YAVNE, Israel, March 21, 2024 /PRNewswire/ -- G. Willi-Food International Ltd. (NASDAQ: WILC) (TASE: WILF) (the "Company" or "Willi-Food"), a global company that specializes in the development, marketing and international distribution of kosher foods, today announced its financial results for the fiscal year ended December 31, 2023.
Fiscal Year 2023 Highlights
- Sales increased by 9.0% to NIS 543.3 million (US$ 149.8 million) from NIS 498.3 million (USD 1374. million) in fiscal year 2022.
- Gross profit decreased by 15.9% from fiscal year 2022 to NIS 120.6 million (USD 33.3 million) in 2023.
- Operating profit decreased by 54.9% from fiscal year 2022 to NIS 20.4 million (USD 5.6 million) in 2023.
- Cash and cash equivalents balance of NIS 239.6 million (USD 66.1 million) as of December 31, 2023.
- Basic earnings per share of NIS 2.28 (US$ 0.63).
Management Comment
Zwi Williger Chairmen & Joseph Williger CEO, commented: "We are very pleased to present our fiscal year 2023 financial results with record annual sales. Calendar year 2023 was characterized by an appreciation of the value of the Israeli shekel and worldwide increase of prices of goods worldwide compared to 2022. As a result, the Company experienced a decrease in gross profit. Also in October 7, 2024, the 'Iron swords' war broke out between the State of Israel and the terror organization of Hamas in Gaza, which led to additional military conflicts on other fronts, including repeated attacks on ships in the Red Sea by the Houthis from Yemen, which caused restrictions of sailing on this route. One of the results has been an increase in transport costs of goods from the Far East, as well as significant delays in the arrival of goods from those destinations. Despite these negative effects, the Company increased its sales by expanding the range of its product portfolio and improving the visibility of its products in the stores. In parallel, the Company is working to improve the commercial terms with its customers and suppliers in order to improve its gross profit and operating profit results. The Company is also continuing the construction of the new logistics center which, in our estimation, after its completion will contribute significantly to the company's logistics capabilities and support continued growth both in terms of sales and in improving profit. Our main goals for 2024 are increasing sales by increasing the variety of products offered and by increasing the visibility and presence of our products on the shelves, improving our commercial terms with our customers and suppliers as well as continuing the construction of the new logistics center which is expected to be completed in 2025."
Fiscal 2023 Summary
Revenues for fiscal year 2023 increased by 9.0% to NIS 543.3 million (USD 149.8 million) from NIS 498.3 million (USD 137.4 million) recorded in fiscal year 2022. Sales increased mainly due to increases (i) in the range of the Company's products, (ii) in our inventory levels and its availability for the demand of our products, (iii) in the Company's efforts to improve visibility of the Company's line of products in stores and (iv) in advertising and promotional campaigns.
Gross profit for fiscal year 2023 decreased by 15.7% to NIS 120.6 million (USD 33.3 million), or 22.2% of revenues, from NIS 143.1 million (USD 39.4 million), or 28.7% of revenues, recorded in fiscal year 2022. The decrease in gross profit and gross margins was mainly due to increased costs of the Company's imported products.
Selling expenses for fiscal year 2023 were NIS 74.2 million (USD 20.5 million), or 13.6% of revenues, remaining at the same level compared to NIS 74.1 million (USD 20.4 million), or 14.9% of revenues recorded in fiscal year 2022. The decrease of selling expenses as a percentage of revenues was mainly due to a decrease in advertising costs.
General and administrative expenses for fiscal year 2023 increased by 8.3% to NIS 26.1 million (USD 7.2 million), or 4.8% of revenues, from NIS 24.1 million (USD 6.6 million), or 4.8% of revenues, recorded in fiscal year 2022. The increase in general and administrative expenses was primarily due to an increase in management compensation, including grants made under the Company's option plan.
Operating profit for fiscal year 2023 decreased by 54.9% to NIS 20.4 million (USD 5.6 million), or 3.7% of revenues, from NIS 45.1 million (USD 12.4 million), or 9.0% of revenues, recorded in fiscal year 2022. The decrease in operating profit was primarily due to an increase in cost of sales.
Financial income, net, for fiscal year 2023 amounted to NIS 18.8 million (USD 5.2 million), compared to NIS 8.9 million (USD 2.5 million) recorded in fiscal year 2022. Financial income, net for fiscal year 2023 comprised mainly of income from interest and dividend income from the Company's portfolio of securities in an amount of NIS 14.3 million (USD 3.9 million) and income from revaluation of the Company's portfolio of securities to fair value in the amount of NIS 5.3 million (USD 1.5 million), offset by expenses from other finance expenses in an amount of NIS 1.5 million (USD 0.4 million). Financial income, net for fiscal year 2022 comprised mainly of income from interest and dividend income from the Company's portfolio of securities in an amount of NIS 9.0 million (USD 2.5 million) and exchange rate differences in an amount of NIS 4.4 million (USD 1.2 million), offset by expenses from revaluation of the Company's portfolio of securities to fair value in an amount of NIS 3.8 million (USD 1.0 million).
Willi-Food ended fiscal year 2023 with NIS 239.6 million (USD 66.1 million) in cash and cash equivalents with no debt. Net cash from operating activities in fiscal year 2023 was NIS 33.3 million (USD 9.2 million). Willi-Food's shareholders' equity at the end of December 2023 was NIS 552.2 million (USD 152.2 million).
NOTE A: NIS to US$ exchange rate used for convenience only
The conversion from New Israeli Shekels (NIS) into U.S. dollars was made at the exchange rate of USD 1.00 to NIS 3.627 as of December 31, 2023. The use of USD is solely for the convenience of the reader.
NOTE B: IFRS
The Company's consolidated financial results for fiscal year ended December 31, 2023 are presented in accordance with International Financial Reporting Standards.
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 650 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 STATEMENTS
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 include statements regarding the timing of construction of the Company's new logistics center and its expected benefits. 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: delays in the construction of the Company's new logistics center and the risk that its expected benefits will not be materialized, 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 political, economic and military conditions in Israel, particularly the recent war in Israel, and economic conditions in the Company's core markets, delays and price increases due to the attacks on global shipping routes in the Red Sea, 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, risks associated with product liability claims and risks associated with the start of credit extension activity. 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, 2023, filed with the Securities and Exchange Commission on March 21, 2024. 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
|
|
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| December 31,
| December 31,
|
2 0 2 3
| 2 0 2 2
| 2 0 2 3
| 2 0 2 2
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NIS
| US dollars (*)
|
(in thousands)
|
ASSETS
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
| 137,466
| 150,607
| 37,901
| 41,524
|
Financial assets at fair value through profit or loss
| 102,163
| 116,762
| 28,167
| 32,192
|
Trade receivables, Net
| 160,379
| 165,838
| 44,218
| 45,723
|
Other receivables and prepaid expenses
| 10,164
| 4,956
| 2,802
| 1,366
|
Inventories, Net
| 62,475
| 71,929
| 17,225
| 19,832
|
Current tax assets
| 9,497
| 3,117
| 2,618
| 859
|
Total current assets
| 482,144
| 513,209
| 132,931
| 141,496
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
Property, plant and equipment
| 122,222
| 99,216
| 33,698
| 27,355
|
Less -Accumulated depreciation
| 55,636
| 51,533
| 15,339
| 14,208
|
| 66,586
| 47,683
| 18,359
| 13,147
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|
|
|
|
|
Right of use asset
| 2,124
| 3,391
| 586
| 935
|
Financial assets at fair value through profit or loss
| 46,143
| 44,113
| 12,722
| 12,162
|
Goodwill
| 36
| 36
| 10
| 10
|
Total non-current assets
| 114,889
| 95,223
| 31,677
| 26,254
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|
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| 597,033
| 608,432
| 164,608
| 167,750
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EQUITY AND LIABILITIES
|
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|
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Current liabilities
|
|
|
|
|
|
|
|
|
|
Current maturities of lease liabilities
| 1,512
| 2,194
| 417
| 605
|
Trade payables
| 21,622
| 24,842
| 5,961
| 6,849
|
Employees Benefits
| 4,193
| 3,756
| 1,156
| 1,036
|
Other payables and accrued expenses
| 10,854
| 11,836
| 2,993
| 3,264
|
Total current liabilities
| 38,181
| 42,628
| 10,527
| 11,754
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|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Lease liabilities
| 694
| 1,284
| 191
| 354
|
Deferred taxes
| 4,868
| 4,198
| 1,342
| 1,156
|
Retirement benefit obligation
| 1,055
| 878
| 291
| 242
|
Total non-current liabilities
| 6,617
| 6,360
| 1,824
| 1,752
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
Share capital
| 1,490
| 1,490
| 411
| 411
|
Additional paid in capital
| 172,589
| 171,550
| 47,585
| 47,298
|
Remeasurement of the net liability in respect of defined benefit
| (154)
| (195)
| (42)
| (54)
|
Capital fund
| 247
| 247
| 68
| 68
|
Retained earnings
| 378,691
| 386,980
| 104,408
| 106,694
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Treasury shares
| (628)
| (628)
| (173)
| (173)
|
Equity attributable to owners of the Company
| 552,235
| 559,444
| 152,257
| 154,244
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|
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|
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|
| 597,033
| 608,432
| 164,608
| 167,750
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(*) Convenience translation into U.S. dollars.
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G. WILLI–FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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| For the year ended
December 31,
| For the year ended
December 31,
|
2 0 2 3
| 2 0 2 2
| 2 0 2 3
| 2 0 2 2
|
NIS
| US dollars (*)
|
In thousands (except per share and share data)
|
|
|
|
|
|
Sales
| 543,262
| 498,325
| 149,783
| 137,393
|
Cost of sales
| 422,695
| 355,228
| 116,541
| 97,940
|
|
|
|
|
|
Gross profit
| 120,567
| 143,097
| 33,242
| 39,453
|
Operating costs and expenses:
|
|
|
|
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Selling expenses
| 74,216
| 74,106
| 20,462
| 20,432
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General and administrative expenses
| 26,110
| 24,117
| 7,199
| 6,649
|
Other income
| (109)
| (222)
| (30)
| (61)
|
Total operating expenses
| 100,217
| 98,001
| 27,631
| 27,020
|
|
|
|
|
|
Operating profit
| 20,350
| 45,096
| 5,611
| 12,433
|
|
|
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Financial income
| 20,363
| 13,417
| 5,614
| 3,699
|
Financial expense
| 1,521
| 4,539
| 419
| 1,251
|
Total Finance income
| 18,842
| 8,878
| 5,195
| 2,448
|
|
|
|
|
|
Income before taxes on income
| 39,192
| 53,974
| 10,806
| 14,881
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Taxes on income
| 7,536
| 12,410
| 2,078
| 3,422
|
|
|
|
|
|
Income after taxes on income
| 31,656
| 41,564
| 8,728
| 11,459
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Earnings per share:
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Basic / diluted earnings per share
| 2.28
| 3.00
| 0.63
| 0.83
|
|
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|
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|
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|
|
Shares used in computation of
basic/diluted EPS
| 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
|
|
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|
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(*) Convenience translation into U.S. dollars.
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G. WILLI–FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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| For the year ended
| For the year ended
|
| December 31,
| December 31,
|
| 2 0 2 3
| 2 0 2 2
| 2 0 2 3
| 2 0 2 2
|
| NIS
| US dollars (*)
|
| In thousands (except per share and share data)
|
CASH FLOWS - OPERATING ACTIVITIES
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|
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Profit from continuing operations
| 31,656
| 41,564
| 8,728
| 11,460
|
|
Adjustments to reconcile net profit to net cash from continuing
operating activities (Appendix A)
| 2,052
| (27,495)
| 566
| (7,581)
|
|
Net cash from continuing operating activities
| 33,708
| 14,069
| 9,294
| 3,879
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CASH FLOWS - INVESTING ACTIVITIES
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Acquisition of property plant and equipment
| (4,605)
| (**)(6,006)
| (1,270)
| (1,656)
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|
Acquisition of property plant and equipment under construction
| (18,941)
| (**)(7,344)
| (5,222)
| (2,025)
|
|
Proceeds from sale of property plant and Equipment
| 208
| 351
| 57
| 97
|
|
Proceeds from sale of marketable securities, net
| 18,166
| 21,285
| 5,009
| 5,868
|
|
Net cash used in (from) continuing investing activities
| (5,172)
| 8,286
| (1,426)
| 2,284
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CASH FLOWS - FINANCING ACTIVITIES
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Lease liability payments
| (2,408)
| (2,180)
| (664)
| (601)
|
|
Dividend distribution
| (39,945)
| (54,906)
| (11,012)
| (15,138)
|
|
Net cash used to continuing financing activities
| (42,353)
| (57,086)
| (11,676)
| (15,739)
|
|
|
|
|
|
|
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Decrease in cash and cash equivalents
| (13,817)
| (34,731)
| (3,808)
| (9,576)
|
|
Cash and cash equivalents at the beginning of the year
| 150,607
| 195,718
| 41,523
| 53,961
|
|
Exchange gains (losses) on cash and cash equivalents
| 676
| (10,380)
| 186
| (2,862)
|
|
Cash and cash equivalents at the end of the year
| 137,466
| 150,607
| 37,901
| 41,523
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|
|
|
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|
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|
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|
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|
|
|
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(*) Convenience Translation into U.S. Dollars.
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(**) Reclassified
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G. WILLI-FOOD INTERNATIONAL LTD.
APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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| For the year ended
| For the year ended
|
December 31,
| December 31,
|
2 0 2 3
| 2 0 2 2
| 2 0 2 3
| 2 0 2 2
|
NIS
| US dollars (*)
|
In thousands (except per share and share data)
|
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CASH FLOWS - OPERATING ACTIVITIES:
A. Adjustments to reconcile net profit to net cash from
continuing operating activities
|
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Decrease in deferred income taxes
| 670
| 2,181
| 185
| 601
|
Unrealized loss (gain) on marketable securities
| (5,597)
| 2,985
| (1,543)
| 823
|
Loss (gain) of financial liabilities at fair value through profit or loss
| -
| (13,960)
| -
| (3,849)
|
Depreciation and amortization
| 6,950
| 6,508
| 1,916
| 1,794
|
Stock based compensation reserve
| 1,039
| 790
| 286
| 218
|
Capital gain on disposal of property plant and equipment
| (109)
| (222)
| (30)
| (61)
|
Exchange (losses) gains on cash and cash equivalents
| (676)
| 10,380
| (186)
| 2,862
|
|
|
|
|
|
|
|
|
|
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Changes in assets and liabilities:
|
|
|
|
|
Decrease (Increase) in trade receivables and other receivables
| 7,527
| (17,151)
| 2,075
| (4,729)
|
Decrease (increase) in inventories
| 9,454
| (12,401)
| 2,607
| (3,419)
|
Increase (decrease) in trade payables, other payables and other
current liabilities
| (3,547)
| 5,418
| (978)
| 1,494
|
Cash generated from operations
| 15,711
| (15,472)
| 4,332
| (4,266)
|
Income tax paid
| (13,659)
| (12,023)
| (3,766)
| (3,315)
|
Net cash flows from (used in) operating activities
| 2,052
| (27,495)
| 566
| (7,581)
|
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(*) Convenience Translation into U.S. Dollars.
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Logo: https://mma.prnewswire.com/media/959267/G_Willi_Food_International_Logo.jpg
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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SOURCE G. Willi-Food International Ltd.
