G. Willi-Food Reports Q1 2014 Sales Up 4.9% From Q1 2013

           G. Willi-Food Reports Q1 2014 Sales Up 4.9% From Q1 2013

Net Income of US$ 2 million in Q1 2014

PR Newswire

YAVNE, Israel, May 28, 2014

YAVNE, Israel, May 28, 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 unaudited financial results for the first
quarter ended March 31, 2013.

First Quarter Fiscal 2014 Highlights

  oSales increased 4.9% from first quarter of 2013 to NIS 95.0 million (US$
    27.2 million)
  oGross profit increased 0.1% from first quarter of 2013 to NIS 21.4 million
    (US$ 6.1 million), or 22.5% of sales
  oOperating income decreased 30.0% from first quarter of 2013 to NIS 6.4
    million (US$ 1.8 million), or 6.8% of sales
  oNet income decreased 13.9% from first quarter of 2013 to NIS 7.1 million
    (US$ 2.0 million), or 7.5% of sales
  oEarning per share of NIS 0.55 (US$ 0.16) compared to earning per share of
    NIS 0.64 (US$ 0.18) in the first quarter of 2013
  oCash and securities balance (net of short-term bank debt) of NIS 198.8
    million (US$ 57.0 million) as of March 31, 2014

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 2014 increased by 4.9% to NIS 95.0 million (US$
27.2 million) from NIS 90.6 million (US$ 26.0 million) recorded in the first
quarter of 2013. Sales increased in the first quarter of 2014 primarily due to
our increased marketing efforts and sales activities combined with the growing
demand from domestic and international customers for our quality kosher
products.

Gross profit for the first quarter of 2014 increased by 0.1% to NIS 21.4
million (US$ 6.1 million) compared to NIS 21.4 million (US$ 6.1 million)
recorded in the first quarter of 2013. First quarter gross margin was 22.5%
compared to gross margin of 23.6% for the same period in 2013. The decrease in
gross margin in the first quarter of 2014 was primarily due to reductions in
the prices of certain of our products as a result of continued pressure from
our customers to reduce prices and an increase in global prices of food
products. The Company expects the decline in its gross margins to continue in
the second and third quarters of 2014 compared to 2013 second and third
quarter's gross margins. To the extent that customer pressure to reduce prices
continues, or global and local prices of food products continue to increase,
the Company's gross margins may be impacted beyond the third quarter of 2014.

Willi-Food's operating income for the first quarter of 2013 decreased by 30.0%
to NIS 6.4 million (US$ 1.8 million) compared to NIS 9.2 million (US$ 2.6
million) recorded in the first quarter of 2013 due to the price pressure
referred to above. Selling expenses increased by 33.5% from the comparable
quarter of 2013, primarily due to an increase in promotion expenses as well as
vehicle and transport expenses. Selling expenses as a percentage of sales
increased in the first quarter of 2014 to 10.6% compared to 8.3% in the first
quarter of 2013. General and administrative expenses increased by 8.3% from
the first quarter of 2013, primarily due to an expense of NIS 0.5 million (US$
0.14 million) related to options granted to the Company's Chairman, President
and CEO on November 2013. General and administrative expenses as a percentage
of sales increased in the first quarter of 2013 to 5.3% from 5.2% in the first
quarter of 2013.

Willi-Food's income before taxes for the first quarter of 2014 decreased by
10.6% to NIS 9.8 million (US$ 2.8 million) compared to NIS 10.9 million (US$
3.1 million) recorded in the first quarter of 2013.

Willi-Food's net income in the first quarter of 2014 decreased by 13.9% to NIS
7.1 million (US$ 2.0 million), or NIS 0.55 (US$ 0.16) per share, from NIS 8.2
million (US$ 2.4 million), or NIS 0.64 (US$ 0.18) per share, recorded in the
first quarter of 2013.

Willi-Food ended the first quarter of 2014 with NIS 198.8 million (US$ 57.0
million) in cash and securities net from short-term debt. Willi-Food's
shareholders' equity at the end of March 2014 was NIS 373.5 million (US$ 107.1
million).

Business Outlook
Mr. Zwi Williger, Chairman of Willi-Food commented, "First quarter results
were affected by the sharp decline of consumption by the Israeli consumer that
although didn't reduced the number of visits to stores, sharply decreased the
consumer's consumption basket. Although we achieved organic sales growth of 5%
- the highest quarterly sales in the Company's history, our profit margins
declined. Going forward, we are facing an increase in the level of uncertainty
in the local economy. On May 18, 2014 the Israeli Central Bureau of Statistics
announced that the Private Consumption Expenditure per Capita in the first
quarter of 2014 decreased by 4% compared to the fourth quarter of 2013 after
decreasing by 1% in the fourth quarter of 2013 compared to the third quarter
of 2013. The economic uncertainty, coupled with changes in the Israeli market
and ongoing consumer demand for price reductions, will probably negatively
affect our results in near future. Saying that, we expect that we will not
meet our budget for the second and third quarter of 2014."

Mr. Williger continued, "In light of the anticipated continued recession and
decreasing Private Consumption as well as continuing price pressure from
consumers, our foreseeable challenges ahead will be in managing our expenses,
and in particular the cost of our products, in order to accommodate our
consumers' continued desire to acquire lower cost products. We hope that in
these difficult times we will be able to maintain our customer base both in
the retail and in the wholesale markets."

Mr. Williger concluded, "We believe that this period presents an opportunity
for us to utilize cash on hand to purchase synergetic companies at prices
lower than before. We continue to look for opportunities to create additional
value for our shareholders."

Conference Call
The Company will host a conference call and live webcast on May 28, 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=109380

Following the conclusion of the call, atelephonic replay will be available
for 14 days beginning at 2:00 PM Eastern Time on May 28, 2014 through 11:59 PM
Eastern Time on June 11, 2014 and may be accessed by dialing 1-877-870-5176
(US), or 1-858-384-5517 (International), using access code 4685109. In
addition, an archived webcast will be available for one year at:
http://public.viavid.com/reports/eventparticipantreporttab.php?id=o5arop%2BX

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, 2014, U.S. $1.00 equals
NIS 3.487. 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, 2014 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, 2013, filed with
the Securities and Exchange Commission on April 30, 2014. 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,
                                 2 0 1 4   2 0 1 3      2 0 1 4   2 0 1 3
                                 NIS                    US dollars (*)
                                 (in thousands)
ASSETS
Current assets
Cash and cash equivalents        53,380    36,197       15,308    10,381
Financial assets carried at fair 148,036   112,864      42,454    32,367
value through profit or loss
Trade receivables                105,565   82,932       30,274    23,783
Other receivables and prepaid    3,695     2,694        1,060     773
expenses
Inventories                      53,500    54,001       15,343    15,486
Loan carried at fair value       -         65,300       -         18,727
through profit or loss
Total current assets             364,176   353,988      104,439   101,517
Non-current assets
Property, plant and equipment    67,193    66,663       19,270    19,118
Less -Accumulated depreciation   25,837    25,689       7,410     7,367
                                 41,356    40,974       11,860    11,751
Other receivables and prepaid    29        50           8         14
expenses
Goodwill                         36        36           10        10
Total non-current assets         41,421    41,060       11,878    11,775
                                 405,597   395,048      116,317   113,292
EQUITY AND LIABILITIES
Current liabilities
Short-term bank debt             2,644     18           758       5
Trade payables                   21,747    20,245       6,237     5,806
Employees Benefits               2,144     1,880        615       539
Current tax liabilities          636       637          182       183
Other payables and accrued       4,069     5,282        1,167     1,515
expenses
Total current liabilities        31,240    28,062       8,959     8,048
Non-current liabilities
Deferred taxes                   299       499          86        143
retirement benefit obligation    606       644          174       185
Total non-current liabilities    905       1,143        260       328
Shareholders' equity
Share capital                    1,407     1,407        403       403
Additional paid in capital       119,757   119,281      34,344    34,207
Capital fund                     247       247          71        71
Foreign currency translation     774       786          222       225
reserve
remeasurement of the net
liability in respect of          (25)      (63)         (7)       (18)
definedbenefit
Retained earnings                251,292   244,185      72,065    70,028
Equity attributable to owners of 373,452   365,843      107,098   104,916
the Company
                                 405,597   395,048      116,317   113,292
(*) Convenience translation into U.S. dollars.



G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                               Three months ended      Three months ended
                               March 31                March 31
                               2 0 1 4     2 0 1 3     2 0 1 4         2 0 1 3
                               NIS                     US dollars (*)
                               (in thousands, except per share and share data)
Sales                          94,969      90,585      27,235      25,978
Cost of sales                  73,565      69,196      21,097      19,844
Gross profit                   21,404      21,389      6,138       6,134
Operating costs and expenses:
Selling expenses               10,067      7,542       2,887       2,163
General and administrative     5,056       4,668       1,450       1,339
expenses
Other Income                   (147)       -           (42)        -
Total operating expenses       14,976      12,210      4,295       3,502
Operating income               6,428       9,179       1,843       2,632
Financial income               3,497       2,639       1,003       756
Financial expense              162         898         46          257
Total financial income         3,335       1,741       957         499
Income before taxes on income 9,763       10,920      2,800       3,131
Taxes on income               2,656       2,670       762         765
Net income                    7,107       8,250       2,038       2,366
Earnings per share:
Basic earnings per share       0.55        0.64        0.16        0.18
Diluted earnings per share     0.55        0.64        0.16        0.18
Shares used in
                               12,974,245  12,974,245  12,974,245  12,974,245
 computation of basic EPS
(*) 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
                               2 0 1 4      2 0 1 3     2 0 1 4     2 0 1 3
                               NIS                      US dollars (*)
                               (in thousands, except per share and share data)
Cash flows - operating
activities:
Profit from continuing         7,107        8,250       2,038       2,366
operations
Adjustments to reconcile net
profit to net cash used in     (24,702)     (14,963)    (7,084)     (4,291)
continuing operating
activities (Appendix A)
Net cash from continuing       (17,595)     (6,713)     (5,046)     (1,925)
operating activities
Cash flows - investing
activities:
Acquisition of property plant  (1,829)      (4,395)     (525)       (1,260)
and equipment
Additions to prepaid expenses, -            (445)       -           (128)
net
Proceeds from sale of property 745          -           214         -
plant and Equipment
Proceeds from (used in)
purchase of marketable         (32,164)     23,544      (9,224)     6752
securities,
 net
Proceeds from Loan carried at
fair value through profit or   65,400       -           18,755      -
loss
Net cash from continuing       32,152       18,704      9,220       5,364
investing activities
Cash flows - financing
activities:
Short-term bank debt           2,626        (9,911)     753         (2,842)
Net cash from (used in)
continuing financing           2,626        (9,911)     753         (2,842)
activities
Increase in cash and cash      17,183       2,080       4,927       597
equivalents
Cash and cash equivalents at
the beginning of the financial 36,197       57,563      10,381      16,508
year
Cash and cash equivalents of   53,380       59,643      15,308      17,105
the end of the financial year
(*) Convenience Translation into U.S. Dollars.



G. WILLI-FOOD INTERNATIONAL LTD.
APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                               Three months ended       Three months ended
                               March 31                 March 31
                               2 0 1 4      2 0 1 3     2 0 1 4     2 0 1 3
                               NIS                      US dollars (*)
                               (in thousands, except per share and share data)
Cash flows from operating
activities:
A. Adjustments to reconcile
net profit to net cash from
 operating activities
Increase in deferred income   (200)        (225)       (57)        (65)
taxes
Unrealized Gain of loan
carried at fair value through  (100)        -           (28)        -
profit
 or loss
Unrealized gain on marketable  (3,008)      (1,569)     (863)       (450)
securities
Depreciation and amortization  890          1,011       255         290
Capital gain on disposal of    (188)        -           (54)        -
property plant and equipment
Stock based compensation       476          5           137         1
reserve
Changes in assets and
liabilities:
Increase in trade receivables  (23,613)     (9,565)     (6,772)     (2,743)
and other receivables
Decrease in inventories        501          5,478       143         1,571
Increase (Decrease) in trade
and other payables, and other  540          (10,098)    155         (2,895)
 current liabilities
                               (24,702)     (14,963)    (7,084)     (4,291)
B. Significant non-cash
transactions:
Supplemental cash flow
information:
Income tax paid                2,447        2,172       702         623
(*) 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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