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 March 2021
 
G. Willi-Food International Ltd.
(Translation of registrant’s name into English)
  
4 Nahal Harif St., Yavne, Israel 81106
 (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 ☐
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____ 
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____ 
 
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. 
 
Yes ☐  No ☒
 
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________   

Attached hereto and incorporated by reference herein is a press release, dated March 25, 2021, titled:
 
"G. Willi-Food International reports improvements in major operational parameters in fiscal year 2020 compared to 2019".

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. 
 
 
G. Willi-Food International Ltd.
 
 
  
   
 
By:
/s/ Yitschak Barabi
 
 
 
Name: Yitschak Barabi
 
   
Title: Chief Financial Officer
 

Date: March 25, 2021


      
       
         
FOR IMMEDIATE RELEASE

G. WILLI-FOOD INTERNATIONAL REPORTS A RECORD HIGH
YEAR WITH SALES, AND ALL PROFIT PARAMETERS.

FISCAL YEAR 2020 RESULTS SHOW HIGHEST EVER YEAR FOR THE COMPANY IN
SALES, GROSS PROFIT, OPERATING PROFIT, PROFIT BEFORE TAX AND NET PROFIT

YAVNE, Israel - March 25, 2021 - G. Willi-Food International Ltd. (NASDAQ: WILC and 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.

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.


[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.



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
December 31,
   
For the year ended
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.

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

###

SOURCE: G. Willi-Food International Ltd.




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