YAVNE, Israel, March 14, 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 financial results for the fiscal year
ended December 31, 2017.
Fiscal Year 2017 Highlights
- Sales increased by 6.0% from fiscal year 2016 to NIS 312 million (US$ 90
million)
- Net profit increased by 94% from fiscal year 2016 to
NIS 21.1 million (US$ 6.1 million), or 6.7% of sales
- Gross profit decreased by 3% from fiscal year 2016 to
NIS 74.3 million (US$ 21.4 million)
- Operating profit decreased by 26.3% from fiscal year 2016 to
NIS 16.8 million (US$ 4.8 million), or 5.4% of sales
- Net cash from operating activities decreased by 24.8% from
fiscal year 2016 to NIS 13.0 million
(US$ 3.8 million)
- Cash and securities balance of NIS 256.6
million (US$ 74 million) as of
December 31, 2017
- Earning per share increased by 94% to NIS 1.58 (US$ 0.46)
in fiscal year 2017
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 and Joseph Williger, Co-Chairmen of Willi-Food,
commented: "We are pleased to present fiscal year 2017
financial report which shows improvements in sales and net profit.
Sales increased by 6% versus fiscal year 2016, and net profit
increased by 94%. During the second half of 2017, we began
integrating a new senior management team which initiated the
introduction of management systems, routines and procedures. These
management changes and new management's initiatives allow for
organizational stability and provide a solid basis for enhanced
future growth. The result for the second half of 2017, since the
ownership of the company has been changed, the new management
appointed, and the new management's initiatives were introduced,
shows improvements in sales, gross profit, operation profit and net
profit. Sales in the second half of 2017 increased 12.8% versus
sales in the second half of 2016, gross profit in the second half
of 2017 increased 13.2% versus second half of 2016, operating
profit in the second half of 2017 increased 70.3% versus the second
half of 2016 and net profit in the second half of 2017 was
NIS 15.2 million as opposed to a
loss of NIS1.6 million in
second half of 2016."
Fiscal 2017 Summary
Sales for fiscal year 2017 increased by 6.0% to NIS 311.9 million (US$
89.9 million) from NIS 294.2
million (US$ 84.9 million) in
fiscal year 2016. The increase in sales was primarily due to an
increase in personnel in the sales and trade department and
due to a strike at the Ministry of Health in the third quarter of
2016 which limited release of goods from the port and caused a
decrease of NIS 6 million in sales in
2016.
Gross profit for fiscal year 2017 decreased by 3.0% to
NIS 74.3 million (US$ 21.4 million) compared to NIS 76.6 million (US$ 22.1
million) recorded in fiscal year 2016. Gross margins for
fiscal year 2017 decreased by 8.5% to 23.8% compared to gross
margins of 26% for fiscal year 2016. The decrease in gross margin
was primarily due to reductions in the prices of certain of our
products as a result of an inventory with a short expiration date
that the Company had to sell with lower prices and due to an
increase of inventory-storage expenses.
Selling expenses in fiscal year 2017 increased by 6.8% compared
to fiscal year 2016 primarily due to an increase in salary expenses
resulting from to the increase in personnel in the sales and trade
department and due to an increase in distribution expenses related
to the increase in sales. Selling expenses as a percentage of sales
were 13.5%, equal to the selling expenses percentage in fiscal year
2016.
General and administrative expenses increased by 8.7% from
fiscal year 2016 to NIS 15.8 million
(US$ 4.6 million) compared to
NIS 14.6 million (US$ 4.2 million). This was mainly due to a
NIS 1.3 million (US$ 0.3 million) write-off in 2016 which was
canceled in 2017, with respect to the Company's estimated exposure
to Mega Retail Ltd. debts.
As a result, operating profit for fiscal year 2017 decreased by
26.3% to NIS 16.8 million
(US$ 4.8 million) compared to
NIS 22.7 million (US$ 6.6 million) recorded in fiscal year
2016.
Income before taxes for fiscal year 2017 increased by 66.7% to
NIS 27 million (US$ 7.8 million) compared to NIS 16.2 million (US$ 4.7
million) in fiscal year 2016.
Net profit for fiscal year 2017 increased by 94% to NIS 21 million (US$ 6.0
million), or NIS 1.58
(US$ 0.46) per share, from
NIS 10.8 million (US$ 3.1 million), or NIS
0.82 (US$ 0.23) per share, in
fiscal year 2016.
Willi-Food ended fiscal year 2017 with NIS 256.6 million (US$ 74
million) in cash and securities with no short-term debt. Net
cash from operating activities in fiscal year 2017 was NIS 13.0 million (US$ 3.8
million). Willi-Food's shareholders' equity at the end of
December 2017 was NIS 411.6 million (US$
118.4 million).
Note regarding a notice of the end of Exclusive Distribution
Agreement
On October 19, 2017, the Company's
wholly owned subsidiary, Gold Frost Ltd. ("Goldfrost"),
received a notice from its Danish producer of dairy products, Arla
Foods amba ("Arla"), to end their Exclusive Distribution
Agreement effective as of December 31,
2017.
As announced by the Company on October
19, 2017, the termination of the Exclusive Distribution
Agreement with Arla may have a significant negative impact on the
Company's operating results although the Company believes that it
will be able to enter into agreements in the near future with
alternative suppliers for a portion of the products currently
purchased from Arla.
Representatives of Goldfrost and representatives of Arla have
met several times and have agreed that Goldfrost may place new
orders for additional dairy products produced by Arla to be sold by
Goldfrost during the first half of 2018.
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, 2017, on which U.S. $1.00
equaled NIS 3.467. The use of US$ is
solely for the convenience of the reader.
NOTE B: IFRS
The Company's consolidated financial results for fiscal year
ended December 31, 2017 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, 2016, filed with the
Securities and Exchange Commission on April
27, 2017. 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
7
|
2 0 1
6
|
2 0 1
7
|
2 0 1
6
|
|
NIS
|
US dollars
(*)
|
|
(in
thousands)
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
113,062
|
129,577
|
32,611
|
37,374
|
Financial assets
carried at fair value through profit or loss
|
143,514
|
104,921
|
41,394
|
30,263
|
Trade
receivables
|
85,943
|
80,227
|
24,789
|
23,140
|
Other receivables and
prepaid expenses
|
2,026
|
4,795
|
310
|
1,383
|
Inventories
|
39,899
|
41,877
|
11,508
|
12,079
|
Current tax
assets
|
6,760
|
5,443
|
1,950
|
1,570
|
Total current
assets
|
391,204
|
366,840
|
112,562
|
105,809
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Property, plant and
equipment
|
78,598
|
77,204
|
22,670
|
22,268
|
Less -Accumulated
depreciation
|
37,389
|
34,963
|
10,784
|
10,085
|
|
41,209
|
42,241
|
11,886
|
12,183
|
|
|
|
|
|
Goodwill
|
36
|
36
|
10
|
10
|
Deferred
taxes
|
503
|
2,354
|
145
|
679
|
Total non-current
assets
|
41,748
|
44,631
|
12,041
|
12,872
|
|
|
|
|
|
|
432,952
|
411,471
|
124,603
|
118,681
|
EQUITY AND
LIABILITIES
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Trade
payables
|
12,800
|
14,832
|
3,692
|
4,278
|
Employees
Benefits
|
2,147
|
2,253
|
619
|
650
|
Other payables and
accrued expenses
|
5,247
|
2,533
|
1,514
|
729
|
Total current
liabilities
|
20,194
|
19,618
|
5,825
|
5,657
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Retirement benefit
obligation
|
1,148
|
849
|
331
|
245
|
Total non-current
liabilities
|
1,148
|
849
|
331
|
245
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Share capital NIS 0.1
par value (authorized - 50,000,000 shares,
issued and outstanding – 13,240,913 shares
at
December 31, 2017 and December 31,
2016)
|
1,424
|
1,424
|
411
|
411
|
Additional paid in
capital
|
128,354
|
128,354
|
37,022
|
37,022
|
Capital
fund
|
247
|
247
|
71
|
71
|
Retained
earnings
|
282,539
|
261,487
|
80,810
|
75,422
|
respect of
defined benefit
|
(954)
|
(508)
|
(275)
|
(147)
|
|
411,610
|
391,004
|
118,447
|
112,779
|
|
|
|
|
|
|
432,952
|
411,471
|
124,603
|
118,681
|
|
|
|
|
|
(*) Convenience
translation into U.S. dollars.
|
|
|
|
|
|
|
|
|
|
G. WILLI‑FOOD
INTERNATIONAL LTD.
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year
ended
December
31,
|
For the year
ended
December
31,
|
|
|
2 0 1
7
|
2 0 1
6
|
2 0 1
7
|
2 0 1
6
|
|
|
NIS
|
US dollars
(*)
|
|
|
In thousands
(except per share and share data)
|
|
|
|
|
|
|
|
Sales
|
311,978
|
294,202
|
89,985
|
84,858
|
|
Cost of
sales
|
237,645
|
217,585
|
68,545
|
62,759
|
|
|
|
|
|
|
|
Gross
profit
|
74,333
|
76,617
|
21,440
|
22,099
|
|
|
|
|
|
|
|
Selling
expenses
|
42,090
|
39,405
|
12,140
|
11,366
|
|
General and
administrative expenses
|
15,839
|
14,577
|
4,569
|
4,204
|
|
Other
income
|
361
|
112
|
104
|
32
|
|
|
|
|
|
|
|
Total operating
expenses
|
57,568
|
53,870
|
16,605
|
15,538
|
|
|
|
|
|
|
|
Operating
profit
|
16,765
|
22,747
|
4,835
|
6,561
|
|
|
|
|
|
|
|
Financial
income
|
13,967
|
(3,425)
|
4,028
|
(988)
|
|
Financial
expense
|
3,769
|
3,143
|
1,087
|
907
|
|
Total financial
income (expense)
|
10,198
|
(6,568)
|
2,941
|
(1,895)
|
|
|
|
|
|
|
|
Income before
taxes on income
|
26,963
|
16,179
|
7,776
|
4,666
|
|
Taxes on
income
|
5,910
|
5,327
|
1,705
|
1,536
|
|
|
|
|
|
|
|
Net
profit
|
21,053
|
10,852
|
6,071
|
3,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
Basic earnings per
share
|
1.58
|
0.82
|
0.46
|
0.23
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
1.58
|
0.82
|
0.46
|
0.23
|
|
|
|
|
|
|
|
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.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
For the year
ended
|
For the year
ended
December
31,
|
|
|
December
31,
|
|
|
2 0 1
7
|
2 0 1
6
|
2 0 1
7
|
2 0 1
6
|
|
|
NIS
|
US dollars
(*)
|
|
|
In thousands
(except per share and share data)
|
|
CASH FLOWS -
OPERATING ACTIVITIES
|
|
|
|
|
|
Profit from
continuing operations
|
21,053
|
10,852
|
6,071
|
3,130
|
|
Adjustments to
reconcile net income to net cash from operating activities
(Appendix)
|
(8,012)
|
6,500
|
(2,309)
|
1,874
|
|
Net cash from
continuing operating activities
|
13,041
|
17,352
|
3,762
|
5,004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS -
INVESTING ACTIVITIES
|
|
|
|
|
|
Acquisition of
property plant and equipment
|
(2,650)
|
(1,915)
|
(764)
|
(552)
|
|
Proceeds from sale of
property plant and Equipment
|
361
|
190
|
104
|
55
|
|
Proceeds from
realization (purchase) of marketable securities, net
|
(29,435)
|
42,010
|
(8,490)
|
12,117
|
|
Proceeds from
short term deposit
|
-
|
20,288
|
-
|
5,852
|
|
Redemption
(acquisition) of non current financial assets
|
2,168
|
(8,504)
|
625
|
(2,453)
|
|
Net cash from
(used in) continuing investing activities
|
(29,556)
|
52,069
|
(8,525)
|
15,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS -
FINANCING ACTIVITIES
|
|
|
|
|
|
Short-term bank debt,
net
|
-
|
(16)
|
-
|
(5)
|
|
Dividend
|
-
|
(19,249)
|
-
|
(5,552)
|
|
Net cash from used
in continuing financing activities
|
-
|
(19,265)
|
-
|
(5,557)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
(16,515)
|
50,156
|
(4,763)
|
14,466
|
|
Cash and cash
equivalents at the beginning of the year
|
129,577
|
79,421
|
37,374
|
22,908
|
|
Cash and cash
equivalents of the end of the year
|
113,062
|
129,577
|
32,611
|
37,374
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
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
7
|
2 0 1
6
|
2 0 1
7
|
2 0 1
6
|
|
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
|
3,682
|
3,762
|
1,062
|
1,085
|
Loss (gain) from non
current financial assets
|
(1,398)
|
7,734
|
(403)
|
2,231
|
Decrease
(Increase) in deferred income taxes
|
1,851
|
1,260
|
534
|
363
|
Capital Gain on
disposal of property plant and equipment
|
(361)
|
(112)
|
(104)
|
(32)
|
Unrealized Loss
(Gain) on marketable securities
|
(9,158)
|
(1,924)
|
(2,641)
|
(555)
|
|
|
|
|
|
Changes in assets
and liabilities:
|
|
|
|
|
Increase (decrease)
in trade receivables and other receivables
|
(5,034)
|
2,120
|
(1,452)
|
611
|
Increase in
inventories
|
1,978
|
(7,360)
|
570
|
(2,123)
|
Decrease in payables
and other current liabilities
|
428
|
1,020
|
125
|
294
|
|
(8,012)
|
6,500
|
(2,309)
|
1,874
|
|
|
|
|
|
|
|
|
|
|
(*)
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-sales-net-profit-and-earning-per-share-in-fiscal-year-2017-compared-to-2016-300613837.html
SOURCE G. Willi-Food International Ltd.