Israel food importer G. Willi Food has seen a drop in third-quarter profits on the back heavy discounting and expects fourth-quarter results to be affected by the continuing economic situation.
For the three months to the end of September, the company yesterday (28 November) reported net income from continuing operations of ILS2.3m (US$608,902), down from ILS7.8m the same period last year. Operating income dropped 51.7% to ILS4m.
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Sales jumped 7.1% to reach ILS85.3m during the three months. G. Willi Food said the growth was due to “increased awareness to the company’s new products following intensified sales activities”.
Zwi Williger, chairman of Willi-Food said: “Third quarter results were affected by the national protest against the cost of food products which led our customers to reduce the selling prices of food products, pressuring us to decrease our selling prices to them.”
He added that the period was also affected by the increase in global purchase prices, the depreciation of the ILS versus the US dollar, and continued global economic uncertainty.
“We believe that Willi-Food’s results in the fourth quarter of 2011 and in 2012 will be affected by the economic situation and significant recession that has affected our customers and the global markets,” Williger said.
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By GlobalDataFor the nine months ended 30 September, G. Willi Food reported income from continuing operations of ILS15.7m, down from ILS21.2m in the same period last year. Operating income dropped to ILS22.5m from ILS25.6m last year. However, sales increased to ILS264.7m, from ILS257.3m in 2010.
