Success in pushing through price increases and favourable foreign exchange should see second-half profits and margins rise at G. Willi-Food, the Israeli food group said.

The company yesterday (27 August) reported second-quarter net income of NIS5.3m (US$1.4m) compared to a net loss of NIS2m a year earlier. Sales were up 6% to NIS83.8m.

"The company anticipates 2009 second-half profits and profit margins to be better than in the comparable period in 2008 and in the first half of 2009," G. Willi-Food said.

"The company has been successful in adjusting the selling prices of its products to consumers in accordance with product prices of the company's suppliers, which has enabled the company to increase its gross profits margins.

"During the last five months, the US dollar has depreciated against the New Israeli Shekel by approximately 10%, which has lowered the product purchase prices that the company pay in NIS to its suppliers."

First-half net income was up 74% at NIS11.5m. Half-year turnover, however, fell 3.3% to NIS179.3m

 

More to come...