YAVNE, Israel, Aug. 15, 2018 /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
second quarter ended June 30,
2018.
Willi-Food's operating divisions include Willi-Food, a
distributor of a broad variety of kosher foods, and Gold Frost, its
wholly-owned subsidiary, a designer, developer and distributor of
branded kosher innovative dairy food products.
Second Quarter Fiscal Year 2018 Highlights
- Sales increased by 2.6% year-over-year to NIS 78.4 million (US$ 21.5
million).
- Gross profit increased by 51.8% year-over-year to NIS 22.2 million (US$ 6.1
million).
- Operating profit of NIS 7.6
million (US$ 2.1 million), or
9.7% of sales, compared to operating loss of NIS (1.6) million (US$ 0.4
million) in the comparable quarter of 2017.
- Net profit increased by 312% year-over-year to NIS 6.5 million (US$ 1.8
million), or 8.2% of sales.
- Net cash from operating activities of NIS 7.8 million (US$ 2.1
million).
- Cash and securities balance of NIS 270.8
million (US$ 74.2 million) as
of June 30, 2018.
- Earnings per share of NIS 0.49
(US$ 0.13).
Management Comment
Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food,
commented: "We are pleased to present the second quarter 2018
financial results which show improvements in sales, gross profit,
operating profit and net profit over the comparable period last
year. Sales increased by 2.6% versus second quarter of 2017, gross
profit increased by 51.8% versus second quarter of 2017, operating
profit increased by 560% versus second quarter of 2017, and net
profit increased by 312% versus second quarter of 2017.
This is the fourth consecutive quarter since the Company's
control has been changed and new managers have been appointed in
which the Company presents improvement in its operating
results over the comparable quarter of the previous year. We
believe that the activities we are taking will continue to generate
steady growth and increase profitability over time.
We are happy to update that the Company has contracted with
several European dairies to supply a range of alternative dairy
products to the products previously provided by Arla Foods Amba (a
former significant supplier of our dairy products segment). In
August 2018, the Company launched a
dairy line with the products from the European dairies under an
independent brand called Euro Dairy Europe.
Second Quarter Fiscal 2018 Summary
Sales for the second quarter of 2018 increased by 2.6% to
NIS 78.4 million (US$ 21.5 million) from NIS
76.4 million (US$ 20.9
million) recorded in the second quarter of 2017. Sales
increased in the second quarter of 2018 primarily due to
redirection of resources in favor of sales, increasing the range of
the Company's products and proper inventory management.
Gross profit for the second quarter of 2018 increased by 51.8%
to NIS 22.2 million (US$ 6.1 million) compared to NIS 14.6 million (US$ 4.0
million) recorded in the second quarter of 2017. Second
quarter gross margin increased by 48.2% to 28.3% compared to gross
margin of 19.1% for the same period in 2017. The increase in gross
margin was the result of the Company's continued strategic focus on
selling a favorable mix of products which generate a higher gross
margin.
Willi-Food's operating profit for the second quarter of 2018
increased by 559.9% to NIS 7.6
million (US$ 2.1 million)
compared to operating loss of NIS (1.6)
million (US$ (0.4) million) in
the second quarter of 2017.
Selling expenses decreased by 9% from the comparable quarter of
2017 primarily due to a decrease in promotional expenses. Selling
expenses as a percentage of sales were 13.0%, compared to 14.6% in
the second quarter of 2017.
General and administrative expenses were NIS 4.4 million (US$ 1.2
million) in the second quarter of 2018, a decrease of 17%
compared to NIS 5.3 million
(US$ 1.5 million) in the second
quarter of 2017. This was primarily due to a decrease in legal and
consulting expenses.
Willi-Food's operating income before taxes for the second
quarter of 2018 was NIS 8.0 million
(US$ 2.2 million) compared to
operating income before taxes of NIS 1.0
million (US$ 0.3 million) in
the second quarter of 2017.
Willi-Food's net profit in the second quarter of 2018 was
NIS 6.5 million (US$ 1.8 million), or NIS
0.49 (US$ 0.13) per share,
compared to NIS 1.6 million
(US$ 0.4 million), or NIS 0.12 (US$ 0.03)
per share, recorded in the second quarter of 2017.
Willi-Food ended the second quarter of 2018 with NIS 270.8 million (US$
74.2 million) in cash and securities. Net cash from
operating activities for the second quarter of 2018 was
NIS 7.8 million (US$ 2.1 million). Willi-Food's shareholders'
equity at the end of June 2018 was
NIS 429.3 million (US$ 117.6 million).
First Half Fiscal 2018 Highlights
- Sales increased by 7.5% year-over-year to NIS 171.8 million (US$
47.1 million).
- Gross profit increased by 28.2% year-over-year to NIS 46.9 million (US$ 12.8
million), or 10% of sales.
- Operating profit increased by 241.5% year-over-year to
NIS 17.1 million (US$ 4.7 million), or 10% of sales.
- Net profit increased 133% to NIS 13.7
million (US$ 3.7 million), or
8% of sales.
- Net cash from operating activities of NIS 7.8 million (US$ 2.1
million).
- Earnings per share of NIS 1.03
(US$ 0.28).
First Half Fiscal 2018 Summary
Willi-Food's sales for the six-month period ending June 30, 2018 increased by 7.5% to NIS 171.8 million (US$
47.1 million) compared to sales of NIS 159.7 million (US$
43.8 million) in the first half of 2017. Sales increased in
the first half of 2018 primarily to due redirection of resources in
favor of sales, increasing the range of the Company's products and
proper inventory management.
Gross profit for the period increased by 28.2% to NIS 46.9 million (US$ 12.8
million) compared to gross profit of NIS 36.6 million (US$ 10.0
million) for the first half of 2017. First half 2018 gross
margin was 27.3% compared to a gross margin of 22.9% for the same
period in 2017. The increase in gross margin was the result of the
Company's continued strategic focus on selling a favorable mix of
products which generate a higher gross margin.
Operating income for the first half of 2018 increased by 241% to
NIS 17.1 million (US$ 4.7 million) from NIS
5.0 million (US$ 1.4 million)
reported in the comparable period of last year primarily due to the
increase of gross profit and decrease of selling expenses.
First half 2018 income before taxes increased by 157.5% to
NIS 17.6 million (US$ 4.8 million) compared to NIS 6.8 million (US$ 1.9
million) recorded in the first half of 2017.
Net income for the first half of 2018 increased by 133.5% to
NIS 13.7 million (US$ 3.7 million), or NIS
1.03 (US$ 0.28) per share,
from NIS 5.9 million (US$ 1.6 million), or NIS
0.44 (US$ 0.12) per share,
recorded in the first half of 2017.
Convenience Translation to Dollars
The convenience translation of New Israeli Shekels (NIS) into
U.S. dollars was made at the rate of exchange prevailing on
June 30, 2018, U.S. $1.00 equals NIS
3.65. The translation was made solely for the convenience of
the reader.
IFRS
The Company's consolidated financial results for the six-month
period ended June 30, 2018 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 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 Gold Frost, a wholly owned
subsidiary who 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: 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,
2017, filed with the Securities and Exchange Commission on
April 30, 2018. 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.
{FINANCIAL TABLES TO FOLLOW}
G. WILLI-FOOD
INTERNATIONAL LTD.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
June
30,
|
December
31
|
June
30,
|
December
31
|
|
|
2 0 1
8
|
2 0 1
7
|
2017
|
2 0 1
8
|
2 0 1
7
|
2017
|
|
NIS
|
US dollars
(*)
|
|
|
(in
thousands)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
130,882
|
89,188
|
113,062
|
35,858
|
24,435
|
30,976
|
Financial assets
carried at fair value through profit or loss
|
139,961
|
110,545
|
143,514
|
38,345
|
30,286
|
39,319
|
Trade
receivables
|
97,339
|
92,917
|
85,943
|
26,668
|
25,457
|
23,546
|
Other receivables and
prepaid expenses
|
3,155
|
5,112
|
5,996
|
864
|
1,401
|
1,643
|
Inventories
|
44,695
|
70,927
|
39,899
|
12,245
|
19,432
|
10,931
|
Current tax
assets
|
2,572
|
6,165
|
6,760
|
705
|
1,689
|
1,852
|
Total current
assets
|
418,604
|
374,854
|
395,174
|
114,685
|
102,700
|
108,267
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
79,176
|
79,886
|
78,598
|
21,692
|
21,887
|
21,534
|
Less -Accumulated
depreciation
|
39,225
|
37,842
|
37,389
|
10,747
|
10,368
|
10,244
|
|
39,951
|
42,044
|
41,209
|
10,945
|
11,519
|
11,290
|
|
|
|
|
|
|
|
Goodwill
|
36
|
36
|
36
|
10
|
10
|
10
|
Deferred
taxes
|
1,306
|
3,128
|
503
|
358
|
857
|
138
|
Total non-current
assets
|
41,293
|
45,208
|
41,748
|
11,313
|
12,386
|
11,438
|
|
|
|
|
|
|
|
|
459,897
|
420,062
|
436,922
|
125,998
|
115,086
|
119,705
|
|
|
|
|
|
|
|
EQUITY AND
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Trade
payables
|
19,945
|
16,223
|
12,800
|
5,464
|
4,445
|
3,507
|
Employees
Benefits
|
2,671
|
2,428
|
2,147
|
732
|
665
|
588
|
Other payables and
accrued expenses
|
6,912
|
3,666
|
5,246
|
1,893
|
1,004
|
1,437
|
Total current
liabilities
|
29,528
|
22,317
|
20,193
|
8,089
|
6,114
|
5,532
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
retirement benefit
obligation
|
1,090
|
875
|
1,148
|
299
|
241
|
315
|
Total non-current
liabilities
|
1,090
|
875
|
1,148
|
299
|
241
|
315
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Share capital NIS 0.1
par value (authorized - 50,000,000 shares,
issued and outstanding - 13,240,913 shares at March 31, 2018;
and December 31, 2017)
|
1,425
|
1,424
|
1,425
|
390
|
390
|
390
|
Additional paid in
capital
|
128,354
|
128,354
|
128,354
|
35,165
|
35,165
|
35,165
|
Capital
fund
|
247
|
247
|
247
|
68
|
68
|
68
|
Remeasurement of the
net liability in respect of defined benefit
|
(954)
|
(508)
|
(954)
|
(261)
|
(139)
|
(261)
|
Retained
earnings
|
300,207
|
267,353
|
286,509
|
82,248
|
73,247
|
78,496
|
Equity
attributable to owners of the Company
|
429,279
|
396,870
|
415,581
|
117,610
|
108,731
|
113,858
|
|
|
|
|
|
|
|
|
459,897
|
420,062
|
436,922
|
125,998
|
115,086
|
119,705
|
|
|
|
|
|
|
|
(*)
Convenience translation into U.S. dollars.
|
G. WILLI-FOOD
INTERNATIONAL LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
Six
months
|
Three
months
|
Six
months
|
|
ended
|
ended
|
ended
|
|
June
30,
|
June
30,
|
June
30,
|
|
2 0 1
8
|
2 0 1
7
|
2018
|
2017
|
2 0 1
8
|
2 0 1
7
|
|
NIS
|
US dollars
(*)
|
|
In thousands
(except per share and share data)
|
|
|
|
|
|
|
|
Sales
|
171,781
|
159,730
|
78,410
|
76,440
|
47,063
|
43,762
|
Cost of
sales
|
124,828
|
123,104
|
56,246
|
61,838
|
34,199
|
33,727
|
|
|
|
|
|
|
|
Gross
profit
|
46,953
|
36,626
|
22,164
|
14,602
|
12,864
|
10,035
|
|
|
|
|
|
|
|
Operating costs
and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
20,895
|
23,036
|
10,173
|
11,183
|
5,725
|
6,311
|
General and
administrative expenses
|
8,932
|
8,876
|
4,421
|
5,327
|
2,447
|
2,432
|
Other
income
|
-
|
301
|
-
|
262
|
-
|
82
|
|
|
|
|
|
|
|
Total operating
expenses
|
29,827
|
31,611
|
14,594
|
16,248
|
8,172
|
8,661
|
|
|
|
|
|
|
|
Operating income
(loss)
|
17,126
|
5,015
|
7,570
|
(1,646)
|
4,692
|
1,374
|
|
|
|
|
|
|
|
Financial
income
|
(655)
|
5,501
|
(195)
|
3,354
|
(180)
|
1,507
|
Financial
expense
|
(1,111)
|
3,688
|
(674)
|
670
|
(304)
|
1,010
|
|
|
|
|
|
|
|
Total financial
income
|
456
|
1,813
|
479
|
2,684
|
124
|
497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes on income
|
17,582
|
6,828
|
8,049
|
1,038
|
4,816
|
1,871
|
Taxes on
income
|
(3,888)
|
(962)
|
(1,565)
|
535
|
(1,065)
|
(264)
|
|
|
|
|
|
|
|
Profit (loss) for
the period
|
13,694
|
5,866
|
6,484
|
1,573
|
3,751
|
1,607
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
Basic earnings per
share
|
1.03
|
0.44
|
0.49
|
0.12
|
0.28
|
0.12
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
1.03
|
0.44
|
0.49
|
0.12
|
0.28
|
0.12
|
|
|
|
|
|
|
|
Shares used in
computation of
basic EPS
|
13,240,913
|
13,240,913
|
13,240,913
|
13,240,913
|
13,240,913
|
13,240,913
|
|
|
|
|
|
|
|
(*)
Convenience translation into U.S. dollars.
|
G. WILLI-FOOD
INTERNATIONAL LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
Six
months
|
Three
months
|
Six
months
|
|
ended
|
ended
|
ended
|
|
June
30,
|
June
30,
|
June
30,
|
|
2 0 1
8
|
2 0 1
7
|
2 0 1
8
|
2 0 1
7
|
2 0 1
8
|
2 0 1
7
|
|
NIS
|
US dollars
(*)
|
|
(in
thousands)
|
|
|
|
|
|
|
|
CASH FLOWS -
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Profit from
continuing operations
|
13,694
|
5,866
|
6,484
|
1,572
|
3,751
|
1,607
|
Adjustments to
reconcile net profit to net cash used
in continuing operating activities (Appendix)
|
(2,573)
|
(42,136)
|
1,341
|
5,472
|
(705)
|
(11,544)
|
|
|
|
|
|
|
|
Net cash used in
(used to) continuing operating activities
|
11,121
|
(36,270)
|
7,825
|
7,044
|
3,046
|
(9,937)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS -
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Acquisition of
property plant and equipment
|
(578)
|
(1,593)
|
(521)
|
(1,282)
|
(158)
|
(436)
|
Proceeds from sale of
property plant and Equipment
|
-
|
301
|
-
|
262
|
-
|
82
|
Proceeds from
purchase of marketable securities, net
|
3,307
|
(3,597)
|
3,402
|
(1,426)
|
906
|
(985)
|
Short term
deposit
|
-
|
-
|
|
-
|
|
-
|
Proceeds
(acquisition) of non current financial assets
|
3,970
|
770
|
-
|
-
|
1,088
|
211
|
|
|
|
|
|
|
|
Net cash from
continuing investing activities
|
6,699
|
(4,119)
|
2,881
|
(2,446)
|
1,836
|
(1,128)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS -
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Short-term bank
debt
|
-
|
-
|
(20,161)
|
-
|
-
|
-
|
|
|
|
|
|
|
|
Net cash used in
continuing financing activities
|
-
|
-
|
(20,161)
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
17,820
|
(40,389)
|
(9,455)
|
4,598
|
4,882
|
(11,065)
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the financial
period
|
113,062
|
129,577
|
140,337
|
84,590
|
30,976
|
35,500
|
|
|
|
|
|
|
|
Cash and cash
equivalents of the end of the financial year
|
130,882
|
89,188
|
130,882
|
89,188
|
35,858
|
24,435
|
|
|
|
|
|
|
|
(*)
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 operating
activities:
|
|
|
|
Six
months
|
Three
months
|
Six
months
|
|
ended
|
ended
|
ended
|
|
June
30,
|
June
30,
|
June
30,
|
|
2 0 1
8
|
2 0 1
7
|
2 0 1
8
|
2 0 1
7
|
2 0 1
8
|
2 0 1
7
|
|
NIS
|
US dollars
(*)
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in deferred
income taxes
|
(803)
|
(774)
|
(444)
|
(1,298)
|
(220)
|
(212)
|
Unrealized loss
(gain) on marketable securities
|
246
|
(2,028)
|
(2,022)
|
(766)
|
67
|
(556)
|
Depreciation and
amortization
|
1,836
|
1,790
|
916
|
861
|
503
|
490
|
Capital loss (gain)
on disposal of property plant and equipment
|
-
|
(301)
|
-
|
(262)
|
-
|
(82)
|
|
|
|
|
|
|
|
Changes in assets
and liabilities:
|
|
|
|
|
|
|
increase in trade
receivables and other receivables
|
(8,338)
|
(14,499)
|
6,484
|
4,598
|
(2,284)
|
(3,972)
|
increase in
inventories
|
(4,796)
|
(29,051)
|
(5,187)
|
5,621
|
(1,314)
|
(7,959)
|
Increase (decrease)
in trade and other payables,
and other current liabilities
|
9,282
|
2,727
|
1,594
|
(3,282)
|
2,543
|
747
|
|
|
|
|
|
|
|
|
(2,573)
|
(42,136)
|
1,341
|
5,472
|
(705)
|
(11,544)
|
|
|
|
|
|
|
|
B.
Significant non-cash transactions:
|
|
|
|
Six
months
|
Three
months
|
Six
months
|
|
ended
|
ended
|
ended
|
|
June
30,
|
June
30,
|
June
30,
|
|
2 0 1
8
|
2 0 1
7
|
2 0 1
8
|
2 0 1
7
|
2 0 1
8
|
2 0 1
7
|
|
NIS
|
US dollars
(*)
|
|
(in
thousands)
|
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
Income tax
paid
|
3,434
|
3,719
|
1,268
|
1,069
|
941
|
1,019
|
|
|
|
|
|
|
|
(*)
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.
Amir Kaplan, Chief Financial
Officer
(+972) 8-932-1000
amir.k@willi-food.co.il
View original
content:http://www.prnewswire.com/news-releases/g-willi-food-international-reports-major-improvements-in-all-major-operational-parameters-in-second-quarter-2018-compared-to-second-quarter-2017-300697436.html
SOURCE G. Willi-Food International Ltd.