G. Willi-Food International Reports Its Financial Results for the Third Quarter of 2021
11/30/2021 - 10:00 AM
YAVNE, Israel , Nov. 30, 2021 /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, 2021 .
Third Quarter Fiscal Year 2021 Highlights
Sales decreased by 5.1% year-over-year to NIS 106.3 million (US$ 32.9 million ). Gross profit decreased by 13.4% year-over-year to NIS 29.5 million (US$ 9.1 million ). Operating profit decreased by 41.7% year-over-year to NIS 8.2 million (US$ 2.5 million ). Total financial expense, net NIS 1.6 million (US$ 0.5 million ) compared to Total financial income net on third quarter of 2020 of NIS 14.5 million (US$ 5.4 million ). Income before taxes decreased by 76.9% year-over-year to NIS 6.6 million (US$ 2.0 million ). Net profit decreased by 76.2% year-over-year to NIS 5.2 million (US$ 1.6 million ), or 4.9% of sales. Cash and cash equivalents balance of NIS 219.0 million (US$ 67.8 million ) as of September 30, 2021 . Earnings per share of NIS 0.38 (US$ 0.12) . Management Comment
Zwi Williger & Joseph Williger , Co-Chairmen of Willi-Food2021 financial results. The Company experienced a decline in sales, mainly resulting from a decrease in working days in September due to Jewish holidays and due to decline in sales in the food industry as a whole.
"As a result of the Covid-19 pandemic, the world is still experiencing disruptions to international commercial shipping, which has led to an increase in the demand for containers and a significant increase in sea freight and commodity prices which affected the company gross margin.
"Despite the challenging environment, the Company has worked to maintain a high level of sales and positive operational parameters for the third quarter of 2021. The Company's strategy for the near future is to improve commercial conditions with its suppliers and customers, develop new products, enter into new categories with potentially high gross profit margins, improve the visibility of its products in the stores and strengthen its brand, supply chain and sufficient inventory. We intend to work hard to achieve the goals we have set for the Company."
Third Quarter Fiscal 2021 Summary
Sales for the third quarter of 2021 decreased by 5.1% to NIS 106.3 million (US$ 32.9 million ) from NIS 111.9 million (US$ 34.7 million ) in the third quarter of 2020. The decrease is mainly due to decrease in working days in September 2021 due to Jewish holidays and lower sales in the food industry as a whole.
Gross profit for the third quarter of 2021 decreased by 13.4% to NIS 29.5 million (US$ 9.1 million ) compared to NIS 34.0 million (US$ 10.5 million ) in the third quarter of 2020. Third quarter gross margin decreased by 13.4% to 27.7% compared to gross margin of 30.4% for the same period in 2020. The decrease in gross profit was mainly due to increase costs of the Company's imported products and due to increases in shipping costs
Selling expenses increased by 9.7% to NIS 15.9 million (US$ 4.9 million ) compared to NIS 14.5 million (US$ 4.5 million ) in the third quarter of 2020 primarily due to an increase in payroll expenses in the logistics and sales departments and due to an increase in advertising and promotion.
General and administrative expenses decreased by 1.3% to NIS 5.4 million (US$ 1.7 million ) compared to NIS 5.5 million (US$ 1.7 million ) in the third quarter of 2020.
As a result of the foregoing, operating profit for the third quarter of 2021 decreased by 41.7% to NIS 8.2 million (US$ 2.5 million ) compared to NIS 14.0 million (US$ 4.3 million ) in the third quarter of 2020.
Financial expense, net totaled NIS 1 .6 million (USD$ 0.5 million ) compared to Financial income, net of NIS 14.5 million (US$ 4.5 million ) in the third quarter of 2020. Financial expense, net for the third quarter of 2021 was comprised mainly of exchange rate differences of NIS 4.3 million (US$ 1.3 million ), interest and dividend income from the Company's portfolio of securities in the amount of NIS 1.8 million (US$ 0.6 million ) and income from revaluation of the Company's portfolio of securities to fair value in the amount of NIS 1.3 million (US$ 0.4 million ).
Income before taxes on income for the third quarter of 2021 was NIS 6.6 million (US$ 2.0 million ) compared to income before taxes on income of NIS 28.5 million (US$ 8.8 million ) in the third quarter of 2020.
Net profit in the third quarter of 2021 was NIS 5.2 million (US$ 1.6 million ), or NIS 0.38 (US$ 0.12) per share, compared to NIS 21.9 million (US$ 6.8 million ), or NIS 1.63 (US$ 0.51) per share, in the third quarter of 2020.
Willi-Food ended the third quarter of 2021 with NIS 219.0 million (US$ 67.8 million ) in cash and cash equivalents. Net cash from operating activities for the third quarter of 2021 was NIS 38.6 million (US$ 12.0 million ). Willi-Food's shareholders' equity as of June 30, 2021 was NIS 568.1 million (US$ 191.0 million ).
First Nine Months of Fiscal 2021 Highlights
Sales decreased by 2.3% year-over-year to NIS 337.3 million (US$ 104.5 million ). Gross profit decreased by 10.8% year-over-year to NIS 102.6 million (US$ 31.8 million ). Operating profit decreased by 26.1% year-over-year to NIS 36.9 million (US$ 11.4 million ). Total financial income increased by 4,571% year-over-year to NIS 17.6 million (US$ 5.4 million ). Income before taxes increased by 8.3% year-over-year to NIS 54.5 million (US$ 16.9 million ). Net profit increased by 10.4% to NIS 42.3 million (US$ 13.1 million ), or 12.5% of sales. Basic earnings per share of NIS 3.05 (US$ 0.94) . First Nine Months Fiscal 2021 Summary
Sales for the nine-month period ending September 30, 2021 decreased by 2.3% to NIS 337.3 million (US$ 104.5 million ) compared to NIS 345.2 million (US$ 106.9 million ) in the first nine months of 2020. The decrease in the Company's sales is primarily due to the significant increase in demand for the Company's line of products, especially in retail chains, during the outbreak of Covid 19 in the first quarter of 2020.
Gross profit for the period decreased by 10.8% to NIS 102.6 million (US$ 31.8 million ) compared to NIS 115.1 million (US$ 35.6 million ) for the first nine-month of 2020. Gross margin for the first nine months of 2021 was 30.4% compared to a gross margin of 33.3% for the same period in 2020. The decrease in gross profit was mainly due to increased shipping costs.
Operating profit for the first nine month of 2021 decreased by 26.1% to NIS 36.9 million (US$ 11.4 million ) from NIS 49.9 million (US$ 15.0 million ) reported in the comparable period of last year primarily due to the decrease of gross profit.
Financial income, net totaled NIS 17.6 million (USD$ 5.4 million ) compared to Financial income, net of NIS 0.4 million (US$ 0.1 million ) in the first nine-month of 2020. Financial income, net for the first nine-month of 2021 comprised mainly from income from revaluation of the Company's portfolio of securities to fair value in the amount of NIS 13.3 million (US$ 4.1 million ), interest and dividend income from the Company's portfolio of securities in the amount of NIS 8.0 million (US$ 2.5 million ), minus expenses from exchange rate differences in the amount of NIS 2.7 million (US$ 0.8 million ) and other finance expenses in the amount of NIS 1 million (US$ 0.3 million ).
Income before taxes for the first nine months of 2021 increased by 8.3% to NIS 54.5 million (US$ 16.9 million ) compared to NIS 50.3 million (US$ 15.6 million ) in the first nine months of 2020.
Net profit for the first nine months of 2021 increased by 10.4% to NIS 42.3 million (US$ 13.1 million ), or NIS 3.05 (US$ 0.94) per share, from NIS 38.3 million (US$ 11.9 million ), or NIS 2.88 (US$ 0.89) per share, in the first nine months of 2020.
NOTE A: NIS to US$ exchange rate used for convenience only
The convenience translation of New Israeli Shekels (NIS) into U.S. dollars was made at the rate of exchange prevailing on September 30, 2021 , U.S. $1.00 NIS 3.229 . The translation was made solely for the convenience of the reader.
NOTE B: IFRS
The Company's consolidated financial results for the three-month and nine-month period ended September 30, 2021 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 1,600 customers and 3,200 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 Europian Dairies (Gold Frost), 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: impacts of the ongoing COVID-19 pandemic; 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, 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 25, 2021 . 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)
September 30,
December 31,
September 30,
December 31,
2 0 2 1
2 0 2 0
2 0 2 0
2 0 2 1
2 0 2 0
2 0 2 0
NIS
US dollars (*)
(in thousands)
ASSETS
Current assets
Cash and cash equivalents
218,980
214,408
201,822
67,817
66,401
62,503
Financial assets carried at fair value
150,153
150,197
154,700
46,501
46,515
47,910
Trade receivables
131,779
136,748
131,301
40,811
42,350
40,663
Loans to others
-
3,650
18,707
-
1,130
5,793
Other receivables and prepaid expenses
3,969
3,646
6,667
1,229
1,129
2,065
Inventories
48,115
56,677
59,514
14,901
17,553
18,431
Current tax assets
4,599
435
3,965
1,424
135
1,228
Total current assets
557,595
565,761
576,676
172,683
175,213
178,593
Non-current assets
Property, plant and equipment
87,868
83,394
83,105
27,212
25,827
25,737
Less -Accumulated depreciation
49,563
46,675
46,460
15,349
14,455
14,388
38,305
36,719
36,645
11,863
11,372
11,349
Right of use asset
4,695
3,208
2,866
1,454
993
888
Financial assets carried at fair value
29,374
9,273
13,700
9,097
2,872
4,242
Goodwill
36
36
36
11
11
11
Deferred taxes
-
1,047
-
-
324
-
Total non-current assets
72,410
50,283
53,247
22,425
15,572
16,490
630,005
616,044
629,923
195,108
190,785
195,083
EQUITY AND LIABILITIES
Current liabilities
Current maturities of lease liabilities
1,372
1,520
1,393
425
471
431
Trade payables
22,707
25,325
23,474
7,032
7,843
7,270
Employees Benefits
3,411
3,114
3,437
1,056
964
1,064
Other payables and accrued expenses
25,240
10,509
11,611
7,817
3,255
3,596
Total current liabilities
52,730
40,468
39,915
16,330
12,533
12,361
Non-current liabilities
Lease liabilities
3,466
1,806
1,592
1,073
559
493
Deferred taxes
3,823
-
768
1,184
-
238
Retirement benefit obligation
1,934
1,628
1,905
599
504
590
Total non-current liabilities
9,223
3,434
4,265
2,856
1,063
1,321
Shareholders' equity
Share capital
1,490
1,490
1,490
461
461
461
Additional paid in capital
170,760
170,760
170,760
52,883
52,883
52,883
Capital fund
247
247
247
76
76
76
Treasury shares
(628)
(628)
(628)
(194)
(194)
(194)
Remeasurement of the net liability in
(1,322)
(1,029)
(1,322)
(409)
(319)
(409)
Retained earnings
397,505
401,302
415,196
123,105
124,282
128,584
Equity attributable to owners of the
568,052
572,142
585,743
175,922
177,189
181,401
630,005
616,044
629,923
195,108
190,785
195,083
(*) Convenience translation into U.S. dollars.
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 1
2 0 2 0
2 0 2 1
2 0 2 0
2 0 2 1
2 0 2 0
NIS
US dollars (*)
In thousands (except per share and share data)
Sales
337,325
345,189
106,268
111,933
104,467
106,903
Cost of sales
234,705
230,133
76,808
77,902
72,687
71,271
Gross profit
102,620
115,056
29,460
34,031
31,780
35,632
Operating costs and expenses:
Selling expenses
48,706
47,344
15,935
14,522
15,084
14,662
General and administrative expenses
17,179
17,823
5,415
5,483
5,320
5,520
Other income
200
58
63
-
62
18
Total operating expenses
65,685
65,109
21,287
20,005
20,342
20,164
Operating profit
36,935
49,947
8,173
14,026
11,438
15,468
Financial income
21,390
3,689
3,015
14,704
6,624
1,142
Financial expense
3,825
3,313
4,602
231
1,184
1,026
Total financial income (expense)
17,565
376
(1,587)
14,473
5,440
116
Income before taxes on income
54,500
50,323
6,586
28,499
16,878
15,584
Taxes on income
12,216
12,007
1,372
6,582
3,783
3,718
Profit for the period
42,284
38,316
5,214
21,917
13,095
11,866
Earnings per share:
Basic/ diluted earnings per share
3.05
2.88
0.38
1.63
0.94
0.89
Shares used in computation of
13,867,017
13,289,239
13,867,017
13,433,684
13,867,017
13,433,684
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 1
2 0 2 0
2 0 2 1
2 0 2 0
2 0 2 1
2 0 2 0
NIS
US dollars (*)
(in thousands)
CASH FLOWS - OPERATING ACTIVITIES
Profit from continuing operations
42,284
38,316
5,214
21,917
13,095
11,866
Adjustments to reconcile net profit to net cash used to
19,524
21,127 (**)
33,372
5,977 (**)
6,046
6,543
Net cash used in continuing operating activities
61,808
59,443
38,586
27,894
19,141
18,409
CASH FLOWS - INVESTING ACTIVITIES
Acquisition of property plant and equipment
(4,763)
(1,991)
(1,130)
(1,256)
(1,475)
(617)
Proceeds from sale (purchase) of marketable securities, net
2,174
(20,669)
(12,987)
(23,195)
673
(6,400)
Proceeds from sale of property plant and equipment
200
58
63
-
62
18
Proceeds from loans granted to others
18,707
14,000
-
-
5,794
4,336
Net cash used in (used to) continuing investing
16,318
(8,602)
(14,054)
(24,451)
5,054
(2,663)
CASH FLOWS - FINANCING ACTIVITIES
Lease liability payments
(1,605)
(1,334)
(601)
(507)
(497)
(413)
Dividend
(59,975)
-
(59,975)
-
(18,574)
-
Shares issue
-
42,471
-
42,471
-
13,153
Net cash used in (used to) continuing financing
(61,580)
41,137
(60,576)
41,964
(19,071)
12,740
Increase (decrease) in cash and cash equivalents
16,546
91,978 (**)
(36,044)
45,407 (**)
5,124
28,486
Cash and cash equivalents at the beginning
201,822
121,860
255,510
168,689
62,503
37,739
Exchange losses (profit) on cash and cash
612
570 (**)
(486)
312 (**)
190
176
Cash and cash equivalents of the end of the
218,980
214,408
218,980
214,408
67,817
66,401
(*) Convenience Translation into U.S. Dollars.
(**) Reclassified
G. WILLI-FOOD INTERNATIONAL LTD.
APPENDIX 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 1
2 0 2 0
2 0 2 1
2 0 2 0
2 0 2 1
2 0 2 0
NIS
US dollars (*)
(in thousands)
Decrease (increase) in deferred
3,055
(229)
660
3,153
946
(71)
Unrealized loss (gain) on marketable
(13,301)
2,739
(1,182)
(13,532)
(4,119)
848
Depreciation and amortization
4,732
4,221
1,631
1,470
1,465
1,308
Capital gain on disposal of property
(200)
(58)
(63)
-
(62)
(18)
Exchange gain (losses) on cash and
(612)
(**) (570)
486
(**) (312)
(190)
(176)
Changes in assets and liabilities:
Increase (decrease) in trade
1,586
1,570
4,624
6,271
491
486
Decrease (increase) in inventories
11,399
14,871
10,348
4,585
3,530
4,605
Increase (decrease) in trade and other
12,865
(1,417)
16,868
4,342
3,985
(439)
Net cash flows from operating activities
19,524
21,127
33,372
5,977
6,046
6,543
B. Significant non-cash transactions:
Nine months
Three months
Nine months
ended
ended
ended
September 30,
September 30,
September 30,
2 0 2 1
2 0 2 0
2 0 2 1
2 0 2 0
2 0 2 1
2 0 2 0
NIS
US dollars (*)
(in thousands)
Supplemental cash flow information:
Income tax paid
13,597
16,389
3,839
5,329
4,211
5,076
(*) 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 Officeritsik.b@willi-food.co.il
https://www.prnewswire.com/news-releases/g-willi-food-international-reports-its-financial-results-for-the-third-quarter-of-2021-301433719.html
SOURCE G. Willi-Food International Ltd.
