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.
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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SOURCE G. Willi-Food International Ltd.