YAVNE, Israel, May 15, 2023
/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, 2023.
First Quarter Fiscal Year 2023
- Sales increased by 28.2% to NIS 151.4
million (US$ 41.9 million)
from NIS 118.1 million (US$ 32.7 million) in the first quarter of
2022.
- Gross profit increased by 17.0% year-over-year to NIS 40.0 million (US$ 11.1
million).
- Operating income increased by 37.7% year-over-year to
NIS 13.0 million (US$ 3.6 million).
- Cash and securities balance of NIS 236.7
million (US$ 65.5 million) as
of March 31, 2023.
- Basic earnings per share of NIS
0.78 (US$ 0.21).
Management Comment
Zwi Williger &
Joseph Williger, Chairmen & CEO
of Willi-Food, commented: "We are pleased to present the
Company's first quarter 2023 financial results with
record quarterly sales and strong operational results. Although the
Company's gross profit margin was adversely affected by the
strengthening of the USD and Euro currencies in which the Company
buys its products and the increase of product prices, the Company
succeeded in achieving an improvement in its operational profit.
This improvement was mainly due to the increase with sales, which
resulted from the expansion of our range of products, an increase
in inventory levels and availability and increased efforts in
advertising and marketing, these actions caused an increase in
demand for the Company's products and higher availability of the
Company's products in stores. We believe that investing in our
logistic capabilities and in sales and marketing capabilities will
help us to further expand our business activity in the future.
First Quarter Fiscal 2023 Summary
Sales for the first quarter of 2023 increased by 28.2% to
NIS 151.4 million (US$ 41.9 million) from NIS
118.1 million (US$ 32.7
million) recorded in the first quarter of 2022. Sales
increased mainly due to (i) an increase in the range of the
Company's products, (ii) increased efforts to increase our
inventory levels and its availability for the increasing demand for
our products, (iii) increased efforts to improve presence of the
Company's line of products in stores and (iv) advertising and
promotional campaigns.
Gross profit for the first quarter of 2023 increased by 17.0% to
NIS 40.0 million (US$ 11.1 million) compared to NIS 34.2 million (US$ 9.5
million) recorded in the first quarter of 2022. First
quarter gross profit rate decreased by 2.6% to 26.4% compared to
gross profit rate of 29.0% for the same period in 2022. The
increase in gross profit was mainly due to increased sales that
offset the increased costs of the Company's imported products
compared to the cost of products in the first quarter of 2022.
Selling expenses increased by 3.6% to NIS
19.9 million (US$ 5.5 million)
compared to NIS 19.2 million
(US$ 5.3 million) in the first
quarter of 2022. The increase was primarily due to an increase in
expenses transportation and maintenance to support the increased
sales.
General and administrative expenses increased by 29.1% to
NIS 7.1 million (US$ 2.0 million) compared to NIS 5.5 million (US$ 1.5
million) in the first quarter of 2022. The increase in
general and administrative expenses was primarily due to an
increase in management compensation and options grants made under
the Company's option plan.
Operating profit for the first quarter of 2023 increased by
37.7% to NIS 13.0 million
(US$ 3.6 million) compared to
NIS 9.5 million (US$ 2.6 million) in the first quarter of 2022.
The increase was primarily due to the increase in gross profit.
Financial income, net was NIS 0.5
million (US$ 0.1 million) for
the first quarter of 2023 compared to NIS
5.8 million (US$ 1.6 million)
in the first quarter of 2022. Financial income, net for the first
quarter of 2023 comprised mainly from interest and dividend income
from the Company's portfolio of securities in an amount of
NIS 3.8 million (USD 1.0 million) and expenses from revaluation of
the Company's portfolio of securities to fair value in an amount of
NIS 3.3 million (USD 0.9 million).
Willi-Food's income before taxes for the first quarter of 2023
was NIS 13.5 million (US$ 3.7 million) compared to income before taxes
of NIS 15.3 million (US$ 4.2 million) in the first quarter of
2022.
Willi-Food's net profit in the first quarter of 2023 was
NIS 10.8 million (US$ 3.0 million), or NIS
0.78 (US$ 0.21) per share,
compared to NIS 13.6 million
(US$ 3.8 million), or NIS 0.98 (US$ 0.27)
per share, recorded in the first quarter of 2022. Net profit for
the first quarter of 2023 decreased by 20.5% year-over-year. The
decrease in net profit was mainly due to a decrease from
revaluation of the Company's portfolio of securities to fair
value.
Willi-Food ended the first quarter of 2023 with NIS 236.7 million (US$
65.5 million) in cash and securities. Net cash used for
continuing activities for the first quarter of 2023 was
NIS 21.0 million (US$ 5.8 million). Willi-Food's shareholders'
equity at the end of March 2023 was
NIS 540.7 million (US$ 149.6 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, 2023, with U.S.
$1.00 equal to NIS 3.615 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, 2023 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 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.
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: 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
22, 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.
|
G. WILLI-FOOD
INTERNATIONAL LTD.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
March 31,
|
December 31
|
March 31,
|
December 31
|
|
2 0 2
3
|
2 0 2
2
|
2022
|
2 0 2
3
|
2 0 2
2
|
2022
|
|
NIS
|
US dollars
(*)
|
|
(in
thousands)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
131,472
|
198,339
|
150,607
|
36,368
|
54,866
|
41,662
|
|
Financial assets
carried at fair value through profit or loss
|
105,272
|
147,808
|
116,762
|
29,121
|
40,887
|
32,299
|
|
Trade
receivables
|
177,648
|
139,781
|
165,838
|
49,142
|
38,667
|
45,875
|
|
Other receivables and
prepaid expenses
|
8,113
|
6,723
|
4,956
|
2,245
|
1,860
|
1,371
|
|
Inventories
|
95,596
|
66,537
|
71,929
|
26,444
|
18,406
|
19,897
|
|
Current tax
assets
|
2,732
|
4,305
|
3,117
|
756
|
1,191
|
862
|
|
Total current
assets
|
520,833
|
563,493
|
513,209
|
144,076
|
155,877
|
141,966
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
106,052
|
89,563
|
99,216
|
29,337
|
24,775
|
27,446
|
|
Less -Accumulated
depreciation
|
52,593
|
49,735
|
51,533
|
14,549
|
13,758
|
14,255
|
|
53,459
|
39,828
|
47,683
|
14,788
|
11,017
|
13,191
|
|
|
|
|
|
|
|
|
Right of use
asset
|
3,289
|
3,544
|
3,391
|
910
|
980
|
938
|
|
Financial assets
carried at fair value through profit or loss
|
44,084
|
31,282
|
44,113
|
12,195
|
8,653
|
12,203
|
|
Goodwill
|
36
|
36
|
36
|
10
|
10
|
10
|
|
Total non-current
assets
|
100,868
|
74,690
|
95,223
|
27,903
|
20,660
|
26,342
|
|
|
|
|
|
|
|
|
621,701
|
638,183
|
608,432
|
171,979
|
176,537
|
168,308
|
|
EQUITY AND
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Current maturities of
lease liabilities
|
2,243
|
1,025
|
2,194
|
620
|
284
|
607
|
|
Trade
payables
|
27,242
|
22,509
|
24,842
|
7,536
|
6,227
|
6,872
|
|
Employees
Benefits
|
4,590
|
5,051
|
3,756
|
1,270
|
1,397
|
1,039
|
|
Financial liabilities
at fair value through profit or loss
|
-
|
6,519
|
-
|
-
|
1,803
|
-
|
|
Other payables and
accrued expenses
|
41,068
|
30,542
|
11,836
|
11,360
|
8,449
|
3,275
|
|
Total current
liabilities
|
75,143
|
65,646
|
42,628
|
20,786
|
18,160
|
11,793
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
Lease
liabilities
|
1,205
|
2,643
|
1,284
|
333
|
730
|
355
|
|
Deferred
taxes
|
3,663
|
3,296
|
4,198
|
1,013
|
912
|
1,161
|
|
Retirement benefit
obligation
|
924
|
1,688
|
878
|
256
|
467
|
243
|
|
Total non-current
liabilities
|
5,792
|
7,627
|
6,360
|
1,602
|
2,109
|
1,759
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
Share
capital
|
1,490
|
1,490
|
1,490
|
412
|
412
|
412
|
|
Additional paid in
capital
|
171,976
|
170,760
|
171,550
|
47,573
|
47,237
|
47,455
|
|
Remeasurement of the
net liability in respect of defined benefit
|
(195)
|
(959)
|
(195)
|
(54)
|
(265)
|
(54)
|
|
Capital fund
|
247
|
247
|
247
|
68
|
68
|
68
|
|
Retained
earnings
|
367,876
|
394,000
|
386,980
|
101,766
|
108,990
|
107,049
|
|
Treasury
shares
|
(628)
|
(628)
|
(628)
|
(174)
|
(174)
|
(174)
|
|
Equity attributable
to owners of the Company
|
540,766
|
564,910
|
559,444
|
149,591
|
156,268
|
154,756
|
|
|
|
|
|
|
|
|
621,701
|
638,183
|
608,432
|
171,979
|
176,537
|
168,308
|
|
|
(*) 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
3
|
2 0 2
2
|
2 0 2
3
|
2 0 2
2
|
|
NIS
|
US dollars (*)
|
|
In thousands (except
per share and share data)
|
|
|
|
|
|
|
Sales
|
151,356
|
118,069
|
41,869
|
32,661
|
|
Cost of
sales
|
111,322
|
83,827
|
30,795
|
23,189
|
|
|
|
|
|
|
Gross
profit
|
40,034
|
34,242
|
11,074
|
9,472
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
19,919
|
19,238
|
5,510
|
5,322
|
|
General and
administrative expenses
|
7,117
|
5,546
|
1,969
|
1,534
|
|
Other income
|
25
|
-
|
7
|
-
|
|
Total operating
expenses
|
27,011
|
24,784
|
7,472
|
6,856
|
|
|
|
|
|
|
Operating
income
|
13,023
|
9,458
|
3,602
|
2,616
|
|
|
|
|
|
|
Financial income
|
4,606
|
6,030
|
1,274
|
1,668
|
|
Financial
expenses
|
(4,080)
|
(182)
|
(1,129)
|
(50)
|
|
|
|
|
|
|
Total financial
income, net
|
526
|
5,848
|
145
|
1,618
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
on income
|
13,549
|
15,306
|
3,747
|
4,234
|
|
Taxes on
income
|
(2,704)
|
(1,662)
|
(748)
|
(460)
|
|
|
|
|
|
|
Profit for the
period
|
10,845
|
13,644
|
2,999
|
3,774
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
Basic / diluted
earnings per share
|
0.78
|
0.98
|
0.21
|
0.27
|
|
|
|
|
|
|
Shares used in
computation of
basic/diluted EPS
|
13,867,017
|
13,867,017
|
13,867,017
|
13,867,017
|
|
Actual number of
shares
|
13,867,017
|
13,867,017
|
13,867,017
|
13,867,017
|
|
|
(*) 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
3
|
2 0 2
2
|
2 0 2
3
|
2 0 2
2
|
|
NIS
|
US dollars
(*)
|
|
In thousands (except
per share and share data)
|
|
CASH FLOWS -
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Profit from continuing
operations
|
10,845
|
13,644
|
2,999
|
3,774
|
|
|
Adjustments to
reconcile net profit to net cash used in continuing
operating activities (Appendix A)
|
(31,858)
|
(11,347)
|
(8,812)
|
(3,139)
|
|
|
Net cash from (used
in) continuing operating activities
|
(21,013)
|
2,297
|
(5,813)
|
635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS -
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Acquisition of property
plant and equipment
|
(6,811)
|
(2,317)
|
(1,884)
|
(641)
|
|
|
Proceeds from sale of
marketable securities, net
|
8,493
|
8,204
|
2,348
|
2,269
|
|
|
Net cash provided
investing activities
|
1,682
|
5,887
|
464
|
1,628
|
|
|
|
|
|
|
|
|
CASH FLOWS -
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Lease liability
payments
|
(493)
|
(531)
|
(136)
|
(147)
|
|
|
Net cash used in
continuing financing activities
|
(493)
|
(531)
|
(136)
|
(147)
|
|
|
|
|
|
|
|
|
Increase (decrease)
in cash and cash equivalents
|
(19,824)
|
7,653
|
(5,485)
|
2,116
|
|
|
Cash and cash
equivalents at the beginning of the year
|
150,607
|
195,718
|
41,662
|
54,141
|
|
|
Exchange gains (losses)
on cash and cash equivalents
|
689
|
(5,032)
|
191
|
(1,392)
|
|
|
Cash and cash
equivalents at the end of the year
|
131,472
|
198,339
|
36,368
|
54,865
|
|
|
|
|
|
|
|
|
(*) Convenience Translation
into U.S. Dollars.
|
|
|
G. WILLI-FOOD INTERNATIONAL
LTD.
|
|
APPENDIX TO CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
CASH FLOWS –
OPERATING ACTIVITIES:
A. Adjustments to reconcile net profit to net
cash from continuing operating activities:
|
|
|
|
|
Three months
|
Three months
|
|
ended
|
ended
|
|
March 31,
|
March 31,
|
|
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
|
(535)
|
1,279
|
(148)
|
354
|
|
Unrealized loss (gain)
on marketable securities
|
3,024
|
(2,148)
|
837
|
(594)
|
|
Unrealized gain of
financial liabilities at fair value through profit or
loss
|
-
|
(7,441)
|
-
|
(2,058)
|
|
Depreciation and
amortization
|
1,625
|
1,848
|
450
|
511
|
|
Capital gain on
disposal of property plant and equipment
|
(25)
|
-
|
(7)
|
-
|
|
Exchange losses (gain)
on cash and cash equivalents
|
(689)
|
5,032
|
(191)
|
1,392
|
|
Stock based
compensation reserve
|
426
|
-
|
118
|
-
|
|
|
|
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
Increase in trade
receivables and other receivables
|
(11,247)
|
(3,226)
|
(3,111)
|
(892)
|
|
Increase in
inventories
|
(23,667)
|
(7,009)
|
(6,547)
|
(1,939)
|
|
Increase in trade and
other payables, and other current liabilities
|
2,564
|
3,165
|
709
|
876
|
|
Cash generated from
operations
|
(28,524)
|
(8,500)
|
(7,890)
|
(2,350)
|
|
Income tax
paid
|
(3,334)
|
(2,847)
|
(922)
|
(789)
|
|
Net cash flows from operating
activities
|
(31,858)
|
(11,347)
|
(8,812)
|
(3,139)
|
|
|
|
|
|
|
B. Significant non-cash
transactions:
|
|
|
|
|
|
Three months
|
Three months
|
|
ended
|
ended
|
|
March 31,
|
March 31,
|
|
2 0 2
3
|
2 0 2
2
|
2 0 2
3
|
2 0 2
2
|
|
NIS
|
US dollars (*)
|
|
(in thousands)
|
|
Dividend
payable
|
29,949
|
19,966
|
8,285
|
5,523
|
|
|
|
|
|
|
(*) Convenience Translation
into U.S. Dollars.
|
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
Logo:
https://mma.prnewswire.com/media/959267/G_Willi_Food_International_Logo.jpg
View original
content:https://www.prnewswire.com/news-releases/g-willi-food-international-reports-first-quarter-2023-results-with-a-record-high-quarterly-sales-301824623.html
SOURCE G. Willi-Food International Ltd.
