Net income at G. Willi-Food climbs 10% in quarter

by Staff
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YAVNE, ISRAEL — Net income for G. Willi-Food International Ltd. in the second quarter ended June 30 was $700,000, equal to 7c per share on the common stock, an 10% increase compared with $600,000, or 7c per share, during the same quarter of the previous year.

Revenue for the quarter increased 29% to $13.1 million, which compared with $10.2 million during the same quarter of 2006.

"Second-quarter results remained strong," said Zwi Williger, president and chief operating officer of Willi-Food. "We experienced some margin pressure in the quarter due to the global increases in raw material prices but are pleased to consistently deliver significantly higher margins than those generated by most other companies in our industry."

For the six months ended June 30, net income was $2.2 million, equal to 22c per share, down 63% compared with $6 million, or 69c per share, during the same period of 2006.

Revenue for the period increased 30% to $29.9 million, which compared with $23 million during the same period of 2006.

The company also is reducing its 2007 estimates for revenue growth to a range of 30% to 40% over the $45.1 million in reported revenues in 2006.

"We have been analyzing revenue and profit contributions across various products and categories and identifying opportunities to eliminate or replace certain items with those generating higher returns," Mr. Williger said. "As we move forward with this process, we are finding more opportunities for product elimination or replacement than we had originally planned, which will likely result in further short-term revenue reductions in these businesses in 2007."

The company also is working to find the right time to penetrate the U.S. kosher dairy market and is moving ahead with building a distribution network in the U.S. through acquisition of channels with local and national retailer relationships, Mr. Williger said.

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