B.S.D. CROWN LTD: Company Update

 B.S.D Crown Ltd (LSE:BSD)                                                          ("BSD" or "the Company")                                                             Company Update                                                      G. Willi-Food International H1 Reports                       Tel Aviv, Israel, 12 August, 2014  G. Willi-Food International H1 Reports  The Company announces that G. Willi-Food International Ltd. (NASDAQ: WILC) published its H1 results today, 12 August, 2014. These results can be accessed on the NASDAQ website (www.nasdaq.com) through ticker code WILC and are copied below in full.  The Company owns shares representing approximately 62.21 per cent. of Willi-Food Investments Ltd.'s fully diluted issued share capital and Willi-Food Investments Ltd. in turn owns 56.31 per cent. of G. Willi-Food International Ltd.'s fully diluted issued share capital.  Further information about the Company  For more information about the Company, visit www.emblaze.com.  Enquiries:  Eyal Merdler, CFO: eyal.merdler@emblaze.com                                                                                                                                                                                                                           FOR IMMEDIATE RELEASE  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          YAVNE, Israel - August 12, 2014 - 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)  * Sales decreased 6.2% to NIS 79.2 million (US$ 23.0 million);          * Gross profit decreased 5.8% to NIS 20.6 million (US$ 6.0 million), or 26.0%     of sales;       * Operating income decreased 32.8% to NIS 5.6 million (US$ 1.6 million), or     7.0% of sales;       * Net income decreased 43.9% to NIS 4.4 million (US$ 1.3 million), or 5.5% of     sales;       * Earning per share of NIS 0.34 (US$ 0.10);       * Net cash from operating activities of NIS 20.9 million (US$ 6.1 million);     and       * Cash 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)  * Sales decreased 0.5% to NIS 174.20 million (US$ 50.7 million);          * Gross profit decreased 2.9% to NIS 42.0 million (US$ 12.2 million), or     24.1% of sales;       * Operating income decreased 31.3% to NIS 12.0 million (US$ 3.5 million), or     6.9% of sales;       * Net income decreased 28.4% to NIS 11.5 million (US$ 3.3 million), or 6.6%     of sales; and       * Earning 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 forseeable 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, a telephonic 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.  {FINANCIAL TABLES TO FOLLOW}  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 158,654 133,065  112,864   46,147  38,704   32,828 fair value through profit                                                      or 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                  -     705      786        -    205       229 translation reserve                                                                                                                                        Remeasurement of the net       (33)      11      (63)     -10      3      (18) liability in respect of                                                        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 expenses           20,420     16,488     10,353      8,946       5,939           4,796                                                                                           General and                 9,684      9,290      4,628      4,622       2,817     2,702 administrative                                                                           expenses                                                                                                                                                                                 Other income                (147)       (34)          -        (34)       (43)            (11)                                                                                           Total operating            29,957    25,744      14,981     13,534       8,713     7,487 expenses                                                                                                                                                                                 Operating income           12,012    17,485       5,584      8,306       3,495           5,086                                                                                           Financial income            4,156      4,587        659       1,948      1,209           1,334                                                                                           Financial expense             684        801        522        (97)        199             233                                                                                           Total financial income      3,472      3,786        137       2,045      1,010           1,101                                                                                           Income before taxes on     15,484    21,271       5,721      10,351      4,505     6,187 income                                                                                                                                                                                   Taxes on income             4,003     5,230       1,347      2,560       1,164           1,521                                                                                           Profit for the period      11,481    16,041       4,374      7,791       3,341           4,666                                                                                           Earnings per share:                                                                                                                                                                      Earnings per share                                                                                                                                                                       Basic earnings per           0.88       1.24       0.34        0.60       0.26      0.34 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   (8,199) (10,525)   16,503    4,438  (2,387)  (3,062) net income to net cash                                                          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          970      29       225       29      282        8 property plant and                                                              Equipment                                                                                                                                                    Additions to long term           -    (445)        -        -        -    (129) other receivables                                                                                                                                            Proceeds from Loan          65,400        -        -        -   19,023        - carried at fair value                                                           through profit or loss                                                                                                                                       Proceeds from purchase    (43,268)  28,865  (11,104)    5,321 (12,585)    8,396 (sale) of marketable                                                            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              (18)  (9,930)  (2,644)     (19)      (5)  (2,888) financing activities                                                                                                                                         Increase in cash and cash   22,362  18,475     5,179   16,395    6,504   5,374  equivalents                                                                                                                                                  Cash and cash equivalents   36,197  57,563    53,380   59,643   10,529   16,743 at the beginning of the                                                         financial year                                                                                                                                               Cash and cash equivalents   58,559  76,038    58,559   76,038   17,033   22,117 of 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                                             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           (100)        -       -       -    (29)       -  carried at fair value through                                                     profit or loss                                                                                                                                                     Net foreign exchange gain         (786)        -   (786)       -   (229)       -                                                                                   Changes in assets and                                                             liabilities:                                                                                                                                                       Decrease (increase) in trade   (16,803)  (9,474)   6,810      91 (4,887)  (2,756) receivables and other                                                             receivables                                                                                                                                                        Decrease (increase) in           15,126    5,429  14,625    (49)   4,399    1,579 inventories                                                                                                                                                        Increase (decrease) in trade    (5,020)  (5,806) (5,560)   4,292 (1,460)  (1,689) and other payables, and other                                                     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.                           END 
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