FOR IMMEDIATE RELEASE

G. WILLI-FOOD INTERNATIONAL REPORTS IT'S FINANCIAL RESULTS

FOR THE THIRD QUARTER OF 2021

YAVNE, Israel – November 30, 2021 - 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 third quarter ended September 30, 2021.

Third Quarter Fiscal Year 2021 Highlights

•	Sales decreased by 5.1% year-over-year to NIS 106.3 million (US$ 32.9 million).

•	Gross profit decreased by 13.4% year-over-year to NIS 29.5 million (US$ 9.1 million).

•	Operating profit decreased by 41.7% year-over-year to NIS 8.2 million (US$ 2.5 million).

•	Total financial expense, net NIS 1.6 million (US$ 0.5 million) compared to Total financial income net on third quarter of 2020 of NIS 14.5 million (US$ 5.4 million).

•	Income before taxes decreased by 76.9% year-over-year to NIS 6.6 million (US$ 2.0 million).

•	Net profit decreased by 76.2% year-over-year to NIS 5.2 million (US$ 1.6 million), or 4.9% of sales.

•	Cash and cash equivalents balance of NIS 219.0 million (US$ 67.8 million) as of september 30, 2021.

•	Earnings per share of NIS 0.38 (US$ 0.12).

Management Comment

Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food, commented: “We are pleased to present third quarter 2021 financial results. The Company experienced a decline in sales, mainly resulting from a decrease in working days in September due to Jewish holidays and due to decline in sales in the food industry as a whole.

As a result of the Covid-19 pandemic, the world is still experiencing disruptions to international commercial shipping, which has led to an increase in the demand for containers and a significant increase in sea freight and commodity prices wich affected the company gross margin.

Despite the challenging environment, the Company has worked to maintain a high level of sales and positive operational parameters for the third quarter of 2021. The Company’s strategy for the near future is to improve commercial conditions with its supliars and customers, develop new products, enter into new categories with potentially high gross profit margins, improve the visibility of its products in the stores and strengthen its brand, supply chain and sufficient inventory. We intend to work hard to achieve the goals we have set for the Company.

Third Quarter Fiscal 2021 Summary

Sales for the third quarter of 2021 decreased by 5.1% to NIS 106.3 million (US$ 32.9 million) from NIS 111.9 million (US$ 34.7 million) in the third quarter of 2020. The decrease is mainly due to decrease in working days in September 2021 due to Jewish holidays and lower sales in the food industry as a whole.

Gross profit for the third quarter of 2021 decreased by 13.4% to NIS 29.5 million (US$ 9.1 million) compared to NIS 34.0 million (US$ 10.5 million) in the third quarter of 2020. Third quarter gross margin decreased by 13.4% to 27.7% compared to gross margin of 30.4% for the same period in 2020. The decrease in gross profit was mainly due to increase costs of the Company’s imported products and due to increases in shipping costs.

Selling expenses increased by 9.7% to NIS 15.9 million (US$ 4.9 million) compared to NIS 14.5 million (US$ 4.5 million) in the third quarter of 2020 primarily due to an increase in payroll expenses in the logistics and sales departments and due to an increase in advertising and promotion.

General and administrative expenses decreased by 1.3% to NIS 5.4 million (US$ 1.7 million) compared to NIS 5.5 million (US$ 1.7 million) in the third quarter of 2020.

As a result of the foregoing, operating profit for the third quarter of 2021 decreased by 41.7% to NIS 8.2 million (US$ 2.5 million) compared to NIS 14.0 million (US$ 4.3 million) in the third quarter of 2020.

Financial expense, net totaled NIS 1.6 million (USD$ 0.5 million) compared to Financial income, net of NIS 14.5 million (US$ 4.5 million) in the third quarter of 2020. Financial expense, net for the third quarter of 2021 was comprised mainly of exchange rate differences of NIS 4.3 million (US$ 1.3 million), interest and dividend income from the Company’s portfolio of securities in the amount of NIS 1.8 million (US$ 0.6 million) and income from revaluation of the Company’s portfolio of securities to fair value in the amount of NIS 1.3 million (US$ 0.4 million).

Income before taxes on income for the third quarter of 2021 was NIS 6.6 million (US$ 2.0 million) compared to income before taxes on income of NIS 28.5 million (US$ 8.8 million) in the third quarter of 2020.

Net profit in the third quarter of 2021 was NIS 5.2 million (US$ 1.6 million), or NIS 0.38 (US$ 0.12) per share, compared to NIS 21.9 million (US$ 6.8 million), or NIS 1.63 (US$ 0.51) per share, in the third quarter of 2020.

Willi-Food ended the third quarter of 2021 with NIS 219.0 million (US$ 67.8 million) in cash and cash equivalents. Net cash from operating activities for the third quarter of 2021 was NIS 38.6 million (US$ 12.0 million). Willi-Food's shareholders' equity as of June 30, 2021 was NIS 568.1 million (US$ 191.0 million).

First Nine Months of Fiscal 2021 Highlights

•

Sales decreased by 2.3% year-over-year to NIS 337.3 million (US$ 104.5 million).

•

Gross profit decreased by 10.8% year-over-year to NIS 102.6 million (US$ 31.8 million).

•

Operating profit decreased by 26.1% year-over-year to NIS 36.9 million (US$ 11.4 million).

•

Total financial income increased by 4,571% year-over-year to NIS 17.6 million (US$ 5.4 million).

•

Income before taxes increased by 8.3% year-over-year to NIS 54.5 million (US$ 16.9 million).

•

Net profit increased by 10.4% to NIS 42.3 million (US$ 13.1 million), or 12.5% of sales.

•

Basic earnings per share of NIS 3.05 (US$ 0.94).

First Nine Months Fiscal 2021 Summary

Sales for the nine-month period ending September 30, 2021 decreased by 2.3% to NIS 337.3 million (US$ 104.5 million) compared to NIS 345.2 million (US$ 106.9 million) in the first nine months of 2020. The decrease in the Company’s sales is primarily due to the significant increase in demand for the Company’s line of products, especially in retail chains, during the outbreak of Covid 19 in the first quarter of 2020.

Gross profit for the period decreased by 10.8% to NIS 102.6 million (US$ 31.8 million) compared to NIS 115.1 million (US$ 35.6 million) for the first nine-month of 2020. Gross margin for the first nine months of 2021 was 30.4% compared to a gross margin of 33.3% for the same period in 2020. The decrease in gross profit was mainly due to increased shipping costs.

Operating profit for the first nine month of 2021 decreased by 26.1% to NIS 36.9 million (US$ 11.4 million) from NIS 49.9 million (US$ 15.0 million) reported in the comparable period of last year primarily due to the decrease of gross profit.

Financial income, net totaled NIS 17.6 million (USD$ 5.4 million) compared to Financial income, net of NIS 0.4 million (US$ 0.1 million) in the first nine-month of 2020. Financial income, net for the first nine-month of 2021 comprised mainly from income from revaluation of the Company’s portfolio of securities to fair value in the amount of NIS 13.3 million (US$ 4.1 million), interest and dividend income from the Company’s portfolio of securities in the amount of NIS 8.0 million (US$ 2.5 million), minus expenses from exchange rate differences in the amount of NIS 2.7 million (US$ 0.8 million) and other finance expenses in the amount of NIS 1 million (US$ 0.3 million).

Income before taxes for the first nine months of 2021 increased by 8.3% to NIS 54.5 million (US$ 16.9 million) compared to NIS 50.3 million (US$ 15.6 million) in the first nine months of 2020.

Net profit for the first nine months of 2021 increased by 10.4% to NIS 42.3 million (US$ 13.1 million), or NIS 3.05 (US$ 0.94) per share, from NIS 38.3 million (US$ 11.9 million), or NIS 2.88 (US$ 0.89) per share, in the first nine months of 2020.

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 September 30, 2021, U.S. $1.00 equals NIS 3.229. The translation was made solely for the convenience of the reader.

NOTE B: IFRS

The Company’s consolidated financial results for the three-month and nine-month period ended September 30, 2021 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 600 food products worldwide. As one of Israel's leading food importers, Willi-Food markets and sells its food products to over 1,600 customers and 3,200 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 Europian Dairies (Gold Frost), a wholly owned subsidiary who 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: impacts of the ongoing COVID-19 pandemic; 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, 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, 2020, filed with the Securities and Exchange Commission on March 25, 2021. 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

(unaudited)

	September 30,						December 31			September 30,						December 31
	2 0 2 1			2 0 2 0			2 0 2 0			2 0 2 1			2 0 2 0			2 0 2 0
	NIS									US dollars (*)
	(in thousands)
ASSETS

Current assets
Cash and cash equivalents		218,980			214,408			201,822			67,817			66,401			62,503
Financial assets carried at fair value through profit or loss		150,153			150,197			154,700			46,501			46,515			47,910
Trade receivables		131,779			136,748			131,301			40,811			42,350			40,663
Loans to others		-			3,650			18,707			-			1,130			5,793
Other receivables and prepaid expenses		3,969			3,646			6,667			1,229			1,129			2,065
Inventories		48,115			56,677			59,514			14,901			17,553			18,431
Current tax assets		4,599			435			3,965			1,424			135			1,228
Total current assets		557,595			565,761			576,676			172,683			175,213			178,593

Non-current assets
Property, plant and equipment		87,868			83,394			83,105			27,212			25,827			25,737
Less -Accumulated depreciation		49,563			46,675			46,460			15,349			14,455			14,388
		38,305			36,719			36,645			11,863			11,372			11,349

Right of use asset		4,695			3,208			2,866			1,454			993			888
Financial assets carried at fair value through profit or loss		29,374			9,273			13,700			9,097			2,872			4,242
Goodwill		36			36			36			11			11			11
Deferred taxes		-			1,047			-			-			324			-
Total non-current assets		72,410			50,283			53,247			22,425			15,572			16,490

		630,005			616,044			629,923			195,108			190,785			195,083
EQUITY AND LIABILITIES

Current liabilities
Current maturities of lease liabilities		1,372			1,520			1,393			425			471			431
Trade payables		22,707			25,325			23,474			7,032			7,843			7,270
Employees Benefits		3,411			3,114			3,437			1,056			964			1,064
Other payables and accrued expenses		25,240			10,509			11,611			7,817			3,255			3,596
Total current liabilities		52,730			40,468			39,915			16,330			12,533			12,361

Non-current liabilities
Lease liabilities		3,466			1,806			1,592			1,073			559			493
Deferred taxes		3,823			-			768			1,184			-			238
Retirement benefit obligation		1,934			1,628			1,905			599			504			590
Total non-current liabilities		9,223			3,434			4,265			2,856			1,063			1,321

Shareholders' equity
Share capital		1,490			1,490			1,490			461			461			461
Additional paid in capital		170,760			170,760			170,760			52,883			52,883			52,883
Capital fund		247			247			247			76			76			76
Treasury shares		(628	)		(628	)		(628	)		(194	)		(194	)		(194	)
Remeasurement of the net liability in respect of defined benefit		(1,322	)		(1,029	)		(1,322	)		(409	)		(319	)		(409	)
Retained earnings		397,505			401,302			415,196			123,105			124,282			128,584
Equity attributable to owners of the Company		568,052			572,142			585,743			175,922			177,189			181,401

		630,005			616,044			629,923			195,108			190,785			195,083

(*) Convenience translation into U.S. dollars.

G. WILLI-FOOD INTERNATIONAL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

	Nine months				Three months					Nine months
	ended				ended					ended
	September 30,				September 30,					September 30,
	2 0 2 1		2 0 2 0		2 0 2 1			2 0 2 0		2 0 2 1		2 0 2 0
	NIS									US dollars (*)
	In thousands (except per share and share data)

Sales		337,325		345,189		106,268			111,933		104,467		106,903
Cost of sales		234,705		230,133		76,808			77,902		72,687		71,271

Gross profit		102,620		115,056		29,460			34,031		31,780		35,632

Operating costs and expenses:
Selling expenses		48,706		47,344		15,935			14,522		15,084		14,662
General and administrative expenses		17,179		17,823		5,415			5,483		5,320		5,520
Other income		200		58		63			-		62		18

Total operating expenses		65,685		65,109		21,287			20,005		20,342		20,164

Operating profit		36,935		49,947		8,173			14,026		11,438		15,468

Financial income		21,390		3,689		3,015			14,704		6,624		1,142
Financial expense		3,825		3,313		4,602			231		1,184		1,026

Total financial income (expense)		17,565		376		(1,587	)		14,473		5,440		116

Income before taxes on income		54,500		50,323		6,586			28,499		16,878		15,584

Taxes on income		12,216		12,007		1,372			6,582		3,783		3,718

Profit for the period		42,284		38,316		5,214			21,917		13,095		11,866

Earnings per share:
Basic/ diluted earnings per share		3.05		2.88		0.38			1.63		0.94		0.89

Shares used in computation of basic/diluted EPS		13,867,017		13,289,239		13,867,017			13,433,684		13,867,017		13,433,684
Actual number of shares		13,867,017		13,867,017		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

(unaudited)

	Nine months						Three months						Nine months
	ended						ended						ended
	September 30,						September 30,						September 30,
	2 0 2 1			2 0 2 0			2 0 2 1			2 0 2 0			2 0 2 1			2 0 2 0
	NIS												US dollars (*)
	(in thousands)

CASH FLOWS - OPERATING ACTIVITIES
Profit from continuing operations		42,284			38,316			5,214			21,917			13,095			11,866
Adjustments to reconcile net profit to net cash used to continuing operating activities (Appendix A)		19,524			(**) 21,127			33,372			(**) 5,977			6,046			6,543

Net cash used in continuing operating activities		61,808			59,443			38,586			27,894			19,141			18,409

CASH FLOWS - INVESTING ACTIVITIES
Acquisition of property plant and equipment		(4,763	)		(1,991	)		(1,130	)		(1,256	)		(1,475	)		(617	)
Proceeds from sale (purchase) of marketable securities, net		2,174			(20,669	)		(12,987	)		(23,195	)		673			(6,400	)
Proceeds from sale of property plant and equipment		200			58			63			-			62			18
Proceeds from loans granted to others		18,707			14,000			-			-			5,794			4,336

Net cash used in (used to) continuing investing activities		16,318			(8,602	)		(14,054	)		(24,451	)		5,054			(2,663	)

CASH FLOWS - FINANCING ACTIVITIES
Lease liability payments		(1,605	)		(1,334	)		(601	)		(507	)		(497	)		(413	)
Dividend		(59,975	)		-			(59,975	)		-			(18,574	)		-
Shares issue		-			42,471			-			42,471			-			13,153

Net cash used in (used to) continuing financing activities		(61,580	)		41,137			(60,576	)		41,964			(19,071	)		12,740

Increase (decrease) in cash and cash equivalents		16,546			(**) 91,978			(36,044	)		(**) 45,407			5,124			28,486

Cash and cash equivalents at the beginning of the financial period		201,822			121,860			255,510			168,689			62,503			37,739

Exchange losses (profit) on cash and cash equivalents		612			(**) 570			(486	)		(**) 312			190			176

Cash and cash equivalents of the end of the financial year		218,980			214,408			218,980			214,408			67,817			66,401

(*)	Convenience Translation into U.S. Dollars.

(**)	Reclassified

G. WILLI-FOOD INTERNATIONAL LTD.

APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

CASH FLOWS - OPERATING ACTIVITIES:

A. Adjustments to reconcile net profit to net cash from operating activities:

	Nine months						Three months						Nine months
	ended						ended						ended
	September 30,						September 30,						September 30,
	2 0 2 1			2 0 2 0			2 0 2 1			2 0 2 0			2 0 2 1			2 0 2 0
	NIS												US dollars (*)
	(in thousands)

Decrease (increase) in deferred income taxes		3,055			(229	)		660			3,153			946			(71	)
Unrealized loss (gain) on marketable securities		(13,301	)		2,739			(1,182	)		(13,532	)		(4,119	)		848
Depreciation and amortization		4,732			4,221			1,631			1,470			1,465			1,308
Capital gain on disposal of property plant and equipment		(200	)		(58	)		(63	)		-			(62	)		(18	)
Exchange gain (losses) on cash and cash equivalents		(612	)		(**) (570	)		486			(**) (312	)		(190	)		(176	)

Changes in assets and liabilities:
Increase (decrease) in trade receivables and other receivables		1,586			1,570			4,624			6,271			491			486
Decrease (increase) in inventories		11,399			14,871			10,348			4,585			3,530			4,605
Increase (decrease) in trade and other payables, and other current liabilities		12,865			(1,417	)		16,868			4,342			3,985			(439	)
Net cash flows from operating activities		19,524			21,127			33,372			5,977			6,046			6,543

B. Significant non-cash transactions:

	Nine months				Three months				Nine months
	ended				ended				ended
	September 30,				September 30,				September 30,
	2 0 2 1		2 0 2 0		2 0 2 1		2 0 2 0		2 0 2 1		2 0 2 0
	NIS								US dollars (*)
	(in thousands)
Supplemental cash flow information:
Income tax paid		13,597		16,389		3,839		5,329		4,211		5,076

(*) 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.

	G. Willi-Food International Ltd.

	By:	/s/ Yitschak Barabi
		Name: Yitschak Barabi
		Title: Chief Financial Officer