Israeli food distributor G. Willi-Food booked a drop in profit for the first quarter as pressure on pricing and higher promotional costs hit the bottom line.

Operating income fell 30% in the three months to NIS6.4m (US$1.8m) the company said. Net income fell 13.9%.

The company said it was squeezed by greater pressure to drop prices from its customers and an increase in global prices.

Sales in the period were up, however, climbing almost 5% year-on-year.