Israeli food importer G. Willi warns of delays, higher costs from Red Sea attacks
JERUSALEM, Dec 21 (Reuters) - Israeli food importer G. Willi-Food International 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)
