Financial Performance - Sales for the third quarter of 2025 were NIS 152.8 million (US$ 46.2 million), remaining at the same level compared to the third quarter of 2024[7] - Gross profit increased by 2.6% year-over-year to NIS 43.1 million (US$ 13.0 million), representing 28.2% of revenues[9] - Operating profit increased by 4.1% year-over-year to NIS 18.3 million (US$ 5.5 million)[11] - Net profit for the third quarter was NIS 19.2 million (US$ 5.8 million), or NIS 1.4 (US$ 0.4) per share[13] - Sales for the nine-month period ending September 30, 2025, increased by 5.2% to NIS 458.2 million (US$ 138.6 million)[15] - Gross profit for the first nine months of 2025 increased by 7.5% to NIS 131.7 million (US$ 39.8 million), or 28.7% of revenues[16] - Operating profit before other expenses for the first nine months of 2025 increased by 16.7% to NIS 58.8 million (US$ 17.8 million)[19] - Net profit increased by 52.9% year-over-year to NIS 70.6 million (US$ 21.3 million), or 15.4% of sales[22] Cash and Assets - Cash and securities balance was NIS 225.4 million (US$ 68.2 million) as of September 30, 2025[13] - Total current assets as of September 30, 2025, were NIS 512,859 thousand, slightly down from NIS 516,470 thousand as of September 30, 2024[30] - Total non-current assets increased to NIS 190,289 thousand as of September 30, 2025, from NIS 146,794 thousand in 2024, reflecting a growth of approximately 29.6%[30] - Total current liabilities decreased to NIS 51,941 thousand as of September 30, 2025, from NIS 63,276 thousand in 2024, a reduction of about 18%[30] - Shareholders' equity attributable to owners of the Company increased to NIS 634,616 thousand as of September 30, 2025, compared to NIS 588,794 thousand in 2024, indicating a growth of approximately 7.8%[30] Cash Flow and Receivables - Net cash from continuing operating activities for the nine months ended September 30, 2025, was NIS 38,789 thousand, significantly higher than NIS 16,122 thousand in the same period of 2024[34] - Net cash flows from operating activities for the nine months ended September 30, 2025, were negative at NIS 31,767 thousand, compared to negative NIS 30,029 thousand for the same period in 2024[35] - Cash generated from operations for the three months ended September 30, 2025, was NIS 24,279 thousand, a significant increase from NIS 14,933 thousand in the previous year[35] - The company reported an increase in trade receivables of NIS 17,135 thousand for the nine months ended September 30, 2025, compared to a decrease of NIS 1,764 thousand in the same period of 2024[35] Expenses and Tax - Depreciation and amortization expenses for the nine months ended September 30, 2025, were NIS 5,829 thousand, up from NIS 5,583 thousand in 2024[35] - Income tax paid for the nine months ended September 30, 2025, was NIS 16,757 thousand, compared to NIS 11,171 thousand in 2024[35] Inventory and Marketable Securities - The company experienced a decrease in inventories of NIS 10,177 thousand for the nine months ended September 30, 2025, compared to a decrease of NIS 35,321 thousand in the same period of 2024[35] - The unrealized gains on marketable securities increased to NIS 24,646 thousand for the nine months ended September 30, 2025, compared to NIS 13,058 thousand in 2024[35] Stock-Based Compensation and Exchange Loss - Stock-based compensation reserve increased to NIS 1,039 thousand for the nine months ended September 30, 2025, from NIS 392 thousand in 2024[35] - Exchange loss on cash and cash equivalents was NIS 1,225 thousand for the nine months ended September 30, 2025, compared to a gain of NIS 1,629 thousand in 2024[35] Capital Gains - The company reported a capital gain on the disposal of property, plant, and equipment of NIS 95 thousand for the nine months ended September 30, 2025, down from NIS 143 thousand in 2024[35] Future Developments - The new refrigerated logistics center is expected to open toward the end of the first quarter of 2026, enhancing logistical capabilities and product availability[6]

Core Viewpoint - G. Willi-Food International Ltd. reported improved gross and operating profit margins for the third quarter of 2025, maintaining sales levels despite fewer working days, and anticipates further growth driven by operational excellence and strategic investments [3][4][6]. Financial Performance Summary - Sales for Q3 2025 were NIS 152.8 million (US$ 46.2 million), unchanged from Q3 2024 [6][10]. - Gross profit increased by 2.6% year-over-year to NIS 43.1 million (US$ 13.0 million), representing 28.2% of revenues compared to 27.5% in Q3 2024 [7][10]. - Operating profit rose by 4.1% year-over-year to NIS 18.3 million (US$ 5.5 million) [9][10]. - Net profit for Q3 2025 was NIS 19.2 million (US$ 5.8 million), or NIS 1.4 (US$ 0.4) per share, down from NIS 20.8 million (US$ 6.3 million) in Q3 2024 [12][10]. Nine-Month Performance Summary - Sales for the nine-month period ending September 30, 2025, increased by 5.2% to NIS 458.2 million (US$ 138.6 million) compared to NIS 435.5 million (US$ 131.7 million) in the same period of 2024 [15][21]. - Gross profit for the first nine months rose by 7.5% to NIS 131.7 million (US$ 39.8 million), or 28.7% of revenues [16][21]. - Operating profit before other expenses increased by 16.7% to NIS 58.8 million (US$ 17.8 million) [19][21]. - Net profit for the first nine months surged by 52.9% to NIS 70.6 million (US$ 21.3 million), or NIS 5.1 (US$ 1.5) per share [24][21]. Operational Insights - The company maintained sales levels despite having approximately three fewer working days in Q3 2025, indicating operational resilience [4][6]. - The decline in exchange rates post-war in Gaza has allowed the company to improve import prices, enhancing its competitive position [5]. - A new refrigerated logistics center is under construction, expected to open by the end of Q1 2026, which will enhance logistical capabilities and support entry into new food categories [5][3]. Cash and Securities Position - As of September 30, 2025, the company had a cash and securities balance of NIS 225.4 million (US$ 68.2 million) [10][13].

Core Viewpoint - G. Willi-Food International Ltd. has declared a cash dividend distribution of approximately NIS 1.44 per ordinary share, totaling an aggregate dividend of NIS 20 million, reflecting the company's ongoing commitment to returning value to shareholders [1][2]. Company Overview - G. Willi-Food International Ltd. specializes in the development, marketing, and international distribution of kosher foods, offering over 650 food products worldwide [3]. - The company serves over 1,500 customers and 3,000 selling points, including large retail chains, wholesalers, and institutional consumers [3]. - Willi-Food operates through its divisions, including Willi-Food in Israel and Euro European Dairies, which focuses on branded kosher dairy products [3]. Dividend Details - The dividend is payable to shareholders of record as of August 25, 2025, with payment scheduled for September 4, 2025 [2]. - The final dividend amount in US dollars is subject to change based on the NIS to US dollar conversion rate on the record date and the number of ordinary shares outstanding [2].

Core Insights - G. Willi-Food International Ltd. reported record-high quarterly revenue, operating profit, profit before tax, and net income for the second quarter of fiscal year 2025 [1][2]. Financial Performance - Sales for Q2 2025 increased by 9.4% to NIS 160.5 million (US$ 47.6 million) compared to NIS 146.7 million (US$ 43.5 million) in Q2 2024 [6][15]. - Gross profit for Q2 2025 decreased by 4.1% to NIS 44.0 million (US$ 13.0 million), representing 27.4% of revenues, down from 31.3% in Q2 2024 [7][15]. - Operating profit after other expenses for Q2 2025 increased by 113.9% to NIS 20.6 million (US$ 6.1 million) compared to NIS 9.6 million (US$ 2.8 million) in Q2 2024 [10][15]. - Net profit for Q2 2025 was NIS 31.9 million (US$ 9.5 million), a significant increase of 365.5% year-over-year from NIS 6.8 million (US$ 2.0 million) in Q2 2024 [12][15]. Operational Developments - The company is enhancing relationships with worldwide suppliers and improving logistics to meet growing product demand [3][5]. - A new state-of-the-art refrigerated logistics center is under construction, expected to be completed by early next year, which will enhance logistical capabilities and storage capacity [5]. Market Strategy - The company is committed to maintaining competitive prices while delivering high-quality products, reflecting its dedication to providing value [4]. - The increase in sales is attributed to improved product availability and higher demand for the company's product portfolio, including private label sales to large retail chains [6][16]. First Half Highlights - For the first half of fiscal 2025, sales increased by 8.0% to NIS 305.3 million (US$ 90.6 million) compared to NIS 282.7 million (US$ 84.0 million) in the first half of 2024 [14][16]. - Gross profit for the first half of 2025 increased by 10.1% to NIS 88.7 million (US$ 26.3 million), representing 29.0% of revenues [17]. - Net profit for the first half of 2025 was NIS 51.4 million (US$ 15.2 million), or NIS 3.7 (US$ 1.1) per share, compared to NIS 25.4 million (US$ 7.5 million) in the first half of 2024 [23][28].

Financial Performance - Sales increased by 9.4% to NIS 160.5 million (US$ 47.6 million) from NIS 146.7 million (US$ 43.5 million) in Q2 2024[9] - Net profit increased by 365.5% year-over-year to NIS 31.9 million (US$ 9.5 million), or NIS 2.3 (US$ 0.7) per share[16] - Operating profit after other expenses increased by 113.9% year-over-year to NIS 20.6 million (US$ 6.1 million) compared to NIS 9.6 million (US$ 2.8 million) in Q2 2024[14] - First half sales increased by 8.0% to NIS 305.3 million (US$ 90.6 million) compared to NIS 282.7 million (US$ 83.8 million) in the first half of 2024[18] - Net profit for the first half of 2025 increased by 102.3% year-over-year to NIS 51.4 million (US$ 15.2 million), or 16.8% of sales[24] - Total sales for the six months ended June 30, 2025, increased to NIS 305,320, up from NIS 282,694 in the same period of 2024, representing an increase of 8.5%[34] - Profit for the period for the six months ended June 30, 2025, was NIS 51,379, compared to NIS 25,401 in the same period of 2024, marking a significant increase of 102.5%[34] Profitability Metrics - Basic earnings per share for the first half of 2025 were NIS 3.7 (US$ 1.1) compared to NIS 1.8 (US$ 0.5) per share in the first half of 2024[26] - Basic earnings per share for the six months ended June 30, 2025, increased to 3.7 NIS, up from 1.8 NIS in the same period of 2024, representing a growth of 105.6%[34] - Operating profit for the six months ended June 30, 2025, rose to NIS 40,587, an increase of 23.5% from NIS 32,839 in the same period of 2024[34] Cash and Assets - Cash and securities balance of NIS 213.9 million (US$ 63.4 million) as of June 30, 2025[17] - Cash and cash equivalents at the end of the financial period were NIS 94,334, a slight decrease from NIS 94,972 at the end of the previous period[36] - Total current assets as of June 30, 2025, amounted to NIS 526,067, compared to NIS 509,417 as of June 30, 2024, indicating a growth of 3.3%[32] - Total non-current assets increased to NIS 181,568 as of June 30, 2025, from NIS 136,065 in the same period of 2024, reflecting a growth of 33.5%[32] - Total current liabilities decreased to NIS 57,313 as of June 30, 2025, from NIS 68,897 in the same period of 2024, a reduction of 16.8%[32] - Shareholders' equity attributable to owners of the Company increased to NIS 634,791 as of June 30, 2025, compared to NIS 567,943 in the same period of 2024, representing an increase of 11.8%[32] Operational Efficiency - Cash generated from operations was negative at NIS 39,289,000 for the six months ended June 30, 2025, compared to a negative cash flow of NIS 33,791,000 in the same period of 2024, indicating worsening operational efficiency[37] - The company reported a net cash flow of NIS 29,636,000 used in operating activities for the three months ended June 30, 2025, compared to NIS 25,571,000 for the same period in 2024, indicating a 8.1% increase in cash outflow[37] Investment and Expenses - Financial income, net for the first half of 2025 totaled NIS 25.2 million (US$ 7.5 million), compared to NIS 14.1 million (US$ 4.2 million) in the first half of 2024[25] - Depreciation and amortization expenses increased to NIS 3,773,000 for the six months ended June 30, 2025, up from NIS 2,644,000 in the prior year, representing a 42.7% increase[37] - The company reported a significant unrealized loss on marketable securities of NIS 19,353,000 for the six months ended June 30, 2025, compared to a loss of NIS 6,821,000 in the same period of 2024, reflecting a deterioration in investment performance[37] - Income tax paid increased to NIS 9,541,000 for the six months ended June 30, 2025, compared to NIS 6,561,000 in the same period of 2024, reflecting higher tax obligations[37] Inventory and Receivables - The increase in trade receivables and other receivables was NIS 6,684,000 for the six months ended June 30, 2025, compared to NIS 1,339,000 in the same period of 2024, indicating a growing challenge in cash collection[37] - The company experienced a decrease in inventories of NIS 18,259,000 for the six months ended June 30, 2025, compared to a significant decrease of NIS 59,433,000 in the same period of 2024, suggesting improved inventory management[37] Future Developments - The company is constructing a new state-of-the-art refrigerated logistics center expected to be completed by early next year[8]

Group 1 - G Willi-Food International reported strong financial results for 4Q24 and 1Q25, consistent with previous trends noted in earlier analyses [1] Group 2 - The investment approach focuses on long-term operational aspects and earnings potential rather than short-term market dynamics [2] - The strategy emphasizes holding companies that demonstrate strong fundamentals, with a preference for a small number of buy recommendations [2]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) This section provides an overview of the company's Q1 2025 financial performance and strategic initiatives [Q1 2025 Performance Overview](index=1&type=section&id=First%20Quarter%20Fiscal%20Year%202025) G. Willi-Food International reported strong financial results for Q1 2025, with significant year-over-year increases in gross profit (28.8%) and operating profit (71.7%), driven by sales growth and improved commercial terms Key Financial Metrics (NIS millions) | Metric | Q1 2025 (NIS millions) | Q1 2024 (NIS millions) | YoY Change (%) | | :----- | :--------------------- | :--------------------- | :------------- | | Sales | 144.8 | 136.0 | 6.5% | | Gross Profit | 44.6 | 34.7 | 28.8% | | Operating Profit | 20.0 | 11.6 | 71.7% | | Net Profit | 19.5 | 18.6 | 5.1% | | Basic EPS | 1.41 | 1.34 | 5.2% | | Cash & Cash Equivalents (as of March 31, 2025) | 234.0 | N/A | N/A | [Management Commentary & Strategic Initiatives](index=1&type=section&id=Management%20Comment) Management expressed satisfaction with the company's growth trajectory in sales and profitability, highlighting ongoing efforts to expand the product portfolio, strengthen shelf presence, improve commercial terms, and invest in a new logistics center for future expansion into new categories - The company continues to expand its product portfolio while simultaneously working to strengthen the shelf presence of traditional core products[5](index=5&type=chunk) - Efforts are underway to improve commercial terms with both suppliers and customers to further enhance profitability[6](index=6&type=chunk) - Investment in a new logistics center is expected to be completed by the end of the year, aiming to become a key growth engine for business expansion, particularly into new categories like chilled and frozen products[6](index=6&type=chunk) [Detailed Financial Review - First Quarter Fiscal 2025](index=2&type=section&id=Detailed%20Financial%20Review%20-%20First%20Quarter%20Fiscal%202025) This section provides an in-depth analysis of the company's sales, profitability, balance sheet, and cash flow performance for Q1 2025 [Sales Performance](index=2&type=section&id=Sales%20Performance) Sales for Q1 2025 increased by 6.5% year-over-year, reaching NIS 144.8 million, primarily due to higher inventory levels and improved product availability Sales Data (NIS millions) | Metric | Q1 2025 (NIS millions) | Q1 2024 (NIS millions) | YoY Change (%) | | :----- | :--------------------- | :--------------------- | :------------- | | Sales | 144.8 | 136.0 | 6.5% | - The increase in sales was attributed to higher inventory levels and improved product availability for customers[8](index=8&type=chunk) [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) This section details the company's gross profit, operating expenses, operating profit, and net profit performance for Q1 2025 [Gross Profit](index=2&type=section&id=Gross%20profit) Gross profit and margins significantly improved in Q1 2025 due to better commercial terms and a focus on a more profitable product mix Gross Profit Data (NIS millions) | Metric | Q1 2025 (NIS millions) | Q1 2024 (NIS millions) | YoY Change (%) | Q1 2025 Margin | Q1 2024 Margin | | :----- | :--------------------- | :--------------------- | :------------- | :------------- | :------------- | | Gross Profit | 44.6 | 34.7 | 28.8% | 30.8% | 25.5% | - Increases in gross profit and gross margins were driven by efforts to improve commercial terms with customers and suppliers and a focus on selling a more profitable product portfolio[9](index=9&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20costs%20and%20expenses%3A) Operating expenses saw increases in selling and general & administrative categories, primarily driven by higher salaries, distribution costs, and management compensation provisions Operating Expenses (NIS millions) | Metric | Q1 2025 (NIS millions) | Q1 2024 (NIS millions) | YoY Change (%) | Q1 2025 % of Revenue | Q1 2024 % of Revenue | | :----- | :--------------------- | :--------------------- | :------------- | :------------------- | :------------------- | | Selling Expenses | 17.1 | 16.5 | 3.9% | 11.8% | 12.1% | | G&A Expenses | 7.6 | 6.6 | 15.4% | 5.2% | 4.8% | - Selling expenses increased mainly due to higher salary and distribution expenses[10](index=10&type=chunk) - General and administrative expenses increased primarily due to the provision for compensation based on profit to senior management[11](index=11&type=chunk) [Operating Profit](index=2&type=section&id=Operating%20profit) Operating profit increased substantially in Q1 2025, primarily driven by the significant improvement in gross profit Operating Profit Data (NIS millions) | Metric | Q1 2025 (NIS millions) | Q1 2024 (NIS millions) | YoY Change (%) | Q1 2025 Margin | Q1 2024 Margin | | :----- | :--------------------- | :--------------------- | :------------- | :------------- | :------------- | | Operating Profit | 20.0 | 11.6 | 71.7% | 13.8% | 8.5% | - The increase in operating profit was primarily due to the increase in gross profit[12](index=12&type=chunk) [Financial Income & Net Profit](index=2&type=section&id=Financial%20income%2C%20net) Net financial income decreased in Q1 2025, while net profit and basic EPS showed modest growth Financial Income and Net Profit (NIS millions) | Metric | Q1 2025 (NIS millions) | Q1 2024 (NIS millions) | YoY Change (%) | | :----- | :--------------------- | :--------------------- | :------------- | | Financial Income, Net | 5.2 | 11.5 | -54.8% | | Income Before Taxes | 25.1 | 23.1 | 8.7% | | Net Profit | 19.5 | 18.6 | 4.8% | | Basic EPS | 1.41 | 1.34 | 5.2% | - Financial income, net for Q1 2025 comprised mainly of **NIS 2.3 million** from revaluation of securities and **NIS 2.8 million** from interest and dividend income from securities[13](index=13&type=chunk) [Balance Sheet & Liquidity Highlights](index=2&type=section&id=Balance%20Sheet%20%26%20Liquidity%20Highlights) The company maintained a strong liquidity position with NIS 234.0 million in cash and securities and reported shareholders' equity of NIS 603.0 million at the end of Q1 2025 Liquidity and Equity Highlights (NIS millions) | Metric | Amount (NIS millions) | | :----- | :-------------------- | | Cash and Securities (as of March 31, 2025) | 234.0 | | Shareholders' Equity (as of March 31, 2025) | 603.0 | [Cash Flow Summary](index=2&type=section&id=Cash%20Flow%20Summary) Net cash generated from operating activities for Q1 2025 was NIS 0.3 million Operating Cash Flow (NIS millions) | Metric | Q1 2025 (NIS millions) | | :----- | :--------------------- | | Net Cash from Operating Activities | 0.3 | [Company Information & Disclosures](index=3&type=section&id=Company%20Information%20%26%20Disclosures) This section provides background on G. Willi-Food International, outlines forward-looking statements, and details financial reporting standards [About G. Willi-Food International Ltd.](index=3&type=section&id=ABOUT%20G.%20WILLI-FOOD%20INTERNATIONAL%20LTD.) G. Willi-Food International Ltd. is an Israeli-based global company specializing in the development, marketing, and international distribution of over 650 high-quality kosher food products, serving a wide range of customers in Israel and worldwide - G. Willi-Food International Ltd. is an Israeli-based company specializing in high-quality, great-tasting kosher food products[19](index=19&type=chunk) - The company is engaged in the design, import, marketing, and distribution of over **650** food products worldwide[19](index=19&type=chunk) - Willi-Food markets and sells its products to over **1,500** customers and **3,000** selling points in Israel and globally, including large retail and private supermarket chains, wholesalers, and institutional consumers[19](index=19&type=chunk) - Operating divisions include Willi-Food in Israel and Euro European Dairies, a wholly owned subsidiary for branded kosher, dairy-food products[19](index=19&type=chunk) [Forward-Looking Statements & Risk Factors](index=3&type=section&id=FORWARD%20LOOKING%20STATEMENT) This section outlines forward-looking statements regarding future performance and strategic initiatives, along with various known and unknown risks and uncertainties that could materially affect actual results, including monetary risks, operational challenges, and geopolitical conditions - Risks include the inability to improve commercial terms with customers and suppliers, delays in the construction of the new logistics center, and the risk that its expected benefits will not materialize[20](index=20&type=chunk) - Monetary risks include changes in marketable securities or currency exchange rates, especially the NIS/U.S. Dollar exchange rate[20](index=20&type=chunk) - Operational and external risks encompass payment default by major clients, loss of key personnel, changes in laws and regulations, termination of supplier arrangements, increasing competition, and changes in political, economic, and military conditions in Israel, including the recent war[20](index=20&type=chunk) - Additional risks include delays and price increases due to attacks on global shipping routes in the Red Sea, and the inability to accurately predict consumption and changes in consumer preferences[20](index=20&type=chunk) [Notes on Financial Reporting](index=3&type=section&id=NOTE%20A%3A%20NIS%20to%20US%24%20exchange%20rate%20used%20for%20convenience%20only) The financial results are presented in accordance with IFRS, with U.S. dollar translations provided solely for convenience using the exchange rate prevailing on March 31, 2024 - 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**[17](index=17&type=chunk) - The Company's consolidated financial results are presented in accordance with **International Financial Reporting Standards ("IFRS")**[18](index=18&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated balance sheets, statements of operations, and cash flows for the reported periods [Condensed Consolidated Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The balance sheet reflects the company's financial position, including assets, liabilities, and equity, as of March 31, 2025 Condensed Consolidated Balance Sheets (NIS) | | March 31, 2025 | March 31, 2024 | December 31, 2024 | | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | **Current assets** | | | | | Cash and cash equivalents | 116,870 | 134,850 | 122,938 | | Financial assets at fair value through profit or loss | 117,120 | 109,571 | 123,189 | | Trade receivables, Net | 172,919 | 154,565 | 171,331 | | Other receivables and prepaid expenses | 7,287 | 13,552 | 7,384 | | Inventories, Net | 123,152 | 74,882 | 98,234 | | Current tax assets | - | 6,759 | 744 | | **Total current assets** | **537,348** | **494,179** | **523,820** | | **Non-current assets** | | | | | Property, plant and equipment | 179,515 | 128,936 | 168,217 | | Less -Accumulated depreciation | 59,679 | 56,876 | 58,349 | | | 119,836 | 72,060 | 109,868 | | Right of use asset | 4,838 | 3,376 | 4,814 | | Financial assets at fair value through profit or loss | 50,332 | 46,159 | 47,842 | | Goodwill | 36 | 36 | 36 | | **Total non-current assets** | **175,042** | **121,631** | **162,560** | | **Total Assets** | **712,390** | **615,810** | **686,380** | | **EQUITY AND LIABILITIES** | | | | | **Current liabilities** | | | | | Current maturities of lease liabilities | 1,939 | 1,760 | 2,179 | | Trade payables | 35,047 | 20,728 | 28,203 | | Employees Benefits | 5,904 | 4,769 | 4,532 | | Other payables and accrued expenses | 52,916 | 18,617 | 25,015 | | **Total current liabilities** | **95,806** | **45,874** | **59,929** | | **Non-current liabilities** | | | | | Lease liabilities | 2,730 | 1,588 | 2,521 | | Deferred taxes | 9,706 | 6,287 | 9,888 | | Retirement benefit obligation | 1,102 | 1,055 | 1,102 | | **Total non-current liabilities** | **13,538** | **8,930** | **13,511** | | **Shareholders' equity** | | | | | Share capital | 1,491 | 1,490 | 1,491 | | Additional paid in capital | 173,614 | 172,789 | 173,062 | | Remeasurement of the net liability in respect of defined benefit | (256) | (154) | (256) | | Capital fund | 247 | 247 | 247 | | Retained earnings | 428,578 | 387,262 | 439,024 | | Treasury shares | (628) | (628) | (628) | | **Equity attributable to owners of the Company** | **603,046** | **561,006** | **612,940** | | **Total Equity and Liabilities** | **712,390** | **615,810** | **686,380** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) This statement details the company's revenues, costs, and expenses, leading to net profit for the three months ended March 31, 2025 Condensed Consolidated Statements of Operations (NIS) | | Three months ended March 31, 2025 (NIS) | Three months ended March 31, 2024 (NIS) | | :--- | :--- | :--- | | Sales | 144,843 | 136,036 | | Cost of sales | 100,215 | 101,385 | | Gross profit | 44,628 | 34,651 | | Operating costs and expenses: | | | | Selling expenses | 17,111 | 16,475 | | General and administrative expenses | 7,558 | 6,550 | | Operating profit | 19,959 | 11,626 | | Financial income | 5,491 | 12,303 | | Financial expense | (320) | (822) | | Total financial income | 5,171 | 11,481 | | Income before taxes on income | 25,130 | 23,107 | | Taxes on income | (5,625) | (4,554) | | Profit for the period | 19,505 | 18,553 | | Earnings per share: | | | | Basic earnings per share | 1.41 | 1.34 | | Diluted earnings per share | 1.39 | 1.34 | | Shares used in computation of basic EPS | 13,877,447 | 13,867,017 | | Shares used in computation of diluted EPS | 13,988,885 | 13,867,017 | | Actual number of shares | 13,877,447 | 13,867,017 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) This statement summarizes the cash inflows and outflows from operating, investing, and financing activities for the three months ended March 31, 2025 Condensed Consolidated Statements of Cash Flows (NIS) | | Three months ended March 31, 2025 (NIS) | Three months ended March 31, 2024 (NIS) | | :--- | :--- | :--- | | **CASH FLOWS - OPERATING ACTIVITIES** | | | | Profit from continuing operations | 19,505 | 18,553 | | Adjustments to reconcile net profit to net cash from continuing operating activities (Appendix A) | (19,194) | (14,781) | | Net cash from continuing operating activities | 311 | 3,772 | | **CASH FLOWS - INVESTING ACTIVITIES** | | | | Acquisition of property plant and equipment | (529) | (2,393) | | Acquisition of property plant and equipment under construction | (10,769) | (4,321) | | Proceeds from sale of marketable securities, net | 5,140 | 623 | | Net cash from continuing investing activities | (6,158) | (6,091) | | **CASH FLOWS - FINANCING ACTIVITIES** | | | | Lease liability payments | (580) | (719) | | Net cash used in continuing financing activities | (580) | (719) | | Decrease in cash and cash equivalents | (6,427) | (3,038) | | Cash and cash equivalents at the beginning of the year | 122,938 | 137,466 | | Exchange gains on cash and cash equivalents | 359 | 422 | | Cash and cash equivalents at the end of the year | 116,870 | 134,850 | [Appendix to Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=APPENDIX%20TO%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) This appendix provides detailed adjustments reconciling net profit to net cash from operating activities Appendix to Condensed Consolidated Statements of Cash Flows (NIS) | | Three months ended March 31, 2025 (NIS) | Three months ended March 31, 2024 (NIS) | | :--- | :--- | :--- | | **A. Adjustments to reconcile net profit to net cash from continuing operating activities:** | | | | Increase (decrease) in deferred income taxes | (182) | 1,419 | | Unrealized loss (gain) on marketable securities | (1,561) | (8,047) | | Depreciation and amortization | 1,855 | 1,849 | | Stock based compensation reserve | 552 | 200 | | Exchange gains on cash and cash equivalents | (359) | (422) | | **Changes in assets and liabilities:** | | | | Decrease in trade receivables and other receivables | 1,469 | 7,682 | | Increase in inventories | (24,918) | (12,407) | | Increase (decrease) in trade payables, other payables and other current liabilities | 6,166 | (2,537) | | Cash generated from operations | (16,978) | (12,263) | | Income tax paid | (2,216) | (2,518) | | Net cash flows used in operating activities | (19,194) | (14,781) |

Core Viewpoint - G. Willi-Food International Ltd. reported strong financial results for the first quarter of fiscal year 2025, with significant increases in gross profit and operating profit, indicating a positive growth trajectory in sales and profitability [1][3][5]. Financial Performance - Sales for Q1 2025 increased by 6.5% to NIS 144.8 million (US$ 38.9 million) from NIS 136.0 million (US$ 36.6 million) in Q1 2024 [5][9]. - Gross profit rose by 28.8% to NIS 44.6 million (US$ 12.0 million), representing 30.8% of revenues, compared to NIS 34.7 million (US$ 9.3 million) or 25.5% of revenues in Q1 2024 [6][9]. - Operating profit surged by 71.7% to NIS 20.0 million (US$ 5.4 million), accounting for 13.8% of revenues, up from NIS 11.6 million (US$ 3.1 million) or 8.5% of revenues in the previous year [10][9]. - Net profit increased by 5.1% to NIS 19.5 million (US$ 5.2 million), with basic earnings per share of NIS 1.41 (US$ 0.38) compared to NIS 1.34 (US$ 0.4) in Q1 2024 [12][9]. Cost Management - Selling expenses rose by 3.9% to NIS 17.1 million (US$ 4.6 million), representing 11.8% of revenues, while general and administrative expenses increased by 15.4% to NIS 7.6 million (US$ 2.0 million), or 5.2% of revenues [7][8]. Strategic Initiatives - The company is focused on expanding its product portfolio and enhancing the shelf presence of core products to drive future sales growth [3][4]. - Investments are being made in a new logistics center expected to be completed by the end of the year, which is anticipated to support business expansion into new product categories, particularly chilled and frozen products [4][3]. Cash Position - As of March 31, 2025, the company had cash and cash equivalents of NIS 234.0 million (US$ 62.9 million) [13][9].

Financial Performance - Revenues for fiscal year 2024 increased by 6% to NIS 575.8 million (USD 157.9 million) from NIS 543.3 million (USD 149.8 million) in fiscal year 2023[162] - Gross profit for fiscal year 2024 increased by 33.8% to NIS 161.3 million (USD 44.2 million), representing 28.0% of revenues, compared to 22.2% of revenues in fiscal year 2023[163] - Operating profit for fiscal year 2024 increased by 169.7% to NIS 54.9 million (USD 15.1 million), or 9.5% of revenues, from NIS 20.4 million (USD 5.6 million) in fiscal year 2023[167] - Financial income, net, for fiscal year 2024 totaled NIS 37.8 million (USD 10.4 million), compared to NIS 18.8 million (USD 5.2 million) in fiscal year 2023[168] - Net profit for fiscal year 2024 increased by 122.1% to NIS 70.3 million (USD 19.3 million), or NIS 5.07 (USD 1.39) per share, from NIS 31.7 million (USD 8.7 million) in fiscal year 2023[171] Cash Flow and Working Capital - Cash and cash equivalents as of December 31, 2024, were NIS 122.9 million (USD 33.7 million), down from NIS 137.5 million (USD 37.9 million) as of December 31, 2023[173] - Trade receivables as of December 31, 2024, were NIS 171.3 million (USD 47.0 million), compared to NIS 160.4 million (USD 44.2 million) as of December 31, 2023[180] - Net cash from operating activities for fiscal year 2024 was approximately NIS 42.9 million (USD 11.8 million), up from NIS 33.7 million (USD 9.2 million) in fiscal year 2023[175] - Net cash used in investing activities for fiscal year 2024 was approximately NIS 45.7 million (USD 12.5 million), compared to NIS 4.7 million (USD 1.3 million) in fiscal year 2023[176] - Working capital as of December 31, 2024, was NIS 463.9 million (USD 127.2 million), compared to NIS 444.0 million (USD 122.4 million) as of December 31, 2023[178] Economic Indicators - The GDP growth rate in Israel is expected to be 4.0% in 2025 and 4.5% in 2026, driven by increased private consumption and investment[189] - The unemployment rate decreased from 3.3% at the end of 2023 to 3.1% at the end of 2024[190] - The government budget deficit increased to 7.7% of GDP in 2024, up from 4.2% in 2023, with an expected reduction to 4.7% in 2025[191] - The debt-to-GDP ratio is projected to rise to 69% by the end of 2025, compared to approximately 60% before the war[191] - The Bank of Israel maintained the interest rate at 4.5% during the second half of 2024 and into 2025[192] - The annual inflation rate in Israel was 3.4% in 2024, with long-term inflation expectations remaining stable[190] Company Strategy and Risks - The company is assessing the financial stability of its customers through various means, including examining bank accounts and monitoring negative publicity[193] - The company has not entered into any index-linked loans in 2024, indicating a cautious approach to financial agreements[190] - The company faces risks from market competition and changes in consumer preferences, which could impact its operating results[20] - The company is controlled by Willi-Food Investments Ltd., which holds a significant concentration of shares[20]

Company Overview - G. Willi-Food International Ltd. specializes in the development, marketing, and international distribution of kosher foods, offering over 650 food products worldwide [3] - The company operates through its divisions, including Willi-Food in Israel and Euro European Dairies, focusing on branded kosher dairy products [3] Dividend Announcement - The Board of Directors has declared a cash dividend distribution of approximately NIS 2.16 per ordinary share, totaling an aggregate dividend of NIS 30 million (approximately US$0.6 and US$8.27 million) [1][2] - The dividend is payable to shareholders of record as of March 24, 2025, and will be distributed on April 7, 2025 [2] Market Position - G. Willi-Food is one of Israel's leading food importers, marketing its products to over 1,500 customers and 3,000 selling points globally, including large retail chains and wholesalers [3]