Blue Square Israel posted record revenues in the first quarter of 2007, amounting to ILS1.693.5bn (US$423.5m), an increase of 10.3% over the same period of last year.

The rise in the company's profits stems from opening new branches and the increased sales during the Passover holiday which occurred during the first quarter of this year.

Core profit rose during by 13.1% to LIS443.6m, comprising 26.2% of total revenues. The company said its net profit, after deducting various expenses, totalled LIS113m and its operating profit was LIS80.5m.

Blue Square's overall performance points to a significant rise in the company's net profit, which increased by 46.3%, due to more efficient management and operating procedures.