YAVNE, Israel – May 24, 2018 - G. Willi-Food International Ltd. (NASDAQ: WILC) (the “Company” or “Willi-Food”), a global company that specializes in the development, marketing and international distribution of kosher foods, today announced its unaudited financial results for the first quarter ended March 31, 2018.

Willi-Food’s operating divisions include Willi-Food, a distributor of a broad variety of kosher foods, and Gold Frost, its wholly-owned subsidiary, a designer, developer and distributor of branded kosher innovative dairy food products.

 

·	Sales increased by 12.1% year-over-year to NIS 93.4 million (US$ 26.6 million).

·	Gross profit increased by 12.5% year-over-year to NIS 24.8 million (US$ 7.1 million).

·	Operating profit increased by 43.4% year-over-year to NIS 9.6 million (US$ 2.7 million).

·	Net profit increased by 67.9% year-over-year to NIS 7.2 million (US$ 2.1 million).

·	Net cash from operating activities of NIS 3.3 million (US$ 0.9 million).

·	Cash and securities balance net of short-term bank debt of NIS 261.5 million (US$ 74.4 million) as of March 31, 2018.

·	Earnings per share of NIS 0.54 (US$ 0.15).

Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food, commented: "We are pleased to present first quarter 2018 financial report which shows improvements in sales, gross profit, operating profit and net profit. Sales increased by 12.1% versus first quarter of 2017, gross profit increased by 12.5% versus first quarter of 2017, operating profit increased by 43.4% versus first quarter of 2017, and net profit increased by 67.9% versus first quarter of 2017.

 

Since the ownership of the company has been changed, the new management appointed and the new management's initiatives were introduced, Willi-Food shows major improvements in all operational parameters. The new management's initiatives allow for organizational stability and provide a solid basis for enhanced future growth."

 

 

Sales for the first quarter of 2018 increased by 12.1% to NIS 93.4 million (US$ 26.6 million) from NIS 83.3 million (US$ 23.7 million) recorded in the first quarter of 2017. Sales increased in the first quarter of 2018 primarily due redirection of resources in favor of sales, increasing the range of the Company's products and proper inventory management.

Gross profit for the first quarter of 2018 increased by 12.5% to NIS 24.8 million (US$ 7.1 million) compared to NIS 22 million (US$ 6.3 million) recorded in the first quarter of 2017 primarily due to the sales increase. First quarter gross margin increased by 0.4% to 26.5% compared to gross margin of 26.4% for the same period in 2017. The increase in gross margin was the result of the Company's continued strategic focus on selling a favorable mix of products which generate a higher gross margin.

Willi-Food’s operating profit for the first quarter of 2018 increased by 43.4% to NIS 9.6 million (US$ 2.7 million) compared to NIS 6.7 million (US$ 1.9 million) in the first quarter of 2017 primarily due to the sales increase. Selling expenses decreased by 9.5% from the comparable quarter of 2017 primarily due to a decrease in promotional expenses. Selling expenses as a percentage of sales were 11.5%, compared to 14.2% in the first quarter of 2017.

General and administrative expenses were NIS 4.5 million (US$ 1.3 million) in the first quarter of 2018, an increase of 27.1% compared to NIS 3.5 million (US$ 1 million) in the first quarter of 2017. This was primarily due to an increase in manpower and management salary.

Willi-Food’s income before taxes for the first quarter of 2018 was NIS 9.5 million (US$ 2.7 million) compared to income before taxes of NIS 5.8 million (US$ 1.6 million) in the first quarter of 2017.

Willi-Food's net profit in the first quarter of 2018 was NIS 7.2 million (US$ 2.1 million), or NIS 0.54 (US$ 0.15) per share, compared to NIS 4.3 million (US$ 1.2 million), or NIS 0.32 (US$ 0.09) per share, recorded in the first quarter of 2017.

Willi-Food ended the first quarter of 2018 with NIS 261.5 million (US$ 74.4 million) in cash and securities net of short-term bank debt. Net cash from operating activities for the first quarter of 2018 was NIS 3.3 million (US$ 0.9 million). Willi-Food's shareholders' equity at the end of March 2018 was NIS 422.8 million (US$ 120.3 million).

 

Convenience Translation to Dollars

The convenience translation of New Israeli Shekels (NIS) into U.S. dollars was made at the rate of exchange prevailing on March 31, 2018, U.S. $1.00 equals NIS 3.514 The translation was made solely for the convenience of the reader.

IFRS

The Company’s consolidated financial results for the three-month period ended March 31, 2018 are presented in accordance with International Financial Reporting Standards (“IFRS”).

 

ABOUT G. WILLI-FOOD INTERNATIONAL LTD.:

 

 

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, 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, 2017, filed with the Securities and Exchange Commission on April 30, 2018. 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.

 

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CASH FLOWS - OPERATING ACTIVITIES:

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SOURCE: G. Willi-Food International Ltd.

 

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