Tomer Mezon Restates 2025 Financials After Inventory Discrepancies Emerge
Tomer Mezon faces severe financial restatements wiping out its 2025 net profit following inventory inflation findings. Founder Doron Kimlav is being removed as chairman while trading remains suspended.
Tomer Mezon Crisis Deepens as Founder Faces Removal
Food importer Tomer Mezon is taking steps to remove company founder, CEO, and controlling shareholder Doron Kimlav from his position as chairman of the board. The move comes after Kimlav stated before an independent committee that he influenced or caused influence on inventory valuations at various times. The committee decided to replace the chairman, initiating a process to separate the chairmanship from the CEO role.
Financial Restatements and Inventory Discrepancies
The company is expected to restate the financial statements of its private subsidiary, Tomer Mezon, for 2025, including comparative data for 2024 and 2023. According to preliminary estimates, the restatement will effectively wipe out the entire net profit of Tomer Mezon for 2025, which stood at 3.09 million NIS prior to the correction. Consequently, the company's equity as of December 31, 2025, will decrease by 3.2 million NIS to 20.9 million NIS.
"The investigation revealed that inventory costs were artificially inflated and improper revenue recognition practices were applied without proper supporting documentation," market analysts noted.
Bank Waivers and Continued Trading Suspension
Trading in the company's shares will remain suspended until the publication of the restated reports and a final decision by the Israel Securities Authority. Meanwhile, Tomer has secured consent letters from its financing banks—Bank Leumi, First International Bank of Israel, and Mizrahi Tefahot—waiving demands for immediate debt repayment due to covenant breaches based on the 2025 financials.
