Tomer Food Shares to Resume Trading Following Inventory Accounting Fix

Trading in the shares of food importer Tomer will resume this coming Wednesday, the Tel Aviv Stock Exchange decided, two months after suspending trading following the resignation of the company's CFO. The CFO uncovered accounting discrepancies in the inventory management of subsidiary Tomer Import and Marketing of Food Products, which could materially affect the share price.

The decision to resume trading follows corrective steps taken by the company, in line with findings from an independent committee it established: the restatement of financial reports for 2025 and the release of financial statements for the first half of the year. The company announced that founder and CEO Doron Kimelov will be removed from his role as chairman after it was discovered that he influenced inventory valuations, triggering the current crisis. Additionally, compliance oversight has been subordinated to Guy Freeman, the CFO and deputy CEO appointed last month.

Financial Results and Losses

Last week, Tomer Food published its first-half results with a month-and-a-half delay, reporting a net loss of 21.3 million NIS. The loss was attributed to a one-time expense related to the company's listing in May. Beyond listing costs, sales grew by 7.8% to 129.5 million NIS, but gross profitability eroded to 19.4% of sales compared to 21.5% in the same period last year. This decline stemmed from lower storage and logistics revenues, as well as inventory write-offs due to pests. Operating profitability dropped to 4.6% of sales compared to 5.7% previously.

Restated Financials

Earlier, the company restated the financial statements of private subsidiary Tomer Food for 2025, including comparative data for 2024 and 2023. The revised reports wiped out the entire net profit of Tomer Food Conglomerate for 2025, which originally stood at 3.09 million NIS before the correction.