Max Stock Hits Record Profits, Issues ILS 80M Dividend Amid Resilience

CAESAREA, Israel – March 16, 2026 – By George Millen

Max Stock Limited (TASE: MAXO), Israel's leading extreme value retailer, today announced a record-setting fiscal year 2025, marked by significant growth in revenue and profitability. Capping off the strong performance, the company declared a one-time dividend of ILS 80 million, signaling profound confidence in its financial health and operational strategy, even as it navigates regional complexities.

The company posted a 7.2% increase in full-year revenue to ILS 1.43 billion, propelled by a robust fourth quarter and sustained consumer demand for its value-oriented merchandise. This performance underscores the retailer's resilience and strategic acumen in a dynamic market.

A Year Defined by Growth and Efficiency

The financial results for fiscal 2025 paint a picture of a company firing on all cylinders. Full-year comparable store sales, a key metric for retail health, grew by 4.4%, driven by both higher store traffic and an increase in the average basket size per customer. The momentum accelerated in the final three months of the year, with fourth-quarter comparable store sales rising an impressive 5.3% on top of a formidable 12.6% gain in the same period of 2024.

GAAP net income for the year climbed 13.6% to ILS 137.6 million. The fourth quarter was particularly strong, with GAAP net income increasing 15.5% to ILS 33.3 million. Adjusted EBITDA, a measure of core operational profitability, surged 22.4% for the full year to ILS 233.5 million.

"Our fourth quarter performance represents a strong finish to a record year for Max Stock," stated Ori Max, Chief Executive Officer. "These fantastic results were driven by successful merchandise that are increasingly resonating with consumers, combined with the margin benefits that also reflect our recent actions to enhance the efficiency of our supply chain."

The Engine of Profitability: A Supply Chain Overhaul

Perhaps the most telling indicator of Max Stock's strategic success lies in its margin expansion. Gross margin for the full year rose by 220 basis points to 43.9%. The fourth quarter saw this trend hit a new peak, with gross margin reaching 45.2%—a 330-basis point increase and the first time it has surpassed the 45% mark in the company's history.

This significant improvement is not accidental. It is the direct result of a multi-year strategic investment in operational efficiency, centered on the company's new logistics center in Kibbutz Shomeria. Launched in mid-2024, this state-of-the-art facility has been a game-changer, enabling Max Stock to streamline its supply chain and significantly increase its proportion of direct imports. The company reported that direct imports grew from approximately 60% of its inventory in 2024 to roughly 70% in 2025. By sourcing directly from manufacturers and bypassing intermediaries, the company has unlocked substantial cost savings.

This internal strategic execution was amplified by favorable external factors, including a strengthening Israeli Shekel (ILS) against the US dollar and lower global shipping costs, which further padded the company's margins. The successful overhaul demonstrates a sophisticated operational capability that provides a durable competitive advantage.

Shareholder Rewards and Financial Fortitude

Max Stock's record performance is translating directly into shareholder value. The board's declaration of a one-time dividend of ILS 80 million, or approximately ILS 0.57 per share, is a powerful statement of financial strength. While labeled "one-time," this follows a substantial ILS 70 million dividend distributed in April 2025, establishing a clear pattern of returning capital to investors.

This generous payout is supported by an increasingly robust balance sheet. The company ended 2025 with ILS 161.8 million in cash and cash equivalents, a staggering 66.6% increase from the prior year. Simultaneously, it reduced its total debt by 30.6% to just ILS 32.7 million. This combination of rising cash reserves and falling debt showcases disciplined financial management and strong cash flow generation, giving the company flexibility for future growth and shareholder returns.

Further evidence of operational efficiency is found in inventory management. Inventories at year-end decreased by 12.6% to ILS 210.2 million, a sign that the new logistics system is not only cutting costs but also improving inventory turnover and reducing carrying expenses.

Navigating a Complex Landscape

Max Stock's achievements are even more notable when viewed against the backdrop of the regional environment. In his statement, CEO Ori Max acknowledged that "current geopolitical events in the region have caused some disruptions in our store operations." However, he expressed confidence in the company's ability to overcome these hurdles.

The resilience of Israel's discounter market provides important context. Recent market analysis indicates that despite regional instability, the value retail sector has remained healthy. Changes in consumer behavior, including a reduction in international travel and a greater preference for at-home consumption, have funneled more spending into local retail, particularly to value-focused stores like Max Stock. The company's motto, "Dream Big, Pay Small," resonates deeply with consumers navigating economic uncertainty, positioning it perfectly to meet current market demands.

As Max Stock moves into 2026, its strengthened operational foundation and clear alignment with consumer trends suggest the company is well-equipped to build on its record-setting year. Its ability to turn supply chain strategy into tangible profit and shareholder returns while navigating a complex environment solidifies its position as a leader in Israeli retail.