G. Willi-Food International Ltd.

First-quarter 2017 sales increased 0.8% to NIS83.3 million, versus NIS82.6 million a year ago. Gross profit rose 6% to NIS22 million, and gross margin improved to 26.4% from 25.2%. Operating income was NIS6.6 million, down from NIS8 million. Net income was NIS4.3 million, down 10% from NIS4.7 million, and EPS was 32 cents versus 36 cents last year. Management said financial expenses included a NIS3 million non-cash charge from the shekel’s strengthening. Looking ahead, the company said quarterly sales and marketing expense should remain similar to the current level, and cash flow is expected to turn positive in upcoming quarters as inventory levels normalize.

Iram Graiver said the company was “pleased” with the quarter and emphasized that the business is moving in the right direction. He framed the improvement in gross margin as evidence that Willi-Food’s strategy of rationalizing the product portfolio and focusing on a favorable mix is working. He also described the advertising campaign as a long-term investment aimed at improving brand perception, expanding customer reach, and ultimately gaining market share.

Pavel Buber highlighted IFRS-reported Q1 sales of NIS83.3 million, gross profit of NIS22 million, and gross margin of 26.4%. He pointed to operating expenses of NIS15.4 million, up from NIS12.8 million, driven by advertising and promotional costs and inventory-related expenses tied to the Passover holiday. He also noted NIS43.3 million in cash used in operating activities, a NIS6 million increase in trade receivables, and ending cash and fair value financial assets of NIS193 million, with equity of NIS395 million.

There was no analyst Q&A before the call ended, so no new concerns or follow-up questions were raised on the line. Management did, however, address key points proactively: the marketing campaign is expected to keep quarterly sales and marketing costs near current levels, and the company expects cash flow to improve as inventory normalizes after the holiday-related build. They also clarified that the large financial expense was non-cash and linked to foreign-currency holdings being reduced in shekel terms by the stronger shekel.