Willi-Food(WILC) - 2024 Q4 - Annual Report

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]