YAVNE, Israel, March 27, 2019 /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, 2018.
Fiscal Year 2018 Highlights
- Sales increased by 8.4% from fiscal year 2017 to NIS 338.2 million (US$
90.2 million)
- Gross profit increased by 32.1% from fiscal year 2017 to
NIS 98.2 million (US$ 26.2 million)
- Operating profit increased by 125.3% from fiscal year 2017 to
NIS 37.8 million (US$ 10.1 million), or 11.2% of
sales
- Net cash from operating activities increased by 87.3% from
fiscal year 2017 to NIS 27.0 million
(US$ 7.2 million)
- Cash and securities balance of NIS 272.2
million (US$ 72.6 million) as
of December 31, 2018
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
Zwi
Williger & Joseph
Williger, Co-Chairmen of Willi-Food, commented: "We are
pleased to present the Company's fiscal year 2018 financial report.
Since we have been appointed as Co-Chairmen and appointed the new
senior management team which initiated the introduction of
management systems, routines and procedures, the Company improved
all its major operational parameters each quarter in 2018 compared
to the respective quarter in 2017.
"The results of operation show a record year for the company in
2018: "Record year in sales, record year in gross profit and record
year in operating profit.
"We are focusing on increasing the Company market share in the
food sector in Israel and believe
that these management changes and new management's initiatives
allow for organizational stability and provide a solid basis for
enhanced future growth."
Fiscal 2018 Summary
Sales for fiscal year 2018
increased by 8.4% to NIS 338.2
million (US$ 90.2 million)
from NIS 312.0 million (US$ 83.2 million) in fiscal year 2017. Sales
increased primarily due to a redirection of resources in favor of
sales, increasing the range of the Company's products and proper
inventory management.
Gross profit for fiscal year 2018 increased by 32.1% to
NIS 98.2 million (US$ 26.2 million) compared to NIS 74.3 million (US$ 19.8
million) recorded in fiscal year 2017. Gross margins for
fiscal year 2018 increased by 21.9% to 29.0% compared to gross
margins of 23.8% for fiscal year 2017. The increase in gross profit
in fiscal year 2018 compared to fiscal year 2017 was primary due to
the sales and the gross margin increase resulting from the
Company's strategy of selling a favorable mix of products which
generate a higher gross margin.
Selling expenses in fiscal year 2018 increased by 4.1% compared
to fiscal year 2017 primarily due to an increase of salary
resulting from an increase in personnel in the sales department and
increase of freight to customers' expenses. Selling expenses as a
percentage of sales were 13.0%, compared to the selling expenses of
13.5% in fiscal year 2017.
General and administrative expenses increased by 5.3% from
fiscal year 2017 to NIS 16.7 million
(US$ 4.4 million) compared to
NIS 15.8 million (US$ 4.2 million). The increase in general and
administrative expenses was primarily due to an increase in the
personnel and in the management's salaries.
As a result, operating profit for fiscal year 2018 increased by
125.3% to NIS 37.7 million
(US$ 10.1 million) compared to
NIS 16.8 million (US$ 4.5 million) recorded in fiscal year
2017.
Income before taxes for fiscal year 2018 increased by 6.1% to
NIS 32.8 million (US$ 8.8 million) compared to NIS 30.9 million (US$ 8.3
million) in fiscal year 2017.
Net profit for fiscal year 2018 remains unchanged at
NIS 25.0 million (US$ 6.7 million), or NIS
1.89 (US$ 0.50) per
share..
Willi-Food ended fiscal year 2018 with NIS 272.2 million (US$
72.6 million) in cash and securities with no short-term
debt. Net cash from operating activities in fiscal year 2018 was
NIS 27.0 million (US$ 7.2 million). Willi-Food's shareholders'
equity at the end of December 2018
was NIS 440.9 million (US$ 117.6 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 as of December
31, 2018, on which U.S. $1.00
equaled NIS 3.748. The use of US$ is
solely for the convenience of the reader.
NOTE B: IFRS
The Company's consolidated financial results for fiscal year
ended December 31, 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 1,250 customers and
2,500 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 Gold Frost, a wholly owned
subsidiary who designs, develops and distributes branded kosher,
dairy-food products.
The Company recently entered the non-bank credit field ("credit
extension activity"), and provided its first loan of NIS 18 million in February
2019. The activity is carried out and managed through W.F.D
(Import, Marketing and Trading) Ltd., a wholly-owned and controlled
subsidiary of the Company. The activity is funded from the Group's
own resources and is carried out in parallel to the existing
activity of importing, marketing and distributing 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,
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, 2018, filed with the
Securities and Exchange Commission on March
27, 2019. 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,
|
|
2018
|
2017
|
2018
|
2017
|
|
NIS
|
US dollars
(*)
|
|
(in
thousands)
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
134,287
|
113,062
|
35,829
|
30,166
|
Financial assets at
fair value through profit or loss
|
137,904
|
143,514
|
36,794
|
38,291
|
Trade
receivables
|
98,017
|
85,943
|
26,152
|
22,930
|
Other receivables and
prepaid expenses
|
3,744
|
5,996
|
999
|
1,600
|
Inventories
|
49,289
|
39,899
|
13,151
|
10,645
|
Current tax
assets
|
862
|
6,760
|
230
|
1,804
|
Total current
assets
|
424,103
|
395,174
|
113,155
|
105,436
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Property, plant and
equipment
|
79,611
|
78,598
|
21,241
|
20,971
|
Less -Accumulated
depreciation
|
40,219
|
37,389
|
10,731
|
9,976
|
|
39,392
|
41,209
|
10,510
|
10,995
|
|
|
|
|
|
Goodwill
|
36
|
36
|
10
|
10
|
Deferred
taxes
|
2,882
|
503
|
769
|
134
|
Total non-current
assets
|
42,310
|
41,748
|
11,289
|
11,139
|
|
|
|
|
|
|
466,413
|
436,922
|
124,444
|
116,575
|
EQUITY AND
LIABILITIES
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Trade
payables
|
16,239
|
12,800
|
4,333
|
3,415
|
Employees
Benefits
|
2,577
|
2,147
|
688
|
573
|
Other payables and
accrued expenses
|
5,882
|
5,246
|
1,569
|
1,400
|
Total current
liabilities
|
24,698
|
20,193
|
6,590
|
5,388
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Retirement benefit
obligation
|
836
|
1,148
|
223
|
307
|
Total non-current
liabilities
|
836
|
1,148
|
223
|
307
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Share capital NIS 0.1
par value (authorized - 50,000,000 shares,
issued and outstanding – 13,240,913 shares at December 31,
2018
and December 31, 2017)
|
1,425
|
1,425
|
380
|
380
|
Additional paid in
capital
|
128,354
|
128,354
|
34,246
|
34,246
|
Capital
fund
|
247
|
247
|
66
|
66
|
Retained
earnings
|
311,476
|
286,509
|
83,105
|
76,443
|
Capital Fund
measurement of the net liability
in respect of defined benefit
|
(623)
|
(954)
|
(166)
|
(255)
|
|
440,879
|
415,581
|
117,631
|
110,880
|
|
|
|
|
|
|
466,413
|
436,922
|
124,444
|
116,575
|
|
|
|
|
|
(*)
Convenience translation into U.S. dollars.
|
G. WILLI‑FOOD
INTERNATIONAL LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
For the year
ended
|
For the year
ended
|
|
|
December
31,
|
December
31,
|
|
|
2018
|
2017
|
2018
|
2017
|
|
|
NIS
|
US dollars
(*)
|
|
|
In thousands
(except per share and share data)
|
|
|
|
|
|
|
|
Sales
|
338,245
|
311,978
|
90,247
|
83,239
|
|
Cost of
sales
|
240,032
|
237,645
|
64,043
|
63,406
|
|
|
|
|
|
|
|
Gross
profit
|
98,213
|
74,333
|
26,204
|
19,833
|
|
|
|
|
|
|
|
Selling
expenses
|
43,823
|
42,090
|
11,692
|
11,230
|
|
General and
administrative expenses
|
16,686
|
15,839
|
4,452
|
4,226
|
|
Other
income
|
(69)
|
(361)
|
(18)
|
(96)
|
|
|
60,440
|
57,568
|
16,126
|
15,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
37,773
|
16,765
|
10,078
|
4,473
|
|
|
|
|
|
|
|
Financial
income
|
(7,212)
|
17,937
|
(1,924)
|
4,786
|
|
Financial
expense
|
(2,256)
|
3,769
|
(602)
|
1,006
|
|
Finance Income
(expense), net
|
(4,956)
|
14,168
|
(1,322)
|
3,780
|
|
|
|
|
|
|
|
Profit before
taxes on income
|
32,817
|
30,933
|
8,756
|
8,253
|
|
Taxes on
income
|
(7,850)
|
(5,910)
|
(2,094)
|
(1,577)
|
|
|
|
|
|
|
|
Net
Income
|
24,967
|
25,023
|
6,662
|
6,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
Basic earnings per
share
|
1.89
|
1.89
|
0.50
|
0.50
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
1.89
|
1.89
|
0.50
|
0.50
|
|
|
|
|
|
|
|
Shares used in
computation of basic EPS
|
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
|
|
|
For the year
ended
|
For the year
ended
|
|
|
December
31,
|
December
31,
|
|
|
2018
|
2017
|
2018
|
2017
|
|
|
NIS
|
US dollars
(*)
|
|
|
In thousands
(except per share and share data)
|
|
CASH FLOWS -
OPERATING ACTIVITIES
|
|
|
|
|
|
Profit from
continuing operations
|
24,967
|
25,023
|
6,662
|
6,676
|
|
Adjustments to
reconcile net income to net cash
from operating activities (Appendix A)
|
2,074
|
(10,584)
|
552
|
(2,824)
|
|
Net cash from
continuing operating activities
|
|
|
|
|
|
|
27,041
|
14,439
|
7,214
|
3,852
|
|
|
|
|
|
|
|
CASH FLOWS -
INVESTING ACTIVITIES
|
|
|
|
|
|
Acquisition of
property plant and equipment
|
(2,143)
|
(2,650)
|
(572)
|
(707)
|
|
Proceeds from sale of
property plant and Equipment
|
415
|
361
|
111
|
96
|
|
Redemption of
non-current financial assets
|
3,970
|
2,168
|
1,060
|
578
|
|
Proceeds used in
purchase of marketable securities, net
|
(8,058)
|
(30,833)
|
(2,150)
|
(8,227)
|
|
Net cash from
(used in) continuing investing activities
|
(5,816)
|
(30,954)
|
(1,551)
|
(8,260)
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
21,225
|
(16,515)
|
5,663
|
(4,408)
|
|
Cash and cash
equivalents at the beginning of the year
|
113,062
|
129,577
|
30,166
|
34,574
|
|
Cash and cash
equivalents of the end of the year
|
134,287
|
113,062
|
35,829
|
30,166
|
|
|
|
|
|
|
|
(*)
Convenience Translation into U.S. Dollars.
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
2018
|
2017
|
2018
|
2017
|
|
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
operating activities
|
|
|
|
|
Decrease (Increase)
in deferred income taxes
|
(2,379)
|
1,851
|
(635)
|
494
|
Unrealized loss
(gain) on marketable securities
|
13,673
|
(7,760)
|
3,647
|
(2,070)
|
Depreciation and
amortization
|
3,614
|
3,682
|
964
|
982
|
Capital gain on
disposal of property plant and equipment
|
(69)
|
(361)
|
(18)
|
(96)
|
gain from non -
tradable financial assets
|
-
|
(5,368)
|
-
|
(1,432)
|
|
|
|
|
|
Changes in assets
and liabilities:
|
|
|
|
|
Decrease in trade
receivables and other receivables
|
(7,898)
|
(5,034)
|
(2,107)
|
(1,343)
|
Decrease (Increase)
in inventories
|
(9,390)
|
1,978
|
(2,505)
|
528
|
Decrease in trade and
other payables, and other current
and non-current liabilities
|
4,523
|
428
|
1,206
|
113
|
|
2,074
|
(10,584)
|
552
|
(2,824)
|
|
|
|
|
|
B.
Significant non-cash transaction:
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
|
|
|
Income tax
paid
|
7,711
|
5,926
|
1,906
|
1,581
|
|
|
|
|
|
(*)
Convenience Translation into U.S. Dollars.
|
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-improvements-in-major-operational-parameters-in-fiscal-year-2018-compared-to-2017-300819514.html
SOURCE G. Willi-Food International Ltd.