G. Willi-Food International Ltd WILC

NAS: WILC | ISIN: IL0010828585   15:42
10,07 USD (-1,61%)
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G. Willi-Food international Reports the results of first quarter 2022

YAVNE, Israel, May 17, 2022 /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, 2022.

G. Willi-Food International Ltd. Logo

First Quarter Fiscal Year 2022

  • Sales increased by 1.2% to NIS 118.1 million (US$ 37.2 million) from NIS 116.7 milliom (US$ 36.7 million) in the first quarter of 2021.
  • Gross profit decreased by 5.5% year-over-year to NIS 34.2 million (US$ 10.8 million).
  • Operating income decreased by 37.1% year-over-year to NIS 9.5 million (US$ 3.0 million).
  • Cash and securities balance of NIS 346.1 million (US$ 109.0 million) as of March 31, 2022.
  • Basic earnings per share of NIS 0.98 (US$ 0.31).

Management Comment

Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food, commented: "We are pleased to present first quarter 2022 financial results to the Company shareholders. The world is experiencing a crisis which among other things is due to war in Ukraine and global uncertainty regarding the Corona virus. This crisis is reflecting among other things, in disruptions to international commercial shipping and disruptions in commodity pricing. The Company cannot predict how long this crisis will last. Despite this difficult environment, the Company managed to increase the level of sales and maintain a strong level of gross margin and other operational parameters. The Company will work hard to fulfill its strategy for the near future, to improve commercial conditions with its suppliers and customers, develop new products, enter into new categories with potentially high gross profit margins, improve the visibility of its products in the stores, strengthen its brand and supply chain and ensure sufficient inventory. We intend to work hard to achieve the goals we have set for the Company and maintain strong profit parameters."

First Quarter Fiscal 2022 Summary

Sales for the first quarter of 2022 increased by 1.2% to NIS 118.1 million (US$ 37.2 million) from NIS 116.7 million (US$ 36.7 million) recorded in the first quarter of 2021. Sales increased mainly due to (i) effective marketing activities carried out in the first quarter of 2022 that increased the range of the Company's products and (ii) proper inventory management.

Gross profit for the first quarter of 2022 decreased by 5.5% to NIS 34.2 million (US$ 10.8 million) compared to NIS 36.2 million (US$ 11.4 million) recorded in the first quarter of 2021. First quarter gross margin decreased by 5.5% to 29.0% compared to gross margin of 31.0% for the same period in 2021. The decrease in gross profit was mainly due to increased costs of the Company's imported products and increased shipping costs.

Selling expenses increased by 25.4% to NIS 19.2 million (US$ 6.1 million) compared to NIS 15.3 million (US$ 4.8 million) in the first quarter of 2021. The increase was primarily due to an increase in expenses for advertising and promotion. 

General and administrative expenses decreased by 5.8% to NIS 5.5 million (US$ 1.7 million) compared to NIS 5.9 million (US$ 1.9 million) in the first quarter of 2021.

Operating profit for the first quarter of 2022 decreased by 37.1% to NIS 9.5 million (US$ 3.0 million) compared to NIS 15.0 million (US$ 4.7 million) in the first quarter of 2021. The decrease was primarily due to the decrease in gross profit and the increase in selling expenses.

Financial income, net was NIS 5.8 million (US$ 1.8 million) for the first quarter of 2022 compared to NIS 11.5 million (US$ 3.6 million) in the first quarter of 2021. Financial income, net for fiscal year 2022 comprised mainly income from changes in exchange rate change an amount of NIS 2.6 (USD 0.7 million), income from revaluation of the Company's portfolio of securities to fair value in an amount of NIS 1.9 million (USD 0.6 million) and interest and dividend income from the Company's portfolio of securities in an amount of NIS 1.3 million (USD 0.4 million).

Willi-Food's income before taxes for the first quarter of 2022 was NIS 15.3 million (US$ 4.8 million) compared to income before taxes of NIS 26.6 million (US$ 8.4 million) in the first quarter of 2021.

Willi-Food's net profit in the first quarter of 2022 was NIS 13.6 million (US$ 4.3 million), or NIS 0.98 (US$ 0.31) per share, compared to NIS 20.5 million (US$ 6.5 million), or NIS 1.48 (US$ 0.44) per share, recorded in the first quarter of 2021. Net profit for the first quarter of 2022 decreased by 33.4% year-over-year. The decrease in net profit was mainly due to an increase in advertising, promotion and in shipping costs of the Company's products.

Willi-Food ended the first quarter of 2022 with NIS 346.2 million (US$ 109.0 million) in cash and securities. Net cash from continuing activities for the first quarter of 2022 was NIS 2.3 million (US$ 0.7 million). Willi-Food's shareholders' equity at the end of March 2022 was NIS 564.9 million (US$ 177.9 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, 2022, with U.S. $1.00 equal to NIS 3.176 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, 2022 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 1,500 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, 2021, filed with the Securities and Exchange Commission on March 15, 2022. 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 2

2 0 2 1

2021

2 0 2 2

2 0 2 1

2021


NIS

US dollars (*)


(in thousands)

ASSETS














Current assets







Cash and cash equivalents

198,339

218,808

195,718

62,449

68,894

61,624

Financial assets carried at fair value through
profit or loss

147,808

152,531

154,090

46,539

48,026

48,517

Trade receivables

139,781

142,124

134,017

44,012

44,749

42,197

Loans to others

-

11,215

-

-

3,532

-

Other receivables and prepaid expenses

6,723

7,084

4,939

2,117

2,230

1,555

Inventories

66,537

62,351

59,528

20,950

19,632

18,743

Current tax assets

4,305

4,039

5,780

1,355

1,272

1,820

Total current assets

563,493

598,152

554,072

177,422

188,335

174,456








Non-current assets







Property, plant and equipment

89,563

84,449

87,245

28,200

26,590

27,470

Less -Accumulated depreciation

49,735

47,488

48,431

15,660

14,952

15,249


39,828

36,961

38,814

12,540

11,638

12,221








Right of use asset

3,544

3,941

4,088

1,117

1,241

1,287

Financial assets carried at fair value through
profit or loss

31,282

17,916

31,056

9,849

5,641

9,778

Goodwill

36

36

36

11

11

11

Total non-current assets

74,690

58,854

73,994

23,517

18,531

23,298









638,183

657,006

628,066

200,939

206,866

197,754

EQUITY AND LIABILITIES














Current liabilities







Current maturities of lease liabilities

1,025

1,781

1,136

323

561

358

Trade payables

22,509

23,279

20,386

7,087

7,330

6,419

Employees Benefits

5,051

4,495

3,442

1,590

1,415

1,084

Financial liabilities at fair value through profit
or loss

6,519

-

13,960

2,053

-

4,395

Other payables and accrued expenses

30,542

15,074

11,216

9,616

4,746

3,531

Total current liabilities

65,646

44,629

50,140

20,669

14,052

15,787








Non-current liabilities







Lease liabilities

2,643

2,258

3,062

832

711

965

Deferred taxes

3,296

2,090

2,017

1,038

658

635

Retirement benefit obligation

1,688

1,805

1,615

531

568

508

Total non-current liabilities

7,627

6,153

6,694

2,401

1,937

2,108








Shareholders' equity







Share capital

1,490

1,490

1,490

469

469

469

Additional paid in capital

170,760

170,760

170,760

53,766

53,766

53,766

Capital fund

247

247

247

78

78

78

Treasury shares

(628)

(628)

(628)

(198)

(198)

(198)

Retained earnings

394,000

435,677

400,322

124,055

137,178

126,046

Remeasurement of the net liability in respect
     of defined benefit

(959)

(1,322)

(959)

(302)

(416)

(302)

Equity attributable to owners of the
     Company

564,910

606,224

571,232

177,868

190,877

179,859









638,183

657,006

628,066

200,939

206,866

197,754

(*)     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 2

2 0 2 1

2 0 2 2

2 0 2 1


NIS

US dollars (*)


In thousands (except per share and share data)






Sales

118,069

116,710

37,175

36,748

Cost of sales

83,827

80,475

26,394

25,339






Gross profit

34,242

36,235

10,781

11,409






Operating costs and expenses:










Selling expenses

19,238

15,343

6,057

4,831

General and administrative expenses

5,546

5,884

1,746

1,853

Other income

-

37

-

12

Total operating expenses

24,784

21,190

7,804

6,672






Operating income

9,458

15,045

2,978

4,737






Financial income  

6,030

11,727

1,898

3,692

Financial expenses

(182)

(221)

(57)

(69)






Total financial income, net

5,848

11,506

1,841

3,623











Income before taxes on income

15,306

26,551

4,819

8,360

Taxes on income

(1,662)

(6,070)

(523)

(1,911)






Profit for the period

13,644

20,481

4,296

6,449











Earnings per share:





Basic earnings per share

0.98

1.48

0.31

0.46

Diluted earnings per share

0.98

1.41

0.31

0.44






Shares used in computation of
     basic EPS

13,867,017

13,867,017

13,867,017

13,867,017

Shares used in computation of
     diluted EPS

13,867,017

14,517,017

13,867,017

14,517,017

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 2

2 0 2 1

2 0 2 2

2 0 2 1



NIS

US dollars (*)



In thousands (except per share and share data)

CASH FLOWS - OPERATING ACTIVITIES






Profit from continuing operations

13,644

20,481

4,296

6,449


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

(11,347)

(16,250)

(3,573)

(5,116)


Net cash from continuing operating activities 

2,297

4,231

723

1,333














CASH FLOWS - INVESTING ACTIVITIES






Acquisition of property plant and equipment

(2,317)

(1,344)

(730)

(423)


Proceeds from sale of property plant and equipment

-

37

-

12


Proceeds from loans granted to others

-

7,492

-

2,358


Proceeds from sale (purchase) of marketable securities, net

8,204

6,796

2,583

2,140


Net cash used in continuing investing activities

5,887

12,981

1,853

4,087








CASH FLOWS - FINANCING ACTIVITIES






Lease liability payments

(531)

(472)

(167)

(149)


Net cash used in continuing financing activities

(531)

(472)

(167)

(149)








Increase in cash and cash equivalents

7,653

16,740

2,409

5,271


Cash and cash equivalents at the beginning of the year

195,718

201,822

61,624

63,546


Exchange losses on cash and cash equivalents

(5,032)

246

(1,584)

77


Cash and cash equivalents at the end of the year 

198,339

218,808

62,449

68,894








(*)     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 2

2 0 2 1

2 0 2 2

2 0 2 1


NIS

US dollars (*)


(in thousands)











     Decrease in deferred income taxes

1,279

1,322

403

416

     Unrealized gain on marketable securities

(2,148)

(8,843)

(676)

(2,784)

     Unrealized gain of financial liabilities at fair value through
          profit or loss

(7,441)

-

(2,343)

-

     Depreciation and amortization

1,848

1,479

582

465

     Capital gain on disposal of property plant and equipment

-

(37)

-

(12)

     Exchange losses (gain) on cash and cash equivalents

5,032

(246)

1,584

(77)






     Changes in assets and liabilities:





     Increase in trade receivables and other receivables

(3,226)

(6,422)

(1,016)

(2,022)

     Increase in inventories

(7,009)

(2,837)

(2,207)

(893)

     Increase in trade and other payables, and other current
          liabilities

3,165

4,226

996

1,331

     Cash generated from operations

(8,500)

(11,358)

(2,677)

(3,576)

     Income tax paid

(2,847)

(4,892)

(896)

(1,540)

     Net cash flows from operating activities

(11,347)

(16,250)

(3,573)

(5,116)


     B.  Significant non-cash transactions:



Three months

Three months


ended

ended


March 31,

March 31,


2 0 2 2

2 0 2 1

2 0 2 2

2 0 2 1


NIS

US dollars (*)


(in thousands)

     Dividend payable

19,966

-

6,287

-





















     (*)     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

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SOURCE G. Willi-Food International Ltd.

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