G. Willi-Food International Ltd. , a global company specializing in the development, manufacturing, marketing and international distribution of kosher foods, on Tuesday announced its unaudited financial results for the first quarter ended March 31, 2011 with net income of US$ 1.8 million compared to US$ 2.1 million in the same period in 2011.
The company commented that the results were affected by the shift of Passover sales to the second quarter, causing sales to fall to US$ 25.4 million from US$ 27.3 million, and by hard sale activities (special discounts, samples and free tasting offered to customers to enhance the awareness to new products) which caused gross margin to fall to 26.0% from 29.7% for the same period in 2010
Commenting on higher margin food products, including premium frozen kosher Neapolitan Pizza and a new series of premium impulse kosher Italian Gelato ice-cream, Mr. Zwi Williger (President and COO of Willi-Food) said: "We have taken the appropriate measures to position Willi-Food for a stronger fiscal 2011 by adding new premium higher margin food products to our product line and by highly focusing on reducing production costs and SG&A expenses. We remain focused on maximizing long-term profitability."
The stock fell almost 4% on opening but largely recovered to close down just 1.03% at $7.40.
Disclosure: The author has no long or short positions in G. Willi-Food International Ltd.
Forward-Looking Statements: Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially.