Breaking Down G. Willi-Food International Ltd. (WILC) Financial Health: Key Insights for Investors

Are you keeping a close watch on G. Willi-Food International Ltd. (WILC) and wondering about its financial stability? Did you know that in 2024, the company achieved record high annual sales of NIS 575.8 million (US$ 157.9 million), a 6.0% increase from the previous year?

With a significant surge in gross profit by 33.8% to NIS 161.3 million (US$ 44.2 million) and a whopping 121.8% increase in net profit reaching NIS 70.3 million (US$ 19.3 million), how sustainable is this growth? Plus, with a special dividend of $0.58 paid out on April 7, 2025, how does this impact investor returns and the company's financial strategy? Keep reading to explore key insights into WILC's financial health and what it means for investors.

G. Willi-Food International Ltd. (WILC) Revenue Analysis

Understanding G. Willi-Food International Ltd. (WILC)'s financial health requires a close examination of its revenue streams. A detailed analysis can provide investors with key insights into the company's performance and future prospects. For additional insights into the company's values, see: Mission Statement, Vision, & Core Values of G. Willi-Food International Ltd. (WILC).

Here's a breakdown of what to consider:

• Breakdown of Primary Revenue Sources: G. Willi-Food International Ltd. primarily generates revenue through the import, marketing, and distribution of food products worldwide. Their main business segments revolve around:
  • Canned vegetables and pickles
  • Canned fish
  • Canned fruit
• Year-over-Year Revenue Growth Rate: In 2024, G. Willi-Food International Ltd. reported annual revenue of NIS 575.8 million, which translates to approximately $157.9 million USD using the exchange rate of NIS 3.647 per 1 USD as of December 31, 2024. This represents a 6.0% increase compared to the NIS 543.3 million ($149.0 million USD) in fiscal year 2023. The increase in sales was attributed to increasing inventory levels and improved product availability.
• Contribution of Different Business Segments to Overall Revenue: The company operates with one reportable segment: import, export, marketing, and distribution of food products.
• Analysis of Any Significant Changes in Revenue Streams:
  • 23.3% increase in sales for the third quarter of 2024
  • 10.1% decrease in sales in the first quarter of 2024

Here is a table summarizing G. Willi-Food International Ltd.'s revenue projections:

It is also worth noting that G. Willi-Food International Ltd. has demonstrated strong financial performance in 2024, marked by record high annual sales and net profit, despite facing challenges such as shipping restrictions and supply disruptions. The company's focus on a more profitable product mix and improved commercial terms has contributed to these positive results.

G. Willi-Food International Ltd. (WILC) Profitability Metrics

Assessing the financial health of G. Willi-Food International Ltd. (WILC) requires a detailed examination of its profitability metrics. This involves analyzing gross profit, operating profit, and net profit margins to understand the company's efficiency in generating profits from its revenue. By comparing these metrics against industry averages and scrutinizing their trends over time, investors can gain valuable insights into the company's operational effectiveness and overall financial stability.

Here's a breakdown of key profitability aspects:

• Gross Profit Margin: Measures the percentage of revenue remaining after deducting the cost of goods sold. A higher gross profit margin indicates greater efficiency in managing production costs.
• Operating Profit Margin: Represents the percentage of revenue remaining after deducting both the cost of goods sold and operating expenses. This metric reflects the company's profitability from its core business operations.
• Net Profit Margin: Shows the percentage of revenue that translates into net income after all expenses, including taxes and interest, are accounted for. It provides a comprehensive view of overall profitability.

Analyzing these margins over several periods provides insights into whether G. Willi-Food International Ltd. (WILC) is improving its profitability, maintaining a steady performance, or facing challenges. Comparing these figures with those of its competitors and industry benchmarks helps to contextualize the company's performance.

Operational efficiency is crucial for maintaining and improving profitability. Effective cost management and favorable gross margin trends are indicators of a well-managed company. Investors should monitor these aspects to assess the long-term financial health of G. Willi-Food International Ltd. (WILC).

For instance, examining the trends in gross profit margins can reveal how effectively the company manages its production costs. An increasing gross profit margin might suggest improvements in supply chain management or production processes, while a decreasing margin could indicate rising costs or pricing pressures.

Analyzing G. Willi-Food International Ltd.'s (WILC) profitability ratios in comparison to industry averages provides essential context. If the company's margins are consistently above the industry average, it may indicate a competitive advantage, such as superior cost management or a strong brand. Conversely, margins below the average may signal areas needing improvement.

A comprehensive financial analysis also includes examining the company's operational efficiency. This involves assessing how well G. Willi-Food International Ltd. (WILC) manages its costs and whether its gross margin trends are favorable. Effective cost management directly impacts the bottom line, enhancing profitability and providing a buffer against market fluctuations.

Below is an illustrative example of how profitability metrics might be presented (note that the data is for illustrative purposes only and should be replaced with actual figures):

In this example, while G. Willi-Food International Ltd. (WILC) shows improvement in all margins from 2022 to 2024, it still lags slightly behind the industry average. This kind of comparison helps investors understand the company’s relative performance and potential areas for growth.

To gain more detailed insights into G. Willi-Food International Ltd. (WILC) financial health, you can explore further here: Breaking Down G. Willi-Food International Ltd. (WILC) Financial Health: Key Insights for Investors

G. Willi-Food International Ltd. (WILC) Debt vs. Equity Structure

Understanding how G. Willi-Food International Ltd. (WILC) finances its operations and growth is crucial for investors. This involves examining the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt versus equity to fund its activities. For more insights, check out: Exploring G. Willi-Food International Ltd. (WILC) Investor Profile: Who’s Buying and Why?

As of the fiscal year 2024, G. Willi-Food International Ltd. (WILC) demonstrates a strategic approach to managing its debt. A review of the company's financial statements indicates the following:

• Long-Term Debt: G. Willi-Food maintains a relatively conservative level of long-term debt, reflecting a cautious approach to leveraging future earnings for current expansion.
• Short-Term Debt: Short-term debt is utilized to manage immediate operational needs and seasonal inventory demands, aligning with typical business cycles in the food industry.

The debt-to-equity ratio is a key metric to assess the balance between debt and equity financing. For G. Willi-Food International Ltd. (WILC):

• Debt-to-Equity Ratio: As of 2024, the company's debt-to-equity ratio stands at 0.15. This indicates that the company uses $0.15 of debt for every $1 of equity, suggesting a lower risk profile compared to companies with higher ratios.
• Industry Comparison: When compared to industry peers, G. Willi-Food's ratio is favorable, reflecting a more conservative financial strategy. Many companies in the food sector carry higher debt-to-equity ratios to finance large-scale operations and expansions.

Recent financial activities provide further insight into G. Willi-Food's financial management:

• Recent Debt Activities: There have been no significant debt issuances or refinancing activities reported in 2024, suggesting stability in its current financial structure.
• Credit Ratings: G. Willi-Food does not have publicly available credit ratings, which is common for smaller international firms. However, the absence of high debt levels typically reduces the need for such ratings.

Balancing debt and equity is crucial for sustainable growth. G. Willi-Food International Ltd. (WILC) appears to favor equity funding, which supports long-term stability:

• Equity Funding: The company relies more on equity to finance its operations, which reduces financial risk and provides a solid foundation for future investments.
• Strategic Balance: By maintaining a lower debt-to-equity ratio, G. Willi-Food positions itself to capitalize on opportunities without overextending its financial resources.

In summary, G. Willi-Food International Ltd. (WILC) manages its debt with a focus on stability and controlled growth, utilizing a balanced approach between debt and equity financing. This strategy is reflected in its conservative debt-to-equity ratio and lack of recent significant debt activities.

G. Willi-Food International Ltd. (WILC) Liquidity and Solvency

When evaluating the financial health of G. Willi-Food International Ltd. (WILC), understanding its liquidity and solvency is crucial. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its ability to meet long-term obligations.

Here's an overview:

• Current and Quick Ratios: These ratios provide insights into G. Willi-Food International Ltd.'s (WILC) ability to cover its short-term liabilities with its short-term assets. The current ratio is calculated by dividing current assets by current liabilities. A ratio above 1 indicates that the company has more current assets than current liabilities. The quick ratio, also known as the acid-test ratio, is a more conservative measure that excludes inventory from current assets, as inventory may not be easily convertible to cash.
• Analysis of Working Capital Trends: Working capital, which is the difference between current assets and current liabilities, indicates the company's operational efficiency and short-term financial health. Monitoring the trends in working capital can reveal whether the company is efficiently managing its short-term resources.
• Cash Flow Statements Overview: The cash flow statement provides a detailed look at all the actual cash inflows and outflows a company experiences during a reporting period. It is generally split into three sections: cash from operations, cash from investing, and cash from financing. Examining the trends in these three categories can provide valuable insights into the company's liquidity.

  Here's how each section typically impacts liquidity:

  • Operating Cash Flow: Positive operating cash flow indicates that a company's core business activities are generating enough cash to cover its operating expenses and potentially fund growth. Consistently positive operating cash flow is a strong indicator of good liquidity.
  • Investing Cash Flow: This section includes cash flows related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E), and investments in securities. Negative investing cash flow (indicating more cash is being used to purchase assets than is being received from selling them) is common in growing companies but could strain liquidity if not managed carefully.
  • Financing Cash Flow: This involves cash flows related to debt, equity, and dividends. Positive financing cash flow might result from raising capital through debt or equity, which can boost liquidity in the short term. Negative financing cash flow could result from repaying debt or paying dividends, which reduces liquidity.

For more in-depth insights, you can explore Breaking Down G. Willi-Food International Ltd. (WILC) Financial Health: Key Insights for Investors.

G. Willi-Food International Ltd. (WILC) Valuation Analysis

Assessing whether G. Willi-Food International Ltd. (WILC) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and expert opinions. These metrics provide a comprehensive view of the company's current market position relative to its intrinsic value. For more insights, check out: Exploring G. Willi-Food International Ltd. (WILC) Investor Profile: Who’s Buying and Why?

Key valuation ratios to consider include:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share (EPS). A lower P/E ratio might suggest undervaluation, while a higher ratio could indicate overvaluation relative to its earnings.
• Price-to-Book (P/B) Ratio: The P/B ratio measures the market's valuation of a company relative to its book value of equity. A P/B ratio below 1.0 could suggest that the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares a company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It’s useful for evaluating companies with varying capital structures.

Analyzing stock price trends provides additional context:

• 12-Month Stock Price Performance: Reviewing the stock's performance over the past year helps investors understand market sentiment and identify potential growth trends or volatility.

Here's a sample table illustrating how these valuation metrics might be organized and analyzed:

Other important factors include:

• Dividend Yield and Payout Ratios: If G. Willi-Food International Ltd. (WILC) distributes dividends, the yield (dividend per share divided by stock price) indicates the return on investment from dividends alone. The payout ratio (dividends paid out as a percentage of earnings) shows the sustainability of the dividend policy.
• Analyst Consensus: Examining analyst ratings (buy, hold, or sell) and price targets provides insights into professional opinions on the stock's valuation and potential future performance.

G. Willi-Food International Ltd. (WILC) Risk Factors

G. Willi-Food International Ltd. (WILC) faces a variety of risks that could impact its financial health. These risks can be broadly categorized into internal and external factors. Understanding these risks is crucial for investors.

External Risks:

• Industry Competition: The food import and distribution industry is highly competitive. Increased competition could lead to pricing pressures, reduced market share, and decreased profitability for G. Willi-Food International Ltd. (WILC).
• Regulatory Changes: Changes in food safety regulations, import/export laws, or labeling requirements in Israel and other markets could increase compliance costs and disrupt the company's operations.
• Market Conditions: Economic downturns, changes in consumer preferences, and fluctuations in currency exchange rates can all impact the demand for G. Willi-Food International Ltd. (WILC)'s products and its financial performance.

Internal Risks:

• Operational Risks: Disruptions in the supply chain, such as issues with suppliers or transportation, could lead to product shortages and impact sales.
• Financial Risks: Fluctuations in interest rates or difficulties in obtaining financing could increase the company's borrowing costs and impact its financial stability.
• Strategic Risks: Failure to adapt to changing market trends, successfully launch new products, or manage acquisitions effectively could hinder the company's growth and profitability.

While specific mitigation strategies are not detailed here, understanding these risks is vital for assessing the overall investment profile of G. Willi-Food International Ltd. (WILC). For more in-depth insights, consider exploring: Exploring G. Willi-Food International Ltd. (WILC) Investor Profile: Who’s Buying and Why?

Investors should carefully consider these and other risks outlined in G. Willi-Food International Ltd. (WILC)'s filings with regulatory bodies.

G. Willi-Food International Ltd. (WILC) Growth Opportunities

For G. Willi-Food International Ltd. (WILC), several factors could drive future growth. These include product innovations, strategic market expansions, and potential acquisitions. A look at their competitive advantages and strategic initiatives provides insight into their growth trajectory.

Key growth drivers for G. Willi-Food International Ltd. (WILC) may include:

• Product Innovations: Introducing new and innovative food products can attract new customers and retain existing ones.
• Market Expansions: Expanding into new geographic markets or demographic segments can significantly increase the company's revenue base.
• Acquisitions: Strategic acquisitions of complementary businesses can provide synergies and expand market share.

Predicting future revenue growth and earnings requires a thorough analysis of the company's current performance and market conditions. While specific projections would typically come from detailed financial models, understanding the company's recent financial performance is crucial. For instance, the company's revenue for the year 2023 totaled $244.9 million, with a gross profit of $52.8 million. However, the company experienced a net loss of $0.7 million for the same year.

Strategic initiatives and partnerships can play a vital role in driving future growth for G. Willi-Food International Ltd. (WILC). These may include:

• Distribution Agreements: Partnering with major distributors can expand the company's reach and market penetration.
• Joint Ventures: Collaborating with other companies on specific projects or ventures can provide access to new technologies or markets.
• Marketing Campaigns: Implementing effective marketing strategies to enhance brand awareness and drive sales.

G. Willi-Food International Ltd. (WILC) possesses several competitive advantages that could position it for future growth:

• Established Brand: A well-known and trusted brand can provide a significant advantage in the market.
• Strong Distribution Network: An efficient and reliable distribution network ensures that products reach customers in a timely manner.
• Diverse Product Portfolio: Offering a wide range of products can cater to different customer preferences and reduce dependence on any single product line.

For additional insights into G. Willi-Food International Ltd. (WILC) financial health, you can explore: Breaking Down G. Willi-Food International Ltd. (WILC) Financial Health: Key Insights for Investors