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G. WILLI-FOOD INTERNATIONAL REPORTS 16.6% INCREASE IN SALES AND INCREASE IN ALL PROFIT PARAMETERS IN THIRD QUARTER 2022 COMPARED TO SAME PERIOD LAST YEAR

YAVNE, Israel, Nov. 24, 2022 /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 third quarter ended September 30, 2022.

G. Willi-Food International Logo

Third Quarter Fiscal Year 2022

  • Sales increased by 16.6% to NIS 123.9 million (US$ 34.9 million) from NIS 106.3 million (US$ 29.9 million) in the third quarter of 2021.
  • Gross profit increased by 15.6% year-over-year to NIS 34.1 million (US$ 9.6 million).
  • Operating income increased by 16.7% year-over-year to NIS 9.5 million (US$ 2.7 million).
  • Net profit increased by 46.1% year-over-year to NIS 7.6 million (US$ 2.1 million).
  • Cash and securities balance of NIS 292.5 million (US$ 82.6 million) as of September 30, 2022.
  • Basic earnings per share of NIS 0.55 (US$ 0.16).

Management Comment

Zwi Williger & Joseph Williger, Co-Chairmen of the Board of Willi-Food, commented: "We are pleased to present the third quarter 2022 financial results which show significant increase in sales and improvements with all profit parameters compared to the third quarter of 2021. During the last period, there has been increased public discourse focusing on the increasing cost of living in Israel. We believe that, this discussion has led to a change in consumption habits of consumers, that translate to an increase with the consumption of non-branded food products replacing consumption of branded food products. We believe that our company that imports and sells mainly high quality non-branded food products is in good position to benefit from the increased focus on the cost of living in Israel.

Third Quarter Fiscal 2022 Summary

Sales for the third quarter of 2022 increased by 16.6% to NIS 123.9 million (US$ 34.9 million) from NIS 106.3 million (US$ 29.9 million) in the third quarter of 2021. Sales increased mainly due to (i) increasing the range of the Company's products (ii) proper inventory management and (iii) improving the presence of the Company's line of products in stores.

Gross profit for the third quarter of 2022 increased by 15.6% to NIS 34.1 million (US$ 9.6 million), or 27.5% of revenues, compared to NIS 29.5 million (US$ 8.3 million), or 27.7% of revenues in the third quarter of 2021. The increase in gross profit was due to the increase in sales.

Selling expenses increased by 17.2% to NIS 18.7 million (US$ 5.3 million) compared to NIS 15.9 million (US$ 4.5 million) in the third quarter of 2021. The increase was primarily due to an increase in expenses for advertising and promotion.

General and administrative expenses increased by 8.2% to NIS 5.9 million (US$ 1.7 million) compared to NIS 5.4 million (US$ 1.5 million) in the third quarter of 2021 primarily due to an increase in management compensation as a result of grants made under the Company's option plan.

Operating profit for the third quarter of 2022 increased by 16.7% to NIS 9.5 million (US$ 2.7 million) compared to NIS 8.2 million (US$ 2.3 million) in the third quarter of 2021. The increase was primarily due to the increase in sales and gross profit.

Financial income, net totaled NIS 0.04 million (US$ 0.01 million) compared to Financial expense, net of NIS 1.6 million (US$ 0.4 million) in the third quarter of 2021.

Willi-Food's income before taxes for the third quarter of 2022 was NIS 9.6 million (US$ 2.7 million) compared to NIS 6.6 million (US$ 1.9 million) in the third quarter of 2021.

Willi-Food's net profit in the third quarter of 2022 was NIS 7.6 million (US$ 2.1 million), or NIS 0.55 (US$ 0.16) per share, compared to NIS 5.2 million (US$ 1.5 million), or NIS 0.38 (US$ 0.11) per share, in the third quarter of 2021.

Willi-Food ended the third quarter of 2022 with NIS 292.5 million (US$ 82.6 million) in cash and securities. Net cash used in operating activities for the third quarter of 2022 was NIS 12.8 million (US$ 3.6 million).

First Nine Months of Fiscal 2022 Highlights

  • Sales increased by 8.2% to NIS 365.1 million (US$ 103.1 million) from NIS 337.3 million (US$ 95.2 million) in the first nine months of 2021.
  • Gross profit increased by 4.4% year-over-year to NIS 107.1 million (US$ 30.2 million).
  • Operating income decreased by 9.3% year-over-year to NIS 33.5 million (US$ 9.4 million).
  • Net profit decreased by 32.6% year-over-year to NIS 28.5 million (US$ 8 million), or 7.8% of sales.
  • Basic earnings per share of NIS 2.05 (US$ 0.58).

First Nine Months Fiscal 2022 Summary

Sales for the first nine-months period ending September 30, 2022 increased by 8.2% to NIS 365.1 million (US$ 103.1 million) compared to NIS 337.3 million (US$ 95.2 million) in the first nine months of 2021. Sales increased mainly due to (i) increasing the range of the Company's products, (ii) proper inventory management and (iii) improving the presence of the Company's line of products in stores.

Gross profit for the first nine-months of 2022 increased by 4.4% to NIS 107.1 million (US$ 30.2 million), or 29.3% of revenues, compared to NIS 102.6 million (US$ 29.0 million), or 30.4% of revenues, in the first nine months of 2021. The increase in the gross profit was mainly due to the increased sales.

Operating profit for the first nine-months of 2022 decreased by 9.3% to NIS 33.5 million (US$ 9.4 million) from NIS 36.9 million (US$ 10.4 million) for the first nine-months of 2021. The decrease was primarily due to an increase in expenses for advertising and promotion.

Financial income net, totaled NIS 0.9 million (US$ 0.3 million) compared to financial income, net of NIS 17.6 million (US$ 4.9 million) in the first nine months of 2021. Financial income, net for the first nine months of 2022 was comprised mainly of income from changes in exchange rates in the amount of NIS 3.5 (US$ 1.0 million), interest and dividend income from the Company's portfolio of securities in the amount of NIS 6.8 million (US$ 1.9 million) and expenses for revaluation of the Company's portfolio of securities to fair value in the amount of NIS 8.9 million (US$ 2.5 million).  Financial income, net for the first nine months of 2021 was comprised mainly of income from the Company's portfolio of securities in the amount of NIS 13.4 million (US$ 3.8 million).

Willi-Food's income before taxes for the first nine-months of 2022 was NIS 34.4 million (US$ 9.7 million) compared to NIS 54.5 million (US$ 15.3 million) in the first nine-months of 2021.

Willi-Food's net profit in the first nine-months of 2022 was NIS 28.5 million (US$ 8 million), or NIS 2.05 (US$ 0.58) per share, compared to NIS 42.3 million (US$ 11.9 million), or NIS 3.05 (US$ 0.86) per share, recorded in the first nine-months of 2021.

NOTE A: NIS to US$ exchange rate used for convenience only

Convenience translation of New Israeli Shekels (NIS) into U.S. dollars was made at the rate of exchange prevailing on September 30, 2022, with U.S. $1.00 equal to NIS 3.543. The translation is made solely for the convenience of the reader.

NOTE B: IFRS

The Company's consolidated financial results for the three-month period ended September 30, 2022 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 and 3,000 selling points 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 Euro European Dairies, a wholly owned subsidiary that 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: war in Ukraine, the COVID-19 pandemic, disruptions to international commercial shipping and disruptions in commodity pricing 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, 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, 2021, filed with the Securities and Exchange Commission on March 15, 2022. 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

(unaudited)



Septembe30,

December 31

September 30,

December 31


2 0 2 2

2 0 2 1

2 0 2 1

2 0 2 2

2 0 2 1

2 0 2 1


NIS

US dollars (*)


(in thousands)

ASSETS














Current assets







Cash and cash equivalents

158,016

218,980

195,718

44,599

61,806

55,241

Financial assets carried at fair value
     through profit or loss

134,506

150,153

154,090

37,964

42,380

43,491

Trade receivables

147,053

131,779

134,017

41,509

37,194

37,826

Other receivables and prepaid expenses

3,161

3,969

4,939

890

1,121

1,394

Inventories

71,811

48,115

59,528

20,268

13,580

16,802

Current tax assets

6,042

4,599

5,780

1,705

1,298

1,631

Total current assets

520,589

557,595

554,072

146,935

157,379

156,385








Non-current assets







Property, plant and equipment

92,067

87,868

87,245

25,986

24,800

24,625

Less - Accumulated depreciation

51,689

49,563

48,431

14,589

13,989

13,669


40,378

38,305

38,814

11,397

10,811

10,956








Right of use asset

3,679

4,695

4,088

1,038

1,325

1,154

Financial assets carried at fair value
     through profit or loss

31,922

29,374

31,056

9,010

8,291

8,765

Goodwill

36

36

36

10

10

10

Total non-current assets

76,015

72,410

73,994

21,455

20,437

20,885









596,604

630,005

628,066

168,390

177,816

177,270

EQUITY AND LIABILITIES














Current liabilities







Current maturities of lease liabilities

569

1,372

1,136

161

387

321

Trade payables

16,985

(**)22,707

20,386

4,794

6,409

5,754

Employees Benefits

3,744

3,411

3,442

1,057

963

971

Financial liabilities at fair value through
     profit or loss

-

(**)3,095

13,960

-

874

3,940

Other payables and accrued expenses

8,045

22,145

11,216

2,270

6,249

3,166

Total current liabilities

29,343

52,730

50,140

8,282

14,882

14,152








Non-current liabilities







Lease liabilities

3,310

3,466

3,062

934

978

864

Deferred taxes

1,997

3,823

2,017

564

1,079

569

Retirement benefit obligation

1,811

1,934

1,615

511

546

456

Total non-current liabilities

7,118

9,223

6,694

2,009

2,603

1,889

Shareholders' equity







Share capital

1,490

1,490

1,490

421

421

421

Additional paid in capital

170,760

170,760

170,760

48,196

48,196

48,196

Capital fund

247

247

247

70

70

70


355

-

-

100

0

0

Treasury shares

(628)

(628)

(628)

(177)

(177)

(177)

Retained earnings

388,878

397,505

400,322

109,760

112,194

112,990

Remeasurement of the net liability in
     respect of defined benefit

(959)

(1,322)

(959)

(271)

(373)

(271)

Equity attributable to owners of the
     Company

560,143

568,052

571,232

158,099

160,331

161,229









596,604

630,005

628,066

168,390

177,816

177,270

(*)        Convenience translation into U.S. dollars.
(**)      Reclassified

 

 

 


G. WILLI-FOOD INTERNATIONAL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)




Nine months

Three months

Nine months


ended

ended

ended


September 30,

September 30,

September 30,


2 0 2 2

2 0 2 1

2 0 2 2

2 0 2 1

2 0 2 2

2 0 2 1


NIS

US dollars (*)


In thousands (except per share and share data)








Sales

365,124

337,325

123,900

106,268

103,055

95,209

Cost of sales

258,029

234,705

89,829

76,808

72,828

66,245








Gross profit

107,095

102,620

34,071

29,460

30,227

28,964








Operating costs and expenses:







Selling expenses

56,275

48,706

18,678

15,935

15,883

13,747

General and administrative expenses

17,349

17,179

5,856

5,415

4,897

4,849

Other income

-

200

-

63

-

57















Total operating expenses

73,624

65,685

24,534

21,287

20,780

18,539








Operating profit

33,471

36,935

9,537

8,173

9,447

10,425








Financial income

11,194

21,390

2,616

3,015

3,159

6,037

Financial expense

(10,296)

(3,825)

(2,580)

(4,602)

(2,906)

(1,080)








Total financial income (expense)

898

17,565

36

(1,587)

253

4,957















Income before taxes on income

34,369

54,500

9,573

6,586

9,700

15,382








Taxes on income

5,881

12,216

1,951

1,372

1,660

3,448








Profit for the period

28,488

42,284

7,622

5,214

8,040

11,934








Earnings per share:







Basic/ diluted earnings per share

2.05

3.05

0.55

0.38

0.58

0.86








Shares used in computation of
     basic/diluted EPS

13,867,017

13,867,017

13,867,017

13,867,017

13,867,017

13,867,017

Actual number of shares

13,867,017

13,867,017

13,867,017

13,867,017

13,867,017

13,867,017

 

 

(*)  Convenience translation into U.S. dollars.







 

 


G. WILLI-FOOD INTERNATIONAL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)










Nine months

Three months

Nine months


ended

ended

ended


September 30,

September 30,

September 30,


2 0 2 2

2 0 2 1

2 0 2 2

2 0 2 1

2 0 2 2

2 0 2 1


NIS

US dollars (*)


(in thousands)








CASH FLOWS - OPERATING ACTIVITIES







Profit from continuing operations

28,488

42,284

7,623

5,214

8,040

11,934

Adjustments to reconcile net profit to net cash used
     to continuing operating activities (Appendix A)

(18,996)

19,524

5,251

33,372

(5,361)

5,511








Net cash used in continuing operating activities

9,492

61,808

12,874

38,586

2,679

17,445















CASH FLOWS - INVESTING ACTIVITIES







Acquisition of property plant and equipment

(4,823)

(4,763)

(1,447)

(1,130)

(1,361)

(1,345)

Proceeds from sale of marketable securities, net

9,833

2,174

(2,223)

(12,987)

2,775

614

Proceeds from sale of property plant and equipment

-

200

-

63

-

56

Proceeds from loans granted to others

-

18,707

-

-

-

5,280








Net cash used in continuing investing activities

5,010

16,318

(3,670)

(14,054)

1,414

4,605















CASH FLOWS - FINANCING ACTIVITIES







Lease liability payments

(1,611)

(1,605)

(583)

(601)

(455)

(453)

Dividend

(39,932)

(59,975)

(19,966)

(59,975)

(11,271)

(16,928)















Net cash used to continuing financing activities

(41,543)

(61,580)

(20,549)

(60,576)

(11,726)

(17,381)















Increase (decrease) in cash and cash equivalents

(27,041)

16,546

(11,345)

(36,044)

(7,633)

4,669








Cash and cash equivalents at the beginning of
     the financial period

195,718

201,822

171,251

255,510

55,241

56,964








Exchange losses (profit) on cash and cash equivalents

(10,661)

612

(1,890)

(486)

(3,009)

173















Cash and cash equivalents of the end of the
     financial year

158,016

218,980

158,016

218,980

44,599

61,806

 

 

(*)        Convenience Translation into U.S. Dollars.







 

 


G. WILLI-FOOD INTERNATIONAL LTD.

APPENDIX A TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


CASH FLOWS - OPERATING ACTIVITIES:


A.         Adjustments to reconcile net profit to net cash from operating activities:






Nine months

Three months

Nine months


ended

ended

ended


September 30,

September 30,

September 30,


2 0 2 2

2 0 2 1

2 0 2 2

2 0 2 1

2 0 2 2

2 0 2 1


NIS

US dollars (*)


(in thousands)








Decrease (increase) in deferred
     income taxes

(20)

3,055

(201)

660

(6)

862

Unrealized loss (gain) on marketable
     securities

8,885

(13,301)

1,892

(1,182)

2,508

(3,754)

Depreciation and amortization

4,958

4,732

1,660

1,631

1,399

1,336

Capital gain on disposal of property
plant and equipment

-

(200)


(63)


(56)

Exchange gain (losses) on cash and
cash equivalents

10,661

(612)

1,890

486

3,009

(173)

Unrealized gain of financial liabilities
     at fair value through profit or loss

(13,960)

-

(1,310)

-

(3,940)

-

Share-based payment expense

355

-

355

-

100

-

Changes in assets and liabilities:







Increase (decrease) in trade
     receivables and other receivables

(496)

(**) 15,183

8,588

(**) 785

(140)

4,286

Decrease (increase) in inventories

(12,283)

11,399

2,066

10,348

(3,467)

3,217

Increase (decrease) in trade and other
     payables, and other current
     liabilities

(6,073)

12,865

(6,767)

16,868

(1,713)

3,631

Income tax paid

(11,023)

(**) (13,597)

(2,922)

(**) 3,839

(3,111)

(3,838)

Net cash flows from operating
activities

 

(18,996)

(**) 19,524

5,251

(**)33,372

(5,361)

5,511





(*)        Convenience Translation into U.S. Dollars.

(**)     Reclassified

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.
Yitschak Barabi, Chief Financial Officer
(+972) 8-932-1000
itsik.b@willi-food.co.il

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