G. Willi-Food international Reports the results of first quarter 2022
05/17/2022 - 08:50 AM
YAVNE, Israel , May 17, 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 first quarter ended March 31, 2022 .
First Quarter Fiscal Year 2022
Sales increased by 1.2% to NIS 118.1 million (US$ 37.2 million ) from NIS 116.7 milliom (US$ 36.7 million ) in the first quarter of 2021. Gross profit decreased by 5.5% year-over-year to NIS 34.2 million (US$ 10.8 million ). Operating income decreased by 37.1% year-over-year to NIS 9.5 million (US$ 3.0 million ). Cash and securities balance of NIS 346.1 million (US$ 109.0 million ) as of March 31, 2022 . Basic earnings per share of NIS 0.98 (US$ 0.31) . Management Comment
Zwi Williger & Joseph Williger , Co-Chairmen of Willi-Food , commented: "We are pleased to present first quarter 2022 financial results to the Company shareholders. T he world is experiencing a crisis which among other things is due to war in Ukraine and global uncertainty regarding the Corona virus. T his crisis is reflecting among other things, in disruptions to international commercial shipping and disruptions in commodity pricing. The Company cannot predict how long this crisis will last. Despite this difficult environment, the Company managed to increase the level of sales and maintain a strong level of gross margin and other operational parameters. The Company will work hard to fulfill its strategy for the near future, 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, strengthen its brand and supply chain and ensure sufficient inventory. We intend to work hard to achieve the goals we have set for the Company and maintain strong profit parameters."
First Quarter Fiscal 2022 Summary
Sales for the first quarter of 2022 increased by 1.2% to NIS 118.1 million (US$ 37.2 million ) from NIS 116.7 million (US$ 36.7 million ) recorded in the first quarter of 2021. Sales increased mainly due to (i) effective marketing activities carried out in the first quarter of 2022 that increased the range of the Company's products and (ii) proper inventory management.
Gross profit for the first quarter of 2022 decreased by 5.5% to NIS 34.2 million (US$ 10.8 million ) compared to NIS 36.2 million (US$ 11.4 million ) recorded in the first quarter of 2021. First quarter gross margin decreased by 5.5% to 29.0% compared to gross margin of 31.0% for the same period in 2021. The decrease in gross profit was mainly due to increased costs of the Company's imported products and increased shipping costs.
Selling expenses increased by 25.4% to NIS 19.2 million (US$ 6.1 million ) compared to NIS 15.3 million (US$ 4.8 million ) in the first quarter of 2021. The increase was primarily due to an increase in expenses for advertising and promotion.
General and administrative expenses decreased by 5.8% to NIS 5.5 million (US$ 1.7 million ) compared to NIS 5.9 million (US$ 1.9 million ) in the first quarter of 2021.
Operating profit for the first quarter of 2022 decreased by 37.1% to NIS 9.5 million (US$ 3.0 million ) compared to NIS 15.0 million (US$ 4.7 million ) in the first quarter of 2021. The decrease was primarily due to the decrease in gross profit and the increase in selling expenses.
Financial income, net was NIS 5.8 million (US$ 1.8 million ) for the first quarter of 2022 compared to NIS 11.5 million (US$ 3.6 million ) in the first quarter of 2021. Financial income, net for fiscal year 2022 comprised mainly income from changes in exchange rate change an amount of NIS 2.6 (USD 0.7 million ), income from revaluation of the Company's portfolio of securities to fair value in an amount of NIS 1.9 million (USD 0.6 million ) and interest and dividend income from the Company's portfolio of securities in an amount of NIS 1.3 million (USD 0.4 million ).
Willi-Food's income before taxes for the first quarter of 2022 was NIS 15.3 million (US$ 4.8 million ) compared to income before taxes of NIS 26.6 million (US$ 8.4 million ) in the first quarter of 2021.
Willi-Food's net profit in the first quarter of 2022 was NIS 13.6 million (US$ 4.3 million ), or NIS 0.98 (US$ 0.31) per share, compared to NIS 20.5 million (US$ 6.5 million ), or NIS 1.48 (US$ 0.44) per share, recorded in the first quarter of 2021. Net profit for the first quarter of 2022 decreased by 33.4% year-over-year. The decrease in net profit was mainly due to an increase in advertising, promotion and in shipping costs of the Company's products.
Willi-Food ended the first quarter of 2022 with NIS 346.2 million (US$ 109.0 million ) in cash and securities. Net cash from continuing activities for the first quarter of 2022 was NIS 2.3 million (US$ 0.7 million ). Willi-Food's shareholders' equity at the end of March 2022 was NIS 564.9 million (US$ 177.9 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, 2022 , with U.S. $1.00 equal to NIS 3.176 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, 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
March 31,
December 31
March 31,
December 31
2 0 2 2
2 0 2 1
2021
2 0 2 2
2 0 2 1
2021
NIS
US dollars (*)
(in thousands)
ASSETS
Current assets
Cash and cash equivalents
198,339
218,808
195,718
62,449
68,894
61,624
Financial assets carried at fair value through profit or loss
147,808
152,531
154,090
46,539
48,026
48,517
Trade receivables
139,781
142,124
134,017
44,012
44,749
42,197
Loans to others
-
11,215
-
-
3,532
-
Other receivables and prepaid expenses
6,723
7,084
4,939
2,117
2,230
1,555
Inventories
66,537
62,351
59,528
20,950
19,632
18,743
Current tax assets
4,305
4,039
5,780
1,355
1,272
1,820
Total current assets
563,493
598,152
554,072
177,422
188,335
174,456
Non-current assets
Property, plant and equipment
89,563
84,449
87,245
28,200
26,590
27,470
Less -Accumulated depreciation
49,735
47,488
48,431
15,660
14,952
15,249
39,828
36,961
38,814
12,540
11,638
12,221
Right of use asset
3,544
3,941
4,088
1,117
1,241
1,287
Financial assets carried at fair value through profit or loss
31,282
17,916
31,056
9,849
5,641
9,778
Goodwill
36
36
36
11
11
11
Total non-current assets
74,690
58,854
73,994
23,517
18,531
23,298
638,183
657,006
628,066
200,939
206,866
197,754
EQUITY AND LIABILITIES
Current liabilities
Current maturities of lease liabilities
1,025
1,781
1,136
323
561
358
Trade payables
22,509
23,279
20,386
7,087
7,330
6,419
Employees Benefits
5,051
4,495
3,442
1,590
1,415
1,084
Financial liabilities at fair value through profit or loss
6,519
-
13,960
2,053
-
4,395
Other payables and accrued expenses
30,542
15,074
11,216
9,616
4,746
3,531
Total current liabilities
65,646
44,629
50,140
20,669
14,052
15,787
Non-current liabilities
Lease liabilities
2,643
2,258
3,062
832
711
965
Deferred taxes
3,296
2,090
2,017
1,038
658
635
Retirement benefit obligation
1,688
1,805
1,615
531
568
508
Total non-current liabilities
7,627
6,153
6,694
2,401
1,937
2,108
Shareholders' equity
Share capital
1,490
1,490
1,490
469
469
469
Additional paid in capital
170,760
170,760
170,760
53,766
53,766
53,766
Capital fund
247
247
247
78
78
78
Treasury shares
(628)
(628)
(628)
(198)
(198)
(198)
Retained earnings
394,000
435,677
400,322
124,055
137,178
126,046
Remeasurement of the net liability in respect of defined benefit
(959)
(1,322)
(959)
(302)
(416)
(302)
Equity attributable to owners of the Company
564,910
606,224
571,232
177,868
190,877
179,859
638,183
657,006
628,066
200,939
206,866
197,754
(*) 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 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
118,069
116,710
37,175
36,748
Cost of sales
83,827
80,475
26,394
25,339
Gross profit
34,242
36,235
10,781
11,409
Operating costs and expenses:
Selling expenses
19,238
15,343
6,057
4,831
General and administrative expenses
5,546
5,884
1,746
1,853
Other income
-
37
-
12
Total operating expenses
24,784
21,190
7,804
6,672
Operating income
9,458
15,045
2,978
4,737
Financial income
6,030
11,727
1,898
3,692
Financial expenses
(182)
(221)
(57)
(69)
Total financial income, net
5,848
11,506
1,841
3,623
Income before taxes on income
15,306
26,551
4,819
8,360
Taxes on income
(1,662)
(6,070)
(523)
(1,911)
Profit for the period
13,644
20,481
4,296
6,449
Earnings per share:
Basic earnings per share
0.98
1.48
0.31
0.46
Diluted earnings per share
0.98
1.41
0.31
0.44
Shares used in computation of basic EPS
13,867,017
13,867,017
13,867,017
13,867,017
Shares used in computation of diluted EPS
13,867,017
14,517,017
13,867,017
14,517,017
Actual number of shares
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
Three months
ended
Three months
ended
March 31,
March 31,
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)
CASH FLOWS - OPERATING ACTIVITIES
Profit from continuing operations
13,644
20,481
4,296
6,449
Adjustments to reconcile net profit to net cash from (used in) continuing operating activities (Appendix A)
(11,347)
(16,250)
(3,573)
(5,116)
Net cash from continuing operating activities
2,297
4,231
723
1,333
CASH FLOWS - INVESTING ACTIVITIES
Acquisition of property plant and equipment
(2,317)
(1,344)
(730)
(423)
Proceeds from sale of property plant and equipment
-
37
-
12
Proceeds from loans granted to others
-
7,492
-
2,358
Proceeds from sale (purchase) of marketable securities, net
8,204
6,796
2,583
2,140
Net cash used in continuing investing activities
5,887
12,981
1,853
4,087
CASH FLOWS - FINANCING ACTIVITIES
Lease liability payments
(531)
(472)
(167)
(149)
Net cash used in continuing financing activities
(531)
(472)
(167)
(149)
Increase in cash and cash equivalents
7,653
16,740
2,409
5,271
Cash and cash equivalents at the beginning of the year
195,718
201,822
61,624
63,546
Exchange losses on cash and cash equivalents
(5,032)
246
(1,584)
77
Cash and cash equivalents at the end of the year
198,339
218,808
62,449
68,894
(*) Convenience Translation into U.S. Dollars.
G. WILLI-FOOD INTERNATIONAL LTD.
APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
CASH FLOWS – OPERATING ACTIVITIES :
A. Adjustments to reconcile net profit to net cash from continuing operating activities:
Three months
Three months
ended
ended
March 31,
March 31,
2 0 2 2
2 0 2 1
2 0 2 2
2 0 2 1
NIS
US dollars (*)
(in thousands)
Decrease in deferred income taxes
1,279
1,322
403
416
Unrealized gain on marketable securities
(2,148)
(8,843)
(676)
(2,784)
Unrealized gain of financial liabilities at fair value through profit or loss
(7,441)
-
(2,343)
-
Depreciation and amortization
1,848
1,479
582
465
Capital gain on disposal of property plant and equipment
-
(37)
-
(12)
Exchange losses (gain) on cash and cash equivalents
5,032
(246)
1,584
(77)
Changes in assets and liabilities:
Increase in trade receivables and other receivables
(3,226)
(6,422)
(1,016)
(2,022)
Increase in inventories
(7,009)
(2,837)
(2,207)
(893)
Increase in trade and other payables, and other current liabilities
3,165
4,226
996
1,331
Cash generated from operations
(8,500)
(11,358)
(2,677)
(3,576)
Income tax paid
(2,847)
(4,892)
(896)
(1,540)
Net cash flows from operating activities
(11,347)
(16,250)
(3,573)
(5,116)
B. Significant non-cash transactions:
Three months
Three months
ended
ended
March 31,
March 31,
2 0 2 2
2 0 2 1
2 0 2 2
2 0 2 1
NIS
US dollars (*)
(in thousands)
Dividend payable
19,966
-
6,287
-
(*) Convenience Translation into U.S. Dollars.
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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SOURCE G. Willi-Food International Ltd.