G. Willi-Food Reports H1 2014 sales down 0.5% FROM H1 2013 sales

       G. Willi-Food Reports H1 2014 sales down 0.5% FROM H1 2013 sales  Net Cash from operating activities of US$ 6.1 million in Q2 2014  PR Newswire  YAVNE, Israel, Aug. 12, 2014  YAVNE, Israel, Aug.12, 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 second quarter and the six-months ended June 30, 2014.  Second Quarter Fiscal 2014 Highlights (income statement highlights compared to same period last year)    oSales decreased 6.2% to NIS 79.2 million (US$ 23.0 million);   oGross profit decreased 5.8% to NIS 20.6 million (US$ 6.0 million), or     26.0% of sales;   oOperating income decreased 32.8% to NIS 5.6 million (US$ 1.6 million), or     7.0% of sales;   oNet income decreased 43.9% to NIS 4.4 million (US$ 1.3 million), or 5.5%     of sales;   oEarning per share of NIS 0.34 (US$ 0.10);        oNet cash from operating activities of NIS 20.9 million (US$ 6.1 million);     and   oCash and securities balance of NIS 217.2 million (US$ 63.2 million) as of     June 30, 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.  Second Quarter Fiscal 2014 Summary Sales for the second quarter of 2014 decreased by 6.2% to NIS 79.2 million (US$ 23.0 million) from NIS 84.4 million (US$ 24.5 million) recorded in the second quarter of 2013. Sales decreased in the second quarter of 2014 primarily due to a decline in consumption in food products by the Israeli consumer.  Gross profit for the second quarter of 2014 decreased by 5.8% to NIS 20.6 million (US$ 6.0 million) compared to NIS 21.8 million (US$ 6.4 million) recorded in the second quarter of 2013. Second quarter gross margin was 26.0% compared to gross margin of 25.9% for the same period in 2013. The decrease in gross margin in the second quarter of 2014 was primarily due to the decreased sales.  Willi-Food's operating income for the second quarter of 2014 decreased by 32.8% to NIS 5.6 million (US$ 1.6 million) compared to NIS 8.3 million (US$ 2.4 million) recorded in the second quarter of 2013. Selling expenses increased by 15.7% 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 second quarter of 2014 to 13.1% compared to 10.6% in the second quarter of 2013. General and administrative expenses remained the same as in the second quarter of 2013, although an expense of NIS 0.5 million (US$ 0.14 million) related to options granted to the Company's Chairman, President and CEO in November 2013, was recorded in the second quarter of 2014. General and administrative expenses as a percentage of sales increased in the second quarter of 2014 to 5.8% from 5.5% in the second quarter of 2013.  Willi-Food's income before taxes for the second quarter of 2014 decreased by 44.7% to NIS 5.7 million (US$ 1.7 million) compared to NIS 10.4 million (US$ 3.0 million) recorded in the second quarter of 2013.  Willi-Food's net income in the second quarter of 2014 decreased by 43.9% to NIS 4.4 million (US$ 1.3 million), or NIS 0.34 (US$ 0.10) per share, from NIS 7.8 million (US$ 2.3 million), or NIS 0.60 (US$ 0.17) per share, recorded in the second quarter of 2013.  Willi-Food ended the second quarter of 2014 with NIS 217.2 million (US$ 63.2 million) in cash and securities net from short-term debt. Net cash from operating activities for 2014 second quarter was NIS 20.9 million (US$ 6.1 million). Willi-Food's shareholders' equity at the end of June 2014 was NIS 377.5 million (US$ 109.8 million).  First Half Fiscal 2014 Highlights (compared to same period last year)    oSales decreased 0.5% to NIS 174.20 million (US$ 50.7 million);   oGross profit decreased 2.9% to NIS 42.0 million (US$ 12.2 million), or     24.1% of sales;   oOperating income decreased 31.3% to NIS 12.0 million (US$ 3.5 million), or     6.9% of sales;   oNet income decreased 28.4% to NIS 11.5 million (US$ 3.3 million), or 6.6%     of sales; and   oEarning per share of NIS 0.88 (US$ 0.26).  Six-Month Results Willi-Food's sales for the six-month period ending June 30, 2014 decreased by 0.5% to NIS 174.2 million (US$ 50.7 million) compared to sales of NIS 175.0 million (US$ 50.9 million) in the first half of 2013. Gross profit for the period decreased by 2.9% to NIS 42.0 million (US$ 12.2 million) compared to gross profit of NIS 43.2 million (US$ 12.6 million) for the first half of 2013. First half 2014 gross margins were 24.1% compared to gross margins of 24.7% in the same period of 2013.  Operating income for the first half of 2014 decreased by 31.3% to NIS 12.0 million (US$ 3.5 million) from NIS 17.5 million (US$ 5.1 million) reported in the comparable period of last year. First half 2014 income before taxes decreased by 27.2% to NIS 15.5 million (US$ 4.5 million) compared to NIS 21.3 million (US$ 6.2 million) recorded in the first half of 2013. Net income for the first half of 2014 decreased by 28.4% to NIS 11.5 million (US$ 3.3 million), or NIS 0.88 (US$ 0.26) per share, from NIS 16.0 million (US$ 4.7 million), or NIS 1.24 (US$ 0.34) per share, recorded in the first half of 2013.  Business Outlook Mr. Zwi Williger, Chairman of Willi-Food, commented, "Although store visits remained steady, consumption of food products by Israeli consumers continued to decline sharply for the second quarter in a row, causing our second quarter sales to decline by 6.2% from the second quarter in 2013. Despite this decline, we were able to maintain gross margins of 26%. The Israeli economy has been negatively impacted in the third quarter by Operation Protective Edge, a military action launched by the State of Israel on July 8, 2014 in the Hamas-controlled Gaza Strip. As a result, we expect economic uncertainty to continue which, coupled with other changes in the Israeli market and ongoing consumer pressure for price reductions, will likely negatively affect our results in near future. As a result, we do not expect to meet our budget for the third and fourth quarters of 2014."  Mr. Williger concluded, "While this period of consumer belt-tightening continues, our challenge for the foreseeable future will be to better manage our expenses, in particular the cost of our products and selling expenses, in order to provide consumers with the lower cost products they desire. In this way, we hope to maintain our customer base both in the retail and wholesale markets during these difficult times for the food industry."  Conference Call The Company will host a conference call and live webcast on August 21, 2014 to discuss the financial results beginning at 11:00 AM Eastern Time. Interested parties may participate on the call by dialing 1-888-455-2296 (US), or 1-719-325-2454 (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=110538  Following the conclusion of the call, atelephonic replay will be available for 14 days beginning at 2:00 PM Eastern Time on August 21, 2014 through 11:59 PM Eastern Time on September 4, 2014 and may be accessed by dialing 1-877-870-5176 (US), or 1-858-384-5517 (International), using access code 1375115. In addition, an archived webcast will be available for one year at:  http://public.viavid.com/reports/eventparticipantreporttab.php?id=o5eipJqf  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 June 30, 2014, U.S. $1.00 equals NIS 3.438. 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 June 30, 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                              June 30,        December June 30,        December                                              31,                      31,                              2 0 1 4 2 0 1 3 2 0 1 3  2 0 1 4 2 0 1 3 2 0 1 3                              NIS                      US dollars (*)                              (in thousands) ASSETS Current assets Cash and cash equivalents    58,559  76,038  36,197   17,033  22,117  10,529 Financial assets carried at fair value through profit or 158,654 133,065 112,864  46,147  38,704  32,828 loss Trade receivables            96,099  82,615  82,932   27,952  24,030  24,122 Other receivables and        6,329   3,459   2,694    1,842   1,006   784 prepaid expenses Inventories                 38,875  43,841  54,001   11,307  12,752  15,707 Loan carried at fair value   -       -       65,300   -       -       18,994 through profit or loss Total current assets         358,516 339,018 353,988  104,281 98,609  102,964 Non-current assets Property, plant and          69,143  65,345  66,663   20,111  19,007  19,390 equipment Less -Accumulated            26,726  23,040  25,689   7,774   6,702   7,472 depreciation                              42,417  42,305  40,974   12,337  12,305  11,918 Other receivables and        51      475     50       15      138     14 prepaid expenses Deferred taxes               133     -       -        39      -       - Goodwill                     36      36      36       10      10      10 Total non-current assets     42,637  42,816  41,060   12,401  12,453  11,942                              401,153 381,834 395,048  116,682 111,062 114,906 EQUITY AND LIABILITIES Current liabilities Short-term bank debt         -       -       18       -       -       5 Trade payables               14,888  21,715  20,245   4,330   6,316   5,889 Employees Benefits           2,135   1,726   1,880    621     502     547 Current tax liabilities      9       2,364   637      3       688     185 Other payables and accrued   5,992   5,291   5,282    1,743   1,539   1,536 expenses Total current liabilities    23,024  31,096  28,062   6,697   9,045   8,162 Non-current liabilities Deferred taxes               -       283     499      -       82      145 Retirement benefit           614     570     644      179     166     187 obligation Total non-current            614     853     1,143    179     248     332 liabilities Shareholders' equity Share capital               1,407   1,444   1,407    409     420     409 Additional paid in capital   120,228 129,903 119,281  34,970  37,784  34,695 Capital fund                 247     247     247      72      72      72 Foreign currency translation -       705     786      -       205     229 reserve Remeasurement of the net liability in respect of      -33     11      -63      -10     3       -18 defined benefit Treasury shares              -       -10,843 -        -       -3,154  - Retained earnings            255,666 228,418 244,185  74,365  66,439  71,025 Equity attributable to       377,515 349,885 365,843  109,806 101,769 106,412 owners of the Company                              401,153 381,834 395,048  116,682 111,062 114,906 (*) Convenience translation into U.S. dollars.      G. WILLI-FOOD INTERNATIONAL LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                Six months        Three months              Six months                ended June 30,    ended June 30,            ended June 30,                2 0 1 4  2 0 1 3  2 0 1 4   2 0 1 3         2 0 1 4 2 0 1 3                NIS                                         U.S. dollars (*)                In thousands (except per share and share data) Sales          174,178    174,999    79,209     84,414     50,663     50,901 Cost of sales  132,209    131,770    58,644     62,574     38,455     38,328 Gross profit   41,969     43,229     20,565     21,840     12,208     12,573 Selling        20,420     16,488     10,353     8,946      5,939      4,796 expenses General and administrative 9,684      9,290      4,628      4,622      2,817      2,702 expenses Other income  (147)      (34)       -          (34)       (43)       (11) Total operating      29,957     25,744     14,981     13,534     8,713      7,487 expenses Operating      12,012     17,485     5,584      8,306      3,495      5,086 income Financial      4,156      4,587      659        1,948      1,209      1,334 income Financial      684        801        522        (97)       199        233 expense Total financial      3,472      3,786      137        2,045      1,010      1,101 income Income before taxes on       15,484     21,271     5,721      10,351     4,505      6,187 income                 4,003      5,230      1,347      2,560      1,164      1,521 Taxes on income Profit for the 11,481     16,041     4,374      7,791      3,341      4,666 period Earnings per share: Earnings per share Basic earnings 0.88       1.24       0.34       0.60       0.26       0.34 per share Diluted earnings per   0.88       1.24       0.34       0.60       0.26       0.34 share Shares used in                12,974,245 12,974,245 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 OPERATIONS                            Six months        Three months     Six months                            ended June 30,    ended June 30,   ended June 30,                            2 0 1 4  2 0 1 3  2 0 1 4  2 0 1 3 2 0 1 4  2 0 1 3                            NIS                                U.S. dollars (*)                            In thousands (except per share and share data) Cash flows - operating activities Profit from operations     11,481   16,041   4,374    7,791   3,341    4,666 Adjustments to reconcile net income to net cash     (8,199)  (10,525) 16,503   4,438   (2,387)  (3,062) from operating activities (Appendix) Net cash from operating    3,282    5,516    20,877   12,229  954      1,604 activities Cash flows - investing activities Acquisition of property    (4,004)  (5,560)  (2,175)  (1,165) (1,165)  (1,617) plant and equipment Proceeds from sale of property plant and         970      29       225      29      282      8 Equipment Additions to long term     -        (445)    -        -       -        (129) other receivables Proceeds from Loan carried at fair value through      65,400   -        -        -       19,023   - profit or loss Proceeds from purchase (sale) of marketable       (43,268) 28,865   (11,104) 5,321   (12,585) 8,396 securities, net Net cash from (used in)    19,098   22,889   (13,054) 4,185   5,555    6,658 investing activities Cash flows - financing activities Short-term bank credit,    (18)     (9,930)  (2,644)  (19)    (5)      (2,888) net Net cash used in financing (18)     (9,930)  (2,644)  (19)    (5)      (2,888) activities Increase in cash and cash  22,362   18,475   5,179    16,395  6,504    5,374 equivalents Cash and cash equivalents at the beginning of the    36,197   57,563   53,380   59,643  10,529   16,743 financial year Cash and cash equivalents of the end of the          58,559   76,038   58,559   76,038  17,033   22,117 financial year (*) Convenience Translation into U.S. Dollars.      G. WILLI-FOOD INTERNATIONAL LTD. APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                               Six months      Three months    Six months                               ended June 30,  ended June 30,  Ended June 30,                               2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3 2 0 1 4  2 0 1 3                               NIS                             U.S. 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 Deferred income taxes         -632    303     -432    528     -184     88 Unrealized loss (gain) on     -2,522  -3,120  486     -1,551  -734     -908 marketable securities Depreciation and amortization 1,779   2,166   889     1,155   517      630 Capital gain on disposal of   -188    -29     -       -29     -55      -8 property plant and equipment Stock based compensation      947     6       471     1       275      2 reserve Unrealized Gain of loan carried at fair value through -100    -       -       -       -29      - profit or loss Net foreign exchange gain     -786    -       -786    -       -229     - Changes in assets and liabilities: Decrease (increase) in trade receivables and other         -16,803 -9,474  6,810   91      -4,887   -2,756 receivables Decrease (increase) in        15,126  5,429   14,625  -49     4,399    1,579 inventories Increase (decrease) in trade and other payables, and other -5,020  -5,806  -5,560  4,292   -1,460   -1,689 current liabilities                               -8,199  -10,525 16,503  4,438   -2,387   -3,062 B. Significant non-cash transactions: Supplemental cash flow information: Income tax paid               4,667   4,466   2,220   2,301   1,357    1,299 (*) 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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