G. Willi-Food Reports Fiscal 2013 Net Profit Up 33% From Fiscal 2012 Net Profit PR Newswire YAVNE, Israel, March 18, 2014 YAVNE, Israel, March 18, 2014 /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, 2013. Fiscal 2013 Highlights oSales increased 17.3% from fiscal 2012 to NIS 336.0 million (US$ 96.8 million) oGross profit increased 21.2% from fiscal 2012 to NIS 83.7 million (US$ 24.1 million), or 24.9% of sales oOperating income increased 24.5% from fiscal 2012 to NIS 29.2 million (US$ 8.4 million), or 8.7% of sales oIncome before taxes increased 30.1% from fiscal 2012 to NIS 41.3 million (US$ 11.9 million), or 12.3% of sales oNet income increased 32.5% from fiscal 2012 to NIS 31.8 million (US$ 9.2 million), or 9.5% of sales oEarnings per share of NIS 2.45 (US$ 0.71) increased 32.5% compared to earnings per share of NIS 1.85 (US$ 0.53) in fiscal 2012 oCash, securities balance and loan to C.D-B.A Holdings (Designated) (2013) Ltd. ("Newco") (net of short-term bank debt) of NIS 214.4 million (US$ 61.8 million) as of December 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. Fiscal 2013 Results Sales for fiscal 2013 increased by 17.3% to NIS 336.0 million (US$ 96.8 million) from NIS 286.5 million (US$ 82.5 million) in fiscal 2012. Sales increased in fiscal 2013 due to our increased marketing efforts and the growing demand from domestic and international customers for our quality kosher products. In addition, we continued to benefit from a shift in behavior in Israel as cost-conscious consumers recognize our products as a viable alternative to higher cost leading brands. Gross profit for fiscal 2013 increased by 21.2% to NIS 83.7 million (US$ 24.1 million) compared to NIS 69.0 million (US$ 19.9 million) recorded in fiscal 2012. Fiscal 2013 gross margin was 24.9% compared to gross margin of 24.1% for fiscal 2012. The improvement in gross margin was the result of a favorable mix of product revenue during the year as sales of higher gross margin products increased faster than sales of lower gross margin products. Mr. Zwi Williger, Chairman of Willi-Food commented, "We are very pleased to report a strong year, with organic sales growth of 17.3%, gross profit growth of 21.2%, operating income growth of 24.5% and net income growth of 32.5% as our customer base continues to expand and market demand for our products continues to increase. Despite the pressure imposed on the Company by the supermarket chains to reduce prices and despite the well-known pressures in commodity costs imposed worldwide, we continued to gain traction with new customers while product sales to existing customers also continued to grow." Willi-Food's operating income for fiscal 2013 increased by 24.5% to NIS 29.2 million (US$ 8.4 million) compared to NIS 23.5 million (US$ 6.8 million) recorded in fiscal 2012. Selling expenses increased by 21.5% from 2012, primarily due to an increase in promotional expenses as well as vehicles and transport expenses, each of which increased due to the growth in sales. Selling expenses as a percentage of sales increased in fiscal 2013 to 10.5% compared to 10.0% in fiscal 2012. General and administrative expenses increased by 16.1% from fiscal 2012, primarily due to an increase in management profit-related bonuses. General and administrative expenses as a percentage of sales in fiscal 2013 were 5.8%, approximately the same percentage as in fiscal 2012. Willi-Food's income before taxes for fiscal 2013 increased by 30.1% to NIS 41.3 million (US$ 11.9 million) compared to NIS 31.8 million (US$ 9.2 million) recorded in fiscal 2012. Willi-Food's net income for fiscal 2013 increased by 32.5% to NIS 31.8 million (US$ 9.2 million), or NIS 2.45 (US$ 0.75) per share, from NIS 24.0 million (US$ 6.9 million), or NIS 1.85 (US$ 0.53) per share, recorded in fiscal 2012. Willi-Food ended 2013 with NIS 214.4 million (US$ 61.8 million) in cash, securities and loan to Newco net from short-term debt. Willi-Food's shareholders' equity at the end of December 2013 was NIS 365.8 million (US$ 105.4 million). Business Outlook Mr. Williger continued, "Our strong performance in 2013 was driven by expanded 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 the highest sales and gross profit in the Company's history. The broad-based strength of our business enabled us to deliver record results, both on the top and bottom lines. We have significantly expanded our product lines and continue to deliver improved margins. As we see consumer demand for kosher foods continuing to increase, we are confident that our focused marketing strategy and the introduction of higher-margin products targeted to health-conscious and kosher consumers will continue to support our growth in 2014." "Due to increased awareness in Israel of the rising food prices, customers have realized that they can obtain food products from us of comparable or better quality than those of the leading brands but at more affordable prices, causing our customer base and the demand for our products to increase," Mr. Williger noted. "Our financial results have significantly improved over the last six quarters as a direct result of our strategy to organically grow our customer base and product line, while at the same time expanding our margins. We implemented our plan to increase the awareness of our products by initiating promotional activities that created broad awareness of our new and old products, broadening our customer base. This plan has helped us achieve our goals to strengthen our position in the market due to our broad range of quality food products. We intend to reinvest in the development of the Company in order to maximize profitability and increase long-term value for our shareholders. Moreover, we are pleased to consistently deliver significantly higher margins than those generated by most of the other companies in our industry, as we are able to differentiate our Company through our success by becoming a high margin business in a low margin industry." Furthermore, Mr. Williger added, "About two weeks ago, my brother Joseph and I signed an agreement to sell to Emblaze, which is traded on the London Stock Exchange, our controlling stake in Willi-Food Investments Ltd., the controlling shareholder of the Company. We view this sale as an opportunity for the Company to continue its accelerated development in the food sector, both in Israel and outside Israel and possibly to expand into additional activities. Both my brother and I will continue to manage the Company, together with the Company's personnel and the management of Emblaze, in order to continue to develop the Company." "We believe we are well positioned to continue our expansion and the recent financial results certainly confirm our belief in our strategy," concluded Mr. Williger. "We are constantly focusing on looking to meet the demands of consumers for new kosher products, and we have the infrastructure in place and development expertise to develop and deliver these products. At the same time, we remain focused on maximizing long-term profitability and creating additional value for our shareholders." Conference Call The Company will host a conference call and live webcast on March 18, 2014 to discuss the financial results beginning at 11:00 AM Eastern Time. Interested parties may participate on the call by dialing 1-877-941-1427 (US), or 1-480-629-9664 (International), approximately 10 minutes prior to the scheduled start time. Participants may also access a live listen only webcast at: http://public.viavid.com/index.php?id=108184 Following the conclusion of the call, atelephonic replay will be available for 14 days beginning at 2:00 PM Eastern Time on March 18, 2014 through 11:59 PM Eastern Time on April 1, 2014 and may be accessed by dialing 1-877-870-5176 (US), or 1-858-384-5517 (International), using access code 4672792. In addition, an archived webcast will be available for one year at: http://public.viavid.com/report-s/eventparticipantreporttab.php?id=o5aqoJ%2Bb 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 December 31, 2013, U.S. $1.00 equals NIS 3.471. The translation was made solely for the convenience of the reader. NOTE B: IFRS The Company's consolidated financial results for the three-month and fiscal year ended December 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. 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, 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. G. WILLI‑FOOD INTERNATIONAL LTD. CONDENSED CONSOLIDATED BALANCE SHEETS December 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 36,197 57,563 10,428 16,584 Financial assets carried at fair value 112,864 158,810 32,516 45,753 through profit or loss Trade receivables 82,932 71,340 23,894 20,553 Other receivables and prepaid expenses 2,694 5,988 777 1,725 Inventories 54,001 49,270 15,558 14,195 Loan carried at fair value through profit or 65,300 - 18,813 - loss Total current assets 353,988 342,971 101,986 98,810 Non-current assets Property, plant and equipment 66,663 63,022 19,206 18,157 Less -Accumulated depreciation 25,689 21,394 7,401 6,164 40,974 41,628 11,805 11,993 Prepaid expenses 50 62 14 18 Goodwill 36 36 10 10 Deferred taxes - 20 - 6 Total non-current assets 41,060 41,746 11,829 12,027 395,048 384,717 113,815 110,837 EQUITY AND LIABILITIES Current liabilities Short-term bank debt 18 9,930 5 2,861 Trade payables 20,245 28,744 5,833 8,281 Employees Benefits 1,880 1,659 542 478 Accruals - 3,446 - 993 Current tax liabilities 637 2,117 184 610 Other payables and accrued expenses 5,282 4,479 1,522 1,290 Total current liabilities 28,062 50,375 8,086 14,513 Non-current liabilities Retirement benefit obligation 644 581 186 167 Deferred taxes 499 - 144 - Total non-current liabilities 1,143 581 330 167 Shareholders' equity Share capital NIS 0.10 par value (authorized - 50,000,000 shares, issued and outstanding – 12,974,245 shares at 1,407 1,444 416 416 December 31, 2013; 12,974,245 shares at December 31, 2012) Additional paid in capital 119,281 129,897 37,478 37,424 Capital fund 247 247 71 71 Foreign currency translation reserve 786 639 226 184 Retained earnings 244,185 212,377 70,350 61,186 Treasury shares - (10,843) (3,124) (3,124) Capital Fund remeasurement of the net liability in respect of defined (63) - (18) - benefit 365,843 333,761 105,399 96,157 395,048 384,717 113,815 110,837 (*) Convenience translation into U.S. dollars G. WILLI‑FOOD INTERNATIONAL LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the year ended For the year ended December 31, December 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 336,032 286,509 96,811 82,544 Cost of sales 252,355 217,468 72,704 62,653 Gross profit 83,677 69,041 24,107 19,891 Selling expenses 35,130 28,915 10,121 8,330 General and administrative 19,408 16,715 5,591 4,816 expenses Other income (54) (46) (16) (13) Total operating expenses 54,484 45,584 15,696 13,133 Operating income 29,193 23,457 8,411 6,758 Financial income 13,008 8,716 3,748 2,511 Financial expense 876 410 252 118 Total financial income 12,132 8,306 3,496 2,393 Income before taxes on 41,325 31,763 11,907 9,151 income Taxes on income (9,517) (7,757) (2,742) (2,235) Net income 31,808 24,006 9,165 6,916 Earnings per share: Basic earnings per share 2.45 1.85 0.71 0.53 Diluted earnings per share 2.45 1.85 0.71 0.53 Shares used in 12,974,245 12,977,481 12,974,245 12,977,481 computation of basic EPS (*) 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, 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) CASH FLOWS - OPERATING ACTIVITIES Profit from continuing 31,808 24,006 9,165 6,916 operations Adjustments to reconcile net income to net cash provided by (28,078) (31,127) (8,090) (8,967) operating activities: Net cash from (used in) continuing operating 3,730 (7,121) 1,075 (2,051) activities Net cash from discontinued - - - - operating activities CASH FLOWS - INVESTING ACTIVITIES Acquisition of property plant (6,077) (1,628) (1,751) (469) and equipment Proceeds from sale of property 29 269 8 77 plant and Equipment Additions to long term other (445) - (128) receivables Proceeds from purchase of 56,309 8,654 16,223 2,493 marketable securities, net Proceeds used in purchase of loan carried at fair value through profit (65,000) - (18,727) - or loss Net cash from (used in) continuing investing (15,184) 7,295 (4,375) 2,101 activities Net cash from discontinued - 13,500 - 3,889 investing activities CASH FLOWS - FINANCING ACTIVITIES (9,912) 9,930 (2,856) 2,861 Short-term bank debt, net Investment used in treasury - (702) - (202) stocks Net cash from (used in) continuing financing (9,912) 9,228 (2,856) 2,659 activities Net cash used in discontinued - - - - financing activities Increase (decrease) in cash (21,366) 22,902 (6,156) 6,598 and cash equivalents Cash and cash equivalents at the beginning of the financial 57,563 34,661 16,584 9,986 period Cash and cash equivalents of the end of the financial 36,197 57,563 10,428 16,584 period (*) 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, 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) Adjustments to reconcile net income to net cash from operating activities Depreciation and amortization 4,459 3,134 1,285 903 Unrealized Gain of loan carried at fair value through profit (300) - (86) - or loss Decrease in deferred income 519 913 150 263 taxes Capital Gain on disposal of (29) (89) (8) (26) property plant and equipment Unrealized Gain on marketable (10,363) (4,034) (2,986) (1,162) securities Stock based compensation 190 88 55 25 reserve Employees benefit, net - 63 - 19 Changes in assets and liabilities: Increase in trade receivables (9,046) (16,613) (2,607) (4,786) and other receivables Increase in inventories (4,731) (16,657) (1,364) (4,799) Increase (decrease) in payables and other current (8,777) 2,068 (2,529) 596 liabilities (28,078) (31,127) (8,090) (8,967) (*) 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 email@example.com SOURCE G. Willi-Food International Ltd. Website: http://www.willi-food.com
G. Willi-Food Reports Fiscal 2013 Net Profit Up 33% From Fiscal 2012 Net Profit
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