Another blow to the pocket: Diplomat announced to its customers on Thursday that following price increases by the company's suppliers abroad, it will raise the prices of some of the coffee, cookies and tuna products it distributes and markets. Coffee and cookie prices will rise by an average of 6.1%. Prices of tuna products will rise by an average of 4%. Among the company's brands that will become more expensive are Starkist tuna and Oreo cookies.
Diplomat noted in its financial statements this week that "in light of the company's assessment that some of its suppliers intend to continue raising prices during the year, the company will be forced to pass on these price increases to its customers. It should be noted that according to the report, the company's revenue increased, but operating profit and net profit declined.
Starkist tuna marketed by Diplomat, photo: Joshua Yosef
Diplomat's revenues in the first quarter of 2023 amounted to NIS 791 million, compared with NIS 672 million in the first quarter of 2022.
Operating profit in Q2023 28 amounted to approx. NIS 34 million compared with approx. NIS 2022 million in Q2023 21. The Diplomat Group's net profit in Q28 2022 amounted to approx. NIS <> million compared with approx. NIS <> million in Q<> <>.
Shastowitz products on the shelves, photo: Oren Ben Hakon
The current price increase is in addition to the wave of price increases in Israel. About a month ago, Shastovich announced that it was raising prices by up to 15 percent. For example, Pompadour products will increase by 10 percent, Barilla products by 10 to 15 percent, and Master Chef products by 6.4 to 12.6 percent. This increase includes some of the company's products and does not include Colgate products.
Mars, the importer of chocolate and confectionery brands, also announced a price increase. Mars is an importer of sneakers, M&M's, Twix, Bounty, Maltizers and Mars. In addition, it imports the gums: Orbit, Gum Five, Skittles, Gum Airways and Hobba Bova Gum.
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