As a reminder, there is a presentation accompanying today's prepared remarks. The slides are available on our IR site at ir.maxstock.co.il.
And on slide number 2, you see our standard disclaimer language, which I think you are all familiar with.
With that. I'll turn the floor over to Nir to go through the financials. Nir, please.
Thank you, Talia. Starting on slide 3. We are pleased to share another quarter of very good results as we build upon our strong first half of the year. Third-quarter
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