YAVNE, Israel, March 19, 2020 /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 financial results
for the fiscal year ended December 31,
2019.
Fiscal Year 2019 Highlights
- Sales increased by 17.0% from fiscal year 2018 to NIS 395.6 million (US$
114.5 million).
- Gross profit increased by 26.1% from fiscal year 2018 to
NIS 123.9 million (US$ 35.8 million).
- Operating profit increased by 25.2% from fiscal year
2018 to NIS 47.3
million (US$ 13.7 million), or
12.0% of sales.
- Income before taxes (Net income) increased by 98.8% from fiscal
year 2018 to NIS 65.2 million
(US$ 18.9 million).
- Income after taxes increased by 106.3% from fiscal year 2018 to
NIS 51.5 million (US$ 14.9 million).
- Cash and securities balance of NIS 263.4
million (US$ 76.2 million) as
of December 31, 2019.
Willi-Food's operating divisions include Willi-Food, a
distributor of a broad variety of kosher foods, and its
wholly-owned Euro European Dairies Ltd. (formerly "Gold Frost
Ltd."), a designer, developer and distributor of innovative branded
kosher dairy food products.
Management Comment
Zwi Williger &
Joseph Williger, Co-Chairmen of
Willi-Food, commented: "We are pleased to present fiscal year
2019 results which show our best financial results ever in sales,
gross profit, operating profit and net profit.
"At the beginning of fiscal year 2020, we appointed a new CEO
and other new officers whom we believe will initiate new management
systems, routines and procedures. These management changes and new
management initiatives allow for organizational stability and
provide a solid basis for enhanced growth."
According to retail data analytics provided by StoreNext
Ltd[1], the Company recorded a higher growth rate in
2019 for "sale out" sales (i.e., sales to the final
consumer) than any other Israeli food and beverage company growing
30.6% compared to the 2.3% average growth of such companies.
Fiscal 2019 Summary
Revenues for fiscal year 2019 increased by NIS 57,392
thousand (USD 16,606 thousand), or
17.0%, to NIS 395,637 thousand
(USD 114,478 thousand) from
NIS 338,245 thousand (USD 97,872 thousand) recorded in fiscal year
2018. Revenues increased primarily due to a redirection of
resources in favor of sales, increasing the variety of the
Company's products and improved inventory management.
Cost of sales for fiscal year 2019 increased by 13.2% to
NIS 271,784 thousand (USD 78,641
thousand), or 68.7% of revenues, from NIS 240,032
thousand (USD 69,454 thousand), or
71.0% of revenues, recorded in fiscal year 2018. The increase in
cost of sales was primary due to increase in sales.
Gross profit for fiscal year 2019 increased by 26.1% to
NIS 123,853 thousand (USD 35,837 thousand), or 31.3% of revenues, from
NIS 98,213 thousand (USD 28,418 thousand), or 29.0% of revenues,
recorded in fiscal year 2018. The increase in gross profit was
primary due to the sales and the gross margin increase resulting
from the Company's strategy of selling a favorable mix of products
which generate a higher gross margin and depreciation of the Euro
and USD exchange rates against the NIS.
Selling expenses for fiscal year 2019 increased by 26.6% to
NIS 55,490 thousand (USD 16,056 thousand), or 14.0% of revenues from
NIS 43,823 thousand (USD 12,680
thousand), or 13% of revenues, recorded in fiscal year 2018.
The increase in selling expenses was primarily due to an increase
of salary resulting from an increase in personnel in the sales
department, increase in advertising expenses and sales promotion
and increase of freight to customers' expenses.
General and administrative expenses for fiscal year 2019
increased by 26.3% to NIS 21,067
thousand (USD 6,096 thousand),
or 5.3% of revenues, from NIS 16,686
thousand (USD 4,828 thousand),
or 4.9% of revenues, recorded in fiscal year 2018. The increase in
general and administrative expenses was primarily due to increases
in personnel and management salaries.
Operating profit for fiscal year 2019 increased by
NIS 9,523 thousand (USD 2,755
thousand), or by 25.2%, to NIS 47,296 thousand
(USD 13,685 thousand), or 12.0% of
revenues, from NIS 37,773 thousand (USD
10,930 thousand), or 11.2% of revenues, recorded in fiscal
year 2018. The increase in operating profit was primarily due to
increase in gross profit.
Financing expense, net, for fiscal year 2019 amounted to
NIS 17,950 thousand (USD 5,194 thousand) compared to net income of
NIS (4,956) thousand (USD (1,434)
thousand) recorded in fiscal year 2018. The increase in
financing income, net, consisted primarily of change in the fair
value of financial assets at fair value.
Profit before taxes on income for fiscal year 2019 increased by
NIS 32,429 thousand (USD 9,383
thousand), or by 98.8%, to NIS 65,246 thousand
(USD 18,879 thousand) from
NIS 32,817 thousand (USD 9,496
thousand) recorded in fiscal year 2018. The increase in
profit before taxes on income was primarily due to increase in
gross profit and increase in finance income, net.
Net profit for fiscal year 2019 was NIS
51.5 million (US$ 14.9
million), or NIS 3.90
(US$ 1.13) per share.
Willi-Food ended fiscal year 2019 with NIS 263.4 million (US$
76.2 million) in cash and securities with no short-term
debt. Net cash used to continuing operating activities in fiscal
year 2019 was NIS 2.6 million
(US$ 0.7 million). Willi-Food's
shareholders' equity at the end of December
2019 was NIS 491.4 million
(US$ 142.2 million).
NOTE A: NIS to US$ exchange rate used for convenience
only
The conversion from New Israeli Shekels (NIS) into U.S. dollars
was made at the exchange rate as of December
31, 2019, on which U.S. $1.00
equaled NIS 3.456 The use of US$ is
solely for the convenience of the reader.
NOTE B: IFRS
The Company's consolidated financial results for fiscal year
ended December 31, 2019 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 1,250
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 Euro
European Dairies Ltd. (Former: "Gold-Frost Ltd."), a wholly owned
subsidiary who designs, develops and distributes branded kosher,
dairy-food products.
During 2019, the company began to engage in the non-bank credit
field. This activity is executed and managed through W.F.D (Import,
Marketing and Trading) Ltd., a wholly-owned and controlled
subsidiary of the Company. The activity is funded from the
Willi-Food group's own resources and executed in parallel to the
existing activity of importing, marketing and distributing of 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,
2019, 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
|
|
|
December
31,
|
December
31,
|
|
2019
|
2018
|
2019
|
2018
|
|
NIS
|
US dollars
(*)
|
|
(in
thousands)
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
121,860
|
134,287
|
35,260
|
38,856
|
Financial assets at
fair value through profit or loss
|
141,543
|
137,904
|
40,956
|
39,903
|
Loans to
others
|
17,650
|
-
|
5,107
|
-
|
Trade
receivables
|
133,039
|
98,017
|
38,495
|
28,361
|
Other receivables and
prepaid expenses
|
9,360
|
3,744
|
2,708
|
1,083
|
Inventories
|
71,548
|
49,289
|
20,703
|
14,263
|
Current tax
assets
|
-
|
862
|
-
|
249
|
Total current
assets
|
495,000
|
424,103
|
143,229
|
122,715
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Property, plant and
equipment
|
81,402
|
79,611
|
23,554
|
23,036
|
Less -Accumulated
depreciation
|
43,881
|
40,219
|
12,697
|
11,638
|
|
37,521
|
39,392
|
10,857
|
11,398
|
|
|
|
|
|
Right of use
asset
|
3,860
|
-
|
1,117
|
-
|
Goodwill
|
36
|
36
|
10
|
10
|
Deferred
taxes
|
818
|
2,882
|
237
|
834
|
Total non-current
assets
|
42,235
|
42,310
|
12,221
|
12,242
|
|
|
|
|
|
|
537,235
|
466,413
|
155,450
|
134,957
|
EQUITY AND
LIABILITIES
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
Current maturities of
lease liabilities
|
1,675
|
-
|
485
|
-
|
Trade
payables
|
24,650
|
16,239
|
7,133
|
4,699
|
Employees
Benefits
|
2,911
|
2,577
|
842
|
746
|
Current tax
liabilities
|
3,750
|
-
|
1,085
|
-
|
Other payables and
accrued expenses
|
9,195
|
5,882
|
2,661
|
1,701
|
Total current
liabilities
|
42,181
|
24,698
|
12,206
|
7,146
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Lease
liabilities
|
2,212
|
-
|
640
|
-
|
Retirement benefit
obligation
|
1,486
|
836
|
430
|
242
|
Total non-current
liabilities
|
3,698
|
836
|
1,070
|
242
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Share capital NIS 0.1
par value (authorized - 50,000,000 shares,
issued and outstanding – 13,217,017 shares at
December 31, 2019 and 13,240,913 at December 31,
2018)
|
1,425
|
1,425
|
412
|
412
|
Additional paid in
capital
|
128,354
|
128,354
|
37,139
|
37,139
|
Capital
fund
|
247
|
247
|
71
|
71
|
Treasury
shares
|
(628)
|
-
|
(182)
|
-
|
Retained
earnings
|
362,987
|
311,476
|
105,031
|
90,127
|
Remeasurement of the
net liability in respect of defined benefit
|
(1,029)
|
(623)
|
(297)
|
(180)
|
Equity
attributable to owners of the Company
|
491,356
|
440,879
|
142,174
|
127,569
|
|
|
|
|
|
|
537,235
|
466,413
|
155,450
|
134,957
|
|
|
|
|
|
(*) Convenience
translation into U.S. dollars.
|
|
|
|
|
G. WILLI‑FOOD
INTERNATIONAL LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
For the year
ended
December
31,
|
For the year
ended
December
31,
|
|
2019
|
2018
|
2019
|
2018
|
|
NIS
|
US dollars
(*)
|
|
In thousands
(except per share and share data)
|
|
|
|
|
|
Sales
|
395,637
|
338,245
|
114,478
|
97,872
|
Cost of
sales
|
271,784
|
240,032
|
78,641
|
69,454
|
|
|
|
|
|
Gross
profit
|
123,853
|
98,213
|
35,837
|
28,418
|
Operating costs
and expenses:
|
|
|
|
|
Selling
expenses
|
55,490
|
43,823
|
16,056
|
12,680
|
General and
administrative expenses
|
21,067
|
16,686
|
6,096
|
4,828
|
Other
income
|
-
|
(69)
|
-
|
(20)
|
Total operating
expenses
|
76,557
|
60,440
|
22,152
|
17,488
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
47,296
|
37,773
|
13,685
|
10,930
|
|
|
|
|
|
Financial
income
|
20,966
|
(7,212)
|
6,067
|
(2,087)
|
Financial
expense
|
3,016
|
(2,256)
|
873
|
(653)
|
Total Finance
Income
|
17,950
|
(4,956)
|
5,194
|
(1,434)
|
|
|
|
|
|
Profit before
taxes on income
|
65,246
|
32,817
|
18,879
|
9,496
|
Taxes on
income
|
(13,735)
|
(7,850)
|
(3,975)
|
(2,271)
|
|
|
|
|
|
Income after taxes
on income
|
51,511
|
24,967
|
14,904
|
7,225
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
Basic / diluted
earnings per share
|
3.90
|
1.89
|
1.13
|
0.55
|
|
|
|
|
|
Shares used in
computation of basic and diluted EPS
|
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
|
|
|
|
|
|
|
For the year
ended
|
For the year
ended
|
|
|
December
31,
|
December
31,
|
|
|
2019
|
2018
|
2019
|
2018
|
|
|
NIS
|
US dollars
(*)
|
|
|
In thousands
(except per share and share data)
|
CASH FLOWS -
OPERATING ACTIVITIES
|
|
|
|
|
|
Profit from
continuing operations
|
51,511
|
24,967
|
14,904
|
7,224
|
|
Adjustments to
reconcile net profit to net cash from (used to)
continuing operating activities (Appendix A)
|
(54,077)
|
2,074
|
(15,647)
|
600
|
|
Net cash from
(used to) continuing operating
activities
|
(2,566)
|
27,041
|
(743)
|
7,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS -
INVESTING ACTIVITIES
|
|
|
|
|
|
Acquisition of
property plant and equipment
|
(1,791)
|
(2,143)
|
(518)
|
(620)
|
|
Proceeds from sale of
property plant and equipment
|
-
|
415
|
-
|
120
|
|
Loans granted to
others
|
(43,650)
|
-
|
(12,630)
|
-
|
|
Proceeds from loans
granted to others
|
26,000
|
-
|
7,523
|
-
|
|
Proceeds of non
current financial assets
|
-
|
3,970
|
-
|
1,149
|
|
Proceeds from
purchase of marketable securities, net
|
11,336
|
(8,058)
|
3,280
|
(2,332)
|
|
Net cash used to
continuing investing activities
|
(8,105)
|
(5,816)
|
(2,345)
|
(1,683)
|
|
|
|
|
|
|
|
CASH FLOWS -
FINANCING ACTIVITIES
|
|
|
|
|
|
Lease liability
payments
|
(1,128)
|
-
|
(326)
|
-
|
|
Acquisition of
treasury shares
|
(628)
|
-
|
(182)
|
-
|
|
Net cash used to
continuing financing activities
|
(1,756)
|
-
|
(508)
|
-
|
|
Increase
(decrease) in cash and cash equivalents
|
(12,427)
|
21,225
|
(3,596)
|
6,141
|
|
Cash and cash
equivalents at the beginning of the year
|
134,287
|
113,062
|
38,856
|
32,715
|
|
Cash and cash
equivalents at the end of the year
|
121,860
|
134,287
|
35,260
|
38,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Convenience
Translation into U.S. Dollars.
|
G. WILLI-FOOD
INTERNATIONAL LTD.
|
APPENDIX TO
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
For the year
ended
|
For the year
ended
|
|
December
31,
|
December
31,
|
|
2019
|
2018
|
2019
|
2018
|
|
NIS
|
US dollars
(*)
|
|
In thousands
(except per share and share data)
|
|
|
|
|
|
CASH FLOWS -
OPERATING ACTIVITIES:
A. Adjustments to reconcile net
profit to net cash from (used
to) continuing operating activities
|
|
|
|
|
Decrease (Increase)
in deferred income taxes
|
2,064
|
(2,379)
|
597
|
(688)
|
Unrealized loss
(gain) on marketable securities
|
(14,972)
|
13,673
|
(4,332)
|
3,956
|
Depreciation and
amortization
|
4,815
|
3,614
|
1,393
|
1,046
|
Capital gain on
disposal of property plant and equipment
|
-
|
(69)
|
-
|
(20)
|
|
|
|
|
|
|
|
|
|
|
Changes in assets
and liabilities:
|
|
|
|
|
Increase in trade
receivables and other receivables
|
(39,775)
|
(7,898)
|
(11,508)
|
(2,285)
|
Increase in
inventories
|
(22,259)
|
(9,390)
|
(6,441)
|
(2,717)
|
Increase in trade and
other payables, and other current liabilities
|
16,050
|
4,523
|
4,644
|
1,308
|
|
(54,077)
|
2,074
|
(15,647)
|
600
|
|
|
|
|
|
B. Supplemental cash flow
information:
|
|
|
|
|
Income tax
paid
|
9,999
|
7,711
|
2,893
|
2,231
|
|
|
|
|
|
(*) Convenience
Translation into U.S. Dollars.
|
|
|
|
|
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.
Yitschak Barabi, Chief Financial
Officer
(+972)-8-932-1000
itsik.b@willi-food.co.il
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