G. WILLI-FOOD INTERNATIONAL REPORTS FIRST QUARTER 2023 RESULTS WITH A RECORD HIGH QUARTERLY SALES

YAVNE, Israel, May 15, 2023 /PRNewswire/ -- G. Willi-Food International Ltd. (NASDAQ: WILC) (the "Company" or "Willi-Food"), a global company that specializes in the development, marketing and international distribution of kosher foods, today announced its unaudited financial results for the first quarter ended March 31, 2023. G Willi Food International Logo

First Quarter Fiscal Year 2023

Sales increased by 28.2% to NIS 151.4 million (US$ 41.9 million) from NIS 118.1 million (US$ 32.7 million) in the first quarter of 2022. Gross profit increased by 17.0% year-over-year to NIS 40.0 million (US$ 11.1 million). Operating income increased by 37.7% year-over-year to NIS 13.0 million (US$ 3.6 million). Cash and securities balance of NIS 236.7 million (US$ 65.5 million) as of March 31, 2023. Basic earnings per share of NIS 0.78(US$ 0.21).

Management Comment

Zwi Williger & Joseph Williger, Chairmen & CEO of Willi-Food, commented: "We are pleased to present the Company's first quarter 2023 financial results with record quarterly sales and strong operational results. Although the Company's gross profit margin was adversely affected by the strengthening of the USD and Euro currencies in which the Company buys its products and the increase of product prices, the Company succeeded in achieving an improvement in its operational profit. This improvement was mainly due to the increase with sales, which resulted from the expansion of our range of products, an increase in inventory levels and availability and increased efforts in advertising and marketing, these actions caused an increase in demand for the Company's products and higher availability of the Company's products in stores. We believe that investing in our logistic capabilities and in sales and marketing capabilities will help us to further expand our business activity in the future.

First Quarter Fiscal 2023 Summary

Sales for the first quarter of 2023 increased by 28.2% to NIS 151.4 million (US$ 41.9 million) from NIS 118.1 million (US$ 32.7 million) recorded in the first quarter of 2022. Sales increased mainly due to (i) an increase in the range of the Company's products, (ii) increased efforts to increase our inventory levels and its availability for the increasing demand for our products, (iii) increased efforts to improve presence of the Company's line of products in stores and (iv) advertising and promotional campaigns.

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Gross profit for the first quarter of 2023 increased by 17.0% to NIS 40.0 million (US$ 11.1 million) compared to NIS 34.2 million (US$ 9.5 million) recorded in the first quarter of 2022. First quarter gross profit rate decreased by 2.6% to 26.4% compared to gross profit rate of 29.0% for the same period in 2022. The increase in gross profit was mainly due to increased sales that offset the increased costs of the Company's imported products compared to the cost of products in the first quarter of 2022.

Selling expenses increased by 3.6% to NIS 19.9 million (US$ 5.5 million) compared to NIS 19.2 million (US$ 5.3 million) in the first quarter of 2022. The increase was primarily due to an increase in expenses transportation and maintenance to support the increased sales.

General and administrative expenses increased by 29.1% to NIS 7.1 million (US$ 2.0 million) compared to NIS 5.5 million (US$ 1.5 million) in the first quarter of 2022. The increase in general and administrative expenses was primarily due to an increase in management compensation and options grants made under the Company's option plan.

Operating profit for the first quarter of 2023 increased by 37.7% to NIS 13.0 million (US$ 3.6 million) compared to NIS 9.5 million (US$ 2.6 million) in the first quarter of 2022. The increase was primarily due to the increase in gross profit.

Financial income, net was NIS 0.5 million (US$ 0.1 million) for the first quarter of 2023 compared to NIS 5.8 million (US$ 1.6 million) in the first quarter of 2022. Financial income, net for the first quarter of 2023 comprised mainly from interest and dividend income from the Company's portfolio of securities in an amount of NIS 3.8 million (USD 1.0 million) and expenses from revaluation of the Company's portfolio of securities to fair value in an amount of NIS 3.3 million (USD 0.9 million).

Willi-Food's income before taxes for the first quarter of 2023 was NIS 13.5 million (US$ 3.7 million) compared to income before taxes of NIS 15.3 million (US$ 4.2 million) in the first quarter of 2022.

Willi-Food's net profit in the first quarter of 2023 was NIS 10.8 million (US$ 3.0 million), or NIS 0.78(US$ 0.21) per share, compared to NIS 13.6 million (US$ 3.8 million), or NIS 0.98(US$ 0.27) per share, recorded in the first quarter of 2022. Net profit for the first quarter of 2023 decreased by 20.5% year-over-year. The decrease in net profit was mainly due to a decrease from revaluation of the Company's portfolio of securities to fair value.

Willi-Food ended the first quarter of 2023 with NIS 236.7 million (US$ 65.5 million) in cash and securities. Net cash used for continuing activities for the first quarter of 2023 was NIS 21.0 million (US$ 5.8 million). Willi-Food's shareholders' equity at the end of March 2023 was NIS 540.7 million (US$ 149.6 million).

NOTE A: NIS to US$ exchange rate used for convenience only

The convenience translation of New Israeli Shekels (NIS) into U.S. dollars was made at the rate of exchange prevailing on March 31, 2023, with U.S. $1.00 equal to NIS 3.615 The translation was made solely for the convenience of the reader.

NOTE B: IFRS

The Company's consolidated financial results for the three-month period ended March 31, 2023 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 and expected sales, operating results, and earnings. 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: war in Ukraine, the COVID-19 pandemic, disruptions to international commercial shipping and disruptions in commodity pricing monetary risks including changes in marketable securities or changes in currency exchange rates- 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 competition in Israel and other markets in which we do business, changes in economic conditions in Israel, including in particular economic conditions in the Company's core markets, 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 successfully integrate our recent acquisitions, insurance coverage not sufficient enough to cover losses of product liability claims, and risks associated with product liability claims. 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, 2022, filed with the Securities and Exchange Commission on March 22, 2023. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. We do not assume any obligation to update the forward-looking information contained in this press release.

G. WILLI-FOOD INTERNATIONAL LTD. CONDENSED CONSOLIDATED BALANCE SHEETS March 31, December 31 March 31, December 31 2 0 2 3 2 0 2 2 2022 2 0 2 3 2 0 2 2 2022 NIS US dollars (*) (in thousands) ASSETS Current assets Cash and cash equivalents 131,472 198,339 150,607 36,368 54,866 41,662 Financial assets carried at fair value through profit or loss 105,272 147,808 116,762 29,121 40,887 32,299 Trade receivables 177,648 139,781 165,838 49,142 38,667 45,875 Other receivables and prepaid expenses 8,113 6,723 4,956 2,245 1,860 1,371 Inventories 95,596 66,537 71,929 26,444 18,406 19,897 Current tax assets 2,732 4,305 3,117 756 1,191 862 Total current assets 520,833 563,493 513,209 144,076 155,877 141,966 Non-current assets Property, plant and equipment 106,052 89,563 99,216 29,337 24,775 27,446 Less -Accumulated depreciation 52,593 49,735 51,533 14,549 13,758 14,255 53,459 39,828 47,683 14,788 11,017 13,191 Right of use asset 3,289 3,544 3,391 910 980 938 Financial assets carried at fair value through profit or loss 44,084 31,282 44,113 12,195 8,653 12,203 Goodwill 36 36 36 10 10 10 Total non-current assets 100,868 74,690 95,223 27,903 20,660 26,342 621,701 638,183 608,432 171,979 176,537 168,308 EQUITY AND LIABILITIES Current liabilities Current maturities of lease liabilities 2,243 1,025 2,194 620 284 607 Trade payables 27,242 22,509 24,842 7,536 6,227 6,872 Employees Benefits 4,590 5,051 3,756 1,270 1,397 1,039 Financial liabilities at fair value through profit or loss - 6,519 - - 1,803 - Other payables and accrued expenses 41,068 30,542 11,836 11,360 8,449 3,275 Total current liabilities 75,143 65,646 42,628 20,786 18,160 11,793 Non-current liabilities Lease liabilities 1,205 2,643 1,284 333 730 355 Deferred taxes 3,663 3,296 4,198 1,013 912 1,161 Retirement benefit obligation 924 1,688 878 256 467 243 Total non-current liabilities 5,792 7,627 6,360 1,602 2,109 1,759 Shareholders' equity Share capital 1,490 1,490 1,490 412 412 412 Additional paid in capital 171,976 170,760 171,550 47,573 47,237 47,455 Remeasurement of the net liability in respect of defined benefit (195) (959) (195) (54) (265) (54) Capital fund 247 247 247 68 68 68 Retained earnings 367,876 394,000 386,980 101,766 108,990 107,049 Treasury shares (628) (628) (628) (174) (174) (174) Equity attributable to owners of the Company 540,766 564,910 559,444 149,591 156,268 154,756 621,701 638,183 608,432 171,979 176,537 168,308 (*)     Convenience translation into U.S. dollars.

G. WILLI-FOOD INTERNATIONAL LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three months Three months ended ended March 31, March 31, 2 0 2 3 2 0 2 2 2 0 2 3 2 0 2 2 NIS US dollars (*) In thousands (except per share and share data) Sales 151,356 118,069 41,869 32,661 Cost of sales 111,322 83,827 30,795 23,189 Gross profit 40,034 34,242 11,074 9,472 Operating costs and expenses: Selling expenses 19,919 19,238 5,510 5,322 General and administrative expenses 7,117 5,546 1,969 1,534 Other income 25 - 7 - Total operating expenses 27,011 24,784 7,472 6,856 Operating income 13,023 9,458 3,602 2,616 Financial income 4,606 6,030 1,274 1,668 Financial expenses (4,080) (182) (1,129) (50) Total financial income, net 526 5,848 145 1,618 Income before taxes on income 13,549 15,306 3,747 4,234 Taxes on income (2,704) (1,662) (748) (460) Profit for the period 10,845 13,644 2,999 3,774 Earnings per share: Basic / diluted earnings per share 0.78 0.98 0.21 0.27 Shares used in computation of
basic/diluted EPS 13,867,017 13,867,017 13,867,017 13,867,017 Actual number of shares 13,867,017 13,867,017 13,867,017 13,867,017 (*)     Convenience translation into U.S. dollars.

G. WILLI-FOOD INTERNATIONAL LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Three months

ended Three months

ended March 31, March 31, 2 0 2 3 2 0 2 2 2 0 2 3 2 0 2 2 NIS US dollars (*) In thousands (except per share and share data) CASH FLOWS - OPERATING ACTIVITIES Profit from continuing operations 10,845 13,644 2,999 3,774 Adjustments to reconcile net profit to net cash used in continuing
operating activities (Appendix A) (31,858) (11,347) (8,812) (3,139) Net cash from (used in) continuing operating activities (21,013) 2,297 (5,813) 635 CASH FLOWS - INVESTING ACTIVITIES Acquisition of property plant and equipment (6,811) (2,317) (1,884) (641) Proceeds from sale of marketable securities, net 8,493 8,204 2,348 2,269 Net cash provided investing activities 1,682 5,887 464 1,628 CASH FLOWS - FINANCING ACTIVITIES Lease liability payments (493) (531) (136) (147) Net cash used in continuing financing activities (493) (531) (136) (147) Increase (decrease) in cash and cash equivalents (19,824) 7,653 (5,485) 2,116 Cash and cash equivalents at the beginning of the year 150,607 195,718 41,662 54,141 Exchange gains (losses) on cash and cash equivalents 689 (5,032) 191 (1,392) Cash and cash equivalents at the end of the year 131,472 198,339 36,368 54,865 (*)     Convenience Translation into U.S. Dollars.

G. WILLI-FOOD INTERNATIONAL LTD. APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

CASH FLOWS – OPERATING ACTIVITIES:

A.  Adjustments to reconcile net profit to net cash from continuing operating activities: Three months Three months ended ended March 31, March 31, 2 0 2 3 2 0 2 2 2 0 2 3 2 0 2 2 NIS US dollars (*) (in thousands) Decrease (increase) in deferred income taxes (535) 1,279 (148) 354 Unrealized loss (gain) on marketable securities 3,024 (2,148) 837 (594) Unrealized gain of financial liabilities at fair value through profit or loss - (7,441) - (2,058) Depreciation and amortization 1,625 1,848 450 511 Capital gain on disposal of property plant and equipment (25) - (7) - Exchange losses (gain) on cash and cash equivalents (689) 5,032 (191) 1,392 Stock based compensation reserve 426 - 118 - Changes in assets and liabilities: Increase in trade receivables and other receivables (11,247) (3,226) (3,111) (892) Increase in inventories (23,667) (7,009) (6,547) (1,939) Increase in trade and other payables, and other current liabilities 2,564 3,165 709 876 Cash generated from operations (28,524) (8,500) (7,890) (2,350) Income tax paid (3,334) (2,847) (922) (789) Net cash flows from operating activities (31,858) (11,347) (8,812) (3,139) B.  Significant non-cash transactions: Three months Three months ended ended March 31, March 31, 2 0 2 3 2 0 2 2 2 0 2 3 2 0 2 2 NIS US dollars (*) (in thousands) Dividend payable 29,949 19,966 8,285 5,523 (*)     Convenience Translation into U.S. Dollars.

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
[email protected]

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