Earnings release
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WILLIFOOD News FOR IMMEDIATE RELEASE G. WILLI - FOOD INTERNATIONAL REPORTS THE RESULTS OF SECOND QUARTER 2026 WITH SIGNIFICANT IMPROVEMENTS WITH OPERATIONAL PROFIT PARAMETERS YAVNE , Israel August 4 , 2026 - G. Willi - Food International Ltd. ( NASDAQ : WILC ) ( the " Company " or " Willi - Food ” ) , a global company specializing in the development , marketing and international distribution of kosher foods , today announced its unaudited financial results for the second quarter ended June 30 , 2026 . Second Quarter Fiscal Year 2026 • • ● • • Sales were NIS 160.5 million ( US $ 53.7 million ) remaining at the same level as in the second quarter of 2025 . Gross profit increased by 21.5 % year - over - year to NIS 53.5 million ( US $ 18.0 million ) . Operating profit increased by 22.7 % year - over - year to NIS 25.3 million ( US $ 8.5 million ) . Net profit decreased by 33.9 % year - over - year to NIS 21.1 million ( US $ 7.1 million ) . Basic earnings per share of NIS 1.5 ( US $ 0.5 ) . Cash and securities balance of NIS 257.6 million ( US $ 86.5 million ) as of June 30 , 2026 . Management Comment Zwi Williger Chairman and Joseph Williger CEO , commented : “ We are pleased with the continued improvement in the Company's operating profitability , reflecting the successful execution of our strategy and our ongoing focus on a more profitable product portfolio . In addition , the appreciation of the NIS against both the U.S. Dollar and the Euro , the primary currencies in which the Company purchases its products , contributed positively to our cost structure and gross margins during the period . Despite the delays experienced during the first and second quarters of 2026 , we are pleased to report that construction of our new refrigerated logistics center is progressing steadily . Based on the current construction schedule , we expect the facility to become operational during the fourth quarter of 2026 . We believe the new logistics center will serve as a significant growth engine for the Company . Beyond improving our logistics capabilities and reducing operating costs , the facility is expected to enhance our operational flexibility and support our long - term growth strategy by enabling expansion into new product categories and creating additional business opportunities . Looking ahead , we remain optimistic about the Company's future . Supported by our strong balance sheet , disciplined operating strategy and ongoing investments in infrastructure , we believe we are well positioned to continue generating sustainable growth and long - term value for our shareholders " .
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Second Quarter Fiscal 2026 Summary Sales for the second quarter of 2026 were NIS 160.5 million (US$53.7 million), remaining at the same level as in the second quarter of 2025, despite fewer working days in the current quarter compared to the corresponding quarter last year, primarily due to the timing of holidays. Gross profit for the second quarter of 2026 increased by 21.5% to NIS 53.5 million (US$ 18.0 million), or 33.3% of revenues, compared to NIS 44.0 million (US$ 14.8 million), or 27.4% of revenues in the second quarter of 2025. The increase in gross profit and gross profit margin was primarily attributable to the improved purchase prices of the Company’s products, resulting in part from the strengthening of the NIS against the U.S. dollar and the Euro, and the Company’s focus on selling a more profitable product portfolio. Selling expenses for the second quarter of 2026 increased by 18.5% to NIS 19.9 million (US$6.7 million), or 12.4% of revenues, compared to NIS 16.8 million (US$5.6 million), or 10.5% of revenues recorded in the second quarter of 2025. This increase was mai nly due to higher transportation and maintenance expenses, increased advertising and promotion expenses, as well as higher salary expenses resulting from an increase in headcount aimed at enhancing the Company's logistics capabilities, including the preparation of the new logistics center. General and administrative expenses for the second quarter of 2026 increased by 25.3% to NIS 8.3 million (US$2.8 million), or 5.2% of revenues, compared to NIS 6.6 million (US$2.0 million), or 4.1% of revenues recorded in the second quarter of 2025. The in crease was primarily driven by higher payroll expenses, mainly attributable to share-based compensation (employee stock options) and an increase in administrative employees. Operating profit for the second quarter of 2026 increased by 22.7% to NIS 25.3 million (US$8.5 million), or 15.8% of revenues, compared to NIS 20.6 million (US$6.9 million), or 12.9% of revenues, in the second quarter of 2025. The increase was primarily at tributable to the increase in gross profit, partially offset by higher selling and general and administrative expenses. Financial income, net for the second quarter of 2026 totaled NIS 2.0 million (US$ 0.7 million), compared to NIS 20.0 million (US$ 6.7 million) in the second quarter of 2025. The decrease was primarily attributable to significantly lower gains from marketable securities. During the second quarter of 2025, the Company recognized gains of NIS 18.2 million (US$ 6.1 million) from its portfolio of marketable securities, compared to a loss of NIS 0.1 million (US$ 0.03 million) in the second quarter of 2026. Willi-Food’s income before taxes for the second quarter of 2026 was NIS 27.3 million (US$ 9.2 million), compared to NIS 40.6 million (US$ 13.6 million) in the second quarter of 2025. Willi-Food’s net profit in the second quarter of 2026 was NIS 21.1 million (US$ 7.1 million), or NIS 1.5 (US$ 0.5) per share, compared to NIS 31.9 million (US$ 10.7 million), or NIS 2.3 (US$ 0.7) per share, in the second quarter of 2025. Willi-Food ended the second quarter of 2026 with NIS 257.6 million (US$ 86.5 million) in cash and securities. Net cash from operating activities for the second quarter of 2026 was NIS 38.6 million (US$ 13.0 million). Willi-Food’s shareholders’ equity at the end of June 2026 was NIS 675.4 million (US$ 226.8 million).
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First Half Fiscal 2026 Highlights • Sales increased by 4.0% to NIS 317.4 million (US$ 106.6 million), compared to NIS 305.3 million (US$ 102.5 million) in the first half of fiscal year 2025. • Gross profit increased by 15.5% year-over-year to NIS 102.5 million (US$ 34.4 million). • Operating profit increased by 11.7% year-over-year to NIS 45.4 million (US$ 15.2 million). • Net profit decreased by 20.0% year-over-year to NIS 41.1 million (US$ 13.8 million), or 12.9% of sales. • Basic earnings per share of NIS 3.0 (US$ 1.0). First Half Fiscal 2026 Summary Sales for the six-month period ending June 30, 2026, increased by 4.0% to NIS 317.4 million (US$ 106.6 million), compared to NIS 305.3 million (US$ 102.5 million) recorded in the first half of 2025. The increase in sales was attributed to improved product availability for customers and growing demand for the company's products. Gross profit for the first half of 2026 increased by 15.5% to NIS 102.5 million (US$ 34.4 million), or 32.3% of revenues, compared to NIS 88.7 million (US$ 29.8 million), or 29.0% of revenues, in the first half of 2025. The increase in gross profit and gross profit margin was primarily attributable to the increase in sales, improved purchase prices of the Company’s products, resulting in part from the strengthening of the NIS against the U.S. dollar and the Euro, and the Company’s focus on selling a more profitable product portfolio. Selling expenses for the first half of 2026 increased by 20.4% to NIS 40.8 million (US$ 13.7 million), or 12.9% of revenues, compared to NIS 33.9 million (US$ 11.4 million) in the first half of 2025. This increase was mainly due to higher transportation and maintenance expenses, increased advertising and promotion expenses, as well as higher salary expenses resulting from an increase in headcount aimed at enhancing the Company's logistics capabilities, including the onboarding and preparation of personnel for the new logistics center. General and administrative expenses for the first half of 2026 increased by 15.2% to NIS 16.3 million (US$5.5 million), or 5.1% of revenues, compared to NIS 14.2 million (US$4.8 million), or 4.6% of revenues, in the first half of 2025. The increase was primarily attributable to higher payroll expenses, mainly attributable to share-based compensation (employee stock options) and an increase in administrative personnel. Operating profit for the first half of 2026 increased by 11.7% to NIS 45.4 million (US$15.2 million), or 14.3% of revenues, compared to NIS 40.6 million (US$13.6 million), or 13.3% of revenues, in the first half of 2025. The increase was primarily attribut able to the increase in gross profit, partially offset by higher selling and general and administrative expenses. Financial income, net, for the first half of 2026 totaled NIS 7.7 million (US$ 2.6 million), compared to NIS 25.2 million (US$ 8.4 million) in the first half of 2025. The decrease was primarily attributable to significantly lower gains from marketable securities. During the first half of 2025, the Company recognized gains of NIS 19.6 million (US$ 6.6 million) from its portfolio of marketable securities, compared to gains of NIS 2.8 million (US$ 0.9 million) in the first half of 2026.
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Willi-Food’s income before taxes for the first half of 2026 was NIS 53.1 million (US$ 17.8 million), compared to NIS 65.8 million (US$ 22.1 million) in the first half of 2025. Willi-Food’s net profit in the first half of 2026 was NIS 41.1 million (US$ 13.8 million), or NIS 3.0 (US$ 1.1) per share, compared to NIS 51.4 million (US$ 17.3 million), or NIS 3.7 (US$ 1.0) per share, recorded in the first half of 2025. NOTE A: NIS to US$ Exchange Rate Used for Convenience Only A convenience translation of New Israeli Shekels (NIS) into U.S. dollars was made at the rate of exchange prevailing on June 30, 2026, with U.S. $1.00 equal to NIS 2.978. The translation is made solely for the convenience of the reader. NOTE B: IFRS The Company’s consolidated financial results for the three and six month periods ended June 30, 2026, 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 timing of commandment of operations 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 custo mers and suppliers: delays in the commencement of operation 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 ra tes- 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 comp etition 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 suc cessfully 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, 2025, filed with the Securities and Exchange Commission on March 24, 2026. These factors are updated from time to time through the filing of reports and registration statements with th e Securities and Exchange Commission. We do not assume any obligation to update the forward-looking information contained in this press release.
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G. WILLI-FOOD INTERNATIONAL LTD. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) June 30, December 31 June 30, December 31 2 0 2 6 2 0 2 5 2 0 2 5 2 0 2 6 2 0 2 5 2 0 2 5 NIS US dollars (*) (in thousands) ASSETS Current assets Cash and cash equivalents 138,024 94,334 124,158 46,347 31,677 41,692 Financial assets carried at fair value through profit or loss 145,085 119,556 124,591 48,719 40,146 41,837 Trade receivables 195,389 191,682 181,762 65,611 64,366 61,035 Other receivables and prepaid expenses 4,683 3,753 2,244 1,573 1,260 754 Inventories 92,643 116,493 94,074 31,109 39,118 31,589 Current tax assets 2,085 249 1,585 700 84 532 Total current assets 577,909 526,067 528,414 194,059 176,651 177,439 Non-current assets Property, plant and equipment 218,357 188,216 201,692 73,324 63,202 67,727 Less - Accumulated depreciation 66,480 61,041 63,468 22,324 20,497 21,312 151,877 127,175 138,224 51,000 42,705 46,415 Right of use asset 4,008 4,289 4,562 1,346 1,440 1,532 Financial assets carried at fair value through profit or loss 16,678 50,068 49,067 5,600 16,813 16,477 Goodwill 36 36 36 12 12 12 Total non-current assets 172,599 181,568 191,889 57,958 60,970 64,436 750,508 707,635 720,303 252,017 237,621 241,875 EQUITY AND LIABILITIES Current liabilities Current maturities of lease liabilities 2,160 1,848 2,191 725 621 736 Trade payables 32,894 31,448 23,291 11,045 10,561 7,821 Employees Benefits 5,565 4,745 4,861 1,869 1,593 1,632 Other payables and accrued expenses 19,099 19,272 17,438 6,413 6,471 5,856 Total current liabilities 59,718 57,313 47,781 20,052 19,246 16,045 Non-current liabilities Lease liabilities 2,422 2,420 2,739 813 813 920 Deferred taxes 11,597 12,009 13,331 3,895 4,032 4,476 Retirement benefit obligation 1,361 1,102 1,361 457 370 457 Total non-current liabilities 15,380 15,531 17,431 5,165 5,215 5,853 Shareholders’ equity Share capital 1,492 1,491 1,492 501 501 501 Additional paid in capital 175,845 173,486 174,700 59,048 58,256 58,664 Remeasurement of the net liability in respect of defined benefit (257 ) (256 ) (256 ) (86 ) (86 ) (86 ) Capital fund 247 247 247 83 83 83 Retained earnings 498,711 460,451 479,536 167,465 154,617 161,026 Treasury shares (628 ) (628 ) (628 ) (211 ) (211 ) (211 ) Equity attributable to owners of the Company 675,410 634,791 655,091 226,800 213,160 219,977 750,508 707,635 720,303 252,017 237,621 241,875 (*) Convenience translation into U.S. dollars.
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G. WILLI-FOOD INTERNATIONAL LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Six months Three months Six months ended ended ended June 30, June 30, June 30, 2 0 2 6 2 0 2 5 2 0 2 6 2 0 2 5 2 0 2 6 2 0 2 5 NIS US dollars (*) In thousands (except per share and share data) Sales 317,423 305,320 160,532 160,477 106,589 102,525 Cost of sales 214,962 216,643 107,023 116,428 72,183 72,748 Gross profit 102,461 88,677 53,509 44,049 34,406 29,777 Operating costs and expenses: Selling expenses 40,800 33,919 19,916 16,808 13,700 11,390 General and administrative expenses 16,329 14,171 8,286 6,613 5,483 4,759 Operating profit before other income 45,332 40,587 25,307 20,628 15,223 13,628 Other income 4 - 4 - 1 - Operating profit 45,336 40,587 25,311 20,628 15,224 13,628 Financial income 8,798 26,604 2,930 21,478 3,014 8,934 Financial expense (1,072) (1,423) (923) (1,468) (420) (478) Total financial income 7,726 25,181 2,007 20,010 2,594 8,456 Income before taxes on income 53,062 65,768 27,318 40,638 17,818 22,084 Taxes on income (11,926) (14,389) (6,265) (8,764) (4,005) (4,831) Profit for the period 41,136 51,379 21,053 31,874 13,813 17,253 Earnings per share: Basic earnings per share 3.0 3.7 1.5 2.3 1.0 1.2 Diluted earnings per share 3.0 3.6 1.5 2.2 1.0 1.2 Shares used in computation of basic EPS 13,906,412 13,883,685 13,906,412 13,883,685 13,906,412 13,883,685 Shares used in computation of diluted EPS 13,913,507 14,328,049 13,913,507 14,328,049 13,913,507 14,328,049 Actual number of shares 13,906,412 13,883,685 13,906,412 13,883,685 13,906,412 13,883,685 (*) Convenience translation into U.S. dollars.
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6 G. WILLI-FOOD INTERNATIONAL LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Six months Three months Six months ended ended ended June 30, June 30, June 30, 2 0 2 6 2 0 2 5 2 0 2 6 2 0 2 5 2 0 2 6 2 0 2 5 NIS US dollars (*) (in thousands) CASH FLOWS - OPERATING ACTIVITIES Profit from continuing operations 41,136 51,379 21,053 31,874 13,813 17,253 Adjustments to reconcile net profit to net cash used to continuing operating activities (Appendix A) (2,465 ) (48,830 ) (4,776 ) (29,636 ) (827 ) (16,397 ) Net cash from (used in) continuing operating activities 38,671 2,549 16,277 2,238 12,986 856 CASH FLOWS - INVESTING ACTIVITIES Acquisition of property plant and equipment (2,795 ) (1,803 ) (1,746 ) (1,274 ) (939) (605) Acquisition of property plant and equipment under construction (13,976 ) (18,196 ) (4,291 ) (7,427 ) (4,693) (6,110) Proceeds from sale of property plant and Equipment 7 - 7 - 2 Proceeds from sale of marketable securities, net 15,164 20,760 9,092 15,620 5,092 6,971 Net cash from (used in) continuing investing activities (1,600 ) 761 3,062 6,919 (538 ) 256 CASH FLOWS - FINANCING ACTIVITIES Lease liability payments (1,064 ) (988 ) (467 ) (408 ) (357 ) (332 ) Receipt of short-term loan from bank 4,121 - - - 1,384 - Payment of short-term loan from bank (4,121 ) - (4,121 ) - (1,384 ) - Dividend (21,963 ) (29,953 ) (21,963 ) (29,953 ) (7,376 ) (10,058 ) Net cash used in continuing financing activities (23,027 ) (30,941 ) (26,551 ) (30,361 ) (7,733 ) (10,390 ) Increase (decrease) in cash and cash equivalents 14,044 (27,631 ) (7,212 ) (21,204 ) 4,715 (9,278 ) Cash and cash equivalents at the beginning of the financial period 124,158 122,938 145,483 116,870 41,692 41,282 Exchange gains (loss) on cash and cash equivalents (178 ) (973 ) (247 ) (1,332 ) (60 ) (327 ) Cash and cash equivalents of the end of the financial year 138,024 94,334 138,024 94,334 46,347 31,677 (*) Convenience Translation into U.S. Dollars.
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G. WILLI-FOOD INTERNATIONAL LTD. APPENDIX A TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) CASH FLOWS - OPERATING ACTIVITIES: A. Adjustments to reconcile net profit to net cash from operating activities: Six months Three months Six months ended ended ended June 30, June 30, June 30, 2 0 2 6 2 0 2 5 2 0 2 6 2 0 2 5 2 0 2 6 2 0 2 5 NIS US dollars (*) (in thousands) Increase (decrease) in deferred income taxes (1,734 ) 2,121 (267 ) 2,303 (582 ) 712 Unrealized losses (gain) on marketable securities (3,269 ) (19,353 ) (136 ) (17,792 ) (1,098 ) (6,499 ) Depreciation and amortization 3,118 2,693 )**( 1,557 1,363 )**( 1,047 904 )**( Depreciation expense on right-to-use assets 1,268 1,080 )**( 640 555 )**( 426 363 )**( Capital gain on disposal of property plant and equipment (7 ) - (7 ) - (2 ) - Stock based compensation reserve 1,144 424 556 (128 ) 384 142 Exchange losses on cash and cash equivalents 178 973 247 1,332 60 327 Changes in assets and liabilities: Increase in trade receivables and other receivables (5,811) (6,684) (7,725 ) (8,153) (9511, ) (2,244 ) Decrease (increase) in inventories 1,431 (18,259) (330 ) 6,659 481 (6,131 ) Decrease in trade and other payables, and other current liabilities 11,967 (2,284) 7,587 (8,450 ) 0184, (767 ) Cash generated from operations 8,285 (39,289) 2,122 (311,22 ) 7832, (13,193 ) Income tax paid (10,750) (9,541) (6,898 ) (7,325 ) (3,610 ) (3,204 ) Net cash flows used in operating activities (2,465) (48,830) (4,776 ) (29,636) (827 ) (16,397 ) (*) Convenience Translation into U.S. Dollars. (**) Reclassified 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 itsik.b@willi-food.co.il ### SOURCE: G. Willi-Food International Ltd.
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ג. ויליפוד אינטרנשיונל בע"מG. WILLI-FOOD INTERNATIONAL LTD.Corporation no: 520043209 Israel Securities Authority Tel Aviv Stock Exchange C001 ( Public ) Reported via MAGNA:04/08/2026 www.isa.gov.il www.tase.co.il Reference:2026-02-073345 The corporation is a foreign private issuer as defined by U.S. Securities Laws. Attached hereto is a report onQ2.2026 Press_release_financial_results_Q226_isa.pdf Link to filing on foreign stock exchange (optional): _________ Report of Periodic or Interim ReportRegulation 3 of the Securities Regulations, (Periodic and Immediate Reports of Foreign Corporation) 5761-2000 References of previous documents relating to this matter(the reference does not constitute incorporation by reference): Stock Exchange/Market: TASE Date of revision of form structure: 06/08/2024Address: NAHAL HARIF 4 , YAVNE 81106 ISRAEL , Tel: 08-9321000 , Fax: 08-9321003E-mail address: CFO@willi-food.co.il Company site: WWW.WILLI-FOOD.COM Previous names of reporting entity: Name of the Signatory: BARABI YITSCHAK Position of Signatory in the reporting corporation: Vice President & CFO Name of Employer Company:Address: Nahal Harif 4 , Yavneh 8122216 Telephone: 08-9321000 Facsimile: 08-9321001 E-mail: itsik.b@willi-food.co.il