G. Willi-Food Reports Impressive Growth in Q1 Financials
G. Willi-Food International Sees Remarkable Growth in First Quarter
GROSS PROFIT INCREASED BY 28.8% AND OPERATING PROFIT INCREASED BY 71.7% OVER COMPARABLE PERIOD IN 2024
G. Willi-Food International Ltd. (NASDAQ: WILC), a leader in the kosher food sector, has released its financial results for the first quarter of 2025. The results reflect a period of significant growth in both revenue and profitability.
Strong Sales Growth
During the first quarter, G. Willi-Food experienced a 6.5% increase in sales, reaching NIS 144.8 million (approximately US$ 38.9 million) compared to NIS 136.0 million (US$ 36.6 million) from the same quarter in 2024. This growth can be attributed to enhanced product availability and increased inventory levels that positively impacted customer satisfaction.
Profitability Increases
The company reported a gross profit of NIS 44.6 million (US$ 12.0 million), signifying a remarkable 28.8% increase year-over-year. Operating profit also stated an impressive surge of 71.7%, landing at NIS 20.0 million (US$ 5.4 million). Further reflecting its solid performance, the net profit increased by 5.1% to NIS 19.5 million (US$ 5.2 million), contributing to a basic earnings per share of NIS 1.41 (US$ 0.38).
Management Reflections on Growth
Chairman Zwi Williger and CEO Joseph Williger expressed their satisfaction with the current results, emphasizing that the company is on a clear growth trajectory. They stated, "We have expanded our product portfolio and are enhancing the shelf presence of our core products, which will bolster future sales growth."
Future Expansion Plans
As part of its strategy, G. Willi-Food is focused on improving commercial terms with suppliers and customers, a move aimed at enhancing profitability further. The company is also investing in a new logistics center to be completed within the year, which will support future expansion into new market segments, particularly in chilled and frozen products.
Financial Overview for First Quarter 2025
The first quarter's sales growth has set a positive tone for the upcoming quarters. The gross margin improved to 30.8% from 25.5% due to the company's strategic focus on selling more profitable products. Selling expenses showed an increase of 3.9% due, primarily, to salary and distribution costs, whereas general and administrative expenses increased by 15.4%, reflecting a proactive approach toward management compensation linked to performance.
G. Willi-Food's operating profit represents 13.8% of revenues, showcasing strong operational efficiency. Despite reduced financial income, the net income before taxes saw a notable climb to NIS 25.1 million (US$ 6.8 million). This reflects the company's ability to navigate financial fluctuations while maintaining profitability.
Balance Sheet Highlights
By the end of the first quarter, the company held a substantial cash and cash equivalents balance of NIS 234.0 million (US$ 62.9 million). This robust liquidity positions G. Willi-Food favorably for future investments and operational stability.
Shareholders' equity at the conclusion of March stands at NIS 603.0 million (US$ 162.2 million), indicating a strong financial foundation as G. Willi-Food progresses through 2025.
About G. Willi-Food International Ltd.
G. Willi-Food International Ltd. is dedicated to providing exceptional kosher food products with a diverse portfolio involving over 650 items marketed worldwide. The company is a key player in kosher food export and distribution, serving a vast customer network comprised of retailers, supermarkets, wholesalers, and institutional clients.
Frequently Asked Questions
1. What are the key financial results for G. Willi-Food in Q1 2025?
The company reported a 6.5% increase in sales, a gross profit increase of 28.8%, and a 71.7% rise in operating profit.
2. How did G. Willi-Food perform in terms of net profit?
Net profit rose by 5.1% year-over-year, reaching NIS 19.5 million (US$ 5.2 million) during the first quarter.
3. What factors contributed to the sales growth?
Increased inventory levels and improved product availability were major contributors to the sales growth.
4. What are the company's future plans for growth?
G. Willi-Food plans to enhance its product portfolio, improve supplier and customer terms, and invest in a new logistics center for expanded operations.
5. How substantial is G. Willi-Food's liquidity?
The company reported a significant cash balance of NIS 234.0 million (US$ 62.9 million), indicating strong liquidity to support future initiatives.
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