G. Willi-Food Reports Q1 2013 Operating Profit Up 94% From Q1 2012

      G. Willi-Food Reports Q1 2013 Operating Profit Up 94% From Q1 2012

2013 Q1 Sales up 23% over 2012 Q1 Sales; 2013 Q1 Gross Profit up 36% over Q1
2012 Gross Profit

PR Newswire

YAVNE, Israel, May 8, 2013

YAVNE, Israel, May 8, 2013 /PRNewswire/ --G. Willi-Food International Ltd.
(NASDAQ: WILC) (the "Company" or "Willi-Food"), a global company specializing
in the development, marketing and international distribution of kosher foods,
today announced its unaudited financial results for the first quarter ended
March 31, 2013.

First Quarter Fiscal 2013 Highlights

  oSales increased 23.0% from first quarter of 2012 to NIS 90.6 million (US$
    24.8 million)
  oGross profit increased 36.4% from first quarter of 2012 to NIS 21.4
    million (US$ 5.9 million), or 23.6% of sales
  oOperating income increased 94.2% from first quarter of 2012 to NIS 9.2
    million (US$ 2.5 million), or 10.1% of sales
  oNet income increased 70.8% from first quarter of 2012 to NIS 8.3 million
    (US$ 2.3 million), or 9.1% of sales
  oEarning per share of NIS 0.64 (US$ 0.18) compared to earning per share of
    NIS 0.37 (US$ 0.10) in the first quarter of 2012
  oCash and securities balance (net of short-term bank debt) of NIS 196.5
    million (US$ 53.9 million) as of March 31, 2013

Willi-Food's operating divisions include Willi-Food, a distributor of a broad
variety of kosher foods, and its wholly-owned Gold Frost, a designer,
developer and distributor of branded kosher innovative dairy food products.

First Quarter Fiscal 2013 Summary
Sales for the first quarter of 2013 increased by 23.0% to NIS 90.6 million
(US$ 24.8 million) from NIS 73.7 million (US$ 20.2 million) recorded in the
first quarter of 2012. Sales increased in the first quarter of 2013 primarily
due to the introduction of new products in recent quarters and increased sales
and promotion activities initiated during the first quarter of 2013.

Gross profit for the first quarter of 2013 increased by 36.4% to NIS 21.4
million (US$ 5.9 million) compared to NIS 15.7 million (US$ 4.3 million)
recorded in the first quarter of 2012. First quarter gross margin was 23.6%
compared to gross margin of 21.3% for the same period in 2012. The increase in
gross margin in the first quarter of 2013 was primarily due to the
introduction of new higher-margin products in recent quarters, increased sales
of existing higher-margin products and the strengthening of the NIS versus the
U.S. dollar and Euro. In addition, gross margins in the first quarter of 2012
were affected by a national protest against the cost of food products that
resulted in price reductions of certain products. There was no comparable
price pressure in the first quarter of 2013.

Willi-Food's operating income for the first quarter of 2013 increased by 94.2%
to NIS 9.2 million (US$ 2.5 million) compared to NIS 4.7 million (US$ 1.3
million) recorded in the first quarter of 2012. Selling expenses increased by
9.4% from the comparable quarter of 2012, primarily due to an increase in
promotion expenses as well as vehicles and transport expenses, which increased
due to the incremental increase in sales. Selling expenses as a percentage of
sales decreased in the first quarter of 2013 to 8.3% compared to 9.4% in the
first quarter of 2012. General and administrative expenses increased by 13.4%
from the first quarter of 2012, primarily due to an increase in management
profit-related bonuses. General and administrative expenses as a percentage of
sales decreased in the first quarter of 2013 to 5.2% from 5.6% in the first
quarter of 2012.

Willi-Food's income before taxes for the first quarter of 2013 increased by
66.7% to NIS 10.9 million (US$ 3.0 million) compared to NIS 6.6 million (US$
1.8 million) recorded in the first quarter of 2012.

Willi-Food's net income in the first quarter of 2013 increased by 70.8% to NIS
8.3 million (US$ 2.3 million), or NIS 0.64 (US$ 0.18) per share, from NIS 4.8
million (US$ 1.3 million), or NIS 0.37 (US$ 0.10) per share, recorded in the
first quarter of 2012.

Willi-Food ended the first quarter of 2013 with NIS 196.5 million (US$ 53.9
million) in cash and securities net from short-term debt. Willi-Food's
shareholders' equity at the end of March 2013 was NIS 342.1 million (US$ 93.8
million).

Business Outlook
Mr. Zwi Williger, Chairman of Willi-Food commented, "We are very pleased to
report another robust quarter with strong organic sales growth of 23 percent
and operating income up 94 percent. We achieved these results by continuing to
expand sales volume of our higher-margin products to new and existing
customers. With sales increases in all of our business segments, we were able
to achieve one of the highest quarterly sales and operating profit in the
Company's history. As we see consumer demand for kosher foods continuing to
increase, we believe that our strategy to introduce higher-margin products
targeted to health-conscious and kosher consumers is paying off, and we look
forward to additional growth and high margins for the remainder of 2013."

Mr. Williger continued, "The expansion of our kosher product line in recent
quarters has included different kinds of cheeses (such as monchego,
mozzarella, emmental, and iberico), a new line of ice-cream, frozen pizza,
frozen pastries, freeze dried instant coffee and a new line of Del-Monte
products. These and other new great-tasting, higher margin food products,
developed together with our suppliers, have enabled us to deliver increased
sales and improved margins. Moreover, we are able to differentiate our company
through our success by becoming a high margin business in a low margin
industry. We expect to launch additional new products in the remainder of
2013."

Mr. Williger added, "In addition, we have expanded our sales of existing
products, many of which were introduced over the last few years, thanks in
part to our continued promotion and hard sale activities, which we believe
create broad consumer awareness of our new and existing products and expand
our customer base. While increasing sales of both new and existing products,
we have also controlled our SG&A expense growth, contributing to our
profitability."

"We believe that our strategy has proven successful," concluded Mr. Williger.
"Willi-Food is meeting the growing demand for innovative kosher products by
both kosher and health-conscious consumers. We do not intend to rest on our
success, however. Rather, we intend to reinvest in innovation in order to
maximize our profitability and create additional long-term value for our
shareholders."

Conference Call
The Company will host a conference call to discuss results on Wednesday, May
8, 2013 at 11:00 AM Eastern time. Interested parties may participate in the
conference call by dialing 1-877-941-8418 (US), or 1-480-629-9809
(International), approximately 10 minutes prior to the scheduled start time.
Interested parties can also listen via a live Internet webcast, which will be
available on the day of the call through the following link:
http://public.viavid.com/index.php?id=104634

A replay of the conference call will be available for 14 days from 2:00 PM
Eastern time on May 8, 2013 through 11:59 PM Eastern time on May 22, 2013 by
dialing 1-877-870-5117 (US), or 1-858-384-5517 (International), access code
4617957. In addition, a recording of the call will be available via the
following link for one year:
http://public.viavid.com/reports/eventparticipantreporttab.php?id=o5ampZqb

NOTE A: Convenience Translation to Dollars
The convenience translation of New Israeli Shekels (NIS) into U.S. dollars was
made at the rate of exchange prevailing on March 31, 2013, U.S. $1.00 equals
NIS 3.648. The translation was made solely for the convenience of the reader.

NOTE B: IFRS
The Company's consolidated financial results for the three-month ended March
31, 2013 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 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.

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, in particular Arla Foods, 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, 2012, filed with
the Securities and Exchange Commission on April 30, 2013. 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.

{FINANCIAL TABLES TO FOLLOW}

G. WILLI-FOOD INTERNATIONAL LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS
                                 March 31, December 31, March 31, December 31,
                                 2 0 1 3   2 0 1 2      2 0 1 3   2 0 1 2
                                 NIS                    US dollars (*)
                                 (in thousands)
ASSETS
Current assets
Cash and cash equivalents        59,643    57,563       16,350    15,779
Financial assets carried at fair
value through                    136,835   158,810      37,510    43,533

profit or loss
Trade receivables                83,958    71,340       23,015    19,556
Other receivables and prepaid    2,175     5,988        596       1,641
expenses
Inventories                      43,792    49,270       12,004    13,506
Total current assets             326,403   342,971      89,475    94,015
Non-current assets
Property, plant and equipment    64,563    63,022       17,698    17,276
Less -Accumulated depreciation   22,268    21,394       6,104     5,865
                                 42,295    41,628       11,594    11,411
Other receivables and prepaid    507       62           139       19
expenses
Goodwill                         36        36           10        10
Deferred taxes                   245       20           67        5
Total non-current assets         43,083    41,746       11,810    11,445
                                 369,486   384,717      101,285   105,460
EQUITY AND LIABILITIES
Current liabilities
Short-term bank debt             19        9,930        5         2,722
Trade payables                   18,359    27,268       5,033     7,475
Employees Benefits               1,761     1,659        483       455
Accruals                         -         3,446        -         945
Current tax liabilities          1,937     2,117        531       580
Other payables and accrued       4,766     5,955        1,307     1,632
expenses
Total current liabilities        26,842    50,375       7,359     13,809
Non-current liabilities
Employees Benefits               581       581          159       159
Total non-current liabilities    581       581          159       159
Shareholders' equity
Share capital NIS 0.10 par value
(authorized -

 50,000,000 shares, issued and
outstanding -
                                 1,444     1,444        396       396
 12,974,245 shares at March
31, 2013;

 (12,974,245 shares at December
31, 2012)
Additional paid in capital       129,902   129,897      35,609    35,608
Capital fund                     247       247          68        68
Foreign currency translation     686       639          188       175
reserve
Treasury shares                  (10,843)  (10,843)     (2,972)   (2,972)
Retained earnings                220,627   212,377      60,479    58,217
                                 342,063   333,761      93,767    91,492
                                 369,486   384,717      101,285   105,460
(*) Convenience translation into U.S. dollars



G. WILLI-FOOD INTERNATIONAL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                               Three months ended March 31,
                               2 0 1 3     2 0 1 2     2 0 1 3     2 0 1 2
                               NIS                     US dollars (*)
                               (in thousands, except per share and share data)
Sales                          90,585      73,651      24,831      20,189
Cost of sales                  69,196      57,975      18,968      15,892
Gross profit                   21,389      15,676      5,863       4,297
Selling expenses               7,542       6,897       2,067       1,891
General and administrative     4,668       4,120       1,280       1,129
expenses
Other Income                   -           (66)        -           (18)
Total operating expenses       12,210      10,951      3,347       3,002
Operating income               9,179       4,725       2,516       1,295
Financial income               2,639       2,014       723         552
Financial expense              898         188         246         52
Income before taxes on income  10,920      6,551       2,993       1,795
Taxes on income                2,670       1,723       731         472
Profit for the period          8,250       4,828       2,262       1,323
Earnings per share data:
Earnings per share:
Earnings per share
Basic earnings per share       0.64        0.37        0.18        0.10
Diluted earnings per share     0.64        0.37        0.18        0.10
Shares used in computation of  12,974,245  12,987,367  12,974,245  12,987,367
basic EPS
(*) Convenience translation into U.S. dollars



G. WILLI-FOOD INTERNATIONAL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                             Three months ended March 31,
                                             2 0 1 3  2 0 1 2  2 0 1 3 2 0 1 2
                                             NIS               US dollars (*)
                                             (in thousands)
Cash flows - operating activities
Profit from continuing operations            8,250    4,828    2,262   1,323
Adjustments to reconcile net income to net
cash
                                             (14,963) (19,793) (4,101) (5,426)
 from continuing operating activities

 (Appendix)
Net cash used in continuing operating
                                             (6,713)  (14,965) (1,839) (4,103)
 activities
Net cash from discontinuing operating
                                             -        -        -       -
 activities
Cash flows - investing activities
Acquisition of property plant and equipment  (4,395)  (281)    (1,205) (77)
Additions to long term other receivables     (445)    -        (122)   -
Proceeds from purchase of marketable
                                             23,544   7,639    6,454   2,094
 securities, net
Net cash from continuing investing
                                             18,704   7,358    5,127   2,017
 activities
Net cash from discontinued investing
                                             -        13,500   -       3,701
 activities
Cash flows - financing activities
Investment in treasury stocks                -        (702)    -       (192)
Short-term bank credit, net                  (9,911)  -        (2,717) -
Net cash used in continuing financing
                                             (9,911)  (702)    (2,717) (192)
 activities
Net cash from discontinued financing
                                             -        -        -       -
 activities
Increase in cash and cash equivalents       2,080    5,191    571     1,423
Cash and cash equivalents at the beginning
                                             57,563   34,661   15,779  9,501
 of the financial year
Cash and cash equivalents of the end
                                             59,643   39,852   16,350  10,924
 of the financial year
(*) Convenience Translation into U.S. Dollars.



G. WILLI-FOOD INTERNATIONAL LTD.

APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Adjustments to reconcile net income to net cash from operating activities
                                             Three months ended March 31,
                                             2 0 1 3  2 0 1 2  2 0 1 3 2 0 1 2
                                             NIS               US dollars (*)
                                             (in thousands)
Deferred income taxes                        (225)    187      (62)    51
Unrealized loss gain on marketable           (1,569)  (868)    (430)   (238)
securities
Depreciation and amortization                1,011    873      277     239
Capital gain on disposal of property         -        (66)     -       (18)
Employees benefit, net                       -        123      -       34
Stock based compensation reserve             5        37       1       10
Changes in assets and liabilities:
Increase in trade receivables and other      (9,565)  (17,114) (2,622) (4,691)
receivables
Decrease (increase) in inventories           5,478    (1,520)  1,503   (417)
Increase in trade and other                  (10,098) (1,445)  (2,768) (396)
payables, and other current liabilities
                                             (14,963) (19,793) (4,101) (5,426)
(*) 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.
Raviv Segal, CFO
(+972) 8-932-1000
raviv@willi-food.co.il

SOURCE G. Willi-Food International Ltd.

Website: http://www.willi-food.com
 
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