Willi-Food sales advance 8.3% as regional conflict delays new logistics hub

G. Willi-Food International (NASDAQ:WILC) reported an 8.3% increase in sales for the first quarter of 2026, navigating local geopolitical instability through optimized product mix management and favorable foreign exchange tailwinds.

However, the company confirmed that operational disruptions stemming from the ongoing regional war have delayed the launch of its new automated refrigerated logistics facility.

The Yavne, Israel-based kosher food developer and distributor announced Tuesday that consolidated sales for the three months ended March 31, 2026, rose to NIS 157 million ($49.6 million), up from NIS 144.8 million in the corresponding prior-year quarter.

The revenue gains reflect resilient domestic demand for the company’s imported dairy, chilled, and frozen food lines alongside improved inventory replenishment cycles.

Gross profit for the first quarter advanced 9.7% year-over-year to NIS 49 million ($15.5 million).

The performance expanded the importer's gross margin to 31.2%, up from 30.8% in the first quarter of 2025.

Management attributed the margin durability to tactical sourcing adjustments and the appreciation of the New Israeli Shekel against both the U.S. dollar and the Euro, which effectively lowered international procurement and shipping costs.

Operating profit for the quarter remained flat at NIS 20 million ($6.3 million).

The top-line expansion was absorbed by a 22% increase in selling expenses, driven primarily by elevated marketing campaigns and localized logistics costs.

First-quarter GAAP net income edged up 3% to NIS 20.1 million ($6.3 million), translating to basic and diluted earnings per share of NIS 1.44 ($0.50), compared to NIS 1.41 per share in the opening quarter of fiscal 2025.

Operationally, the company continues to advance construction on its automated distribution hub, a central pillar of its long-term strategy to expand high-margin chilled and frozen product segments.

Due to labor constraints and supply chain bottlenecks related to the ongoing war situation, management adjusted its timeline, stating that the facility is now expected to commence operations in the fourth quarter of 2026.