YAVNE, Israel, March 21,
2024 /PRNewswire/ -- G. Willi-Food International
Ltd. (NASDAQ: WILC) (TASE: WILF) (the "Company" or
"Willi-Food"), a global company that specializes in the
development, marketing and international distribution of kosher
foods, today announced its financial results for the fiscal year
ended December 31, 2023.
Fiscal Year 2023 Highlights
- Sales increased by 9.0% to NIS 543.3 million (US$ 149.8 million) from NIS 498.3 million (USD
1374. million) in fiscal year 2022.
- Gross profit decreased by 15.9% from fiscal year 2022 to
NIS 120.6 million (USD 33.3 million) in 2023.
- Operating profit decreased by 54.9% from fiscal year 2022
to NIS 20.4 million (USD 5.6
million) in 2023.
- Cash and cash equivalents balance of NIS 239.6 million
(USD 66.1 million) as of December 31, 2023.
- Basic earnings per share of NIS 2.28 (US$ 0.63).
Management Comment
Zwi Williger Chairmen & Joseph Williger CEO,
commented: "We are very pleased to present our fiscal year 2023
financial results with record annual sales. Calendar year 2023 was
characterized by an appreciation of the value of the Israeli shekel
and worldwide increase of prices of goods worldwide compared to
2022. As a result, the Company experienced a decrease in gross
profit. Also in October 7, 2024, the
'Iron swords' war broke out between the State of Israel and the terror organization
of Hamas in Gaza, which led
to additional military conflicts on other fronts, including
repeated attacks on ships in the Red Sea by the Houthis from
Yemen, which caused restrictions
of sailing on this route. One of the results has been an increase
in transport costs of goods from the Far East, as well as
significant delays in the arrival of goods from those destinations.
Despite these negative effects, the Company increased its sales by
expanding the range of its product portfolio and improving the
visibility of its products in the stores. In parallel, the Company
is working to improve the commercial terms with its customers and
suppliers in order to improve its gross profit and operating profit
results. The Company is also continuing the construction of the new
logistics center which, in our estimation, after its completion
will contribute significantly to the company's logistics
capabilities and support continued growth both in terms of sales
and in improving profit. Our main goals for 2024 are increasing
sales by increasing the variety of products offered and by
increasing the visibility and presence of our products on the
shelves, improving our commercial terms with our customers and
suppliers as well as continuing the construction of the new
logistics center which is expected to be completed in 2025."
Fiscal 2023 Summary
Revenues for fiscal year 2023 increased by 9.0% to NIS 543.3 million (USD
149.8 million) from NIS 498.3
million (USD 137.4 million)
recorded in fiscal year 2022. Sales increased mainly due to
increases (i) in the range of the Company's products, (ii) in our
inventory levels and its availability for the demand of our
products, (iii) in the Company's efforts to improve visibility of
the Company's line of products in stores and (iv) in advertising
and promotional campaigns.
Gross profit for fiscal year 2023 decreased by 15.7% to
NIS 120.6 million (USD 33.3 million), or 22.2% of revenues, from
NIS 143.1 million (USD 39.4 million), or 28.7% of revenues, recorded
in fiscal year 2022. The decrease in gross profit and gross margins
was mainly due to increased costs of the Company's imported
products.
Selling expenses for fiscal year 2023 were NIS 74.2 million (USD 20.5
million), or 13.6% of revenues, remaining at the same level
compared to NIS 74.1 million
(USD 20.4 million), or 14.9% of
revenues recorded in fiscal year 2022. The decrease of selling
expenses as a percentage of revenues was mainly due to a decrease
in advertising costs.
General and administrative expenses for fiscal year 2023
increased by 8.3% to NIS 26.1 million (USD 7.2 million), or 4.8% of revenues, from
NIS 24.1 million (USD 6.6 million), or 4.8% of revenues, recorded
in fiscal year 2022. The increase in general and administrative
expenses was primarily due to an increase in management
compensation, including grants made under the Company's option
plan.
Operating profit for fiscal year 2023 decreased by 54.9% to
NIS 20.4 million (USD 5.6
million), or 3.7% of revenues, from NIS 45.1 million
(USD 12.4 million), or 9.0% of
revenues, recorded in fiscal year 2022. The decrease in operating
profit was primarily due to an increase in cost of sales.
Financial income, net, for fiscal year 2023 amounted to
NIS 18.8 million (USD 5.2 million), compared to NIS 8.9 million (USD 2.5
million) recorded in fiscal year 2022. Financial income, net
for fiscal year 2023 comprised mainly of income from interest and
dividend income from the Company's portfolio of securities in an
amount of NIS 14.3 million
(USD 3.9 million) and income from
revaluation of the Company's portfolio of securities to fair value
in the amount of NIS 5.3 million
(USD 1.5 million), offset by expenses
from other finance expenses in an amount of NIS 1.5 million (USD 0.4
million). Financial income, net for fiscal year 2022
comprised mainly of income from interest and dividend income from
the Company's portfolio of securities in an amount of NIS 9.0 million (USD 2.5
million) and exchange rate differences in an amount of
NIS 4.4 million (USD 1.2 million), offset by expenses from
revaluation of the Company's portfolio of securities to fair value
in an amount of NIS 3.8 million
(USD 1.0 million).
Willi-Food ended fiscal year 2023 with NIS 239.6 million (USD
66.1 million) in cash and cash equivalents with no debt. Net
cash from operating activities in fiscal year 2023 was NIS 33.3 million (USD 9.2
million). Willi-Food's shareholders' equity at the end of
December 2023 was NIS 552.2 million (USD
152.2 million).
NOTE A: NIS to US$ exchange rate used for convenience
only
The conversion from New Israeli Shekels (NIS) into U.S.
dollars was made at the exchange rate of USD
1.00 to NIS 3.627 as of
December 31, 2023. The use of USD is
solely for the convenience of the reader.
NOTE B: IFRS
The Company's consolidated financial
results for fiscal year ended December 31,
2023 are presented in accordance with International
Financial Reporting Standards.
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 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 STATEMENTS
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 include statements regarding the timing
of construction of the Company's new logistics center and its
expected benefits. 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: delays in the construction of the Company's
new logistics center and the risk that its expected benefits will
not be materialized, 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 political, economic and military
conditions in Israel, particularly
the recent war in Israel, and
economic conditions in the Company's core markets, delays and price
increases due to the attacks on global shipping routes in the Red
Sea, 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,
risks associated with product liability claims and risks associated
with the start of credit extension activity. 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, 2023, filed with the
Securities and Exchange Commission on March
21, 2024. 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
|
|
|
|
|
|
|
|
December
31,
|
December
31,
|
|
2 0 2
3
|
2 0 2
2
|
2 0 2
3
|
2 0 2
2
|
|
NIS
|
US dollars (*)
|
|
(in
thousands)
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
137,466
|
150,607
|
37,901
|
41,524
|
|
Financial assets at
fair value through profit or loss
|
102,163
|
116,762
|
28,167
|
32,192
|
|
Trade receivables,
Net
|
160,379
|
165,838
|
44,218
|
45,723
|
|
Other receivables and
prepaid expenses
|
10,164
|
4,956
|
2,802
|
1,366
|
|
Inventories,
Net
|
62,475
|
71,929
|
17,225
|
19,832
|
|
Current tax
assets
|
9,497
|
3,117
|
2,618
|
859
|
|
Total current
assets
|
482,144
|
513,209
|
132,931
|
141,496
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Property, plant and
equipment
|
122,222
|
99,216
|
33,698
|
27,355
|
|
Less -Accumulated
depreciation
|
55,636
|
51,533
|
15,339
|
14,208
|
|
66,586
|
47,683
|
18,359
|
13,147
|
|
|
|
|
|
|
Right of use
asset
|
2,124
|
3,391
|
586
|
935
|
|
Financial assets at
fair value through profit or loss
|
46,143
|
44,113
|
12,722
|
12,162
|
|
Goodwill
|
36
|
36
|
10
|
10
|
|
Total non-current
assets
|
114,889
|
95,223
|
31,677
|
26,254
|
|
|
|
|
|
|
597,033
|
608,432
|
164,608
|
167,750
|
|
EQUITY AND
LIABILITIES
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
Current maturities of
lease liabilities
|
1,512
|
2,194
|
417
|
605
|
|
Trade
payables
|
21,622
|
24,842
|
5,961
|
6,849
|
|
Employees
Benefits
|
4,193
|
3,756
|
1,156
|
1,036
|
|
Other payables and
accrued expenses
|
10,854
|
11,836
|
2,993
|
3,264
|
|
Total current
liabilities
|
38,181
|
42,628
|
10,527
|
11,754
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
Lease
liabilities
|
694
|
1,284
|
191
|
354
|
|
Deferred
taxes
|
4,868
|
4,198
|
1,342
|
1,156
|
|
Retirement benefit
obligation
|
1,055
|
878
|
291
|
242
|
|
Total non-current
liabilities
|
6,617
|
6,360
|
1,824
|
1,752
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Share
capital
|
1,490
|
1,490
|
411
|
411
|
|
Additional paid in
capital
|
172,589
|
171,550
|
47,585
|
47,298
|
|
Remeasurement of the
net liability in respect of defined benefit
|
(154)
|
(195)
|
(42)
|
(54)
|
|
Capital fund
|
247
|
247
|
68
|
68
|
|
Retained
earnings
|
378,691
|
386,980
|
104,408
|
106,694
|
|
Treasury
shares
|
(628)
|
(628)
|
(173)
|
(173)
|
|
Equity attributable
to owners of the Company
|
552,235
|
559,444
|
152,257
|
154,244
|
|
|
|
|
|
|
597,033
|
608,432
|
164,608
|
167,750
|
|
|
|
|
|
|
(*)
Convenience translation into U.S.
dollars.
|
|
G. WILLI–FOOD
INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
For the year
ended
December
31,
|
For the year
ended
December
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
|
543,262
|
498,325
|
149,783
|
137,393
|
|
Cost of
sales
|
422,695
|
355,228
|
116,541
|
97,940
|
|
|
|
|
|
|
Gross
profit
|
120,567
|
143,097
|
33,242
|
39,453
|
|
Operating costs and
expenses:
|
|
|
|
|
|
Selling
expenses
|
74,216
|
74,106
|
20,462
|
20,432
|
|
General and
administrative expenses
|
26,110
|
24,117
|
7,199
|
6,649
|
|
Other income
|
(109)
|
(222)
|
(30)
|
(61)
|
|
Total operating
expenses
|
100,217
|
98,001
|
27,631
|
27,020
|
|
|
|
|
|
|
Operating
profit
|
20,350
|
45,096
|
5,611
|
12,433
|
|
|
|
|
|
|
Financial
income
|
20,363
|
13,417
|
5,614
|
3,699
|
|
Financial
expense
|
1,521
|
4,539
|
419
|
1,251
|
|
Total Finance
income
|
18,842
|
8,878
|
5,195
|
2,448
|
|
|
|
|
|
|
Income before taxes
on income
|
39,192
|
53,974
|
10,806
|
14,881
|
|
Taxes on
income
|
7,536
|
12,410
|
2,078
|
3,422
|
|
|
|
|
|
|
Income after taxes
on income
|
31,656
|
41,564
|
8,728
|
11,459
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
Basic / diluted
earnings per share
|
2.28
|
3.00
|
0.63
|
0.83
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computation of
basic/diluted EPS
|
13,867,017
|
13,867,017
|
13,867,017
|
13,867,017
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
For the year
ended
|
For the year
ended
|
|
December
31,
|
December
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)
|
|
CASH FLOWS -
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Profit from continuing
operations
|
31,656
|
41,564
|
8,728
|
11,460
|
|
|
Adjustments to
reconcile net profit to net cash from continuing
operating activities (Appendix A)
|
2,052
|
(27,495)
|
566
|
(7,581)
|
|
|
Net cash from
continuing operating activities
|
33,708
|
14,069
|
9,294
|
3,879
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS -
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Acquisition of property
plant and equipment
|
(4,605)
|
(**)(6,006)
|
(1,270)
|
(1,656)
|
|
|
Acquisition of property
plant and equipment under construction
|
(18,941)
|
(**)(7,344)
|
(5,222)
|
(2,025)
|
|
|
Proceeds from sale of
property plant and Equipment
|
208
|
351
|
57
|
97
|
|
|
Proceeds from sale of
marketable securities, net
|
18,166
|
21,285
|
5,009
|
5,868
|
|
|
Net cash used in
(from) continuing investing activities
|
(5,172)
|
8,286
|
(1,426)
|
2,284
|
|
|
|
|
|
|
|
|
CASH FLOWS -
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Lease liability
payments
|
(2,408)
|
(2,180)
|
(664)
|
(601)
|
|
|
Dividend
distribution
|
(39,945)
|
(54,906)
|
(11,012)
|
(15,138)
|
|
|
Net cash used to
continuing financing activities
|
(42,353)
|
(57,086)
|
(11,676)
|
(15,739)
|
|
|
|
|
|
|
|
|
Decrease in cash and
cash equivalents
|
(13,817)
|
(34,731)
|
(3,808)
|
(9,576)
|
|
|
Cash and cash
equivalents at the beginning of the year
|
150,607
|
195,718
|
41,523
|
53,961
|
|
|
Exchange gains (losses)
on cash and cash equivalents
|
676
|
(10,380)
|
186
|
(2,862)
|
|
|
Cash and cash
equivalents at the end of the year
|
137,466
|
150,607
|
37,901
|
41,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
Convenience Translation into U.S. Dollars.
|
|
(**)
Reclassified
|
|
G. WILLI-FOOD
INTERNATIONAL LTD.
APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
|
|
|
|
|
For the year
ended
|
For the year
ended
|
|
December
31,
|
December
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)
|
|
|
|
|
|
|
CASH FLOWS -
OPERATING ACTIVITIES:
A. Adjustments to reconcile net profit to net
cash from
continuing
operating activities
|
|
|
|
|
|
|
|
|
|
|
Decrease in deferred
income taxes
|
670
|
2,181
|
185
|
601
|
|
Unrealized loss (gain)
on marketable securities
|
(5,597)
|
2,985
|
(1,543)
|
823
|
|
Loss (gain) of
financial liabilities at fair value through profit or
loss
|
-
|
(13,960)
|
-
|
(3,849)
|
|
Depreciation and
amortization
|
6,950
|
6,508
|
1,916
|
1,794
|
|
Stock based
compensation reserve
|
1,039
|
790
|
286
|
218
|
|
Capital gain on
disposal of property plant and equipment
|
(109)
|
(222)
|
(30)
|
(61)
|
|
Exchange (losses) gains
on cash and cash equivalents
|
(676)
|
10,380
|
(186)
|
2,862
|
|
|
|
|
|
|
|
|
|
|
|
Changes in assets
and liabilities:
|
|
|
|
|
|
Decrease (Increase) in
trade receivables and other receivables
|
7,527
|
(17,151)
|
2,075
|
(4,729)
|
|
Decrease (increase) in
inventories
|
9,454
|
(12,401)
|
2,607
|
(3,419)
|
|
Increase (decrease) in
trade payables, other payables and other
current liabilities
|
(3,547)
|
5,418
|
(978)
|
1,494
|
|
Cash generated from
operations
|
15,711
|
(15,472)
|
4,332
|
(4,266)
|
|
Income tax
paid
|
(13,659)
|
(12,023)
|
(3,766)
|
(3,315)
|
|
Net cash flows from
(used in) operating activities
|
2,052
|
(27,495)
|
566
|
(7,581)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
Convenience Translation into U.S. Dollars.
|
Logo:
https://mma.prnewswire.com/media/959267/G_Willi_Food_International_Logo.jpg
Company Contact:
G. Willi - Food International Ltd.
Yitschak Barabi, Chief Financial
Officer
(+972) 8-932-1000
itsik.b@willi-food.co.il
View original
content:https://www.prnewswire.com/news-releases/g-willi-food-international-reports-9-0-increase-in-sales-and-a-record-high-annual-sales-in-2023--302095984.html
SOURCE G. Willi-Food International Ltd.
