GROSS PROFIT INCREASED BY 9.7% OVER COMPARABLE PERIOD IN 2025 YAVNE, Israel , May 26, 2026 /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, 2026. First Quarter Fiscal Year 2026 Sales increased by 8.3% to NIS 157.0 million (US$ 49.6 million) from NIS 144.8 million (US$ 45.8 million) in the first quarter of 2025. Gross profit increased by 9.7% year-over-year to NIS 49.0 million (US$ 15.5 million). Operating profit for the first quarter of 2026 is NIS 20.0 million (US$ 6.3 million). Net profit increased by 3.0% year-over-year to NIS 20.1 million (US$ 6.3 million). Basic earnings per share of NIS 1.44 (US$ 0.5). Cash and cash equivalents balance of NIS 274.1 million (US$ 86.6 million) as of March 31, 2026. Management Comment Zwi Williger, Chairman and Joseph Williger, CEO, commented : "We are pleased to begin 2026 with a strong first quarter, reflecting continued growth in both sales and profitability, driven by the consistent execution of our strategic plan. During the quarter, we remained focused on a more profitable product mix, while ensuring high product availability to support growing demand and further strengthen our relationships with customers and suppliers. In addition, the appreciation of the NIS against the U.S. dollar and the Euro supported our cost structure as an importer, enabling us to offer competitive pricing and deliver strong value to consumers. We continue to advance the construction of our new refrigerated logistics center. However, due to delays resulting from the ongoing war situation, the expected completion and commencement of operations of the facility is currently anticipated during the fourth quarter of 2026. We believe the new logistics center will support the Company's future growth and improve its operational efficiency. Looking ahead, we remain optimistic and confident in our ability to continue generating sustainable growth and long-term value for our shareholders." First Quarter Fiscal 2026 Summary Sales for the first quarter of 2026 increased by 8.3% to NIS 157.0 million (US$ 49.6 million) from NIS 144.8 million (US$ 45.8 million) recorded in the first quarter 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 quarter of 2026 increased by 9.7% to NIS 49.0 million (US$ 15.5 million), or 31.2% of revenues, from NIS 44.6 million (US$ 14.1 million), or 30.8% of revenues recorded in the first quarter 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 quarter of 2026 increased by 22.0% to NIS 20.9 million (US$ 6.6 million), or 13.3% of revenues, compared to NIS 17.1 million (US$ 5.4 million), or 11.8% of revenues, recorded in the first quarter of 2025. The increase was mainly due to an increase in advertising. General and administrative expenses for the first quarter of 2026 increased by 6.4% to NIS 8.0 million (US$ 2.5 million), or 5.1% of revenues, from NIS 7.6 million (US$ 2.4 million), or 5.2% of revenues, recorded in the first quarter of 2025. The increase was primarily driven by higher payroll expenses. Operating profit for the first quarter of 2026 was NIS 20.0 million (US$ 6.3 million), or 12.8% of revenues, remaining at the same level as in the first quarter of 2025. Financial income, net increased to NIS 5.7 million (US$ 1.8 million) recorded in the first quarter of 2026 compared to NIS 5.2 million (US$ 1.6 million) in the first quarter of 2025. Financial income, net for the first quarter of 2026 comprised mainly of income from revaluation of the Company's portfolio of securities to a fair value in an amount of NIS 2.9 million (US$ 0.9 million) and interest and dividend income from the Company's portfolio of securities in an amount of NIS 2.8 million (US$ 0.9 million). Income before taxes in the first quarter of 2026 was NIS 25.7 million (US$ 8.1 million) compared to NIS 25.1 million (US$ 7.9 million) in the first quarter of 2025. Net profit in the first quarter of 2026 was NIS 20.1 million (US$ 6.3 million), or NIS 1.44 (US$ 0.5) per share, compared to NIS 19.5 million (US$ 6.2 million), or NIS 1.41 (US$ 0.5) per share, recorded in the first quarter of 2025. Willi-Food ended the first quarter of 2026 with NIS 274.1 million (US$ 86.6 million) in cash and securities. Net cash from operating activities for the first quarter of 2026 was NIS 22.4 million (US$ 7.1 million). Willi-Food's shareholders' equity at th
