Thanks Chris for info.Two questions -What about inventory on staples that have 1-2 years shelf life.Wouldn't profit margins still be high as the products were purchased for less and with higher prices profits would be even more? 2nd -Do Willi foods benefit from lower U.S.dollar if so how? Thanks
On buy forward contracts, where you advance purchase and stockpile foods, yes you make some decent profit and save margins, Willi Food applied this tactic in the 3rd quarter and into the 4th of fiscal 2007. Unfortunately they had to do that write off in Q4.
For the most part, currency is a push they report in dollars and buy and sell in dollars as well so there is no arbitrage between currency for the most part. Regarding their part of the business that buys in dollars and sells in NIC, sometimes their organic business benefits and sometimes it goes against Willi Food depending on the dollar NIS conversation, which flip flopped twice last year.
PS regarding their warehouse in Yavne, I do think that we've mentioned this in the past but whereas with their old system they were able to store 3 months worth of inventory.
They picked up the new logistics center due to the fact that the port of Yavne was once closed for well over a month due to conflict there, so they decided to avoid any supply issues by building the new warehouse which holds 4 times the store of the old warehouses. How much the company has in current inventory has not been disclosed.