Max Stock Ltd (XTAE:MAXO) Q4 2024 Earnings: Record Revenue and Strategic Expansion

Ladies and Gentlemen, buckle up! We've got a powerhouse earnings report from Max Stock Ltd (XTAE:MAXO) that's going to make your portfolio sing! The company just reported a fourth quarter that's nothing short of spectacular, with revenue soaring to ILS328 million, a whopping 20% increase from the previous year. This isn't just growth; this is a rocket launch!



Let's break it down:

- Revenue Growth: ILS328 million in Q4 2024, up 20% from Q4 2023. That's not just growth; that's a statement!
- Comparable Store Sales: Up 12.6%! Higher store traffic and increased seasonal sales are driving this growth. People are flocking to Max Stock, and for good reason.
- Gross Margin: 41.9%, down 90 basis points year-over-year. But don't worry, folks! This is a temporary blip due to the transition to a new distribution center. Once that's smoothed out, we'll see those margins soar again.
- Adjusted EBITDA: Up 18.4%! That's earnings growth you can bank on.
- GAAP Net Income: Up 28%! This company is printing money.
- Adjusted EPS: Up 26.2%! Shareholders are loving this.

Now, let's talk about the full year 2024. Max Stock Ltd delivered record results with revenue reaching ILS1.3 billion, a nearly 19% growth compared to 2023. Comparable sales increased by nearly 10%, driven by higher store traffic and seasonal sales. This resulted in a 26% increase in adjusted EBITDA and a 35% increase in adjusted EPS compared to the previous year. This is a company on a mission!



But it's not just about the numbers. Max Stock Ltd is making strategic moves that will pay off big time. They're enhancing their position as a low-price leader, continuing top-line growth through store expansion, maintaining superior store economics, and driving operational efficiencies through their new distribution center. This is a company that's thinking long-term and executing short-term.

And let's not forget about the store expansion. Max Stock Ltd has significantly expanded its store footprint, with a 68% increase in net square meters since 2019. By 2030, they aim to expand their footprint by an additional 64% to 110,000 square meters. They plan to open 3 to 5 owned stores each year, with 4 additional stores planned over the next 2 years. This is a company that's not just growing; it's dominating!

But it's not all sunshine and roses. There are challenges ahead. The transition to the new distribution center has temporarily elevated logistics costs, impacting gross margins. But this is a short-term pain for long-term gain. Once the transition is complete, Max Stock Ltd anticipates returning to 2023 cost levels and driving further improvements. The new center is expected to enhance operational efficiencies and support future growth.

And let's not forget about the current operating environment in Israel, influenced by the Swords of Iron War. This presents ongoing challenges, but Max Stock Ltd is navigating these waters with skill and determination. Employee costs attributed to retail activities have been impacted by increases in the hourly minimum wage in Israel over the last two years, but the company is adapting and thriving.

So, what's the bottom line? Max Stock Ltd (XTAE:MAXO) is a company on the move, with a strong financial performance and a strategic vision that's going to pay off big time. This is a company you want to own, folks. Don't miss out on this opportunity to be part of something big. BUY NOW!