The Israel-Gaza conflict has continued to impact G. Willi-Food’s business, with the Israeli food maker reporting a 32.8% decrease in profits for the first nine months of the year.
Willi-Food reported profit of NIS16.6m (US4.5m) for the nine months to 30 September. Operating income fell sharply to NIS16.7m compared with NIS24.7m for the same period a year earlier. Sales were also down 0.3% to NIS253.2m.
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For the third quarter, despite a marginal sales increase of 0.1% to NIS79.1m, operating profit fell 35.1% to NIS4.7m. Net income also decreased 40.9% to NIS5.1m.
Zwi Williger, chairman of Willi-Food, said: “Our results in the third quarter were negatively impacted by Operation Protective Edge that lasted almost two thirds of the third quarter. Despite that, and despite the fact that consumption of food products by Israeli consumers continued to decline sharply for the third quarter in a row, we were able to sustain the level of sales and maintain gross margins of 25%.
“In light of the anticipated continued recession and decreasing private consumption as well as continuing price pressure from consumers, our foreseeable challenges ahead will be in managing our expenses in order to offer our products at the low prices that our customers desire. This will be needed in order to maintain our customer base both in the retail and wholesale markets during these difficult times for the food industry.”
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