YAVNE, Israel, March 25, 2021 /PRNewswire/ -- G. Willi-Food International Ltd. (NASDAQ: WILC) (TASE: WILF) (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, 2020.

G. Willi-Food International Ltd. Logo

Fiscal Year 2020 Highlights

  • Sales increased by 14.8% from fiscal year 2019 to NIS 454.1 million (US$ 141.2 million).
  • Gross profit increased by 17.4% from fiscal year 2019 to NIS 145.4 million (US$ 45.2 million), or 32% of sales.
  • Operating profit increased by 21.7% from fiscal year 2019 to NIS 57.6 million (US$ 17.9 million).
  • Profit before tax increased by 3.7% from fiscal year 2019 to NIS 67.7 million (US$ 21.1 million).
  • Cash and securities balance of NIS 356.5 million (US$ 110.9 million) as of December 31, 2020.

Management Comment

Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food, commented: "We are very pleased to present our fiscal year 2020 financial results which show our highest ever sales, gross profit, operating profit, profit before tax and net profit. Since almost the beginning of fiscal year 2020, the Company has been operating in the COVID-19 pandemic environment, which has led to changes in consumption habits of consumers in parallel with various restrictions imposed on the public. Despite this difficult environment, the Company managed to deliver a record performance with sales and all profit parameters. We believe this performance was driven in part by following our strategy of developing new and profitable products, entering into new categories, improving our visibility in the stores and strengthening our supply chain. We intend to continue to work hard to achieve the goals we have set for the Company over the next few years, and we believe that with our excellent management team we will meet those objectives."

According to retail data analytics provided by StoreNext Ltd[1], the Company recorded a higher growth rate in 2020 for "sale out" sales (i.e., sales to the final consumer) than any other Israeli food and beverage company, growing 25.9% compared to the 9.3% average growth of such companies.

Fiscal 2020 Summary

Revenues for fiscal year 2020 increased by NIS 58.5 million (USD 18.2 million), or 14.8%, to NIS 454.1 million (USD 141.2 million) from NIS 395.6 million (USD 123.1 million) recorded in fiscal year 2019. Revenues increased primarily due to the COVID-19 pandemic, which led to an increase in demand for the Company's line of products, primarily in retail chains, and due to a redirection of resources in favor of sales, increasing the variety of the Company's products, improving the company visibility in the stores and improved inventory management.

Cost of sales for fiscal year 2020 increased by 13.6% to NIS 308.7 million (USD 96.0 million), or 68.0% of revenues, from NIS 271.8 million (USD 84.5 million), or 68.7% of revenues, recorded in fiscal year 2019. The increase in cost of sales was primary due to increase in sales.

Gross profit for fiscal year 2020 increased by 17.4% to NIS 145.4 million (USD 45.2 million), or 32.0% of revenues, from NIS 123.9 million (USD 38.5 million), or 31.3% of revenues, recorded in fiscal year 2019. The increase in gross profit was primary due to increase in 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 for fiscal year 2020 increased by 18.9% to NIS 66.0 million (USD 20.5 million), or 14.5% of revenues from NIS 55.5 million (USD 17.3 million), or 14% of revenues, recorded in fiscal year 2019. The increase in selling expenses was primarily due to an increase in payroll expenses in the logistics department as a result of working in two shifts to comply with government workplace restrictions due to the COVID-19 pandemic, and an increase of freight to customers' expenses to support sales growth.

General and administrative expenses for fiscal year 2020 increased by 4.0% to NIS 21.9 million (USD 6.8 million), or 4.8% of revenues, from NIS 21.1 million (USD 6.6 million), or 5.3% of revenues, recorded in fiscal year 2019. The increase in general and administrative expenses was primarily due to an increase in goal - based bonuses in the payroll expenses.

Operating profit for fiscal year 2020 increased by NIS 10.3 million (USD 3.2 million), or by 21.7%, to NIS 57.6 million (USD 17.9 million), or 12.7% of revenues, from NIS 47.3 million (USD 14.7 million), or 12.0% of revenues, recorded in fiscal year 2019. The increase in operating profit was primarily due to increase in gross profit.

Financial income, net, for fiscal year 2020 amounted to NIS 10.1 million (USD 3.1 million) compared to net income of NIS 18.0 million (USD 5.6 million) recorded in fiscal year 2019. The decrease in finance income, net was primarily due to a decrease in interest income and dividends received from the Company's securities portfolio and from decrease in revaluation of the Company's securities portfolio to its fair value.

Willi-Food ended fiscal year 2020 with NIS 356.5 million (US$ 110.9 million) in cash and securities with no short-term debt. Net cash from operating activities in fiscal year 2020 was NIS 64.2 million (US$ 20.0 million). Willi-Food's shareholders' equity at the end of December 2020 was NIS 585.7 million (US$ 182.2 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, 2020, on which USD 1.00 equaled NIS 3.215 The use of USD is solely for the convenience of the reader.

NOTE B: IFRS

The Company's consolidated financial results for fiscal year ended December 31, 2020 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 Euro European Dairies, 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, adverse effects from the ongoing COVID-19 pandemic, 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, 2020, filed with the Securities and Exchange Commission on March 27, 2020. 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,


2 0 2 0

2 0 1 9

2 0 2 0

2 0 1 9


NIS

US dollars (*)


(in thousands)

ASSETS





Current assets





Cash and cash equivalents

201,822

121,860

62,775

37,904

Financial assets at fair value through profit or loss

154,700

141,543

48,118

44,026

Loans to others

18,707

17,650

5,819

5,490

Trade receivables

131,301

133,039

40,840

41,381

Other receivables and prepaid expenses

6,667

9,360

2,074

2,911

Inventories

59,514

71,548

18,511

22,254

Current tax assets

3,965

-

1,233

-

Total current assets

576,676

495,000

179,370

153,966






Non-current assets





Property, plant and equipment

83,105

81,402

25,849

25,319

Less -Accumulated depreciation

46,460

43,881

14,451

13,649


36,645

37,521

11,398

11,670






Right of use asset

2,866

3,860

891

1,201

Financial assets at fair value through profit or loss

13,700

-

4,262

-

Goodwill

36

36

11

10

Deferred taxes

-

818

-

254

Total non-current assets

53,247

42,235

16,562

13,135


629,923

537,235

195,932

167,101

EQUITY AND LIABILITIES





Current liabilities










Current maturities of lease liabilities

1,393

1,675

433

521

Trade payables

23,474

24,650

7,301

7,667

Employees Benefits

3,437

2,911

1,069

905

Current tax liabilities

-

3,750

-

1,166

Other payables and accrued expenses

11,611

9,195

3,612

2,860

Total current liabilities

39,915

42,181

12,415

13,119






Non-current liabilities





Lease liabilities

1,592

2,212

495

688

Deferred taxes

768

-

238

-

Retirement benefit obligation

1,905

1,486

593

462

Total non-current liabilities

4,265

3,698

1,326

1,150






Shareholders' equity 





Share capital

1,490

1,425

463

443

Additional paid in capital

170,760

128,354

53,114

39,923

Capital fund

247

247

77

77

Treasury shares

(628)

(628)

(195)

(195)

Retained earnings

415,196

362,987

129,143

112,904

Remeasurement of the net liability in respect of defined benefit

(1,322)

(1,029)

(411)

(320)

Equity attributable to owners of the Company

585,743

491,356

182,191

152,832


629,923

537,235

195,932

167,101


(*)        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,


2 0 2 0

2 0 1 9

2 0 2 0

2 0 1 9


NIS

US dollars (*)


In thousands (except per share and share data)






Sales

454,094

395,637

141,242

123,060

Cost of sales

308,717

271,784

96,024

84,536






Gross profit

145,377

123,853

45,218

38,524






Operating costs and expenses:





 Selling expenses

65,990

55,490

20,526

17,260

 General and administrative expenses

21,918

21,067

6,817

6,553

 Other income

108

-

34

-

Total operating expenses

87,800

76,557

27,309

23,813






Operating profit

57,577

47,296

17,909

14,711






Financial income

11,348

20,966

3,530

6,521

Financial expense

1,253

3,016

389

938

Total Finance Income

10,095

17,950

3,141

5,583






 Profit before taxes on income

67,672

65,246

21,050

20,294

 Taxes on income

(15,463)

(13,735)

(4,810)

(4,272)






Income after taxes on income

52,209

51,511

16,240

16,022






Earnings per share:





Basic / diluted earnings per share

3.89

3.90

1.21

1.21











Shares used in computation of

     basic/diluted EPS

13,433,684

13,217,017

13,433,684

13,217,017






Actual number of shares

13,867,017

13,217,017

13,867,017

13,217,017






(*)        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,



2 0 2 0

2 0 1 9

2 0 2 0

2 0 1 9



NIS

US dollars (*)



In thousands (except per share and share data)


CASH FLOWS - OPERATING ACTIVITIES






Profit from continuing operations

52,209

51,511

16,240

16,022


Adjustments to reconcile net profit to net cash from (used to) 
     continuing operating activities (Appendix A)

11,967

(51,948)

3,722

(16,158)


Net cash from (used to) continuing operating activities 

64,176

(437)

19,962

(136)














CASH FLOWS - INVESTING ACTIVITIES






Acquisition of property plant and equipment

(2,903)

(1,791)

(903)

(557)


Proceeds from sale of property plant and equipment

108

-

34

-


Loans granted to others

(20,000)

(43,650)

(6,221)

(13,577)


Proceeds from loans granted to others

18,943

26,000

5,892

8,087


Proceeds from sale (purchase) of marketable securities, net

(20,739)

11,336

(6,451)

3,526


Net cash used to continuing investing activities

(24,591)

(8,105)

(7,649)

(2,521)








CASH FLOWS - FINANCING ACTIVITIES






Lease liability payments

(1,819)

(1,128)

(566)

(351)


Shares issue

42,471

-

13,210

-


Acquisition of treasury shares

-

(628)

-

(195)


Net cash used to continuing financing activities

40,652

(1,756)

12,644

(546)








Increase (decrease) in cash and cash equivalents

80,237

(10,298)

24,957

(3,203)


Cash and cash equivalents at the beginning of the year

121,860

134,287

37,904

41,769


Exchange losses on cash and cash equivalents

(275)

(2,129)

(86)

(662)


Cash and cash equivalents at the end of the year 

201,822

121,860

62,775

37,904








(*)           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,


2 0 2 0

2 0 1 9

2 0 2 0

2 0 1 9


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 (used 
       to) continuing operating activities










Decrease (Increase) in deferred income taxes

1,586

2,064

493

642

Unrealized loss (gain) on marketable securities

(6,115)

(14,972)

(1,903)

(4,657)

Depreciation and amortization

5,690

4,815

1,770

1,498

Capital gain on disposal of property plant and equipment

(108)

-

(34)

-

Exchange (losses)/gains on cash and cash equivalents

275

2,129

86

662











Changes in assets and liabilities:





Decrease (increase) in trade receivables and other receivables

22,029

(29,776)

6,853

(9,262)

Increase in inventories

12,034

(22,259)

3,743

(6,923)

Increase (decrease) in trade and other payables, and other current
liabilities

(1,861)

16,050

(579)

4,992

Cash generated from operations

33,530

(41,949)

10,429

(13,048)

Income tax paid

(21,563)

(9,999)

(6,707)

(3,110)

Net cash flows from operating activities

11,967

(51,948)

3,722

(16,158)











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





 

[1] StoreNext Ltd. has a direct connection to the cash register systems of over 2,200 points of sales, providing information regarding 80% of real time sales data in Israel.

Company Contact:
G. Willi - Food International Ltd.
Yitschak Barabi, Chief Financial Officer
(+972) 8-932-1000
itsik.b@willi-food.co.il

 

 

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SOURCE G. Willi-Food International Ltd.

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