Willi-Food(WILC) - 2025 Q2 - Quarterly Report

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]