G Willi-Food Intl (NASDAQ:WILC)

The GeoTeam® will code G Willi-Food Intl as a GeoSpecial.  Non withstanding its consistent annual sales growth, the company's unimpressive EPS trend made this a difficult decision.

Furthermore, revenue growth has been stagnant in 2009. However, there may be reasons for optimism:

• The company is forecasting $0.33 in EPS for its fourth quarter 9$0.98 for the year), which will mark the third straight quarter of improved EPS. In  2008 WILC reported a fourth quarter loss.
  
• The company is increasing penetration in geographical markets and has introduced new product lines that may lead to a ramp up sales growth.
  
• Company comments in its third quarter release were bullish:

"We analyzed the recession and relevant economic indicators that began in our home market, as well as feedback from our customers, showing that the measures that we took are placing us in a good position for future growth. Willi-Food has taken the appropriate measures to position the Company for a stronger fiscal 2009 and 2010, and we remain focused on maximizing long-term profitability."

"We are carefully reviewing our merger and acquisition strategy. The U.S. remains a strategic region of interest for Willi-Food, and for now, we are seeking more customers to whom we can distribute our products, and specifically, customers who wish to grow their volume and diversify their line of premium kosher products. Our line of products includes over 600 products exclusively distributed by Willi-Food and Shamir Salads. The dynamics of the industry are driving demand for innovative kosher products, and we believe that Willi-Food has the infrastructure and development expertise to deliver. Our strategy is to leverage Willi-Food's global supplier relationships and expertise in product development and to capitalize on the growing demand for innovative kosher products for both kosher and health minded consumers in the U.S. We believe that the health benefits of eliminating animal fats in the 'kosherizing' process in our dairy products makes our products attractive to consumers looking for better tasting, low-cholesterol and low-fat alternatives."

" Mr. Williger concluded, "We continue to work to expand the footprint and brand recognition of Willi-Food globally while diversifying our product base in order to hedge against any single event that might impact our results. We are looking for improved results in the fourth quarter of 2009 and in 2010 as compared to our 2008 fourth quarter and as compared to our results for the first nine months of 2009."

• Red Chip is forecasting sales and earnings growth of at least 25% growth, although they weren't specific about EPS.

RedChip excerpt:

Value Proposition The consumer foods sector trades at an average P/E of 15. The Company has reported $6.7 Million in Net Income for the first nine (9) months of fiscal 2009. The Company expects net income of $9 Million for Fiscal 2009. The current Forward P/E is 6. If the stock trades at a 15 P/E based on fiscal 2009 projected earnings, the stock could trade at $15.00, based on 9.7 Million shares outstanding. With continued growth and expansion into the U.S. sector, the Company should generate revenue and earnings growth of a minimum of 25% in fiscal 2010.

The GeoTeam® has not interviewed G Willi-Food Intl and is not certain of its funding needs.