G. Willi-Food International Reports the Results of First Quarter 2021 Which Show One of the Highest Ever Quarterly Net Profit
05/12/2021 - 06:00 AM
YAVNE, Israel , May 12, 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 first quarter ended March 31, 2021 .
First Quarter Fiscal Year 2021
Sales decreased by 9.6% year-over-year to NIS 116.7 million (US$ 35.0 million ). Gross profit decreased by 12.7% year-over-year to NIS 36.2 million (US$ 10.9 million ). Operating profit decreased by 20.9% year-over-year to NIS 15.0 million (US$ 4.5 million ). Total financial income increased by 166.1% year-over-year to NIS 11.5 million (US$ 3.5 million ). Income before taxes increased by 1,566.8% year-over-year to NIS 26.6 million (US$ 8.0 million ). Net profit increased by 1,634.2% year-over-year to NIS 20.5 million (US$ 6.1 million ). Cash and securities balance of NIS 371.3 million (US$ 111.4 million ) as of March 31, 2020 . Basic earnings per share of NIS 1.48 (US$ 0.03) and diluted earning per share of 1.41 (US$ 0.42) . Management Comment
Zwi Williger & Joseph Williger , Co-Chairmen of Willi-Food , commented: "We are pleased to present strong first quarter 2021 financial results with one of the highest ever quarterly net profit, which resulted from strong operating profit and increases in our investment portfolio. Except for results of the first quarter of 2020, which experienced exceptional sales associated with the start of the COVID-19 pandemic, the Company experienced its highest quarterly sales ever, and showed stable growth in sales. The strategy of the Company for the near future is to develop new products and enter new food categories, combined with improving our visibility in the retail stores and strengthening our supply chain. We believe that with our excellent management team and hard work, we will meet the goals that we have set for the Company, and keep improving the Company's results."
First Quarter Fiscal 2021 Summary
Sales for the first quarter of 2021 decreased by 9.6% to NIS 116.7 million (US$ 35.0 million ) from NIS 129.1 million (US$ 38.7 million ) recorded in the first quarter of 2020. Sales decreased mainly due to the exceptional increase in demand for the Company's products that occurred in the first quarter of 2020 associated with the COVID-19 pandemic.
Gross profit for the first quarter of 2021 decreased by 12.7% to NIS 36.2 million (US$ 10.9 million ) compared to NIS 41.5 million (US$ 12.5 million ) recorded in the first quarter of 2020. The decrease in gross profit was mainly due to the decrease in sales and increase in external storage cost.
Selling expenses decreased by 7.7% to NIS 15.3 million (US$ 4.6 million ) compared to NIS 16.6 million (US$ 5.0 million ) in the first quarter of 2020. The decrease in selling expenses was mainly due to a decrease in advertising expenses.
General and administrative expenses for the first quarter of 2021 were NIS 5.9 million (US$ 1.7 million ), remaining at the same level as in the first quarter of 2020.
Operating profit for the first quarter of 2021 decreased by 20.9% to NIS 15.0 million (US$ 4.5 million ) compared to NIS 19.0 million (US$ 5.7 million ) in the first quarter of 2020, especially due to the decrease with sales.
Finance income, net totaled NIS 11.5 million (US$ 3.5 million ) compared to Finance expenses, net of NIS 17.4 million (US$ 5.2 million ) in the first quarter of 2020 during the turmoil in the financial markets associated with the COVID-19 pandemic. During the first quarter of 2021 the Company recognized financial income from its portfolio of securities in the amount of NIS 10.3 million (US$ 3.1 million ), financial income from exchange rate differences in the amount of NIS 1.4 million (US$ 0.4 million ), and financial expenses from bank fees in the amount of NIS 0.2 million (US$ 0.06 million ).
Willi-Food's income before taxes for the first quarter of 2021 was NIS 26.6 million (US$ 8.0 million ) compared to income before taxes of NIS 1.2 million (US$ 0.3 million ) in the first quarter of 2020.
Willi-Food's net profit in the first quarter of 2021 was NIS 20.5 million (US$ 6.1 million ), or NIS 1.48 (US$ 0.44) per share, compared to NIS 1.6 million (US$ 0.5 million ), or NIS 0.09 (US$ 0.03) per share, recorded in the first quarter of 2020. Net profit for the first quarter of 2021 increased by 1,634.2% year-over-year. The increase in net profit was mainly due to finance income from revaluation of the Company portfolio of securities in the first quarter of 2021 compared to finance expenses from revaluation of the company portfolio of securities in the first quarter of 2020 due to capital markets sharp declines as a result of the COVID-19 pandemic.
Willi-Food ended the first quarter of 2021 with NIS 371.3 million (US$ 111.4 million ) in cash and securities. Net cash from operating activities for the first quarter of 2021 was NIS 4.2 million (US$ 1.3 million ). Willi-Food's shareholders' equity at the end of March 2021 was NIS 606.2 million (US$ 181.8 million ).
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 March 31, 2021 , with U.S. $1.00 equal to NIS 3.334 The translation was made solely for the convenience of the reader.
NOTE B: IFRS
The Company's consolidated financial results for the three-month period ended March 31, 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 European Dairies Ltd., 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, 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
March 31,
December 31
March 31,
December 31
2 0 2 1
2 0 2 0
2020
2 0 2 1
2 0 2 0
2020
NIS
US dollars (*)
(in thousands)
ASSETS
Current assets
Cash and cash equivalents
218,808
121,040
201,822
65,629
36,305
60,534
Financial assets carried at fair value through profit or loss
152,531
121,564
154,700
45,750
36,462
46,401
Trade receivables
142,124
160,396
18,707
42,628
48,109
5,611
Loans to others
11,215
17,650
131,301
3,364
5,294
39,382
Other receivables and prepaid expenses
7,084
6,695
6,667
2,125
2,008
2,000
Inventories
62,351
55,991
59,514
18,702
16,794
17,851
Current tax assets
4,039
-
3,965
1,211
-
1,189
Total current assets
598,152
483,336
576,676
179,409
144,972
172,968
Non-current assets
Property, plant and equipment
84,449
81,765
83,105
25,330
24,524
24,926
Less -Accumulated depreciation
47,488
44,802
46,460
14,244
13,438
13,935
36,961
36,963
36,645
11,086
11,086
10,991
Right of use asset
3,941
3,710
2,866
1,182
1,113
860
Financial assets carried at fair value through profit or loss
17,916
9,273
13,700
5,374
2,781
4,109
Goodwill
36
36
36
11
11
11
Deferred taxes
-
5,101
-
-
1,530
-
Total non-current assets
58,854
55,083
53,247
17,653
16,521
15,971
657,006
538,419
629,923
197,062
161,493
188,939
EQUITY AND LIABILITIES
Current liabilities
Current maturities of lease liabilities
1,781
1,708
1,393
534
512
418
Trade payables
23,279
20,420
23,474
6,982
6,125
7,041
Employees Benefits
4,495
3,876
3,437
1,348
1,163
1,031
Current tax liabilities
-
3,410
-
1,023
-
Other payables and accrued expenses
15,074
12,862
11,611
4,522
3,858
3,482
Total current liabilities
44,629
42,276
39,915
13,386
12,681
11,972
Non-current liabilities
Lease liabilities
2,258
2,035
1,592
677
610
478
Deferred taxes
2,090
-
768
627
-
230
Retirement benefit obligation
1,805
1,568
1,905
541
470
571
Total non-current liabilities
6,153
3,603
4,265
1,845
1,080
1,279
Shareholders' equity
Share capital
1,490
1,425
1,490
447
427
447
Additional paid in capital
170,760
128,354
170,760
51,218
38,499
51,218
Capital fund
247
247
247
74
74
74
Treasury shares
(628)
(628)
(628)
(188)
(188)
(188)
Retained earnings
435,677
364,171
415,196
130,677
109,229
124,534
Remeasurement of the net liability in respect of defined benefit
(1,322)
(1,029)
(1,322)
(397)
(309)
(397)
Equity attributable to owners of the Company
606,224
492,540
585,743
181,831
147,732
175,688
657,006
538,419
629,923
197,062
161,493
188,939
(*) Convenience translation into U.S. dollars.
G. WILLI-FOOD INTERNATIONAL LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three months
Three months
ended
ended
March 31,
March 31,
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
116,710
129,103
35,006
38,723
Cost of sales
80,475
87,581
24,138
26,269
Gross profit
36,235
41,522
10,868
12,454
Operating costs and expenses:
Selling expenses
15,343
16,617
4,601
4,984
General and administrative expenses
5,884
5,876
1,765
1,762
Other income
37
-
11
-
Total operating expenses
21,190
22,493
6,355
6,746
Operating income
15,045
19,029
4,513
5,708
Financial income
11,727
1,460
3,517
438
Financial expenses
(221)
(18,896)
(66)
(5,668)
Total financial income (expenses), net
11,506
(17,436)
3,451
(5,230)
Income before taxes on income
26,551
1,593
7,964
478
Taxes on income
(6,070)
(412)
(1,821)
(124)
Profit for the period
20,481
1,181
6,143
354
Earnings per share:
Basic earnings per share
1.48
0.09
0.44
0.03
Diluted earnings per share
1.41
0.09
0.42
0.03
Shares used in computation of basic EPS
13,867,017
13,217,014
13,867,017
13,217,014
Shares used in computation of diluted EPS
14,517,017
13,217,014
14,276,006
13,217,014
Actual number of shares
13,867,017
13,217,014
13,867,017
13,217,014
(*) Convenience translation into U.S. dollars.
G. WILLI-FOOD INTERNATIONAL LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months
ended
Three months
ended
March 31,
March 31,
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)
CASH FLOWS - OPERATING ACTIVITIES
Profit from continuing operations
20,481
1,181
6,143
354
Adjustments to reconcile net profit to net cash from (used to) continuing operating activities (Appendix A)
(16,250)
(**)6,354
(4,874)
1,906
Net cash from continuing operating activities
4,231
7,535
1,269
2,260
CASH FLOWS - INVESTING ACTIVITIES
Acquisition of property plant and equipment
(1,344)
(362)
(403)
(109)
Proceeds from sale of property plant and equipment
37
(8,000)
11
(2,400)
Proceeds from loans granted to others
7,492
-
2,247
-
Proceeds from sale (purchase) of marketable securities, net
6,796
-
2,039
-
Net cash used to continuing investing activities
12,981
(8,362)
3,894
(2,509)
CASH FLOWS - FINANCING ACTIVITIES
Lease liability payments
(472)
(425)
(142)
(127)
Net cash used to continuing financing activities
(472)
(425)
(142)
(127)
Increase (decrease) in cash and cash equivalents
16,740
(**)(1,252)
5,021
(376)
Cash and cash equivalents at the beginning of the year
201,822
121,860
60,534
36,551
Exchange losses on cash and cash equivalents
246
(**)432
74
130
Cash and cash equivalents at the end of the year
218,808
121,040
65,629
36,305
(*) Convenience Translation into U.S. Dollars.
(**) reclassified
G. WILLI-FOOD INTERNATIONAL LTD. APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
CASH FLOWS – OPERATING ACTIVITIES: 2. Adjustments to reconcile net profit to net cash from operating activities:
Three months
Three months
ended
ended
March 31,
March 31,
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 income taxes
1,322
(4,283)
397
(1,285)
Unrealized loss (gain) on marketable securities
(8,843)
18,707
(2,653)
5,612
Depreciation and amortization
1,479
1,353
444
406
Capital gain on disposal of property plant and equipment
(37)
-
(11)
-
Exchange losses on cash and cash equivalents
(246)
(**) (432)
(75)
(130)
Changes in assets and liabilities:
Increase in trade receivables and other receivables
(6,422)
(**) (18,212)
(1,926)
(5,463)
Decrease (increase) in inventories
(2,837)
15,556
(851)
4,666
Increase in trade and other payables, and other current liabilities
4,226
145
1,268
43
Cash generated from operations
(11,358)
12,834
(3,407)
3,849
Income tax paid
(4,892)
(**)(6,480)
(1,467)
(1,943)
Net cash flows from operating activities
(16,250)
6,354
(4,874)
1,906
(*) 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) 8-932-1000 itsik.b@willi-food.co.il
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