G Willi Food International : REPORTS FIRST QUARTER 2023 RESULTS WITH A RECORD HIGH QUARTERLY SALES

FOR IMMEDIATE RELEASE

G. WILLI-FOOD INTERNATIONAL REPORTS FIRST QUARTER 2023 RESULTS WITH A RECORD HIGH QUARTERLY SALES

YAVNE, Israel - May 15, 2023 - 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, 2023.

First Quarter Fiscal Year 2023

• Sales increased by 28.2% to NIS 151.4 million (US$ 41.9 million) from NIS 118.1 million (US$ 32.7 million) in the first quarter of 2022.
• Gross profit increased by 17.0% year-over-year to NIS 40.0 million (US$ 11.1 million).
• Operating income increased by 37.7% year-over-year to NIS 13.0 million (US$ 3.6 million).
• Cash and securities balance of NIS 236.7 million (US$ 65.5 million) as of March 31, 2023.
• Basic earnings per share of NIS 0.78 (US$ 0.21).

Management Comment

Zwi Williger & Joseph Williger, Chairmen & CEO of Willi-Food,commented: "We are pleased to present the Company's first quarter 2023 financial results with record quarterly sales and strong operational results. Although the Company's gross profit margin was adversly affected by the strengthening of the USD and Euro currencies in which the Company buys its products and the increase of product prices, the Company succeeded in achieving an improvement in its operational profit. This improvement was mainly due to the increase with sales, which resulted from the expansion of our range of products, an increase in inventory levels and availability and increased efforts in advertising and marketing, these actions caused an increase in demand for the Company's products and higher availability of the Company's products in stores. We believe that investing in our logistic capabilities and in sales and marketing capabilitis will help us to further expand our business activity in the future.

First Quarter Fiscal 2023 Summary

Sales for the first quarter of 2023 increased by 28.2% to NIS 151.4 million (US$ 41.9 million) from NIS

118.1 million (US$ 32.7 million) recorded in the first quarter of 2022. Sales increased mainly due to (i) an increase in the range of the Company's products, (ii) increased efforts to increase our inventory levels and its availability for the increasing demand for our products, (iii) increased efforts to improve presence of the Company's line of products in stores and (iv) advertising and promotional campaigns.

Gross profit for the first quarter of 2023 increased by 17.0% to NIS 40.0 million (US$ 11.1 million) compared to NIS 34.2 million (US$ 9.5 million) recorded in the first quarter of 2022. First quarter gross profit rate decreased by 2.6% to 26.4% compared to gross profit rate of 29.0% for the same period in 2022. The increase in gross profit was mainly due to increased sales that offset the increased costs of the Company's imported products compared to the cost of products in the first quarter of 2022.

Selling expenses increased by 3.6% to NIS 19.9 million (US$ 5.5 million) compared to NIS 19.2 million (US$ 5.3 million) in the first quarter of 2022. The increase was primarily due to an increase in expenses transportation and maintenance to support the increased sales.

General and administrative expenses increased by 29.1% to NIS 7.1 million (US$ 2.0 million) compared to NIS 5.5 million (US$ 1.5 million) in the first quarter of 2022. The increase in general and administrative expenses was primarily due to an increase in management compensation and options grants made under the Company's option plan.

Operating profit for the first quarter of 2023 increased by 37.7% to NIS 13.0 million (US$ 3.6 million) compared to NIS 9.5 million (US$ 2.6 million) in the first quarter of 2022. The increase was primarily due to the increase in gross profit.

Financial income, net was NIS 0.5 million (US$ 0.1 million) for the first quarter of 2023 compared to NIS

5.8 million (US$ 1.6 million) in the first quarter of 2022. Financial income, net for the first quarter of 2023 comprised mainly from interest and dividend income from the Company's portfolio of securities in an amount of NIS 3.8 million (USD 1.0 million) and expenses from revaluation of the Company's portfolio of securities to fair value in an amount of NIS 3.3 million (USD 0.9 million).

Willi-Food's income before taxes for the first quarter of 2023 was NIS 13.5 million (US$ 3.7 million) compared to income before taxes of NIS 15.3 million (US$ 4.2 million) in the first quarter of 2022.

Willi-Food's net profit in the first quarter of 2023 was NIS 10.8 million (US$ 3.0 million), or NIS 0.78 (US$ 0.21) per share, compared to NIS 13.6 million (US$ 3.8 million), or NIS 0.98 (US$ 0.27) per share, recorded in the first quarter of 2022. Net profit for the first quarter of 2023 decreased by 20.5% year-over- year. The decrease in net profit was mainly due to a decrease from revaluation of the Company's portfolio of securities to fair value.

Willi-Food ended the first quarter of 2023 with NIS 236.7 million (US$ 65.5 million) in cash and securities. Net cash used for continuing activities for the first quarter of 2023 was NIS 21.0 million (US$ 5.8 million). Willi-Food's shareholders' equity at the end of March 2023 was NIS 540.7 million (US$ 149.6 million).

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 March 31, 2023, with U.S. $1.00 equal to NIS 3.615 The translation was made solely for the convenience of the reader.

NOTE B: IFRS

The Company's consolidated financial results for the three-month period ended March 31, 2023 are presented in accordance with International Financial Reporting Standards ("IFRS").

ABOUT G. WILLI-FOOD INTERNATIONAL LTD.

1. Willi-FoodInternational 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 650 food products worldwide. As one of Israel's leading food importers, Willi-Food markets and sells its food products to over 1,500 customers and 3,000 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 European Dairies, a wholly owned subsidiary that 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: war in Ukraine, the COVID-19 pandemic, disruptions to international commercial shipping and disruptions in commodity pricing 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, and risks associated with product liability claims. 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, 2022, filed with the Securities and Exchange Commission on March 22, 2023. 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

ASSETS

Current assets

Cash and cash equivalents

Financial assets carried at fair value through profit or loss

Trade receivables

Other receivables and prepaid expenses Inventories

Current tax assets

Total current assets

Non-current assets

Property, plant and equipment

Less -Accumulated depreciation

Right of use asset

Financial assets carried at fair value through profit or loss

Goodwill

Total non-current assets

EQUITY AND LIABILITIES

Current liabilities

Current maturities of lease liabilities Trade payables

Employees Benefits

Financial liabilities at fair value through profit or loss

Other payables and accrued expenses

Total current liabilities

Non-current liabilities

Lease liabilities

Deferred taxes

Retirement benefit obligation

Total non-current liabilities

Shareholders' equity Share capital Additional paid in capital

Remeasurement of the net liability in respect of defined benefit

Capital fund Retained earnings Treasury shares

Equity attributable to owners of the Company

		March 31,				December 31				March 31,				December 31
2 0 2 3			2 0 2 2				2022				2 0 2 3			2 0 2 2						2022
							NIS																US dollars	(*)
												(in thousands)
131,472	198,339		150,607			36,368		54,866				41,662
105,272	147,808		116,762		29,121		40,887				32,299
177,648	139,781		165,838			49,142		38,667				45,875
8,113	6,723		4,956			2,245		1,860				1,371
95,596	66,537		71,929			26,444		18,406				19,897
2,732	4,305		3,117			756		1,191				862
	520,833			563,493			513,209					144,076					155,877						141,966
106,052	89,563		99,216			29,337		24,775				27,446
52,593	49,735		51,533			14,549		13,758				14,255
53,459		39,828		47,683			14,788		11,017				13,191
3,289	3,544		3,391			910		980				938
44,084	31,282		44,113			12,195		8,653				12,203
36	36		36			10		10				10
	100,868				74,690					95,223						27,903						20,660							26,342
621,701		638,183		608,432			171,979		176,537				168,308
2,243	1,025		2,194			620	284				607
27,242	22,509		24,842			7,536	6,227				6,872
4,590	5,051		3,756			1,270	1,397				1,039
-	6,519	-		-	1,803		-
41,068	30,542		11,836			11,360	8,449				3,275
	75,143			65,646			42,628				20,786				18,160					11,793
1,205	2,643		1,284			333	730				355
3,663	3,296		4,198			1,013	912				1,161
924	1,688		878			256	467				243
	5,792			7,627			6,360				1,602				2,109					1,759
1,490	1,490		1,490			412	412				412
171,976	170,760		171,550			47,573	47,237				47,455
(195)	(959)		(195)			(54)	(265)				(54)
247	247		247			68	68				68
367,876	394,000		386,980			101,766	108,990				107,049
	(628)			(628)			(628)				(174)			(174)					(174)
540,766		564,910		559,444			149,591	156,268				154,756
621,701		638,183		608,432			171,979		176,537			168,308

1. Convenience translation into U.S. dollars.

G. WILLI-FOOD INTERNATIONAL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three months		Three months
	ended			ended
March 31,		March 31,
2 0 2 3			2 0 2 2		2 0 2 3			2 0 2 2
	NIS		US dollars (*)

In thousands (except per share and share data)

Sales	151,356	118,069	41,869	32,661
Cost of sales	111,322		83,827		30,795		23,189
Gross profit	40,034	34,242	11,074	9,472
Operating costs and expenses:
Selling expenses	19,919	19,238	5,510	5,322
General and administrative expenses	7,117	5,546	1,969	1,534
Other income	25	-	7	-
Total operating expenses	27,011	24,784	7,472	6,856
Operating income
13,023	9,458	3,602	2,616
Financial income	4,606	6,030	1,274	1,668
Financial expenses	(4,080)		(182)		(1,129)		(50)
Total financial income, net	526	5,848	145	1,618
Income before taxes on income
13,549	15,306	3,747	4,234
Taxes on income	(2,704)		(1,662)		(748)		(460)
Profit for the period	10,845	13,644	2,999	3,774
Earnings per share:
Basic / diluted earnings per share	0.78		0.98		0.21		0.27
Shares used in computation of	13,867,017		13,867,017		13,867,017		13,867,017
basic/diluted EPS
Actual number of shares	13,867,017		13,867,017		13,867,017		13,867,017

1. Convenience translation into U.S. dollars.