Willi-Food Navigates Geopolitical Headwinds, Supply Chain Risks

TL;DR

**WILC is a risky bet, heavily exposed to geopolitical shipping chaos and customer concentration, making its profitability highly vulnerable.**

AI Summary

G. Willi-Food International Ltd. (WILC) filed its 20-F for the fiscal year ended December 31, 2025, reporting sales revenue of approximately NIS 65.1 million (10.7% of total sales) from its largest customer, a supermarket chain. The company faces significant risks including dependence on a limited number of key clients and suppliers, with its largest customer accounting for 10.7% of 2025 sales. Geopolitical tensions, particularly in the Red Sea and Strait of Hormuz, have led to increased shipping costs and potential supply chain disruptions, impacting procurement and transportation expenses. WILC's profitability is also vulnerable to fluctuations in global food commodity prices and currency exchange rates, as most income is in NIS while purchases are in USD and Euro. The company attempts to mitigate these risks through credit insurance for customers, foreign currency reserves, and an investment committee to manage its marketable securities portfolio. Failure to accurately predict consumption rates or adapt to changing consumer preferences could adversely affect financial results.

Why It Matters

This filing highlights the precarious position of G. Willi-Food International Ltd. in a volatile global market, particularly for investors concerned about supply chain resilience and customer concentration. The company's reliance on a few major clients and suppliers, coupled with exposure to geopolitical disruptions in key shipping lanes like the Red Sea, could significantly impact its profitability and operational stability. Competitors, especially local producers, may gain an advantage by not facing the same import-related financial risks and governmental policies, potentially eroding WILC's market share and affecting its employees and customers through price changes or product availability.

Risk Assessment

Risk Level: high — The risk level is high due to significant customer concentration, with the largest customer accounting for approximately NIS 65.1 million (10.7%) of 2025 sales revenue, and dependence on a limited number of key suppliers. Furthermore, the company explicitly states that ongoing geopolitical tensions and military conflict in the Middle East have led to increased shipping costs and potential supply chain disruptions, directly impacting procurement and transportation expenses.

Analyst Insight

Investors should exercise extreme caution and consider the high concentration risk and geopolitical exposure before investing in WILC. Monitor global shipping rates and Middle East geopolitical developments closely, as these factors directly impact the company's cost structure and supply chain stability.

Key Numbers

• NIS 65.1M — Sales from largest customer (Represents 10.7% of total sales revenue in 2025, highlighting customer concentration risk.)
• 10.7% — Sales concentration (Percentage of total sales from the largest customer in 2025, indicating significant dependence.)
• 13,930,310 — Ordinary shares outstanding (As of December 31, 2025, indicating the company's share count.)
• NIS 3.19 = $1.00 — Exchange rate (Representative exchange rate on December 31, 2025, used for currency translations in the report.)
• 1,500 — Approximate number of customers (Despite this number, a major part of sales is to a limited number of customers.)
• 3,000 — Approximate number of selling points (In Israel and abroad, indicating distribution reach.)

Key Players & Entities

• G. Willi-Food International Ltd. (company) — Registrant
• Willi-Food Investments Ltd. (company) — Controlling shareholder
• Yitschak Barabi (person) — Chief Financial Officer
• Nasdaq Capital Market (regulator) — Exchange for Ordinary Shares
• Tel Aviv Stock Exchange (regulator) — Exchange for marketable securities
• NIS 65.1 million (dollar_amount) — Sales revenue from largest customer in 2025
• 10.7% (dollar_amount) — Percentage of total sales from largest customer in 2025
• Red Sea (regulator) — Key shipping lane with disruptions
• Strait of Hormuz (regulator) — Key shipping lane with disruptions
• December 31, 2025 (dollar_amount) — Fiscal year end date

FAQ

Risk Factors

• Customer Concentration Risk [high — financial]: The company's largest customer, a supermarket chain, accounted for NIS 65.1 million, representing 10.7% of total sales revenue in 2025. Dependence on a limited number of key clients poses a significant risk, as the loss of or payment default by such a client could materially impact financial results.
• Supply Chain Disruptions [medium — operational]: Geopolitical tensions in the Red Sea and Strait of Hormuz have led to increased shipping costs and potential supply chain disruptions. This impacts procurement and transportation expenses, affecting the company's ability to source and deliver products efficiently.
• Commodity Price and Currency Fluctuations [medium — financial]: Profitability is vulnerable to fluctuations in global food commodity prices. Additionally, with most income in NIS and purchases in USD and Euro, currency exchange rate volatility poses a risk to the company's financial performance.
• Inability to Predict Consumption [medium — operational]: Failure to accurately predict consumption rates or adapt to changing consumer preferences could adversely affect financial results. This risk is amplified by the company's extensive network of approximately 3,000 selling points.
• Supplier Dependence [low — operational]: The company faces risks related to termination of, or changes in, arrangements with its suppliers. This dependence on key suppliers can lead to disruptions in product availability and potentially higher costs.
• Marketable Securities Risk [low — financial]: The company's portfolio of marketable securities is subject to market risks, including changes affecting currency exchange rates. Management attempts to mitigate this through an investment committee.
• Product Liability and Litigation [low — legal]: The company is exposed to product liability claims and other litigation matters. While insurance coverage is in place, it may not be sufficient to cover all potential claims.

Industry Context

G. Willi-Food International Ltd. operates in the food distribution and retail sector, facing competition in Israel and other markets. The industry is characterized by sensitivity to global food commodity prices and evolving consumer preferences. Geopolitical events impacting shipping routes and costs are also significant external factors affecting the broader food supply chain.

Regulatory Implications

As a foreign private issuer filing with the SEC, G. Willi-Food International Ltd. must comply with U.S. securities regulations, including the timely filing of its annual 20-F report. The company also operates under Israeli regulations governing food safety, distribution, and business practices.

What Investors Should Do

1. Monitor customer concentration
2. Assess impact of geopolitical risks
3. Analyze currency exposure
4. Evaluate consumer trend adaptation

Glossary

20-F

An annual report required by the U.S. Securities and Exchange Commission (SEC) for foreign private issuers that is filed on paper and contains information similar to an annual report on Form 10-K. (This document is the primary source of financial and operational information for G. Willi-Food International Ltd. for the fiscal year ended December 31, 2025.)

NIS

New Israeli Shekel, the official currency of Israel. (The company's financial statements are presented in NIS, and it is important for understanding the scale of its operations and the impact of currency fluctuations.)

Marketable Securities

Investments that can be readily bought or sold on a public exchange, such as stocks or bonds. (The company holds a portfolio of marketable securities, which are subject to market risks, including currency exchange rate fluctuations.)

Year-Over-Year Comparison

The provided 20-F filing for the year ended December 31, 2025, does not contain comparative data from the previous year's filing. Therefore, a direct comparison of key metrics such as revenue growth, margin changes, or the emergence of new risks cannot be made based on this excerpt alone.

Key Financial Figures

• $1 — have been made at the rate of NIS 3.19= $1.00, the representative exchange rate on

Filing Documents

• zk2634724.htm (20-F) — 3031KB
• exhibit_11-1.htm (EX-11.1) — 60KB
• exhibit_12-1.htm (EX-12.1) — 11KB
• exhibit_12-2.htm (EX-12.2) — 11KB
• exhibit_13-1.htm (EX-13.1) — 4KB
• exhibit_13-2.htm (EX-13.2) — 4KB
• exhibit_15-1.htm (EX-15.1) — 3KB
• image1.jpg (GRAPHIC) — 164KB
• image00003.jpg (GRAPHIC) — 2KB
• image00007.jpg (GRAPHIC) — 1KB
• image00009.jpg (GRAPHIC) — 16KB
• 0001178913-26-001606.txt ( ) — 14396KB
• wilc-20251231.xsd (EX-101.SCH) — 114KB
• wilc-20251231_cal.xml (EX-101.CAL) — 90KB
• wilc-20251231_def.xml (EX-101.DEF) — 389KB
• wilc-20251231_lab.xml (EX-101.LAB) — 870KB
• wilc-20251231_pre.xml (EX-101.PRE) — 498KB
• zk2634724_htm.xml (XML) — 3298KB

Item 18

Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No TABLE OF CONTENTS PART I Page ITEM 1 IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS 3 ITEM 2 OFFER STATISTICS AND EXPECTED TIME TABLE 3 ITEM 3 KEY INFORMATION 3 ITEM 4 INFORMATION ON THE COMPANY 10 ITEM 5 OPERATING AND FINANCIAL REVIEW AND PROSPECTS 18 ITEM 6 DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 23 ITEM 7 MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 35 ITEM 8 FINANCIAL INFORMATION 36 ITEM 9 THE OFFER AND LISTING 39 ITEM 10 ADDITIONAL INFORMATION 39 ITEM 11

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 49 ITEM 12

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 50 ITEM 13 DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 50 ITEM 14 MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 50 ITEM 15

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 51 ITEM 16 [RESERVED] 52 ITEM 16A AUDIT COMMITTEE FINANCIAL EXPERT 52 ITEM 16B CODE OH ETHICS 52 ITEM 16C PRINCIPAL ACCOUNTANT FEES AND SERVICES 52 ITEM 16D EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES 52 ITEM 16E PURCHASES OF EQUITY SECURITIES BY THE COMPANY AND AFFILIATED PURCHASERS 53 ITEM 16F CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT 53 ITEM 16G CORPORATE GOVERNANCE 53 ITEM 16H MINE SAFETY DISCLOSURE 53 ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTION 53 ITEM 16J. INSIDER TRADING POLICIES 54 ITEM 16K. CYBERSECURITY 54 PART II ITEM 17

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 55 ITEM 18

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 55 ITEM 19 EXHIBITS 55 1 PRESENTATION OF INFORMATION In this Annual Report on Form 20-F ("Annual Report"), references to the "Company", "Group", "we" and "us" refer to G. Willi-Food International Ltd. and its consolidated subsidiaries. References to "Willi-Food" refer to Willi-Food Investments Ltd., our controlling shareholder. The Company presents its consolidated financial statements in New Israeli Shekels, the currency of the State of Israel. Unless otherwise specified or the context otherwise requires, references to "

. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT

ITEM 1 . IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS Not applicable.

. OFFER STATISTICS AND EXPECTED TIME

ITEM 2 . OFFER STATISTICS AND EXPECTED TIME TABLE Not applicable.

. KEY INFORMATION

ITEM 3 . KEY INFORMATION A. Reserved B. CAPITALIZATION AND INDEBTEDNESS Not applicable. C. REASONS FOR THE OFFER AND USE OF PROCEEDS Not applicable. D. RISK FACTORS You should carefully consider the risks we describe below, in addition to the other information set forth elsewhere in this Annual Report, including our financial statements and the related notes beginning on page F-1, before deciding to invest in our ordinary shares (the "Ordinary Shares"). The risks and uncertainties described below in this Annual Report are not the only risks facing us. We may face additional risks and uncertainties not currently known to us or that we currently deem to be immaterial. Any of the risks described below or incorporated by reference in this Annual Report could materially adversely affect our business, financial condition or results of operations. In such case, you may lose all or part of your investment. Risks Related to Our Business and Industry We depend on a small number of principal clients who have in the past bought our products in large volumes. Our business may be materially affected if any of our major client's default on their payments to us . Financial instruments that potentially subject us to concentrations of credit risk consist principally of trade receivable. Despite our large number of clients (approximately 1,500 customers, 3,000 selling points in Israel and abroad), a major part of our sales is made to a limited number of customers. Our largest customer owns, among other things, supermarkets which accounted for approximately NIS 65.1 million (which represents 10.7%) of our sales revenue during 2025. We generally do not require collateral from our big supermarket chain customers, although we do require collateral from most of our remaining clients in Israel to ensure security in collecting payments that are due to us. In addition, we buy credit insurance for many of our customers. We maintain an allowance for doubtful debts based upon facto

View Full Filing

View this 20-F filing on SEC EDGAR