G. Willi-Food Reports Fiscal 2013 Net Profit Up 33% From Fiscal 2012 Net Profit

   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
raviv@willi-food.co.il

SOURCE G. Willi-Food International Ltd.

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