YAVNE, Israel, May 20, 2024
/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, 2024.
First Quarter Fiscal Year 2024
- Sales decreased by 10.1% to NIS 136.0 million
(USD 37.0 million) from NIS 151.4 million (USD
41.1 million) in the first quarter of 2023.
- Gross profit decreased by 13.5% year-over-year to NIS 34.7 million (USD 9.4
million).
- Operating profit decreased by 10.7% year-over-year to NIS
11.6 million (USD 3.2 million).
- Basic earnings per share of NIS
1.34 (USD 0.36).
- Cash and securities balance of NIS 244.4
million (USD 66.4 million) as
of March 31, 2024.
Management Comment
Zwi Williger & Joseph Williger, Chairmen and CEO of Willi-Food,
commented: "We are happy to present the financial results of the
first quarter of 2024. Although we experienced a decline in
sales as a result of significant delays in the arrival of goods,
especially from the Far East, we believe we have managed to achieve
favorable results, both at the operational level and with respect
to our financing income. While the State
of Israel is still at war against the terror organization
Hamas, which has created a difficult environment, the Company has
continued to conduct its business in the ordinary course, importing
goods, maintaining sufficient inventory and selling its goods to
its customers. In parallel, the Company is working to improve the
commercial terms with its customers and suppliers in order to
improve its gross profit and operating profit results. The Company
is also continuing the construction of the new logistics center
which, in our estimation, after its completion, will contribute
significantly to the Company's logistics capabilities and support
continued growth opportunities, both in terms of sales and in
improving profit. The construction of the new logistics center is
currently expected to be completed by the end of 2025.
First Quarter Fiscal 2024 Summary
Sales for the first quarter of 2024 decreased by 10.1% to
NIS 136.0 million (USD 37.0 million) from NIS
151.4 million (USD 41.1
million) recorded in the first quarter of 2023. Sales
decreased mainly due to significant delays in the arrival of goods
from the Far-East following the closure of the shipping lanes on
the Red Sea.
Gross profit for the first quarter of 2024 decreased by 13.5% to
NIS 34.7 million (USD 9.4 million), or 25.5% of revenues, from
NIS 40.0 million (USD 10.9 million), or 26.5% of revenues, recorded
in the first quarter of 2023. The decrease in gross profit and
gross margins was mainly due to decreased sales and increased costs
of the Company's imported products and increased shipping costs
which the Company didn't pass on to its clients.
Selling expenses decreased by 17.3% to NIS 16.5 million (USD 4.5
million), or 12.1% of revenues, compared to
NIS 19.9 million (USD 5.4 million), or 13.1% of revenues, recorded
in the first quarter of 2023. The decrease was mainly due to a
decrease in advertising costs.
General and administrative expenses for the first quarter
of 2024 decreased by 8.0% to NIS 6.6
million (USD 1.8 million), or
4.8% of revenues, from NIS 7.1
million (USD 1.9 million), or
4.7% of revenues, recorded in the first quarter of 2023. The
decrease in general and administrative expenses was primarily due
to a decrease in other management expenses.
Operating profit for the first quarter of 2024 decreased by
10.7% to NIS 11.6 million (USD 3.2
million), or 8.5% of revenues, from NIS 13.0 million (USD 3.5
million), or 8.6% of revenues, recorded in the first quarter
of 2023. The decrease in operating profit was primarily due to the
decline in sales and increase in cost of sales.
Financial income, net increased to NIS
11.5 million (USD 3.1 million)
recorded in the first quarter of 2024 compared to NIS 0.5 million (USD 0.1
million) in the first quarter of 2023. Financial income, net
for the first quarter of 2024 comprised mainly from income from
revaluation of the Company's portfolio of securities to fair value
in an amount of NIS 7.9 million
(USD 2.1 million) and interest and
dividend income from the Company's portfolio of securities in an
amount of NIS 3.9 million
(USD 1.1 million).
Willi-Food's income before taxes in the first quarter of 2024
increased to NIS 23.1 million
(USD 6.3 million) compared to income
before taxes of NIS 13.5 million
(USD 3.7 million) in the first
quarter of 2023.
Willi-Food's net profit in the first quarter of 2024 was
NIS 18.6 million (USD 5.1 million), or NIS
1.34 (USD 0.36) per share, or
72.2% compared to NIS 10.8 million
(USD 2.9 million), or NIS 0.78 (USD 0.21)
per share, recorded in the first quarter of 2023. Net profit for
the first quarter of 2024 increased by 72.2% year-over-year. The
increase in net profit was mainly due to the increase of financial
income.
Willi-Food ended the first quarter of 2024 with NIS 244.4 million (USD
66.4 million) in cash and securities. Net cash from
continuing activities for the first quarter of 2024 was
NIS 3.8 million (USD 1.0 million). Willi-Food's shareholders'
equity at the end of March 2024 was
NIS 561.0 million (USD 152.4 million).
NOTE A: NIS to USD 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, 2024, with U.S.
$1.00 equal to NIS 3.681 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, 2024 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, expected sales, operating results, and earnings.
Forward-looking statements include statements regarding the
commercial terms with customers and suppliers and timing of
construction of the Company's new logistics center and its expected
benefits. 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 inability to improve commercial terms
with customers and suppliers: delays in the construction of the
Company's new logistics center and the risk that its expected
benefits will not be materialized, 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 political, economic and
military conditions in Israel,
particularly the recent war in Israel. Economic conditions in the Company's
core markets, delays and price increases due to the attacks on
global shipping routes in the Red Sea, 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,
2023, filed with the Securities and Exchange Commission on
March 21, 2024. 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
|
|
2024
|
2023
|
2023
|
2024
|
2023
|
2023
|
|
NIS
|
US dollars
(*)
|
|
(in
thousands)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
134,850
|
131,472
|
137,466
|
36,634
|
35,716
|
37,345
|
|
Financial assets at
fair value through
profit or loss
|
109,571
|
105,272
|
102,163
|
29,767
|
28,599
|
27,754
|
|
Trade receivables,
Net
|
154,565
|
177,648
|
160,379
|
41,990
|
48,261
|
43,570
|
|
Other receivables and
prepaid expenses
|
13,552
|
8,113
|
10,164
|
3,682
|
2,204
|
2,761
|
|
Inventories,
Net
|
74,882
|
95,596
|
62,475
|
20,343
|
25,970
|
16,972
|
|
Current tax
assets
|
6,759
|
2,732
|
9,497
|
1,836
|
742
|
2,580
|
|
Total current
assets
|
494,179
|
520,833
|
482,144
|
134,252
|
141,492
|
130,982
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
128,936
|
106,052
|
122,222
|
35,027
|
28,811
|
33,203
|
|
Less -Accumulated
depreciation
|
56,876
|
52,593
|
55,636
|
15,451
|
14,288
|
15,114
|
|
72,060
|
53,459
|
66,586
|
19,576
|
14,523
|
18,089
|
|
|
|
|
|
|
|
|
Right of use
asset
|
3,376
|
3,289
|
2,124
|
917
|
894
|
577
|
|
Financial assets at
fair value through
profit or loss
|
46,159
|
44,084
|
46,143
|
12,540
|
11,976
|
12,535
|
|
Goodwill
|
36
|
36
|
36
|
10
|
10
|
10
|
|
Total non-current
assets
|
121,631
|
100,868
|
114,889
|
33,043
|
27,403
|
31,211
|
|
|
|
|
|
|
|
|
615,810
|
621,701
|
597,033
|
167,295
|
168,895
|
162,193
|
|
EQUITY AND
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Current maturities of
lease liabilities
|
1,760
|
2,243
|
1,512
|
478
|
609
|
411
|
|
Trade
payables
|
20,728
|
27,242
|
21,622
|
5,631
|
7,401
|
5,874
|
|
Employees
Benefits
|
4,769
|
4,590
|
4,193
|
1,296
|
1,247
|
1,139
|
|
Other payables and
accrued expenses
|
18,617
|
41,068
|
10,854
|
5,058
|
11,157
|
2,949
|
|
Total current
liabilities
|
45,874
|
75,143
|
38,181
|
12,463
|
20,414
|
10,373
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
Lease
liabilities
|
1,588
|
1,205
|
694
|
431
|
327
|
189
|
|
Deferred
taxes
|
6,287
|
3,663
|
4,868
|
1,708
|
995
|
1,322
|
|
Retirement benefit
obligation
|
1,055
|
924
|
1,055
|
287
|
251
|
287
|
|
Total non-current
liabilities
|
8,930
|
5,792
|
6,617
|
2,426
|
1,573
|
1,798
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
Share
capital
|
1,490
|
1,490
|
1,490
|
405
|
405
|
405
|
|
Additional paid in
capital
|
172,789
|
171,976
|
172,589
|
46,941
|
46,720
|
46,886
|
|
Remeasurement of the
net liability in
respect of defined benefit
|
(154)
|
(195)
|
(154)
|
(42)
|
(53)
|
(42)
|
|
Capital fund
|
247
|
247
|
247
|
67
|
67
|
67
|
|
Retained
earnings
|
387,262
|
367,876
|
378,691
|
105,206
|
99,940
|
102,877
|
|
Treasury
shares
|
(628)
|
(628)
|
(628)
|
(171)
|
(171)
|
(171)
|
|
Equity attributable
to owners of the
Company
|
561,006
|
540,766
|
552,235
|
152,406
|
146,908
|
150,022
|
|
|
|
|
|
|
|
|
615,810
|
621,701
|
597,033
|
167,295
|
168,895
|
162,193
|
|
(*) 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,
|
|
2024
|
2023
|
2024
|
2023
|
|
NIS
|
US dollars
(*)
|
|
In thousands (except
per share and share data)
|
|
|
|
|
|
|
Sales
|
136,036
|
151,356
|
36,956
|
41,118
|
|
Cost of
sales
|
101,385
|
111,322
|
27,542
|
30,242
|
|
|
|
|
|
|
Gross
profit
|
34,651
|
40,034
|
9,414
|
10,876
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
Selling
expenses
|
16,475
|
19,919
|
4,476
|
5,411
|
|
General and
administrative expenses
|
6,550
|
7,117
|
1,779
|
1,933
|
|
Other income
|
-
|
(25)
|
-
|
(7)
|
|
Total operating
expenses
|
23,025
|
27,011
|
6,255
|
7,337
|
|
|
|
|
|
|
Operating
profit
|
11,626
|
13,023
|
3,159
|
3,539
|
|
|
|
|
|
|
Financial income
|
12,303
|
4,606
|
3,226
|
1,251
|
|
Financial
expenses
|
(822)
|
(4,080)
|
(107)
|
(1,108)
|
|
Total financial
income, net
|
11,481
|
526
|
3,119
|
143
|
|
|
|
|
|
|
Income before taxes
on income
|
23,107
|
13,549
|
6,278
|
3,682
|
|
Taxes on
income
|
(4,554)
|
(2,704)
|
(1,237)
|
(735)
|
|
|
|
|
|
|
Income after taxes
on income
|
18,553
|
10,845
|
5,041
|
2,947
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
Basic / diluted
earnings per share
|
1.34
|
0.78
|
0.36
|
0.21
|
|
|
|
|
|
|
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,
|
|
|
2024
|
2023
|
2024
|
2023
|
|
|
NIS
|
US dollars
(*)
|
|
|
In thousands (except
per share and share data)
|
|
CASH FLOWS -
OPERATING ACTIVITIES
|
|
|
|
|
|
Profit from continuing
operations
|
18,553
|
10,845
|
5,041
|
2,947
|
|
Adjustments to
reconcile net profit to net cash from continuing
operating activities (Appendix A)
|
(14,781)
|
(31,858)
|
(4,017)
|
(8,655)
|
|
Net cash from (used
in) continuing operating activities
|
3,772
|
(21,013)
|
1,024
|
(5,708)
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS -
INVESTING ACTIVITIES
|
|
|
|
|
|
Acquisition of property
plant and equipment
|
(2,393)
|
(**) (644)
|
(650)
|
(175)
|
|
Acquisition of property
plant and equipment under construction
|
(4,321)
|
(**)
(6,167)
|
(1,174)
|
(1,675)
|
|
Proceeds from sale of
marketable securities, net
|
623
|
8,493
|
169
|
2,307
|
|
Net cash used in
(from) continuing investing activities
|
(6,091)
|
1,682
|
(1,655)
|
457
|
|
|
|
|
|
|
CASH FLOWS -
FINANCING ACTIVITIES
|
|
|
|
|
|
Lease liability
payments
|
(719)
|
(493)
|
(195)
|
(134)
|
|
Net cash used in
continuing financing activities
|
(719)
|
(493)
|
(195)
|
(134)
|
|
|
|
|
|
|
Decrease in cash and
cash equivalents
|
(3,038)
|
(19,824)
|
(826)
|
(5,385)
|
|
Cash and cash
equivalents at the beginning of the year
|
137,466
|
150,607
|
37,345
|
40,915
|
|
Exchange gains on cash
and cash equivalents
|
422
|
689
|
115
|
187
|
|
Cash and cash
equivalents at the end of the year
|
134,850
|
131,472
|
36,634
|
35,717
|
|
|
|
|
|
|
(*) Convenience Translation
into U.S. Dollars.
(**)
Reclassified.
|
|
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,
|
|
2024
|
2023
|
2024
|
2023
|
|
NIS
|
US dollars
(*)
|
|
(in thousands)
|
|
Increase (decrease) in
deferred income taxes
|
1,419
|
(535)
|
385
|
(145)
|
|
Unrealized loss (gain)
on marketable securities
|
(8,047)
|
3,024
|
(2,186)
|
822
|
|
Depreciation and
amortization
|
1,849
|
1,625
|
502
|
441
|
|
Stock based
compensation reserve
|
200
|
426
|
54
|
116
|
|
Capital gain on
disposal of property plant and equipment
|
-
|
(25)
|
-
|
(7)
|
|
Exchange gains on cash
and cash equivalents
|
(422)
|
(689)
|
(115)
|
(187)
|
|
|
|
|
|
|
Changes in assets
and liabilities:
|
|
|
|
|
|
Decrease (Increase) in
trade receivables and other receivables
|
7,682
|
(11,247)
|
2,087
|
(3,055)
|
|
Increase in
inventories
|
(12,407)
|
(23,667)
|
(3,371)
|
(6,431)
|
|
Increase (decrease) in
trade payables, other payables and
other current liabilities
|
(2,537)
|
2,564
|
(689)
|
697
|
|
Cash generated from
operations
|
(12,263)
|
(28,524)
|
(3,333)
|
(7,749)
|
|
Income tax
paid
|
(2,518)
|
(3,334)
|
(684)
|
(906)
|
|
Net cash flows used
in operating activities
|
(14,781)
|
(31,858)
|
(4,017)
|
(8,655)
|
|
|
|
(*) 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.
