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
11/24/2022 - 04:29 AM
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 .
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)
Septembe r 30,
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) 8-932-1000itsik.b@willi-food.co.il
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