G. Willi Food International Reports Second Quarter 2019 Sales Crossed NIS 100 Million The Highest Quarterly Sales Ever

YAVNE, Israel, Aug. 14, 2019 /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 second quarter ended June 30, 2019.

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

Second Quarter Fiscal Year 2019 Highlights

  • Sales increased by 27.7% year-over-year to NIS 100.1 million (US$ 28.1 million).
  • Gross profit increased by 34.6% year-over-year to NIS 29.8 million (US$ 8.4 million).
  • Operating profit of NIS 9.9 million (US$ 2.8 million), or 9.8% of sales, compared to operating profit of NIS 7.6 million (US$ 2.1 million) in the comparable quarter of 2018.
  • Net profit increased by 75% year-over-year to NIS 11.3 million (US$ 3.2 million), or 11.3% of sales.
  • Net cash from operating activities of NIS 2.4 million (US$ 0.7 million).
  • Cash and securities balance of NIS 267.9 million (US$ 75.1 million) as of June 30, 2019.
  • Earnings per share of NIS 0.86(US$ 0.24).

Management Comment

Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food, commented: "We are pleased to present the second quarter 2019 financial results, which show continued quarterly improvements in sales, gross profit and operating profit year-over-year for eight quarters in a row. According to retail data analytics provided by StoreNext Ltd[1], the Company recorded a higher growth rate in the first six month of 2019 for "sale out" sales (in other words, sales to the final consumer) than any other Israeli food and beverage company, growing 29.9% compared to the average of such companies, which grew only by 2.4%.

We are focusing on increasing the Company's market share in the food sector in Israel and, for the first time, the Company's quarterly sales crossed NIS 100 million. We believe that our growing business and other Company plans for the coming years will further improve Company results."

Second Quarter Fiscal 2019 Summary

Sales for the second quarter of 2019 increased by 27.7% to NIS 100.1 million (US$ 28.1 million) from NIS 78.4 million (US$ 22.0 million) recorded in the second quarter of 2018. Sales increased primarily due to a redirection of resources to increase support for sales activity and an increase in the variety of Company products.

Gross profit for the second quarter of 2019 increased by 34.6% to NIS 29.8 million (US$ 8.4 million) compared to NIS 22.2 million (US$ 6.2 million) recorded in the second quarter of 2018. Second quarter gross margin increased by 5.4% to 29.8% compared to gross margin of 28.3% for the same period in 2018, primarily due to the increased sales and the Company's strategy of selling a more favorable mix of products which generate a higher gross margin.

Selling expenses increased by 45.1% to NIS 14.8 million (US$ 4.1 million) compared to NIS 10.2 million (US$ million 2.9) in the second quarter of 2018 primarily due to an increase in advertising and promotion, manpower and payroll expenses. Selling expenses as a percentage of sales were 14.7%, compared to 13.0% in the second quarter of 2018.

General and administrative expenses increased by 17.9% to NIS 5.2 million (US$ 1.5 million) compared to NIS 4.4 million (US$ million 1.2) in the second quarter of 2018. The increase in general and administrative expenses was primarily due to an increase in management payroll expenses.

As a result, operating profit for the second quarter of 2019 increased by 30.2% to NIS 9.9 million (US$ 2.8 million) compared to NIS 7.6 million (US$ 2.1 million) in the second quarter of 2018.

Willi-Food's income before taxes for the second quarter of 2019 was NIS 14.3 million (US$ 4.0 million) compared to income before taxes of NIS 8.0 million (US$ 2.3 million) in the second quarter of 2018.

Willi-Food's net profit in the second quarter of 2019 was NIS 11.3 million (US$ 3.2 million), or NIS 0.86(US$ 0.24) per share, compared to NIS 6.5 million (US$ 1.8 million), or NIS 0.49(US$ 0.14) per share, recorded in the second quarter of 2018.

Willi-Food ended the second quarter of 2019 with NIS 267.9 million (US$ 75.1 million) in cash and securities. Net cash from operating activities for the second quarter of 2019 was NIS 2.4 million (US$ 0.7 million). Willi-Food's shareholders' equity at the end of June 2019 was NIS 467.4 million (US$ 131.1 million).

First Half Fiscal 2019 Highlights

  • Sales increased by 15.2% year-over-year to NIS 198.0 million (US$ 55.5 million).
  • Gross profit increased by 27.8% year-over-year to NIS 60.0 million (US$ 16.8 million).
  • Operating profit increased by 31.2% year-over-year to NIS 22.5 million (US$ 6.3 million), or 11.4% of sales.
  • Net profit increased by 98.0% to NIS 27.1 million (US$ 7.6 million), or 13.7% of sales.
  • Net cash from operating activities of NIS 2.9 million (US$ 0.8 million).
  • Earning per share of NIS 2.05(US$ 0.57).

First Half Fiscal 2019 Summary

Willi-Food's sales for the six-month period ending June 30, 2019 increased by 15.2% to NIS 198.0 million (US$ 55.5 million) compared to sales of NIS 171.8 million (US$ 48.2 million) in the first half of 2018. Sales increased in the first half of 2019 primarily due to a redirection of resources to increase support for sales activity and an increase in the variety of Company products.

Gross profit for the period increased by 27.8% to NIS 60.0 million (US$ 16.8 million) compared to gross profit of NIS 47.0 million (US$ 13.2 million) for the first half of 2018. First half 2019 gross margin was 30.3% compared to a gross margin of 27.3% for the same period in 2018. The increase in gross margin was the result of the increased sales and the Company's continued strategic focus on selling a favorable mix of products which generate a higher gross margin.

Operating income for the first half of 2019 increased by 31.2% to NIS 22.5 million (US$ 6.3 million) from NIS 17.1 million (US$ 4.8 million) reported in the comparable period of last year primarily due to the increase of gross profit and decrease of selling expenses.

First half 2019 income before taxes increased by 94.4% to NIS 34.2 million (US$ 9.6 million) compared to NIS 17.6 million (US$ 4.9 million) recorded in the first half of 2018.

Net income for the first half of 2019 increased by 98.0% to NIS 27.1 million (US$ 7.6 million), or NIS 2.05 (US$ 0.58) per share, from NIS 13.7 million (US$ 3.8 million), or NIS 1.03(US$ 0.29) per share, recorded in the first half of 2018.

E

xpiration of Share Repurchase Program

The share repurchase program that the Company announced on November 15, 2018 has expired. The expiration of the share repurchase program was in accordance with the Board of Directors' authorization that such program would continue for a limited period of six months. Since inception of the program, 23,898 Ordinary Shares of the Company have been repurchased in the amount of approximately US$ 169,800, which represents an average price of US$ 7.1 per share.

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 June 30, 2019, U.S. $1.00 equals NIS 3.566. 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 June 30, 2019 are presented in accordance with International Financial Reporting Standards ("IFRS").

About G. Willi-Food International Ltd.

G. Willi-Food International Ltd. (https://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 Gold Frost, 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: the risk that the potential acquisitions of Bikurei Hasadeh North 1994 Ltd. and Miki Food Industries Fish and Salads (1992) Ltd. will not be completed; 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; 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, 2018, filed with the Securities and Exchange Commission on March 27, 2019. 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

June 30,

December

31

June 30,

December

31

2 0 1 9

2 0 1 8

2 0 1 8

2 0 1 9

2 0 1 8

2 0 1 8

NIS

US dollars (*)

(in thousands)

ASSETS

Current assets

Cash and cash equivalents

129,889

130,882

134,287

36,424

36,703

37,658

Financial assets carried at fair value 

   through profit or loss

137,980

139,961

137,904

38,693

39,249

38,672

Trade receivables

120,456

97,339

98,017

33,779

27,296

27,487

Loans to others

15,831

-

-

4,439

-

-

Other receivables and prepaid expenses

5,359

3,155

3,744

1,503

885

1,050

Inventories

55,871

44,695

49,289

15,668

12,534

13,822

Current tax assets

-

2,572

862

-

721

241

Total current assets

465,386

418,604

424,103

130,506

117,388

118,930

Non-current assets

Property, plant and equipment

80,198

79,176

79,611

22,490

22,203

22,325

Less -Accumulated depreciation

42,042

39,225

40,219

11,790

11,000

11,278

38,156

39,951

39,392

10,700

11,203

11,047

Right of use asset

1,961

-

-

550

-

-

Goodwill

36

36

36

10

10

10

Deferred taxes

1,337

1,306

2,882

375

366

807

Total non-current assets

41,490

41,293

42,310

11,635

11,579

11,864

506,876

459,897

466,413

142,141

128,967

130,794

EQUITY AND LIABILITIES

Current liabilities

Current maturities of lease liabilities

1,027

-

-

288

-

-

Curremt tax liabilities

3,755

-

-

1053

-

-

Trade payables

24,168

19,945

16,239

6,777

5,593

4,554

Employees Benefits

2,952

2,671

2,577

828

749

723

Other payables and accrued expenses

5,738

6,912

5,882

1,609

1,938

1,649

Total current liabilities

37,640

29,528

24,698

10,555

8,280

6,926

Non-current liabilities

Lease liabilities

946

-

-

265

-

-

Retirement benefit obligation

924

1,090

836

259

306

234

Total non-current liabilities

1,870

1,090

836

524

306

234

Shareholders' equity  

Share capital NIS 0.1 par value

   (authorized - 50,000,000 shares, issued

   and outstanding - 13,217,014 shares at

   June 30, 2019; and 13,240,913 at

   December 31, 2018)

1,425

1,425

1,425

400

400

400

Additional paid in capital

128,354

128,354

128,354

35,994

35,994

35,994

Capital fund

247

247

247

69

69

69

Treasury shares

(625)

-

-

(175)

-

-

Remeasurement of the net liability in

   respect of defined benefit

(623)

(954)

(623)

(175)

(268)

(175)

Retained earnings

338,588

300,207

311,476

94,949

84,186

87,346

Equity attributable to owners of the 

  Company

467,366

429,279

440,879

131,062

120,381

123,634

506,876

459,897

466,413

142,141

128,967

130,794

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

 

 

G. WILLI-FOOD INTERNATIONAL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Six months

Three months

Six months

ended

ended

ended

June 30,

June 30,

June 30,

2 0 1 9

2 0 1 8

2019

2018

2 0 1 9

2 0 1 8

NIS

US dollars (*)

In thousands (except per share and share data)

Sales

197,934

171,781

100,099

78,410

55,506

48,172

Cost of sales

137,908

124,828

70,270

56,246

38,673

35,005

Gross profit

60,026

46,953

29,829

22,164

16,833

13,167

Operating costs and expenses:

Selling expenses

27,224

20,895

14,758

10,173

7,634

5,860

General and administrative expenses

10,331

8,932

5,213

4,421

2,897

2,505

Total operating expenses

37,555

29,827

19,971

14,594

10,531

8,365

Operating profit

22,471

17,126

9,858

7,570

6,302

4,802

Financial income

12,993

(655)

4,847

(195)

3,644

(184)

Financial expense

1,290

(1,111)

356

(674)

362

(312)

Total financial income

11,703

456

4,491

479

3,282

128

Income before taxes on income

34,174

17,582

14,349

8,049

9,584

4,930

Taxes on income

(7,062)

(3,888)

(3,002)

(1,565)

(1,980)

(1,090)

Profit for the period

27,112

13,694

11,347

6,484

7,604

3,840

Earnings per share:

Basic earnings per share

2.05

1.03

0.86

0.49

0.58

0.29

Diluted earnings per share

2.05

1.03

0.86

0.49

0.58

0.29

Shares used in computation of

   basic EPS

13,217,017

13,240,913

13,217,017

13,240,913

13,217,017

13,240,913

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

 

 

G. WILLI-FOOD INTERNATIONAL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six months

Three months

Six months

ended

ended

ended

June 30,

June 30,

June 30,

2 0 1 9

2 0 1 8

2 0 1 9

2 0 1 8

2 0 1 9

2 0 1 8

NIS

US dollars (*)

(in thousands)

CASH FLOWS - OPERATING ACTIVITIES

Profit from continuing operations

27,112

13,694

11,347

6,484

7,604

3,840

Adjustments to reconcile net profit to net cash used to

   (used in) continuing operating activities (Appendix)

(24,185)

(2,573)

(8,953)

1,341

(6,783)

(722)

Net cash used in continuing operating activities

2,927

11,121

2,394

7,825

821

3,118

CASH FLOWS - INVESTING ACTIVITIES

Acquisition of property plant and equipment

(586)

(578)

(375)

(521)

(165)

(162)

Proceeds from purchase of marketable securities, net

10,190

3,307

7,196

3,402

2,858

927

Loans granted to others

(21,650)

-

(3,650)

-

(6,071)

-

Proceeds from loans granted to others

5,819

-

5,942

-

1,632

-

Proceeds of non current financial assets

-

3,970

-

-

-

1,114

Net cash used in (used to) continuing investing

   activities

(6,227)

6,699

 

9,113

 

2,881

(1,746)

1,879

CASH FLOWS - FINANCING ACTIVITIES

Short-term bank debt

-

-

-

(20,161)

-

-

Lease liability payments

(473)

-

(259)

-

(134)

-

Aquisition of treasury shares

(625)

-

-

-

(175)

-

Net cash used in continuing financing activities

(1,098)

-

(259)

(20,161)

(309)

-

Increase (decrease) in cash and cash equivalents

(4,398)

17,820

11,248

(9,455)

(1,234)

4,997

Cash and cash equivalents  at the beginning of the

   financial period

134,287

113,062

118,641

140,337

37,658

31,706

Cash and cash equivalents of the end of the

   financial year

129,889

130,882

129,889

130,882

36,424

36,703

(*)        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 operating activities:

Six months

Three months

Six months

ended

ended

ended

June 30,

June 30,

June 30,

2 0 1 9

2 0 1 8

2 0 1 9

2 0 1 8

2 0 1 9

2 0 1 8

NIS

US dollars (*)

(in thousands)

Decrease (increase) in deferred income taxes

1,546

(803)

505

(444)

433

(225)

Unrealized loss (gain) on marketable securities

(10,266)

246

(3,282)

(2,022)

(2,879)

69

Depreciation and amortization

2,308

1,836

1,167

916

647

515

Changes in assets and liabilities:

Decrease (increase) in trade receivables and

   other receivables

(23,194)

(8,338)

(7,526)

6,484

(6,504)

(2,338)

Increase in inventories

(6,582)

(4,796)

(4,764)

(5,187)

(1,846)

(1,345)

Increase in trade and other payables, and other

   current liabilities

12,003

9,282

4,947

1,594

3,366

2,602

(24,185)

(2,573)

(8,953)

1,341

(6,783)

(722)

 

B.         Significant non-cash transactions:

Six months

Three months

Six months

ended

ended

ended

June 30,

June 30,

June 30,

2 0 1 9

2 0 1 8

2 0 1 9

2 0 1 8

2 0 1 9

2 0 1 8

NIS

US dollars (*)

(in thousands)

Supplemental cash flow information:

Income tax paid

4,545

3,434

4,545

1,268

1,275

963

(*)        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.

[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.

Amir Kaplan, Chief Financial Officer

(+972) 8-932-1000

[email protected]

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SOURCE G. Willi-Food International Ltd.

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