YAVNE, Israel, May 17, 2022
/PRNewswire/ -- 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, 2022.
First Quarter Fiscal Year 2022
- Sales increased by 1.2% to NIS 118.1
million (US$ 37.2 million)
from NIS 116.7 milliom (US$ 36.7
million) in the first quarter of 2021.
- Gross profit decreased by 5.5% year-over-year to NIS 34.2 million (US$ 10.8
million).
- Operating income decreased by 37.1% year-over-year to
NIS 9.5 million (US$ 3.0 million).
- Cash and securities balance of NIS 346.1
million (US$ 109.0 million) as
of March 31, 2022.
- Basic earnings per share of NIS
0.98 (US$ 0.31).
Management Comment
Zwi Williger &
Joseph Williger, Co-Chairmen of
Willi-Food, commented: "We are pleased to present first quarter
2022 financial results to the Company shareholders. The world is experiencing a crisis
which among other things is
due to war in Ukraine and global
uncertainty regarding the Corona
virus. This crisis
is reflecting among other things, in disruptions to international
commercial shipping and disruptions in commodity pricing. The
Company cannot predict how long this crisis will last. Despite this
difficult environment, the Company managed to increase the level of
sales and maintain a strong level of gross margin and other
operational parameters. The Company will work hard to fulfill its
strategy for the near future, to improve commercial conditions with
its suppliers and customers, develop new products, enter into new
categories with potentially high gross profit margins, improve the
visibility of its products in the stores, strengthen its brand and
supply chain and ensure sufficient inventory. We intend to work
hard to achieve the goals we have set for the Company and maintain
strong profit parameters."
First Quarter Fiscal 2022 Summary
Sales for the first quarter of 2022 increased by 1.2% to
NIS 118.1 million (US$ 37.2 million) from NIS
116.7 million (US$ 36.7
million) recorded in the first quarter of 2021. Sales
increased mainly due to (i) effective marketing activities carried
out in the first quarter of 2022 that increased the range of the
Company's products and (ii) proper inventory management.
Gross profit for the first quarter of 2022 decreased by 5.5% to
NIS 34.2 million (US$ 10.8 million) compared to NIS 36.2 million (US$ 11.4
million) recorded in the first quarter of 2021. First
quarter gross margin decreased by 5.5% to 29.0% compared to gross
margin of 31.0% for the same period in 2021. The decrease in gross
profit was mainly due to increased costs of the Company's imported
products and increased shipping costs.
Selling expenses increased by 25.4% to NIS 19.2 million (US$ 6.1
million) compared to NIS 15.3
million (US$ 4.8 million) in
the first quarter of 2021. The increase was primarily due to an
increase in expenses for advertising and promotion.
General and administrative expenses decreased by 5.8% to
NIS 5.5 million (US$ 1.7 million) compared to NIS 5.9 million (US$ 1.9
million) in the first quarter of 2021.
Operating profit for the first quarter of 2022 decreased by
37.1% to NIS 9.5 million
(US$ 3.0 million) compared to
NIS 15.0 million (US$ 4.7 million) in the first quarter of 2021.
The decrease was primarily due to the decrease in gross profit and
the increase in selling expenses.
Financial income, net was NIS 5.8
million (US$ 1.8 million) for
the first quarter of 2022 compared to NIS
11.5 million (US$ 3.6 million)
in the first quarter of 2021. Financial income, net for fiscal year
2022 comprised mainly income from changes in exchange rate change
an amount of NIS 2.6 (USD 0.7 million), income from revaluation of the
Company's portfolio of securities to fair value in an amount of
NIS 1.9 million (USD 0.6 million) and interest and dividend income
from the Company's portfolio of securities in an amount of
NIS 1.3 million (USD 0.4 million).
Willi-Food's income before taxes for the first quarter of 2022
was NIS 15.3 million (US$ 4.8 million) compared to income before taxes
of NIS 26.6 million (US$ 8.4 million) in the first quarter of
2021.
Willi-Food's net profit in the first quarter of 2022 was
NIS 13.6 million (US$ 4.3 million), or NIS
0.98 (US$ 0.31) per share,
compared to NIS 20.5 million
(US$ 6.5 million), or NIS 1.48 (US$ 0.44)
per share, recorded in the first quarter of 2021. Net profit for
the first quarter of 2022 decreased by 33.4% year-over-year. The
decrease in net profit was mainly due to an increase in
advertising, promotion and in shipping costs of the Company's
products.
Willi-Food ended the first quarter of 2022 with NIS 346.2 million (US$
109.0 million) in cash and securities. Net cash from
continuing activities for the first quarter of 2022 was
NIS 2.3 million (US$ 0.7 million). Willi-Food's shareholders'
equity at the end of March 2022 was
NIS 564.9 million (US$ 177.9 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, 2022, with U.S.
$1.00 equal to NIS 3.176 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, 2022 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 1,500 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, 2021, filed with the
Securities and Exchange Commission on March
15, 2022. 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
|
|
|
March 31,
|
December 31
|
March 31,
|
December 31
|
|
2 0 2
2
|
2 0 2
1
|
2021
|
2 0 2
2
|
2 0 2
1
|
2021
|
|
NIS
|
US dollars
(*)
|
|
(in
thousands)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
198,339
|
218,808
|
195,718
|
62,449
|
68,894
|
61,624
|
|
Financial assets
carried at fair value through
profit or loss
|
147,808
|
152,531
|
154,090
|
46,539
|
48,026
|
48,517
|
|
Trade
receivables
|
139,781
|
142,124
|
134,017
|
44,012
|
44,749
|
42,197
|
|
Loans to
others
|
-
|
11,215
|
-
|
-
|
3,532
|
-
|
|
Other receivables and
prepaid expenses
|
6,723
|
7,084
|
4,939
|
2,117
|
2,230
|
1,555
|
|
Inventories
|
66,537
|
62,351
|
59,528
|
20,950
|
19,632
|
18,743
|
|
Current tax
assets
|
4,305
|
4,039
|
5,780
|
1,355
|
1,272
|
1,820
|
|
Total current
assets
|
563,493
|
598,152
|
554,072
|
177,422
|
188,335
|
174,456
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
89,563
|
84,449
|
87,245
|
28,200
|
26,590
|
27,470
|
|
Less -Accumulated
depreciation
|
49,735
|
47,488
|
48,431
|
15,660
|
14,952
|
15,249
|
|
39,828
|
36,961
|
38,814
|
12,540
|
11,638
|
12,221
|
|
|
|
|
|
|
|
|
Right of use
asset
|
3,544
|
3,941
|
4,088
|
1,117
|
1,241
|
1,287
|
|
Financial assets
carried at fair value through
profit or loss
|
31,282
|
17,916
|
31,056
|
9,849
|
5,641
|
9,778
|
|
Goodwill
|
36
|
36
|
36
|
11
|
11
|
11
|
|
Total non-current
assets
|
74,690
|
58,854
|
73,994
|
23,517
|
18,531
|
23,298
|
|
|
|
|
|
|
|
|
638,183
|
657,006
|
628,066
|
200,939
|
206,866
|
197,754
|
|
EQUITY AND
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Current maturities of
lease liabilities
|
1,025
|
1,781
|
1,136
|
323
|
561
|
358
|
|
Trade
payables
|
22,509
|
23,279
|
20,386
|
7,087
|
7,330
|
6,419
|
|
Employees
Benefits
|
5,051
|
4,495
|
3,442
|
1,590
|
1,415
|
1,084
|
|
Financial liabilities
at fair value through profit
or loss
|
6,519
|
-
|
13,960
|
2,053
|
-
|
4,395
|
|
Other payables and
accrued expenses
|
30,542
|
15,074
|
11,216
|
9,616
|
4,746
|
3,531
|
|
Total current
liabilities
|
65,646
|
44,629
|
50,140
|
20,669
|
14,052
|
15,787
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
Lease
liabilities
|
2,643
|
2,258
|
3,062
|
832
|
711
|
965
|
|
Deferred
taxes
|
3,296
|
2,090
|
2,017
|
1,038
|
658
|
635
|
|
Retirement benefit
obligation
|
1,688
|
1,805
|
1,615
|
531
|
568
|
508
|
|
Total non-current
liabilities
|
7,627
|
6,153
|
6,694
|
2,401
|
1,937
|
2,108
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
Share
capital
|
1,490
|
1,490
|
1,490
|
469
|
469
|
469
|
|
Additional paid in
capital
|
170,760
|
170,760
|
170,760
|
53,766
|
53,766
|
53,766
|
|
Capital fund
|
247
|
247
|
247
|
78
|
78
|
78
|
|
Treasury
shares
|
(628)
|
(628)
|
(628)
|
(198)
|
(198)
|
(198)
|
|
Retained
earnings
|
394,000
|
435,677
|
400,322
|
124,055
|
137,178
|
126,046
|
|
Remeasurement of the
net liability in respect
of defined benefit
|
(959)
|
(1,322)
|
(959)
|
(302)
|
(416)
|
(302)
|
|
Equity attributable
to owners of the
Company
|
564,910
|
606,224
|
571,232
|
177,868
|
190,877
|
179,859
|
|
|
|
|
|
|
|
|
638,183
|
657,006
|
628,066
|
200,939
|
206,866
|
197,754
|
|
(*) 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
2
|
2 0 2
1
|
2 0 2
2
|
2 0 2
1
|
|
NIS
|
US dollars
(*)
|
|
In thousands (except
per share and share data)
|
|
|
|
|
|
|
Sales
|
118,069
|
116,710
|
37,175
|
36,748
|
|
Cost of
sales
|
83,827
|
80,475
|
26,394
|
25,339
|
|
|
|
|
|
|
Gross
profit
|
34,242
|
36,235
|
10,781
|
11,409
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
19,238
|
15,343
|
6,057
|
4,831
|
|
General and
administrative expenses
|
5,546
|
5,884
|
1,746
|
1,853
|
|
Other income
|
-
|
37
|
-
|
12
|
|
Total operating
expenses
|
24,784
|
21,190
|
7,804
|
6,672
|
|
|
|
|
|
|
Operating
income
|
9,458
|
15,045
|
2,978
|
4,737
|
|
|
|
|
|
|
Financial income
|
6,030
|
11,727
|
1,898
|
3,692
|
|
Financial
expenses
|
(182)
|
(221)
|
(57)
|
(69)
|
|
|
|
|
|
|
Total financial
income, net
|
5,848
|
11,506
|
1,841
|
3,623
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
on income
|
15,306
|
26,551
|
4,819
|
8,360
|
|
Taxes on
income
|
(1,662)
|
(6,070)
|
(523)
|
(1,911)
|
|
|
|
|
|
|
Profit for the
period
|
13,644
|
20,481
|
4,296
|
6,449
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
Basic earnings per
share
|
0.98
|
1.48
|
0.31
|
0.46
|
|
Diluted earnings per
share
|
0.98
|
1.41
|
0.31
|
0.44
|
|
|
|
|
|
|
Shares used in
computation of
basic EPS
|
13,867,017
|
13,867,017
|
13,867,017
|
13,867,017
|
|
Shares used in
computation of
diluted EPS
|
13,867,017
|
14,517,017
|
13,867,017
|
14,517,017
|
|
Actual number of
shares
|
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
|
|
|
|
Three
months
ended
|
Three
months
ended
|
|
|
March
31,
|
March
31,
|
|
|
2 0 2
2
|
2 0 2
1
|
2 0 2
2
|
2 0 2
1
|
|
|
NIS
|
US dollars
(*)
|
|
|
In thousands (except
per share and share data)
|
|
CASH FLOWS -
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Profit from continuing
operations
|
13,644
|
20,481
|
4,296
|
6,449
|
|
|
Adjustments to
reconcile net profit to net cash from (used in)
continuing operating activities (Appendix
A)
|
(11,347)
|
(16,250)
|
(3,573)
|
(5,116)
|
|
|
Net cash from
continuing operating activities
|
2,297
|
4,231
|
723
|
1,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS -
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Acquisition of property
plant and equipment
|
(2,317)
|
(1,344)
|
(730)
|
(423)
|
|
|
Proceeds from sale of
property plant and equipment
|
-
|
37
|
-
|
12
|
|
|
Proceeds from loans
granted to others
|
-
|
7,492
|
-
|
2,358
|
|
|
Proceeds from sale
(purchase) of marketable securities, net
|
8,204
|
6,796
|
2,583
|
2,140
|
|
|
Net cash used in
continuing investing activities
|
5,887
|
12,981
|
1,853
|
4,087
|
|
|
|
|
|
|
|
|
CASH FLOWS -
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Lease liability
payments
|
(531)
|
(472)
|
(167)
|
(149)
|
|
|
Net cash used in
continuing financing activities
|
(531)
|
(472)
|
(167)
|
(149)
|
|
|
|
|
|
|
|
|
Increase in cash and
cash equivalents
|
7,653
|
16,740
|
2,409
|
5,271
|
|
|
Cash and cash
equivalents at the beginning of the year
|
195,718
|
201,822
|
61,624
|
63,546
|
|
|
Exchange losses on cash
and cash equivalents
|
(5,032)
|
246
|
(1,584)
|
77
|
|
|
Cash and cash
equivalents at the end of the year
|
198,339
|
218,808
|
62,449
|
68,894
|
|
|
|
|
|
|
|
|
(*) Convenience Translation
into U.S. Dollars.
|
|
G. WILLI-FOOD
INTERNATIONAL LTD.
|
|
APPENDIX TO
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
CASH FLOWS –
OPERATING ACTIVITIES:
|
|
|
A. Adjustments to reconcile net profit to net
cash from continuing operating activities:
|
|
|
Three months
|
Three months
|
|
ended
|
ended
|
|
March 31,
|
March 31,
|
|
2 0 2
2
|
2 0 2
1
|
2 0 2
2
|
2 0 2
1
|
|
NIS
|
US dollars (*)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in deferred income taxes
|
1,279
|
1,322
|
403
|
416
|
|
Unrealized gain on marketable securities
|
(2,148)
|
(8,843)
|
(676)
|
(2,784)
|
|
Unrealized gain of financial liabilities at fair value
through
profit or loss
|
(7,441)
|
-
|
(2,343)
|
-
|
|
Depreciation and amortization
|
1,848
|
1,479
|
582
|
465
|
|
Capital gain on disposal of property plant and
equipment
|
-
|
(37)
|
-
|
(12)
|
|
Exchange losses (gain) on cash and cash
equivalents
|
5,032
|
(246)
|
1,584
|
(77)
|
|
|
|
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
Increase in trade receivables and other
receivables
|
(3,226)
|
(6,422)
|
(1,016)
|
(2,022)
|
|
Increase in inventories
|
(7,009)
|
(2,837)
|
(2,207)
|
(893)
|
|
Increase in trade and other payables, and other current
liabilities
|
3,165
|
4,226
|
996
|
1,331
|
|
Cash generated from operations
|
(8,500)
|
(11,358)
|
(2,677)
|
(3,576)
|
|
Income tax paid
|
(2,847)
|
(4,892)
|
(896)
|
(1,540)
|
|
Net cash flows from operating activities
|
(11,347)
|
(16,250)
|
(3,573)
|
(5,116)
|
|
|
B. Significant non-cash transactions:
|
|
|
Three months
|
Three months
|
|
ended
|
ended
|
|
March 31,
|
March 31,
|
|
2 0 2
2
|
2 0 2
1
|
2 0 2
2
|
2 0 2
1
|
|
NIS
|
US dollars
(*)
|
|
(in
thousands)
|
|
Dividend payable
|
19,966
|
-
|
6,287
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Convenience Translation into U.S.
Dollars.
|
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
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SOURCE G. Willi-Food International Ltd.
