YAVNE, Israel, March 28, 2017 /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 financial results for the fiscal year
ended December 31, 2016.
Fiscal 2016 Highlights
- Operating income increased by 224% from fiscal 2015 to
NIS 22.7 million (US$ 5.9 million), or 7.7% of sales in fiscal
2016.
- Sales decreased by 5.9% from fiscal 2015 to NIS 294.2 million (US$
76.5 million) in fiscal 2016.
- Gross margin increased by 8.3% from fiscal 2015 to 26% of
sales, or NIS 76.6 million
(US$ 19.5 million), in fiscal
2016.
- Net income increased by 58.6% from fiscal 2015 to NIS 10.9 million (US$ 2.8
million), or 3.7% of sales in fiscal 2016.
- Earning per share increased to NIS0.82 (US$ 0.21) in fiscal 2016.
- Net cash from operating activities increased by 20.6% from
fiscal 2015 to NIS 17.3 million
(US$ 5.5 million) in fiscal
2016.
- Cash and securities balance of NIS 234.5
million (US$ 61 million) as of
December 31, 2016.
Willi-Food's operating divisions include Willi-Food, a
distributor of a broad variety of kosher foods, and its
wholly-owned Gold Frost, a designer, developer and distributor of
branded kosher innovative dairy food products.
Management Comment
Iram Graiver, President of
Willi-Food, commented, "We are pleased with our 2016 results,
which represent a strong improvement for Willi-Food. In particular,
during the year we placed strong focus on, and succeeded in,
significantly improving profitability. Specifically, we focused on
products with higher margins, which enabled us to improve gross
profit even given a lower level of sales. Moreover, combined with
tight control over our corporate expenses, we more than doubled our
net profits over those of 2015. Towards the end of 2016, we
launched a dividend program, sharing our profits and bringing
increased value to our shareholders."
Continued Mr. Graiver, "Looking ahead to 2017, we will
continue to work hard in keeping our expenses low and maintaining a
favorable product mix. In addition, we look to expand our product
lines, increase product sales with existing customers while growing
into new customers. We have also started the process of exmaining
M&A oppurtunities to further increase our market presence. Our
overall goal is to build a strong, stable and profitable company,
with the aim of maximizing long-term value for our
shareholders."
Fiscal 2016 Summary
Sales for fiscal 2016 decreased by 5.9% to NIS 294.2 million (US$
76.5 million) from NIS 312.5
million (US$ 81.3 million) in
fiscal 2015. Sales decreased in 2016 due to; (i) the change in the
Company's strategic focus to higher gross margin products which,
while causing a decrease in the volume of sales, it enabled an
increased level of gross profit as compared to fiscal 2015; (ii)
the impact of shortage of inventories in the third quarter 2016 due
to the strike at the Israeli Ministry of Health in
July-August 2016, which significantly
delayed the release of the Company's products from customs, and
(iii) overall market decline in food product consumption by the
Israeli consumer.
Gross profit for fiscal 2016 increased by 2.1% to NIS 76.6 million (US$ 19.9
million) compared to NIS 75.1
million (US$ 19.5 million)
recorded in fiscal 2015. Gross margins for fiscal 2016 increased by
8.3 % to 26.0% compared to gross margins of 24.0% for fiscal 2015.
The increase in gross margin was the result of the Company's
strategic focus on selling a favorable mix of products, which
generated a higher gross margin in addition to successful
negotiations with suppliers for improved commercial terms.
Operating income for fiscal 2016 increased by 224% to
NIS 22.7 million (US$ 5.9 million) compared to NIS 7 million (US$ 1.8
million) recorded in fiscal 2015. The most significant
expense, which affected operating income, and in particular general
and administrative expenses in fiscal 2015, was the cost related to
the termination agreement with companies controlled by Messrs.
Zwi and Joseph Williger, the
Company's former Chairman and President, as described below.
Selling expenses increased by 5.7% from fiscal 2015, primarily
due to an increase of 58% in promotional expenses that
included an approximate NIS 3 million
(US$ 0.8 million) expense related to
a nationwide campaign launched in the second half of 2016 aimed at
broadening awareness of Willi-Food's brands and products. Selling
expenses as a percentage of sales were 13.4%, compared to 11.9% as
in fiscal 2015.
General and administrative expenses decreased by 56% from fiscal
2015 to NIS 14.6 million
(US$ 3.8 million) compared to
NIS 32.9 million (US$ 8.6 million). This was mainly due to the
significant decrease in the costs of management salaries to Mr.
Zwi Williger, the Company's former
Co-Chairman of the Board of Directors and president, and Mr.
Joseph Williger, a former director
and president of the Company, which totaled NIS 13 million (US$ 3.4
million). In addition, in fiscal 2015, a NIS 1.7 million (US$ 0.4
million) write-off was recorded, with respect to the
Company's estimated exposure to Mega Retail Ltd. and Eden Briut
Teva Market Ltd. debts.
Willi-Food's income before taxes for fiscal 2016 increased by
136% to NIS 16.1 million
(US$ 4.2 million) compared to
NIS 9.4 million (US$ 2.4 million) recorded in fiscal 2015.
Willi-Food's net income for fiscal 2016 increased by 142% to
NIS 16.6 million (US$ 4.3 million), or NIS
0.82 (US$ 0.21) per share,
from NIS 6.8 million (US$ 1.8 million), or NIS
0.52 (US$ 0.14) per share,
recorded in fiscal 2015.
Willi-Food ended fiscal 2016 with NIS
234.5 million (US$ 61 million)
in cash and securities with no short-term debt. Net cash from
operating activities in fiscal 2016 was NIS
17.2 million (US$ 4.5
million).Willi-Food's shareholders' equity at the end of
December 2016 was NIS 391 million (US$ 101.7
million).
Note regarding the convening of an annual meeting of
shareholders
The Company's Board of directors has scheduled the
convening of an annual meeting of shareholders, to be held on
June 20, 2017 following submission by
the Company of its Annual Report on Form 20-F.
Note regarding the conference call
As previously announced, on March 7,
2017, the Company will host a conference call on
Tuesday, March 28, 2017
starting at 1.30pm Eastern
Time. Management will host the call and will be
available to answer questions after presenting the results.
To participate in the conference call, please call one of the
following teleconferencing numbers. Please begin placing your calls
at least 10 minutes before the conference call commences. If you
are unable to connect using the toll-free numbers, try the
international dial-in number.
US: 1-888-281-1167
Israel: 03- 918-0685
International: +972-3- 918-0685
At: 1.30pm Eastern Time,
10.30am Pacific Time, 6.30pm UK Time, 8.30pm Israel Time
For those unable to participate, the teleconference will be
available for replay on the company's website at
http://willi-food.com/ beginning 24 hours after the call for a
period of 30 days.
Note regarding Israeli Securities Authority
Investigation
As previously announced, on February 17,
2016, a search was conducted in the offices of the Company,
the Parent Company, BSD Crown Ltd., and B.G.I Investments Ltd.
(collectively, the "Group"), by the Israeli Securities Authority
(the "ISA"), during which various documents and computers were
taken from the Group's offices. A number of executives in the Group
were investigated by the ISA, and Mr. Gregory Gurtovoy, member of the Company's board
of directors and the indirect controlling shareholder, was detained
for interrogation by the ISA for three days, after which, he was
placed under house arrest for a period of two weeks (which has
since ended), on the suspicion of the crimes of fraudulent
acquisitions under aggravating circumstances, falsifying corporate
documents, fraud, breach of fiduciary duty in a corporation, money
laundering, as well as misleading reporting.
To Company management's knowledge, the investigation by the ISA
relates to an investment of approximately US$ 2.25 million (the "Investment") made during
January 2016 in the form of bonds of a European company,
which allegedly served as a collateral to a loan obtained by the
controlling shareholder or another individual, and which was
unrelated to the Company's operations.
The Investment was carried out by B.H.W.F.I Ltd., a wholly owned
subsidiary of the Company ("BHWFI"), pursuant to subscription forms
to purchase 300 bonds with a nominal value of US$ 10,000 each ("Subscription Forms"). The Bonds
bear an annual interest rate of 6%, payable semi-annually on
June 30 and December 31 of each year as of the issue date
until the final maturity date of 31 December
2018. The issuer has the right to repay the Bonds with prior
notice of 30 days without penalty.
On December 30, 2016, BHWFI and
the issuer signed an agreement (the "Agreement") for an early
redemption of the bonds for a total of US$
1.8 million that was to be paid until February 15, 2017. Similarly, as part of
the terms of the Agreement, the issuer waived all its claims
against BHWFI, including an alleged obligation to make an
additional investment in bonds up to an aggregate amount of
$5 million (as stated above, an
amount of US$ 2.25 million was
invested in the past).
On March 21, 2017, a first payment
in the amount of US$200 thousands was
received. As of the financial results reporting date, due to
uncertainty related to the collection of the remaining US$1.6 million debt, the company made non-cash
provision in the amount of the unpaid debt.
NOTE A: 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
December 31, 2016, U.S. $1.00 equals NIS
3.845. The translation was made solely for the convenience
of the reader.
NOTE B: IFRS
The Company's consolidated financial results for fiscal year
ended December 31, 2016 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, in particular Arla
Foods, 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, 2015, filed with the
Securities and Exchange Commission on April
28, 2016. 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.
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
December
31,
|
December
31,
|
|
2 0 1
6
|
2 0 1
5
|
2 0 1
6
|
2 0 1
5
|
|
NIS
|
US dollars
(*)
|
|
(in
thousands)
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
129,577
|
79,421
|
33,700
|
20,656
|
Financial assets
carried at fair value through profit or loss
|
104,921
|
145,007
|
27,288
|
37,713
|
Short term
deposit
|
-
|
20,288
|
-
|
5,276
|
Trade
receivables
|
80,227
|
81,392
|
20,865
|
21,168
|
Other receivables and
prepaid expenses
|
4,795
|
8,451
|
1,247
|
2,198
|
Inventories
|
41,877
|
34,517
|
10,891
|
8,977
|
Current tax
assets
|
5,443
|
1,833
|
1,416
|
477
|
Total current
assets
|
366,840
|
370,909
|
95,407
|
96,465
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Property, plant and
equipment
|
77,204
|
76,040
|
20,079
|
19,776
|
Less -Accumulated
depreciation
|
34,963
|
31,874
|
9,093
|
8,289
|
|
42,241
|
44,166
|
10,986
|
11,487
|
|
|
|
|
|
Prepaid
expenses
|
-
|
138
|
-
|
36
|
Goodwill
|
36
|
36
|
9
|
9
|
Deferred
taxes
|
2,354
|
3,614
|
613
|
940
|
Total non-current
assets
|
44,631
|
47,954
|
11,608
|
12,472
|
|
|
|
|
|
|
411,471
|
418,863
|
107,015
|
108,937
|
EQUITY AND
LIABILITIES
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term bank
debt
|
-
|
16
|
-
|
4
|
Trade
payables
|
14,832
|
12,863
|
3857
|
3,345
|
Employees
Benefits
|
2,253
|
1,940
|
586
|
505
|
Other payables and
accrued expenses
|
2,533
|
3,653
|
659
|
950
|
Total current
liabilities
|
19,618
|
18,472
|
5,102
|
4,804
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Retirement benefit
obligation
|
849
|
679
|
222
|
176
|
Total non-current
liabilities
|
849
|
679
|
222
|
176
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Share capital NIS 0.1
par value (authorized - 50,000,000 shares,
issued and outstanding – 13,240,913 shares at
December 31, 2016 and December 31, 2015)
|
1,424
|
1,425
|
370
|
371
|
Additional paid in
capital
|
128,354
|
128,354
|
33,382
|
33,383
|
Capital
fund
|
247
|
247
|
64
|
64
|
Retained
earnings
|
261,487
|
269,883
|
68,007
|
70,190
|
respect of
defined benefit
|
(508)
|
(197)
|
(132)
|
(51)
|
|
391,004
|
399,712
|
101,691
|
103,957
|
|
|
|
|
|
|
411,471
|
418,863
|
107,015
|
108,937
|
|
|
|
|
|
(*) Convenience
translation into U.S. dollars.
G. WILLI‑FOOD
INTERNATIONAL LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
|
|
For the year
ended
|
For the year
ended
|
|
|
December
31,
|
December
31,
|
|
|
2 0 1
6
|
2 0 1
5
|
2 0 1
6
|
2 0 1
5
|
|
|
NIS
|
US dollars
(*)
|
|
|
In thousands
(except per share and share data)
|
|
|
|
|
|
|
|
Sales
|
294,202
|
312,514
|
76,516
|
81,278
|
|
Cost of
sales
|
217,585
|
237,452
|
56,590
|
61,756
|
|
|
|
|
|
|
|
Gross
profit
|
76,617
|
75,062
|
19,926
|
19,522
|
|
|
|
|
|
|
|
Selling
expenses
|
39,405
|
37,293
|
10,249
|
9,699
|
|
General and
administrative expenses
|
14,577
|
32,926
|
3,791
|
8,563
|
|
Other
income
|
112
|
2,182
|
30
|
567
|
|
|
|
|
|
|
|
Total operating
expenses
|
53,870
|
68,037
|
14,010
|
17,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
22,747
|
7,025
|
5,916
|
1,827
|
|
|
|
|
|
|
|
Financial
income
|
(3,425)
|
3,363
|
(891)
|
875
|
|
Financial
expense
|
3,143
|
978
|
817
|
255
|
|
Total financial
income
|
(6,568)
|
2,385
|
(1,708)
|
620
|
|
|
|
|
|
|
|
Income before
taxes on income
|
16,179
|
9,410
|
4,208
|
2,447
|
|
Taxes on
income
|
(5,327)
|
(2,566)
|
(1,385)
|
(667)
|
|
|
|
|
|
|
|
Net
income
|
10,852
|
6,844
|
2,823
|
1,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
Basic earnings per
share
|
0.82
|
0.52
|
0.21
|
0.13
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
0.82
|
0.52
|
0.21
|
0.13
|
|
|
|
|
|
|
|
Shares used in
computation of basic EPS
|
13,240,913
|
13,107,579
|
13,240,913
|
13,107,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Convenience
translation into U.S. dollars.
G. WILLI‑FOOD
INTERNATIONAL LTD.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
For the year
ended
|
For the year
ended
|
|
|
December
31,
|
December
31,
|
|
|
2016
|
2015
|
2016
|
2015
|
|
|
NIS
|
US dollars
(*)
|
|
|
In thousands
(except per share and share data)
|
|
CASH FLOWS -
OPERATING ACTIVITIES
|
|
|
|
|
|
Profit from
continuing operations
|
10,852
|
6,844
|
2,823
|
1,780
|
|
Adjustments to
reconcile net income to net
cash from operating activities (Appendix)
|
6,439
|
7,494
|
1,674
|
1,949
|
|
Net cash from
continuing operating activities
|
17,291
|
14,338
|
4,497
|
3,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS -
INVESTING ACTIVITIES
|
|
|
|
|
|
Acquisition of
property plant and equipment
|
(1,915)
|
(2,994)
|
(498)
|
(779)
|
|
Proceeds from sale of
property plant and Equipment
|
190
|
456
|
49
|
119
|
|
Proceeds from
realization (purchase) of marketable securities, net
|
42,071
|
(22,087)
|
10,942
|
(5,744)
|
|
Proceeds from
short term deposit
|
20,288
|
-
|
5,277
|
-
|
|
Acquisition of non
current financial assets
|
(8,504)
|
-
|
(2,212)
|
-
|
|
Net cash from
(used in) continuing investing activities
|
52,130
|
(24,625)
|
13,558
|
(6,404)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS -
FINANCING ACTIVITIES
|
|
|
|
|
|
Short-term bank debt,
net
|
(16)
|
16
|
(4)
|
4
|
|
Dividend
|
(19,249)
|
-
|
(5,006)
|
-
|
|
Proceeds of Public
offering, net
|
-
|
6,790
|
-
|
1,766
|
|
Net cash from used
in continuing financing activities
|
(19,265)
|
6,806
|
(5,010)
|
1,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
50,156
|
(3,481)
|
13,045
|
(905)
|
|
Cash and cash
equivalents at the beginning of the year
|
79,421
|
82,902
|
20,656
|
21,561
|
|
Cash and cash
equivalents of the end of the year
|
129,577
|
79,421
|
33,701
|
20,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
Convenience Translation into U.S. Dollars.
G. WILLI-FOOD
INTERNATIONAL LTD.
|
APPENDIX TO
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
|
|
For the year
ended
|
For the year
ended
|
|
December
31,
|
December
31,
|
|
2 0 1
6
|
2 0 1
5
|
2 0 1
6
|
2 0 1
5
|
|
NIS
|
US dollars
(*)
|
|
In thousands
(except per share and share data)
|
|
|
|
|
|
CASH FLOWS -
OPERATING ACTIVITIES:
Adjustments to
reconcile net profit to
net cash from operating activities
|
|
|
|
|
Depreciation and
amortization
|
3,762
|
3,723
|
978
|
968
|
loss from non current
financial assets
|
7,734
|
-
|
2,011
|
-
|
Unrealized Loss
(Gain) on marketable securities
|
(287)
|
-
|
(74)
|
-
|
Increase (Decrease)
in deferred income taxes
|
1,260
|
(3,109)
|
328
|
(809)
|
gain from short
term deposit
|
-
|
(843)
|
-
|
(219)
|
Capital Gain on
disposal of property plant and equipment
|
(112)
|
(220)
|
(30)
|
(57)
|
Unrealized Loss
(Gain) on marketable securities
|
(1,985)
|
(186)
|
(516)
|
(48)
|
Stock based
compensation reserve
|
-
|
152
|
-
|
39
|
|
|
|
|
|
Changes in assets
and liabilities:
|
|
|
|
|
Increase (decrease)
in trade receivables and other receivables
|
2,405
|
81
|
625
|
21
|
Increase in
inventories
|
(7,360)
|
14,069
|
(1914,)
|
3,659
|
Decrease in payables
and other current liabilities
|
1,022
|
(6,173)
|
266
|
(1,605)
|
|
6,439
|
7,494
|
1,674
|
1,949
|
|
|
|
|
|
|
|
|
|
|
(*)
Convenience Translation into U.S. Dollars.
Company Contact:
G. Willi - Food International Ltd.
Pavel Buber, Chief Financial Officer
(+972) 8-932-1000
pavel@willi-food.co.il
Investor Relations Contact:
GK Investor and Public Relations
Ehud Helft / Gavriel Frohwein
(646) 688-3559
willifood@gkir.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/g-willi-food-reports-fiscal-2016-year-end-financial-results-300430383.html
SOURCE G Willi Food International