GROSS PROFIT INCREASED BY 28.8% AND OPERATING PROFIT INCREASED BY 71.7% OVER COMPARABLE PERIOD IN 2024
YAVNE, Israel, May 19, 2025 /PRNewswire/ -- G. Willi-Food International Ltd. (NASDAQ: WILC) (the "Company" or "Willi-Food"), a global company that specializes in the development, marketing and international distribution of kosher foods, today announced its unaudited financial results for the first quarter ended March 31, 2025.
First Quarter Fiscal Year 2025
- Sales increased by 6.5% to NIS 144.8 million (US$ 38.9 million) from NIS 136.0 million (US$ 36.6 million) in the first quarter of 2024.
- Gross profit increased by 28.8% year-over-year to NIS 44.6 million (US$ 12.0 million).
- Operating profit increased by 71.7% year-over-year to NIS 20.0 million (US$ 5.4 million).
- Net profit increased by 5.1% year-over-year to NIS 19.5 million (US$ 5.2 million).
- Basic earnings per share of NIS 1.41 (US$ 0.38).
- Cash and cash equivalents balance of NIS 234.0 million (US$ 62.9 million) as of March 31, 2025.
Management Comment
Zwi Williger, Chairman, and Joseph Williger, CEO, commented:
"We are pleased to present our financial results for the first fiscal quarter of 2025. During the quarter, the company maintained its growth trajectory, both in sales and profitability.
We continue to expand our product portfolio while simultaneously working to strengthen the shelf presence of our traditional core products. We believe these efforts will drive future sales growth.
In parallel, the company is working to improve the commercial terms with both its suppliers and customers to further enhance profitability.
We are also investing in the development of our new logistics center, which is expected to be completed by the end of the year. We believe this facility will become a key growth engine for the company, enabling continued business expansion - particularly into new categories where we are not yet active, especially chilled and frozen products.
We remain optimistic about our path forward and are confident in our ability to sustain improvements and growth throughout 2025 and beyond."
First Quarter Fiscal 2025 Summary
Sales for the first quarter of 2025 increased by 6.5% to NIS 144.8 million (US$ 38.9 million) from NIS 136.0 million (US$ 36.6 million) recorded in the first quarter of 2024. The increase in sales was attributed to higher inventory levels and improved product availability for customers.
Gross profit for the first quarter of 2025 increased by 28.8% to NIS 44.6 million (US$ 12.0 million), or 30.8% of revenues, from NIS 34.7 million (US$ 9.3 million), or 25.5% of revenues, recorded in the first quarter of 2024. The increases in gross profit and gross margins were driven by the Company's efforts to improve the commercial terms with its customers and suppliers and its focus on selling a more profitable products portfolio.
Selling expenses increased by 3.9% to NIS 17.1 million (US$ 4.6 million), or 11.8% of revenues, compared to NIS 16.5 million (US$ 4.4 million), or 12.1% of revenues, recorded in the first quarter of 2024. The increase was mainly due to an increase in salary and distribution expenses.
General and administrative expenses for the first quarter of 2025 increased by 15.4% to NIS 7.6 million (US$ 2.0 million), or 5.2% of revenues, from NIS 6.6 million (US$ 1.8 million), or 4.8% of revenues, recorded in the first quarter of 2024. The increase was mainly due to the provision for compensation based on profit to senior management resulting from the increase in operating profit.
Operating profit for the first quarter of 2025 increased by 71.7% to NIS 20.0 million (US$ 5.4 million), or 13.8% of revenues, from NIS 11.6 million (US$ 3.1 million), or 8.5% of revenues, recorded in the first quarter of 2024. The increase in operating profit was primarily due to the increase in gross profit.
Financial income, net decreased to NIS 5.2 million (US$ 1.4 million) recorded in the first quarter of 2025 compared to NIS 11.5 million (US$ 3.1 million) in the first quarter of 2024. Financial income, net for the first quarter of 2025 comprised mainly of income from revaluation of the Company's portfolio of securities to a fair value in an amount of NIS 2.3 million (US$ 0.6 million) and interest and dividend income from the Company's portfolio of securities in an amount of NIS 2.8 million (US$ 0.8 million).
Income before taxes in the first quarter of 2025 was NIS 25.1 million (US$ 6.8 million) compared to NIS 23.1 million (US$ 6.2 million) in the first quarter of 2024.
Net profit in the first quarter of 2025 was NIS 19.5 million (US$ 5.2 million), or NIS 141.0 (US$ 0.38) per share, compared to NIS 18.6 million (US$ 5.0 million), or NIS 1.34 (US$ 0.4) per share, recorded in the first quarter of 2024.
Willi-Food ended the first quarter of 2025 with NIS 234.0 million (US$ 62.9 million) in cash and securities. Net cash from operating activities for the first quarter of 2025 was NIS 0.3 million (US$ 0.1 million).
Willi-Food's shareholders' equity at the end of March 2025 was NIS 603.0 million (US$ 162.2 million).
NOTE A: NIS to US$ exchange rate used for convenience only
The convenience translation of New Israeli Shekels (NIS) into U.S. dollars was made at the rate of exchange prevailing on March 31, 2024, with U.S. $1.00 equal to NIS 3.718 The translation was made solely for the convenience of the reader.
NOTE B: IFRS
The Company's consolidated financial results for the three-month period ended March 31, 2025 are presented in accordance with International Financial Reporting Standards ("IFRS").
ABOUT G. WILLI-FOOD INTERNATIONAL LTD.
G. Willi-Food International Ltd. (http://www.willi-food.com) is an Israeli-based company specializing in high-quality, great-tasting kosher food products. Willi-Food is engaged directly and through its subsidiaries in the design, import, marketing and distribution of over 650 food products worldwide. As one of Israel's leading food importers, Willi-Food markets and sells its food products to over 1,500 customers and 3,000 selling points in Israel and around the world, including large retail and private supermarket chains, wholesalers and institutional consumers. The Company's operating divisions include Willi-Food in Israel and Euro European Dairies, a wholly owned subsidiary that designs, develops and distributes branded kosher, dairy-food products.
FORWARD LOOKING STATEMENT
This press release contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to future events or our future performance, such as statements regarding trends, demand for our products, expected sales, operating results, and earnings. Forward-looking statements include statements regarding the commercial terms with customers and suppliers and timing of construction of the Company's new logistics center and its expected benefits. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied in those forward-looking statements. These risks and other factors include but are not limited to: the inability to improve commercial terms with customers and suppliers: delays in the construction of the Company's new logistics center and the risk that its expected benefits will not be materialized, inability to sustain improvements and growth in the future; monetary risks including changes in marketable securities or changes in currency exchange rates- especially the NIS/U.S. Dollar exchange rate, payment default by any of our major clients, the loss of one of more of our key personnel, changes in laws and regulations, including those relating to the food distribution industry, and inability to meet and maintain regulatory qualifications and approvals for our products, termination of arrangements with our suppliers, loss of one or more of our principal clients, increase or decrease in global purchase prices of food products, increasing levels of competition in Israel and other markets in which we do business, changes in political, economic and military conditions in Israel, particularly the recent war in Israel. Economic conditions in the Company's core markets, delays and price increases due to the attacks on global shipping routes in the Red Sea, our inability to accurately predict consumption of our products and changes in consumer preferences, our inability to protect our intellectual property rights, our inability to successfully integrate our recent acquisitions, insurance coverage not sufficient enough to cover losses of product liability claims, risks associated with product liability claims and risks associated with the start of credit extension activity. We cannot guarantee future results, levels of activity, performance or achievements. The matters discussed in this press release also involve risks and uncertainties summarized under the heading "Risk Factors" in the Company's Annual Report on Form 20-F for the year ended December 31, 2023, filed with the Securities and Exchange Commission on March 21, 2024. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. We do not assume any obligation to update the forward-looking information contained in this press release.
G. WILLI-FOOD INTERNATIONAL LTD. CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
March 31, | December 31 | March 31, | December 31 | |||
2025 | 2024 | 2024 | 2025 | 2024 | 2024 | |
NIS | US dollars (*) | |||||
(in thousands) | ||||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | 116,870 | 134,850 | 122,938 | 31,434 | 36,270 | 33,066 |
Financial assets at fair value through profit or loss | 117,120 | 109,571 | 123,189 | 31,501 | 29,470 | 33,133 |
Trade receivables, Net | 172,919 | 154,565 | 171,331 | 46,509 | 41,572 | 46,081 |
Other receivables and prepaid expenses | 7,287 | 13,552 | 7,384 | 1,960 | 3,645 | 1,986 |
Inventories, Net | 123,152 | 74,882 | 98,234 | 33,123 | 20,140 | 26,421 |
Current tax assets | - | 6,759 | 744 | - | 1,818 | 200 |
Total current assets | 537,348 | 494,179 | 523,820 | 144,527 | 132,915 | 140,887 |
Non-current assets | ||||||
Property, plant and equipment | 179,515 | 128,936 | 168,217 | 48,283 | 34,679 | 45,244 |
Less -Accumulated depreciation | 59,679 | 56,876 | 58,349 | 16,051 | 15,297 | 15,694 |
119,836 | 72,060 | 109,868 | 32,232 | 19,382 | 29,550 | |
Right of use asset | 4,838 | 3,376 | 4,814 | 1,301 | 908 | 1,295 |
Financial assets at fair value through profit or loss | 50,332 | 46,159 | 47,842 | 13,537 | 12,415 | 12,868 |
Goodwill | 36 | 36 | 36 | 10 | 10 | 10 |
Total non-current assets | 175,042 | 121,631 | 162,560 | 47,080 | 32,715 | 43,723 |
707,162 | 615,810 | 686,380 | 190,201 | 165,630 | 184,610 | |
EQUITY AND LIABILITIES | ||||||
Current liabilities | ||||||
Current maturities of lease liabilities | 1,939 | 1,760 | 2,179 | 522 | 473 | 586 |
Trade payables | 35,047 | 20,728 | 28,203 | 9,426 | 5,575 | 7,586 |
Employees Benefits | 5,904 | 4,769 | 4,532 | 1,588 | 1,283 | 1,219 |
Other payables and accrued expenses | 52,916 | 18,617 | 25,015 | 14,233 | 5,007 | 6,728 |
Total current liabilities | 95,806 | 45,874 | 59,929 | 25,769 | 12,338 | 16,119 |
Non-current liabilities | ||||||
Lease liabilities | 2,730 | 1,588 | 2,521 | 734 | 427 | 678 |
Deferred taxes | 9,706 | 6,287 | 9,888 | 2,611 | 1,691 | 2,659 |
Retirement benefit obligation | 1,102 | 1,055 | 1,102 | 296 | 284 | 296 |
Total non-current liabilities | 13,538 | 8,930 | 13,511 | 3,641 | 2,402 | 3,633 |
Shareholders' equity | ||||||
Share capital | 1,491 | 1,490 | 1,491 | 401 | 401 | 401 |
Additional paid in capital | 173,614 | 172,789 | 173,062 | 46,697 | 46,474 | 46,547 |
Remeasurement of the net liability in | (256) | (154) | (256) | (69) | (41) | (69) |
Capital fund | 247 | 247 | 247 | 66 | 66 | 66 |
Retained earnings | 428,578 | 387,262 | 439,024 | 115,271 | 104,159 | 118,082 |
Treasury shares | (628) | (628) | (628) | (169) | (169) | (169) |
Equity attributable to owners of the Company | 603,046 | 561,006 | 612,940 | 162,197 | 150,890 | 164,858 |
707,162 | 615,810 | 686,380 | 190,201 | 165,630 | 184,610 | |
(*) Convenience translation into U.S. dollars. | ||||||
G. WILLI-FOOD INTERNATIONAL LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Three months | Three months | |||
ended | ended | |||
March 31, | March 31, | |||
2025 | 2024 | 2025 | 2024 | |
NIS | US dollars (*) | |||
In thousands (except per share and share data) | ||||
Sales | 144,843 | 136,036 | 38,957 | 36,588 |
Cost of sales | 100,215 | 101,385 | 26,954 | 27,269 |
Gross profit | 44,628 | 34,651 | 12,003 | 9,319 |
Operating costs and expenses: | ||||
Selling expenses | 17,111 | 16,475 | 4,602 | 4,431 |
General and administrative expenses | 7,558 | 6,550 | 2,033 | 1,762 |
Operating profit | 19,959 | 11,626 | 5,368 | 3,126 |
Financial income | 5,491 | 12,303 | 1,477 | 3,309 |
Financial expense | (320) | (822) | (86) | (221) |
Total financial income | 5,171 | 11,481 | 1,391 | 3,088 |
Income before taxes on income | 25,130 | 23,107 | 6,759 | 6,214 |
Taxes on income | (5,625) | (4,554) | (1,513) | (1,225) |
Profit for the period | 19,505 | 18,553 | 5,246 | 4,989 |
Earnings per share: | ||||
Basic earnings per share | 1.41 | 1.34 | 0.38 | 0.36 |
Diluted earnings per share | 1.39 | 1.34 | 0.37 | 0.36 |
Shares used in computation of basic EPS | 13,877,447 | 13,867,017 | 13,877,447 | 13,867,017 |
Shares used in computation of diluted EPS | 13,988,885 | 13,867,017 | 13,988,885 | 13,867,017 |
Actual number of shares | 13,877,447 | 13,867,017 | 13,877,447 | 13,867,017 |
(*) Convenience translation into U.S. dollars. | ||||
G. WILLI-FOOD INTERNATIONAL LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
Three months ended | Three months ended | |||||
March 31, | March 31, | |||||
2025 | 2024 | 2025 | 2024 | |||
NIS | US dollars (*) | |||||
In thousands (except per share and share data) | ||||||
CASH FLOWS - OPERATING ACTIVITIES | ||||||
Profit from continuing operations | 19,505 | 18,553 | 5,246 | 4,989 | ||
Adjustments to reconcile net profit to net cash from continuing | (19,194) | (14,781) | (5,163) | (3,976) | ||
Net cash from continuing operating activities | 311 | 3,772 | 83 | 1,013 | ||
CASH FLOWS - INVESTING ACTIVITIES | ||||||
Acquisition of property plant and equipment | (529) | (2,393) | (142) | (644) | ||
Acquisition of property plant and equipment under construction | (10,769) | (4,321) | (2,896) | (1,162) | ||
Proceeds from sale of marketable securities, net | 5,140 | 623 | 1,382 | 168 | ||
Net cash from continuing investing activities | (6,158) | (6,091) | (1,656) | (1,638) | ||
CASH FLOWS - FINANCING ACTIVITIES | ||||||
Lease liability payments | (580) | (719) | (156) | (193) | ||
Net cash used in continuing financing activities | (580) | (719) | (156) | (193) | ||
Decrease in cash and cash equivalents | (6,427) | (3,038) | (1,729) | (817) | ||
Cash and cash equivalents at the beginning of the year | 122,938 | 137,466 | 33,066 | 36,973 | ||
Exchange gains on cash and cash equivalents | 359 | 422 | 97 | 114 | ||
Cash and cash equivalents at the end of the year | 116,870 | 134,850 | 31,434 | 36,270 | ||
(*) Convenience Translation into U.S. Dollars. | ||||||
G. WILLI-FOOD INTERNATIONAL LTD. APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
CASH FLOWS - OPERATING ACTIVITIES : A. Adjustments to reconcile net profit to net cash from continuing operating activities:
| ||||
Three months | Three months | |||
ended | ended | |||
March 31, | March 31, | |||
2025 | 2024 | 2025 | 2024 | |
NIS | US dollars (*) | |||
(in thousands) | ||||
Increase (decrease) in deferred income taxes | (182) | 1,419 | (49) | 382 |
Unrealized loss (gain) on marketable securities | (1,561) | (8,047) | (419) | (2,164) |
Depreciation and amortization | 1,855 | 1,849 | 499 | 497 |
Stock based compensation reserve | 552 | 200 | 148 | 54 |
Exchange gains on cash and cash equivalents | (359) | (422) | (97) | (114) |
Changes in assets and liabilities: | ||||
Decrease in trade receivables and other receivables | 1,469 | 7,682 | 395 | 2,066 |
Increase in inventories | (24,918) | (12,407) | (6,702) | (3,338) |
Increase (decrease) in trade payables, other payables and | 6,166 | (2,537) | 1,658 | (682) |
Cash generated from operations | (16,978) | (12,263) | (4,567) | (3,299) |
Income tax paid | (2,216) | (2,518) | (596) | (677) |
Net cash flows used in operating activities | (19,194) | (14,781) | (5,163) | (3,976) |
(*) Convenience Translation into U.S. Dollars. | ||||
This information is intended to be reviewed in conjunction with the Company's filings with the Securities and Exchange Commission.
Company Contact:
G. Willi - Food International Ltd.
Yitschak Barabi, Chief Financial Officer
(+972) 8-932-1000
[email protected]
Logo - https://mma.prnewswire.com/media/959267/G_Willi_Food_International_Logo.jpg
SOURCE G. Willi-Food International Ltd.
