G. Willi-Food International Reports a Record High Year With Sales, and All Profit Parameters
03/25/2021 - 06:02 AM
YAVNE, Israel , March 25, 2021 /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, 2020 .
Fiscal Year 2020 Highlights
Sales increased by 14.8% from fiscal year 2019 to NIS 454.1 million (US$ 141.2 million ). Gross profit increased by 17.4% from fiscal year 2019 to NIS 145.4 million (US$ 45.2 million ), or 32% of sales. Operating profit increased by 21.7% from fiscal year 2019 to NIS 57.6 million (US$ 17.9 million). Profit before tax increased by 3.7 % from fiscal year 2019 to NIS 67.7 million (US$ 21.1 million ). Cash and securities balance of NIS 356.5 million (US$ 110.9 million ) as of December 31, 2020 . Management Comment
Zwi Williger & Joseph Williger , Co-Chairmen of Willi-Food , commented: "We are very pleased to present our fiscal year 2020 financial results which show our highest ever sales, gross profit, operating profit, profit before tax and net profit. Since almost the beginning of fiscal year 2020, the Company has been operating in the COVID-19 pandemic environment, which has led to changes in consumption habits of consumers in parallel with various restrictions imposed on the public. Despite this difficult environment, the Company managed to deliver a record performance with sales and all profit parameters. We believe this performance was driven in part by following our strategy of developing new and profitable products, entering into new categories, improving our visibility in the stores and strengthening our supply chain. We intend to continue to work hard to achieve the goals we have set for the Company over the next few years, and we believe that with our excellent management team we will meet those objectives."
According to retail data analytics provided by StoreNext Ltd[1] , the Company recorded a higher growth rate in 2020 for "sale out" sales (i.e., sales to the final consumer) than any other Israeli food and beverage company, growing 25.9% compared to the 9.3% average growth of such companies.
Fiscal 2020 Summary
Revenues for fiscal year 2020 increased by NIS 58.5 million (USD 18.2 million ), or 14.8% , to NIS 454.1 million (USD 141.2 million ) from NIS 395.6 million (USD 123.1 million ) recorded in fiscal year 2019 . Revenues increased primarily due to the COVID-19 pandemic, which led to an increase in demand for the Company's line of products, primarily in retail chains, and due to a redirection of resources in favor of sales, increasing the variety of the Company's products, improving the company visibility in the stores and improved inventory management.
Cost of sales for fiscal year 2020 increased by 13.6% to NIS 308.7 million (USD 96.0 million ), or 68.0% of revenues, from NIS 271.8 million (USD 84.5 million ), or 68.7% of revenues, recorded in fiscal year 2019. The increase in cost of sales was primary due to increase in sales.
Gross profit for fiscal year 2020 increased by 17.4% to NIS 145.4 million (USD 45.2 million ), or 32.0% of revenues, from NIS 123.9 million (USD 38.5 million ), or 31.3% of revenues, recorded in fiscal year 2019. The increase in gross profit was primary due to increase in sales and the gross margin increase resulting from the Company's strategy of selling a favorable mix of products which generate a higher gross margin.
Selling expenses for fiscal year 2020 increased by 18.9% to NIS 66.0 million (USD 20.5 million ), or 14.5% of revenues from NIS 55.5 million (USD 17.3 million ), or 14% of revenues, recorded in fiscal year 2019. The increase in selling expenses was primarily due to an increase in payroll expenses in the logistics department as a result of working in two shifts to comply with government workplace restrictions due to the COVID-19 pandemic, and an increase of freight to customers' expenses to support sales growth.
General and administrative expenses for fiscal year 2020 increased by 4.0% to NIS 21.9 million (USD 6.8 million ), or 4.8% of revenues, from NIS 21.1 million (USD 6.6 million ), or 5.3% of revenues, recorded in fiscal year 2019. The increase in general and administrative expenses was primarily due to an increase in goal - based bonuses in the payroll expenses.
Operating profit for fiscal year 2020 increased by NIS 10.3 million (USD 3.2 million ), or by 21.7% , to NIS 57.6 million (USD 17.9 million ), or 12.7% of revenues, from NIS 47.3 million (USD 14.7 million ), or 12.0% of revenues, recorded in fiscal year 2019. The increase in operating profit was primarily due to increase in gross profit.
Financial income, net, for fiscal year 2020 amounted to NIS 10.1 million (USD 3.1 million ) compared to net income of NIS 18.0 million (USD 5.6 million ) recorded in fiscal year 2019. The decrease in finance income, net was primarily due to a decrease in interest income and dividends received from the Company's securities portfolio and from decrease in revaluation of the Company's securities portfolio to its fair value.
Willi-Food ended fiscal year 2020 with NIS 356.5 million (US$ 110.9 million ) in cash and securities with no short-term debt. Net cash from operating activities in fiscal year 2020 was NIS 64.2 million (US$ 20.0 million ). Willi-Food's shareholders' equity at the end of December 2020 was NIS 585.7 million (US$ 182.2 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 as of December 31, 2020 , on which USD 1.00 equaled NIS 3.215 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, 2020 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 1,250 customers and 2,500 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 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, 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, adverse effects from the ongoing COVID-19 pandemic, 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, 2020 , filed with the Securities and Exchange Commission on March 27, 2020 . 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
December 31,
December 31,
2 0 2 0
2 0 1 9
2 0 2 0
2 0 1 9
NIS
US dollars (*)
(in thousands)
ASSETS
Current assets
Cash and cash equivalents
201,822
121,860
62,775
37,904
Financial assets at fair value through profit or loss
154,700
141,543
48,118
44,026
Loans to others
18,707
17,650
5,819
5,490
Trade receivables
131,301
133,039
40,840
41,381
Other receivables and prepaid expenses
6,667
9,360
2,074
2,911
Inventories
59,514
71,548
18,511
22,254
Current tax assets
3,965
-
1,233
-
Total current assets
576,676
495,000
179,370
153,966
Non-current assets
Property, plant and equipment
83,105
81,402
25,849
25,319
Less -Accumulated depreciation
46,460
43,881
14,451
13,649
36,645
37,521
11,398
11,670
Right of use asset
2,866
3,860
891
1,201
Financial assets at fair value through profit or loss
13,700
-
4,262
-
Goodwill
36
36
11
10
Deferred taxes
-
818
-
254
Total non-current assets
53,247
42,235
16,562
13,135
629,923
537,235
195,932
167,101
EQUITY AND LIABILITIES
Current liabilities
Current maturities of lease liabilities
1,393
1,675
433
521
Trade payables
23,474
24,650
7,301
7,667
Employees Benefits
3,437
2,911
1,069
905
Current tax liabilities
-
3,750
-
1,166
Other payables and accrued expenses
11,611
9,195
3,612
2,860
Total current liabilities
39,915
42,181
12,415
13,119
Non-current liabilities
Lease liabilities
1,592
2,212
495
688
Deferred taxes
768
-
238
-
Retirement benefit obligation
1,905
1,486
593
462
Total non-current liabilities
4,265
3,698
1,326
1,150
Shareholders' equity
Share capital
1,490
1,425
463
443
Additional paid in capital
170,760
128,354
53,114
39,923
Capital fund
247
247
77
77
Treasury shares
(628)
(628)
(195)
(195)
Retained earnings
415,196
362,987
129,143
112,904
Remeasurement of the net liability in respect of defined benefit
(1,322)
(1,029)
(411)
(320)
Equity attributable to owners of the Company
585,743
491,356
182,191
152,832
629,923
537,235
195,932
167,101
(*) Convenience translation into U.S. dollars.
G. WILLI–FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the year ended
For the year ended
December 31,
December 31,
2 0 2 0
2 0 1 9
2 0 2 0
2 0 1 9
NIS
US dollars (*)
In thousands (except per share and share data)
Sales
454,094
395,637
141,242
123,060
Cost of sales
308,717
271,784
96,024
84,536
Gross profit
145,377
123,853
45,218
38,524
Operating costs and expenses:
Selling expenses
65,990
55,490
20,526
17,260
General and administrative expenses
21,918
21,067
6,817
6,553
Other income
108
-
34
-
Total operating expenses
87,800
76,557
27,309
23,813
Operating profit
57,577
47,296
17,909
14,711
Financial income
11,348
20,966
3,530
6,521
Financial expense
1,253
3,016
389
938
Total Finance Income
10,095
17,950
3,141
5,583
Profit before taxes on income
67,672
65,246
21,050
20,294
Taxes on income
(15,463)
(13,735)
(4,810)
(4,272)
Income after taxes on income
52,209
51,511
16,240
16,022
Earnings per share:
Basic / diluted earnings per share
3.89
3.90
1.21
1.21
Shares used in computation of
basic/diluted EPS
13,433,684
13,217,017
13,433,684
13,217,017
Actual number of shares
13,867,017
13,217,017
13,867,017
13,217,017
(*) Convenience translation into U.S. dollars.
G. WILLI–FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended
For the year ended
December 31,
December 31,
2 0 2 0
2 0 1 9
2 0 2 0
2 0 1 9
NIS
US dollars (*)
In thousands (except per share and share data)
CASH FLOWS - OPERATING ACTIVITIES
Profit from continuing operations
52,209
51,511
16,240
16,022
Adjustments to reconcile net profit to net cash from (used to) continuing operating activities (Appendix A)
11,967
(51,948)
3,722
(16,158)
Net cash from (used to) continuing operating activities
64,176
(437)
19,962
(136)
CASH FLOWS - INVESTING ACTIVITIES
Acquisition of property plant and equipment
(2,903)
(1,791)
(903)
(557)
Proceeds from sale of property plant and equipment
108
-
34
-
Loans granted to others
(20,000)
(43,650)
(6,221)
(13,577)
Proceeds from loans granted to others
18,943
26,000
5,892
8,087
Proceeds from sale (purchase) of marketable securities, net
(20,739)
11,336
(6,451)
3,526
Net cash used to continuing investing activities
(24,591)
(8,105)
(7,649)
(2,521)
CASH FLOWS - FINANCING ACTIVITIES
Lease liability payments
(1,819)
(1,128)
(566)
(351)
Shares issue
42,471
-
13,210
-
Acquisition of treasury shares
-
(628)
-
(195)
Net cash used to continuing financing activities
40,652
(1,756)
12,644
(546)
Increase (decrease) in cash and cash equivalents
80,237
(10,298)
24,957
(3,203)
Cash and cash equivalents at the beginning of the year
121,860
134,287
37,904
41,769
Exchange losses on cash and cash equivalents
(275)
(2,129)
(86)
(662)
Cash and cash equivalents at the end of the year
201,822
121,860
62,775
37,904
(*) Convenience Translation into U.S. Dollars.
G. WILLI-FOOD INTERNATIONAL LTD.
APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended
For the year ended
December 31,
December 31,
2 0 2 0
2 0 1 9
2 0 2 0
2 0 1 9
NIS
US dollars (*)
In thousands (except per share and share data)
CASH FLOWS - OPERATING ACTIVITIES :
A. Adjustments to reconcile net profit to net cash from (used to) continuing operating activities
Decrease (Increase) in deferred income taxes
1,586
2,064
493
642
Unrealized loss (gain) on marketable securities
(6,115)
(14,972)
(1,903)
(4,657)
Depreciation and amortization
5,690
4,815
1,770
1,498
Capital gain on disposal of property plant and equipment
(108)
-
(34)
-
Exchange (losses)/gains on cash and cash equivalents
275
2,129
86
662
Changes in assets and liabilities:
Decrease (increase) in trade receivables and other receivables
22,029
(29,776)
6,853
(9,262)
Increase in inventories
12,034
(22,259)
3,743
(6,923)
Increase (decrease) in trade and other payables, and other current liabilities
(1,861)
16,050
(579)
4,992
Cash generated from operations
33,530
(41,949)
10,429
(13,048)
Income tax paid
(21,563)
(9,999)
(6,707)
(3,110)
Net cash flows from operating activities
11,967
(51,948)
3,722
(16,158)
(*) Convenience Translation into U.S. Dollars.
[1] StoreNext Ltd. has a direct connection to the cash register systems of over 2,200 points of sales, providing information regarding 80% of real time sales data in Israel .
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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SOURCE G. Willi-Food International Ltd.