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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