WILC G Willi Food International Ltd

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

  

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of December 2023

 

(Translation of registrant’s name into English)

  

 (Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ☒    Form 40-F ☐

 

On December 21, 2023, G. Willi-Food International Ltd. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 30, 2023. A copy of the press release is filed herewith as Exhibit 99.1.

Signatures 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 

 

Date: December 21, 2023

 

YAVNE, Israel – December 21, 2023 - 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 third quarter ended September 30, 2023.

Zwi Williger & Joseph Williger, Chairmen & CEO of Willi-Food, commented “In the third quarter of 2023, the Company sales remained at the same level compared to the same period last year. We believe that the timing of the holidays (Rosh Hashana) compared to last year's timing, was a significant factor for this stagnation. In addition, our gross margin continues to be negatively affected by the sharp fluctuations in the currency exchange rates. We are working hard to improve the financial results by improving the terms of commercial arrangements with our suppliers and customers. We hope and believe that the hard work will bear fruit and the Company's financial results, sales and gross margin will improve, from the fourth quarter of this year onwards.

Due to these challenges, as of the date of this report, it remains difficult to accurately assess the extent to which the ongoing conflict may impact our business and financial results in the upcoming quarters and throughout the duration of the war.

Sales for the third quarter of 2023 were NIS 123.9 million (US$ 32.4 million) remain at the same level as in the third quarter of 2022. One of the reasons for this stagnation is the timing of the Rosh Hashana Holiday which fell on a weekend in the middle of September this year compared to 2022 when the holiday fell on the middle of the week in the end of September. This difference resulted in fewer selling days for the Company

Gross profit for the third quarter of 2023 decreased by 30.9% to NIS 23.5 million (US$ 6.1 million), or 19.0% of revenues, compared to NIS 34.1 million (US$ 8.9 million), or 27.5% of revenues in the third quarter of 2022. The decrease in gross profit was due to (i) increased costs of the Company’s imported products compared to the cost of products in the third quarter of 2022, mainly because of an increase in raw materials and (ii) the weakening of the Israeli shekel in relation to the euro and US$ currencies.

Selling expenses decreased by 7.5% to NIS 17.3 million (US$ 4.5 million) compared to NIS 18.7 million (US$ 4.9 million) in the third quarter of 2022. The decrease was primarily due to a decrease in expenses for advertising and promotion.

General and administrative expenses for the third quarter of 2023 were NIS 5.9 million (US$ 1.5 million), remaining at the same level as in the third quarter of 2022.

 

Operating profit for the third quarter of 2023 decreased by 94.7% to NIS 0.5 million (US$ 0.13 million) compared to NIS 9.5 million (US$ 2.5 million) in the third quarter of 2022. The decrease was primarily due to the decrease in the gross profit.

Financial income, net for the third quarter of 2023 totaled NIS 5.7 million (US$ 1.5 million) compared to NIS 0.04 million (US$ 0.01 million) in the third quarter of 2022. Financial income for the third quarter of 2023 was comprised mainly of (i) income from revaluation of the Company’s portfolio of securities to fair value in the amount of NIS 2.5 million (US$ 0.65 million) and (ii) interest and dividend income from the Company’s portfolio of securities in the amount of NIS 2.6 million (US$ 0.68 million).

Willi-Food’s income before taxes for the third quarter of 2023 was NIS 6.2 million (US$ 1.6 million) compared NIS 9.6 million (US$ 2.5 million) in the third quarter of 2022.

Willi-Food's net profit in the third quarter of 2023 was NIS 4.9 million (US$ 1.3 million), or NIS 0.35 (US$ 0.09) per share, compared to NIS 7.6 million (US$ 2.0 million), or NIS 0.55 (US$ 0.14) per share, in the third quarter of 2022.

Willi-Food ended the third quarter of 2023 with NIS 221.1 million (US$ 57.9 million) in cash and securities. Net cash used in operating activities for the third quarter of 2023 was NIS 8.4 (US$ 2.1 million).

Sales for the first nine-months period ending September 30, 2023 increased by 10.8% to NIS 404.5 million (US$ 105.9 million) compared to NIS 365.1 million (US$ 95.6 million) in the first nine months of 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 presence of the Company’s line of products in stores and (iv) in advertising and promotional campaigns.

Gross profit for the first nine-months of 2023 decreased by 16.3% to NIS 89.6 million (US$ 23.5 million), or 22.2% of revenues, compared to NIS 107.1 million (US$ 28.0 million), or 29.3% of revenues, in the first nine months of 2022. The decrease in gross profit and margin was due to (i) an increase in the costs of the Company’s imported products compared to the cost of products in the third quarter of 2022, mainly because of an increase in raw materials and (ii) the weakening of the Israeli shekel in relation to the euro and dollar currencies.

Selling expenses for the first nine-months of 2023 were NIS 56.0 million (US$ 14.7 million), remaining at the same level compared to first nine-months of 2022.

General and administrative expenses for the first nine-months of 2023 were NIS 19.3 million (US$ 5.1 million), compared General and administrative expenses of NIS 17.3 million (US$ 4.5 million) in the first nine months of 2022. The increase was primarily due to an increase in management compensation and options grants made under the Company's option plan.

 

Operating profit for the first nine-months of 2023 decreased by 56.7% to NIS 14.5 million (US$ 3.8 million) from NIS 33.4 million (US$ 8.7 million) for the first nine-months of 2022. The decrease was primarily due to an increase in cost of sales and operating costs.

Financial income net, totaled NIS 11.6 million (US$ 3.0 million) compared to financial income, net of NIS 0.9 million (US$ 0.2 million) in the first nine months of 2022. Financial income, net for the first nine months of 2023 was comprised mainly of income interest and dividend income from the Company’s portfolio of securities in the amount of NIS 8.2 million (US$ 2.1 million) and income for revaluation of the Company’s portfolio of securities to fair value in the amount of NIS 2.7 million (US$ 0.7 million).

Willi-Food’s income before taxes for the first nine-months of 2023 was NIS 26.1 million (US$ 6.8 million) compared to NIS 34.4 million (US$ 9.0 million) in the first nine-months of 2022.

Willi-Food's net profit in the first nine-months of 2023 was NIS 20.6 million (US$ 5.4 million), or NIS 1.49 (US$ 0.39) per share, compared to NIS 28.5 million (US$ 7.5 million), or NIS 2.05 (US$ 0.54) per share, recorded in the first nine-months of 2022.

NOTE A: NIS to US$ exchange rate used for convenience only

Convenience translation of New Israeli Shekels (NIS) into U.S. dollars was made at the rate of exchange prevailing on September 30, 2023, with U.S. $1.00 equal to NIS 3.82. The translation is made solely for the convenience of the reader.

NOTE B: IFRS

The Company’s consolidated financial results for the three-month period ended September 30, 2023 are presented in accordance with International Financial Reporting Standards (“IFRS”).

 

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.

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: war in Ukraine, the COVID-19 pandemic, disruptions to international commercial shipping and disruptions in commodity pricing 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, 2022, filed with the Securities and Exchange Commission on March 15, 2023. 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.

		September 30,								December 31				September 30,								December 31
		2 0 2 3				2 0 2 2				2 0 2 2				2 0 2 3				2 0 2 2				2 0 2 2
		NIS												US dollars (*)
		(in thousands)
ASSETS
Current assets
Cash and cash equivalents			121,231				158,016				150,607				31,736				41,365				39,426
Financial assets carried at fair value through profit or loss			99,895				134,506				116,762				26,151				35,211				30,566
Trade receivables			155,857				147,053				165,838				40,800				38,496				43,413
Other receivables and prepaid expenses			8,433				3,161				4,956				2,208				827				1,297
Inventories			75,807				71,811				71,929				19,845				18,799				18,830
Current tax assets			9,556				6,042				3,117				2,502				1,582				816
Total current assets			470,779				520,589				513,209				123,242				136,280				134,348
Non-current assets
Property, plant and equipment			115,789				92,067				99,216				30,311				24,101				25,973
Less - Accumulated depreciation			54,750				51,689				51,533				14,332				13,531				13,490
			61,039				40,378				47,683				15,979				10,570				12,483
Right of use asset			2,729				3,679				3,391				714				963				888
Financial assets carried at fair value through profit or loss			44,505				31,922				44,113				11,651				8,357				11,548
Goodwill			36				36				36				9				9				9
Total non-current assets			108,309				76,015				95,223				28,353				19,899				24,928
			579,088				596,604				608,432				151,595				156,179				159,276
EQUITY AND LIABILITIES
Current liabilities
Current maturities of lease liabilities			1,847				569				2,194				484				149				574
Trade payables			16,873				16,985				24,842				4,417				4,446				6,503
Employees Benefits			4,132				3,744				3,756				1,082				980				983
Other payables and accrued expenses			8,342				8,045				11,836				2,184				2,106				3,098
Total current liabilities			31,194				29,343				42,628				8,167				7,681				11,158
Non-current liabilities
Lease liabilities			1,079				3,310				1,284				282				866				336
Deferred taxes			4,742				1,997				4,198				1,241				523				1,099
Retirement benefit obligation			1,030				1,811				878				270				474				230
Total non-current liabilities			6,851				7,118				6,360				1,793				1,863				1,665
Shareholders' equity
Share capital			1,490				1,490				1,490				390				390				390
Additional paid in capital			172,477				171,115				171,550				45,151				44,794				44,909
Remeasurement of the net liability in respect of defined benefit			(195	)			(959	)			(195	)			(51	)			(251	)			(51	)
Capital fund			247				247				247				65				65				65
Retained earnings			367,652				388,878				386,980				96,244				101,801				101,304
Treasury shares			(628	)			(628	)			(628	)			(164	)			(164	)			(164	)
Equity attributable to owners of the Company			541,043				560,143				559,444				141,635				146,635				146,453
			579,088				596,604				608,432				151,595				156,179				159,276

(*)          Convenience translation into U.S. dollars.

(*)          Convenience translation into U.S. dollars.

(*)          Convenience Translation into U.S. Dollars.

CASH FLOWS - OPERATING ACTIVITIES:

A.          Adjustments to reconcile net profit to net cash from operating activities:

		Nine months								Three months								Nine months
		ended								ended								ended
		September 30,								September 30,								September 30,
		2 0 2 3				2 0 2 2				2 0 2 3				2 0 2 2				2 0 2 3				2 0 2 2
		NIS																US dollars (*)
		(in thousands)
Decrease (increase) in deferred income taxes			544				(20	)			397				(201	)			142				(5	)
Unrealized loss (gain) on marketable securities			(3,297	)			8,885				(2,744	)			1,892				(863	)			2,326
Depreciation and amortization			5,008				4,958				1,672				1,660				1,311				1,298
Capital gain on disposal of property plant and equipment			(25	)			-				-				-				(7	)			-
Exchange gain (losses) on cash and cash equivalents			(633	)			10,661				(150	)			1,890				(166	)			2,791
Unrealized gain of financial liabilities at fair value through profit or loss			-				(13,960	)			-				(1,310	)			-				(3,654	)
Stock based compensation reserve			926				355				236				355				242				93
Changes in assets and liabilities:
Increase (decrease) in trade receivables and other receivables			10,882				(496	)			5,487				8,588				2,849				(130	)
Decrease (increase) in inventories			(3,878	)			(12,283	)			22,495				2,066				(1,015	)			(3,215	)
Decrease in trade and other payables, and other current liabilities			(10,935	)			(6,073	)			(5,176	)			(6,767	)			(2,863	)			(1,590	)
Cash generated used in (from) operations			(1,408	)			(7,973	)			22,217				8,173				(370	)			(2,087	)
Income tax paid			(10,817	)			(11,023	)			(2,400	)			(2,922	)			(2,832	)			(2,886	)
Net cash flows from (used in) operating activities			(12,225	)			(18,996	)			19,817				5,251				(3,202	)			(4,973	)

 (*)          Convenience Translation into U.S. Dollars.

Company Contact:

G. Willi - Food International Ltd.

Yitschak Barabi, Chief Financial Officer

(+972) 8-932-1000