YAVNE, Israel, May 12, 2021 /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 unaudited financial results for the first quarter ended March 31, 2021.

G. Willi-Food International Ltd. logo (PRNewsfoto/G. Willi-Food International Ltd.)

First Quarter Fiscal Year 2021

  • Sales decreased by 9.6% year-over-year to NIS 116.7 million (US$ 35.0 million).
  • Gross profit decreased by 12.7% year-over-year to NIS 36.2 million (US$ 10.9 million).
  • Operating profit decreased by 20.9% year-over-year to NIS 15.0 million (US$ 4.5 million).
  • Total financial income increased by 166.1% year-over-year to NIS 11.5 million (US$ 3.5 million).
  • Income before taxes increased by 1,566.8% year-over-year to NIS 26.6 million (US$ 8.0 million).
  • Net profit increased by 1,634.2% year-over-year to NIS 20.5 million (US$ 6.1 million).
  • Cash and securities balance of NIS 371.3 million (US$ 111.4 million) as of March 31, 2020.
  • Basic earnings per share of NIS 1.48 (US$ 0.03) and diluted earning per share of 1.41 (US$ 0.42).

Management Comment

Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food, commented: "We are pleased to present strong first quarter 2021 financial results with one of the highest ever quarterly net profit, which resulted from strong operating profit and increases in our investment portfolio. Except for results of the first quarter of 2020, which experienced exceptional sales associated with the start of the COVID-19 pandemic, the Company experienced its highest quarterly sales ever, and showed stable growth in sales. The strategy of the Company for the near future is to develop new products and enter new food categories, combined with improving our visibility in the retail stores and strengthening our supply chain. We believe that with our excellent management team and hard work, we will meet the goals that we have set for the Company, and keep improving the Company's results."

First Quarter Fiscal 2021 Summary

Sales for the first quarter of 2021 decreased by 9.6% to NIS 116.7 million (US$ 35.0 million) from NIS 129.1 million (US$ 38.7 million) recorded in the first quarter of 2020. Sales decreased mainly due to the exceptional increase in demand for the Company's products that occurred in the first quarter of 2020 associated with the COVID-19 pandemic.

Gross profit for the first quarter of 2021 decreased by 12.7% to NIS 36.2 million (US$ 10.9 million) compared to NIS 41.5 million (US$ 12.5 million) recorded in the first quarter of 2020. The decrease in gross profit was mainly due to the decrease in sales and increase in external storage cost.

Selling expenses decreased by 7.7% to NIS 15.3 million (US$ 4.6 million) compared to NIS 16.6 million (US$ 5.0 million) in the first quarter of 2020. The decrease in selling expenses was mainly due to a decrease in advertising expenses.

General and administrative expenses for the first quarter of 2021 were NIS 5.9 million (US$ 1.7 million), remaining at the same level as in the first quarter of 2020.

Operating profit for the first quarter of 2021 decreased by 20.9% to NIS 15.0 million (US$ 4.5 million) compared to NIS 19.0 million (US$ 5.7 million) in the first quarter of 2020, especially due to the decrease with sales.

Finance income, net totaled NIS 11.5 million (US$ 3.5 million) compared to Finance expenses, net of NIS 17.4 million (US$ 5.2 million) in the first quarter of 2020 during the turmoil in the financial markets associated with the COVID-19 pandemic. During the first quarter of 2021 the Company recognized financial income from its portfolio of securities in the amount of NIS 10.3 million (US$ 3.1 million), financial income from exchange rate differences in the amount of NIS 1.4 million (US$ 0.4 million), and financial expenses from bank fees in the amount of NIS 0.2 million (US$ 0.06 million).

Willi-Food's income before taxes for the first quarter of 2021 was NIS 26.6 million (US$ 8.0 million) compared to income before taxes of NIS 1.2 million (US$ 0.3 million) in the first quarter of 2020.

Willi-Food's net profit in the first quarter of 2021 was NIS 20.5 million (US$ 6.1 million), or NIS 1.48 (US$ 0.44) per share, compared to NIS 1.6 million (US$ 0.5 million), or NIS 0.09 (US$ 0.03) per share, recorded in the first quarter of 2020. Net profit for the first quarter of 2021 increased by 1,634.2% year-over-year. The increase in net profit was mainly due to finance income from revaluation of the Company portfolio of securities in the first quarter of 2021 compared to finance expenses from revaluation of the company portfolio of securities in the first quarter of 2020 due to capital markets sharp declines as a result of the COVID-19 pandemic.

Willi-Food ended the first quarter of 2021 with NIS 371.3 million (US$ 111.4 million) in cash and securities. Net cash from operating activities for the first quarter of 2021 was NIS 4.2 million (US$ 1.3 million). Willi-Food's shareholders' equity at the end of March 2021 was NIS 606.2 million (US$ 181.8 million).

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

The convenience translation of New Israeli Shekels (NIS) into U.S. dollars was made at the rate of exchange prevailing on March 31, 2021, with U.S. $1.00 equal to NIS 3.334 The translation was made solely for the convenience of the reader.

NOTE B: IFRS

The Company's consolidated financial results for the three-month period ended March 31, 2021 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 1,600 customers and 3,200 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 Ltd., 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, 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 25, 2021. 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



March 31,

December 31

March 31,

December 31


2 0 2 1

2 0 2 0

2020

2 0 2 1

2 0 2 0

2020


NIS

US dollars (*)


(in thousands)

ASSETS














Current assets







Cash and cash equivalents

218,808

121,040

201,822

65,629

36,305

60,534

Financial assets carried at fair value
through profit or loss

152,531

121,564

154,700

45,750

36,462

46,401

Trade receivables

142,124

160,396

18,707

42,628

48,109

5,611

Loans to others

11,215

17,650

131,301

3,364

5,294

39,382

Other receivables and prepaid expenses

7,084

6,695

6,667

2,125

2,008

2,000

Inventories

62,351

55,991

59,514

18,702

16,794

17,851

Current tax assets

4,039

-

3,965

1,211

-

1,189

Total current assets

598,152

483,336

576,676

179,409

144,972

172,968








Non-current assets







Property, plant and equipment

84,449

81,765

83,105

25,330

24,524

24,926

Less -Accumulated depreciation

47,488

44,802

46,460

14,244

13,438

13,935


36,961

36,963

36,645

11,086

11,086

10,991








Right of use asset

3,941

3,710

2,866

1,182

1,113

860

Financial assets carried at fair value through
profit or loss

17,916

9,273

13,700

5,374

2,781

4,109

Goodwill

36

36

36

11

11

11

Deferred taxes

-

5,101

-

-

1,530

-

Total non-current assets

58,854

55,083

53,247

17,653

16,521

15,971
















657,006

538,419

629,923

197,062

161,493

188,939

EQUITY AND LIABILITIES














Current liabilities







Current maturities of lease liabilities

1,781

1,708

1,393

534

512

418

Trade payables

23,279

20,420

23,474

6,982

6,125

7,041

Employees Benefits

4,495

3,876

3,437

1,348

1,163

1,031

Current tax liabilities

-

3,410

-


1,023

-

Other payables and accrued expenses

15,074

12,862

11,611

4,522

3,858

3,482

Total current liabilities

44,629

42,276

39,915

13,386

12,681

11,972








Non-current liabilities







Lease liabilities

2,258

2,035

1,592

677

610

478

Deferred taxes

2,090

-

768

627

-

230

Retirement benefit obligation

1,805

1,568

1,905

541

470

571

Total non-current liabilities

6,153

3,603

4,265

1,845

1,080

1,279








Shareholders' equity 







Share capital

1,490

1,425

1,490

447

427

447

Additional paid in capital

170,760

128,354

170,760

51,218

38,499

51,218

Capital fund

247

247

247

74

74

74

Treasury shares

(628)

(628)

(628)

(188)

(188)

(188)

Retained earnings

435,677

364,171

415,196

130,677

109,229

124,534

Remeasurement of the net liability in respect of
defined benefit

(1,322)

(1,029)

(1,322)

(397)

(309)

(397)

Equity attributable to owners of the Company

606,224

492,540

585,743

181,831

147,732

175,688









657,006

538,419

629,923

197,062

161,493

188,939

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


 

G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



Three months

Three months


ended

ended


March 31,

March 31,


2 0 2 1

2 0 2 0

2 0 2 1

2 0 2 0


NIS

US dollars (*)


In thousands (except per share and share data)






Sales

116,710

129,103

35,006

38,723

Cost of sales

80,475

87,581

24,138

26,269






Gross profit

36,235

41,522

10,868

12,454






Operating costs and expenses:










Selling expenses

15,343

16,617

4,601

4,984

General and administrative expenses

5,884

5,876

1,765

1,762

Other income

37

-

11

-

Total operating expenses

21,190

22,493

6,355

6,746






Operating income

15,045

19,029

4,513

5,708






Financial income  

11,727

1,460

3,517

438

Financial expenses

(221)

(18,896)

(66)

(5,668)






Total financial income (expenses), net

11,506

(17,436)

3,451

(5,230)











Income before taxes on income

26,551

1,593

7,964

478

Taxes on income

(6,070)

(412)

(1,821)

(124)






Profit for the period

20,481

1,181

6,143

354











Earnings per share:





Basic earnings per share

1.48

0.09

0.44

0.03

Diluted earnings per share

1.41

0.09

0.42

0.03






Shares used in computation of
basic EPS

13,867,017

13,217,014

13,867,017

13,217,014

Shares used in computation of
diluted EPS

14,517,017

13,217,014

14,276,006

13,217,014

 

Actual number of shares

13,867,017

13,217,014

13,867,017

13,217,014

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

 

G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS




Three months

ended

Three months

ended




March 31,

March 31,




2 0 2 1

2 0 2 0

2 0 2 1

2 0 2 0




NIS

US dollars (*)




In thousands (except per share and share data)


CASH FLOWS - OPERATING ACTIVITIES






Profit from continuing operations

20,481

1,181

6,143

354


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

(16,250)

(**)6,354  

(4,874)

1,906


Net cash from continuing operating activities 

4,231

7,535

1,269

2,260














CASH FLOWS - INVESTING ACTIVITIES






Acquisition of property plant and equipment

(1,344)

(362)

(403)

(109)


Proceeds from sale of property plant and equipment

37

(8,000)

11

(2,400)


Proceeds from loans granted to others

7,492

-

2,247

-


Proceeds from sale (purchase) of marketable securities, net

6,796

-

2,039

-


Net cash used to continuing investing activities

12,981

(8,362)

3,894

(2,509)








CASH FLOWS - FINANCING ACTIVITIES






Lease liability payments

(472)

(425)

(142)

(127)


Net cash used to continuing financing activities

(472)

(425)

(142)

(127)








Increase (decrease) in cash and cash equivalents

16,740

(**)(1,252)

5,021

(376)


Cash and cash equivalents at the beginning of the year

201,822

121,860

60,534

36,551


Exchange losses on cash and cash equivalents

246

(**)432  

74

130


Cash and cash equivalents at the end of the year 

218,808

121,040

65,629

36,305








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

(**)   reclassified  


 

G. WILLI-FOOD INTERNATIONAL LTD.
APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


CASH FLOWS – OPERATING ACTIVITIES:
2.  Adjustments to reconcile net profit to net cash from operating activities:




Three months

Three months


ended

ended


March 31,

March 31,


2 0 2 1

2 0 2 0

2 0 2 1

2 0 2 0


NIS

US dollars (*)


(in thousands)











Decrease (increase) in deferred income taxes

1,322

(4,283)

397

(1,285)

Unrealized loss (gain) on marketable securities

(8,843)

18,707

(2,653)

5,612

Depreciation and amortization

1,479

1,353

444

406

Capital gain on disposal of property plant and equipment

(37)

-

(11)

-

Exchange losses on cash and cash equivalents

(246)

 (**) (432) 

(75)

(130)






Changes in assets and liabilities:





Increase in trade receivables and other receivables

(6,422)

(**) (18,212)

(1,926)

(5,463)

Decrease (increase) in inventories

(2,837)

15,556

(851)

4,666

Increase in trade and other payables, and other current liabilities

4,226

145

1,268

43

Cash generated from operations

(11,358)

12,834

(3,407)

3,849

Income tax paid

(4,892)

(**)(6,480)

(1,467)

(1,943)

Net cash flows from operating activities

(16,250)

6,354

(4,874)

1,906

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

(**)   reclassified  

 

This information is intended to be reviewed in conjunction with the Company's filings with the Securities and Exchange Commission.

 

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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