Israeli food importer G. Willi warns of delays, higher costs from Red Sea attacks

G Willi Food International

21/12/2023 13:25

JERUSALEM, Dec 21 (Reuters) - Israeli food importer G.
Willi-Food International  WILC.O  said on Thursday the Gaza war
has so far not impacted its operations but that business could
be harmed by consequences of attacks by Iran-backed Houthi
militants on shipping in the Red Sea.
    G. Willi reported third-quarter net profit of 4.9 million
shekels ($1.4 million), down from 7.6 million shekels a year
earlier on flat sales of 123.9 million.
    The company said that in the wake of the Oct. 7 attack on
Israel by Gaza's ruling Palestinian militant group Hamas and
subsequent rocket fire by Lebanon's Hezbollah into northern
Israel, business activity had slackened in Israel. 
    "We have not recognised a material effect on our operations,
and we have had sufficient workforce to maintain our business
and to support the demand for our products which increased after
this war started," it said.
    Yet, major shipping firms have suspended operations in the
Red Sea and have rerouted ships around Africa's southern tip.
    The Yemen-based Houthis are playing an escalating role in
the Middle East conflict, also firing drones and missiles at
Israel in a campaign they say aims to support Palestinians in
the Gaza war, where Hamas is also backed by Iran.
    "We predict that this development will cause delays,
increased costs, and potential disruptions to the arrival of
goods imported by the company from the Far East," G. Willi said.
    "Due to these challenges ..., it remains difficult to
accurately assess the extent to which the ongoing conflict may
impact our business and financial results in the upcoming
quarters and throughout the duration of the war."
($1 = 3.6093 shekels)

 (Reporting by Steven Scheer; editing by Mark Heinrich)
 ((steven.scheer@thomsonreuters.com; +972 2 632 2210; Reuters
Messaging: Twitter: @StevenMScheer))