Israel food importer G. Willi Food has booked a drop in first-quarter profit as earnings were hit by “continued customer pressure to reduce prices”.
In the three months to the end of March, net profit slid 21.8% to NIS4.8m (US$1.3m). Operating profit dropped 25.4% to NIS4.7m, the retailer reported this week.
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Chairman Zwi Williger said the company faced “continued consumer pressure” during the quarter, to reduce prices, which resulted in a decrease in profits.
Sales in the period, hoewever, increased by 4.6% to NIS73.7m, driven by the introduction of new products and the timing of the Passover festival that fell during the first quarter this year. Last year it fell in the second quarter.
Going forward, Williger said the company anticipates “a significant increase in the level of uncertainty” in the global economy.
“Our foreseeable challenge will be to manage the cost of our products and our other expenses in order to accommodate the continued desire of our customers to acquire lower cost products,” he said. “However, we believe that this period presents us with an opportunity utilise our cash on hand to acquire synergetic companies at prices lower than before. We continue to look for opportunities to create additional value for our shareholders.”
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By GlobalDataClick here to view the full earnings release.
