HERZLIYA, Israel, Jan. 06, 2026 (GLOBE NEWSWIRE) -- Nayax Ltd. (Nasdaq: NYAX; TASE: NYAX), a global commerce enablement, payments, and loyalty platform designed to help merchants scale their business, today announced its participation in NRF 2026, taking place January 11–13, 2026 at the Jacob K. Javits Convention Center in New York. At NRF 2026, Nayax will showcase new products and platform enhancements designed for enterprise specialty and fashion retailers. The presentation will highlight Nayax’s expanded ...

Financial Data and Key Metrics Changes - In Q1 2025, the company reported ID sales growth of 2.8%, adjusted EBITDA of $1,110 million, and adjusted earnings per share of $0.55, indicating solid results and gradual progress against strategic priorities [5][21][22] - The gross margin rate decreased to 27.1%, down 85 basis points year-over-year, primarily due to investments in customer value and a mix shift from strong pharmacy and digital growth [20][21] - Adjusted EBITDA decreased from $1,184 million in the previous year to $1,111 million [21][22] Business Line Data and Key Metrics Changes - E-commerce sales grew by 25%, reaching 9% of total grocery revenue, driven by strong performance in the first-party business and enhanced digital shopping experiences [6][20] - Loyalty program membership increased by 14% to 47 million members, with higher engagement and spending observed [7][9] - Pharmacy and Health platform grew by 20% year-over-year, benefiting from script and immunization growth [10][20] Market Data and Key Metrics Changes - The company anticipates identical sales growth in the range of 2% to 2.75% for the remainder of fiscal 2025, up from previous guidance of 1.5% to 2.5% [25] - The effective income tax rate for Q1 2025 was 24.1%, compared to 22.3% in the previous year, primarily due to a reduction of an uncertain tax position [21] Company Strategy and Development Direction - The company is focused on five strategic priorities: driving customer growth through digital connection, enhancing customer value, modernizing capabilities through technology, and driving transformational productivity [5][15] - Investments in digital platforms, including e-commerce and pharmacy, are expected to drive higher future customer lifetime value, despite creating near-term margin headwinds [24][25] - The company aims to leverage its consolidated scale for national buying and efficient supplier relationships, expecting to deliver $1.5 billion in savings from productivity initiatives from FY 2025 to 2027 [17][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing investments and their impact on customer engagement and traffic growth, particularly in the second half of 2025 [27][28] - The competitive pricing environment remains rational, with continued promotional investments observed [33][34] - Management highlighted the importance of cross-shopping between pharmacy and grocery, noting that pharmacy customers tend to visit stores more frequently and contribute to higher overall sales [10][52] Other Important Information - The company invested $585 million in capital expenditures during Q1 2025, including the opening of three new stores and the completion of 36 remodels [22] - The company has reached agreements covering nearly half of the 120,000 associates involved in labor negotiations, focusing on improving wages and benefits while maintaining operational flexibility [18][17] Q&A Session Summary Question: Drivers of gross margin decline and pricing environment - Management indicated that the focus remains on driving sales and unit growth, with expectations for productivity to provide a tailwind as national buying initiatives progress [32][33] - The pricing environment is characterized as rational, with continued promotional investments from competitors [34][35] Question: E-commerce profitability and media collective impact - E-commerce is nearing breakeven, driven by volume and operational efficiencies, with no financial impact from the media collective on the e-commerce P&L [37][38] Question: ID sales guidance and consumer changes - Management noted that pharmacy growth impacts ID sales comparisons, with expectations for gradual improvement in grocery units as the year progresses [42][43] Question: Price investment goals and productivity initiatives - The company is making surgical price investments based on data, with expectations for productivity initiatives to provide a tailwind in the second half of the year [46][49] Question: Pharmacy contribution from GLP-1s and customer engagement - GLP-1s contribute significantly to pharmacy comp, with strong engagement from customers leading to increased profitability in other categories [84][86] Question: Impact of tariffs on inflation - The company is actively managing cost increases from tariffs, focusing on domestic sourcing and exploring OwnBrands as a potential solution [88][90]