YAVNE, Israel, May 20, 2024 /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, 2024.
G. Willi-Food International Ltd. Logo
First Quarter Fiscal Year 2024
Sales decreased by 10.1% to NIS 136.0 million (USD 37.0 million) from NIS 151.4 million (USD 41.1 million) in the first quarter of 2023.
Gross profit decreased by 13.5% year-over-year to NIS 34.7 million (USD 9.4 million).
Operating profit decreased by 10.7% year-over-year to NIS 11.6 million (USD 3.2 million).
Basic earnings per share of NIS 1.34(USD 0.36).
Cash and securities balance of NIS 244.4 million (USD 66.4 million) as of March 31, 2024.
Management Comment
Zwi Williger & Joseph Williger, Chairmen and CEO of Willi-Food, commented: "We are happy to present the financial results of the first quarter of 2024. Although we experienced a decline in sales as a result of significant delays in the arrival of goods, especially from the Far East, we believe we have managed to achieve favorable results, both at the operational level and with respect to our financing income. While the State of Israel is still at war against the terror organization Hamas, which has created a difficult environment, the Company has continued to conduct its business in the ordinary course, importing goods, maintaining sufficient inventory and selling its goods to its customers. 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 opportunities, both in terms of sales and in improving profit. The construction of the new logistics center is currently expected to be completed by the end of 2025.
First Quarter Fiscal 2024 Summary
Sales for the first quarter of 2024 decreased by 10.1% to NIS 136.0 million (USD 37.0 million) from NIS 151.4 million (USD 41.1 million) recorded in the first quarter of 2023. Sales decreased mainly due to significant delays in the arrival of goods from the Far-East following the closure of the shipping lanes on the Red Sea.
Gross profit for the first quarter of 2024 decreased by 13.5% to NIS 34.7 million (USD 9.4 million), or 25.5% of revenues, from NIS 40.0 million (USD 10.9 million), or 26.5% of revenues, recorded in the first quarter of 2023. The decrease in gross profit and gross margins was mainly due to decreased sales and increased costs of the Company's imported products and increased shipping costs which the Company didn't pass on to its clients.
Selling expenses decreased by 17.3% to NIS 16.5 million (USD 4.5 million), or 12.1% of revenues, compared to NIS 19.9 million (USD 5.4 million), or 13.1% of revenues, recorded in the first quarter of 2023. The decrease was mainly due to a decrease in advertising costs.
General and administrative expenses for the first quarter of 2024 decreased by 8.0% to NIS 6.6 million (USD 1.8 million), or 4.8% of revenues, from NIS 7.1 million (USD 1.9 million), or 4.7% of revenues, recorded in the first quarter of 2023. The decrease in general and administrative expenses was primarily due to a decrease in other management expenses.
Operating profit for the first quarter of 2024 decreased by 10.7% to NIS 11.6 million (USD 3.2 million), or 8.5% of revenues, from NIS 13.0 million (USD 3.5 million), or 8.6% of revenues, recorded in the first quarter of 2023. The decrease in operating profit was primarily due to the decline in sales and increase in cost of sales.
Financial income, net increased to NIS 11.5 million (USD 3.1 million) recorded in the first quarter of 2024 compared to NIS 0.5 million (USD 0.1 million) in the first quarter of 2023. Financial income, net for the first quarter of 2024 comprised mainly from income from revaluation of the Company's portfolio of securities to fair value in an amount of NIS 7.9 million (USD 2.1 million) and interest and dividend income from the Company's portfolio of securities in an amount of NIS 3.9 million (USD 1.1 million).
Willi-Food's income before taxes in the first quarter of 2024 increased to NIS 23.1 million (USD 6.3 million) compared to income before taxes of NIS 13.5 million (USD 3.7 million) in the first quarter of 2023.
Willi-Food's net profit in the first quarter of 2024 was NIS 18.6 million (USD 5.1 million), or NIS 1.34(USD 0.36) per share, or 72.2% compared to NIS 10.8 million (USD 2.9 million), or NIS 0.78(USD 0.21) per share, recorded in the first quarter of 2023. Net profit for the first quarter of 2024 increased by 72.2% year-over-year. The increase in net profit was mainly due to the increase of financial income.
Willi-Food ended the first quarter of 2024 with NIS 244.4 million (USD 66.4 million) in cash and securities. Net cash from continuing activities for the first quarter of 2024 was NIS 3.8 million (USD 1.0 million). Willi-Food's shareholders' equity at the end of March 2024 was NIS 561.0 million (USD 152.4 million).
NOTE A: NIS to USD 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, 2024, with U.S. $1.00 equal to NIS 3.681 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, 2024 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 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 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, expected sales, operating results, and earnings. Forward-looking statements include statements regarding the commercial terms with customers and suppliers and 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: the inability to improve commercial terms with customers and suppliers: 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. 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
March 31,
December 31
March 31,
December 31
2024
2023
2023
2024
2023
2023
NIS
US dollars (*)
(in thousands)
ASSETS
Current assets
Cash and cash equivalents
134,850
131,472
137,466
36,634
35,716
37,345
Financial assets at fair value through profit or loss
109,571
105,272
102,163
29,767
28,599
27,754
Trade receivables, Net
154,565
177,648
160,379
41,990
48,261
43,570
Other receivables and prepaid expenses
13,552
8,113
10,164
3,682
2,204
2,761
Inventories, Net
74,882
95,596
62,475
20,343
25,970
16,972
Current tax assets
6,759
2,732
9,497
1,836
742
2,580
Total current assets
494,179
520,833
482,144
134,252
141,492
130,982
Non-current assets
Property, plant and equipment
128,936
106,052
122,222
35,027
28,811
33,203
Less -Accumulated depreciation
56,876
52,593
55,636
15,451
14,288
15,114
72,060
53,459
66,586
19,576
14,523
18,089
Right of use asset
3,376
3,289
2,124
917
894
577
Financial assets at fair value through profit or loss
46,159
44,084
46,143
12,540
11,976
12,535
Goodwill
36
36
36
10
10
10
Total non-current assets
121,631
100,868
114,889
33,043
27,403
31,211
615,810
621,701
597,033
167,295
168,895
162,193
EQUITY AND LIABILITIES
Current liabilities
Current maturities of lease liabilities
1,760
2,243
1,512
478
609
411
Trade payables
20,728
27,242
21,622
5,631
7,401
5,874
Employees Benefits
4,769
4,590
4,193
1,296
1,247
1,139
Other payables and accrued expenses
18,617
41,068
10,854
5,058
11,157
2,949
Total current liabilities
45,874
75,143
38,181
12,463
20,414
10,373
Non-current liabilities
Lease liabilities
1,588
1,205
694
431
327
189
Deferred taxes
6,287
3,663
4,868
1,708
995
1,322
Retirement benefit obligation
1,055
924
1,055
287
251
287
Total non-current liabilities
8,930
5,792
6,617
2,426
1,573
1,798
Shareholders' equity
Share capital
1,490
1,490
1,490
405
405
405
Additional paid in capital
172,789
171,976
172,589
46,941
46,720
46,886
Remeasurement of the net liability in respect of defined benefit
(154)
(195)
(154)
(42)
(53)
(42)
Capital fund
247
247
247
67
67
67
Retained earnings
387,262
367,876
378,691
105,206
99,940
102,877
Treasury shares
(628)
(628)
(628)
(171)
(171)
(171)
Equity attributable to owners of the Company
561,006
540,766
552,235
152,406
146,908
150,022
615,810
621,701
597,033
167,295
168,895
162,193
(*) 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,
2024
2023
2024
2023
NIS
US dollars (*)
In thousands (except per share and share data)
Sales
136,036
151,356
36,956
41,118
Cost of sales
101,385
111,322
27,542
30,242
Gross profit
34,651
40,034
9,414
10,876
Operating costs and expenses:
Selling expenses
16,475
19,919
4,476
5,411
General and administrative expenses
6,550
7,117
1,779
1,933
Other income
-
(25)
-
(7)
Total operating expenses
23,025
27,011
6,255
7,337
Operating profit
11,626
13,023
3,159
3,539
Financial income
12,303
4,606
3,226
1,251
Financial expenses
(822)
(4,080)
(107)
(1,108)
Total financial income, net
11,481
526
3,119
143
Income before taxes on income
23,107
13,549
6,278
3,682
Taxes on income
(4,554)
(2,704)
(1,237)
(735)
Income after taxes on income
18,553
10,845
5,041
2,947
Earnings per share:
Basic / diluted earnings per share
1.34
0.78
0.36
0.21
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
(*) 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,
2024
2023
2024
2023
NIS
US dollars (*)
In thousands (except per share and share data)
CASH FLOWS - OPERATING ACTIVITIES
Profit from continuing operations
18,553
10,845
5,041
2,947
Adjustments to reconcile net profit to net cash from continuing operating activities (Appendix A)
(14,781)
(31,858)
(4,017)
(8,655)
Net cash from (used in) continuing operating activities
3,772
(21,013)
1,024
(5,708)
CASH FLOWS - INVESTING ACTIVITIES
Acquisition of property plant and equipment
(2,393)
(**) (644)
(650)
(175)
Acquisition of property plant and equipment under construction
(4,321)
(**) (6,167)
(1,174)
(1,675)
Proceeds from sale of marketable securities, net
623
8,493
169
2,307
Net cash used in (from) continuing investing activities
(6,091)
1,682
(1,655)
457
CASH FLOWS - FINANCING ACTIVITIES
Lease liability payments
(719)
(493)
(195)
(134)
Net cash used in continuing financing activities
(719)
(493)
(195)
(134)
Decrease in cash and cash equivalents
(3,038)
(19,824)
(826)
(5,385)
Cash and cash equivalents at the beginning of the year
137,466
150,607
37,345
40,915
Exchange gains on cash and cash equivalents
422
689
115
187
Cash and cash equivalents at the end of the year
134,850
131,472
36,634
35,717
(*) Convenience Translation into U.S. Dollars.
(**) Reclassified.
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,
2024
2023
2024
2023
NIS
US dollars (*)
(in thousands)
Increase (decrease) in deferred income taxes
1,419
(535)
385
(145)
Unrealized loss (gain) on marketable securities
(8,047)
3,024
(2,186)
822
Depreciation and amortization
1,849
1,625
502
441
Stock based compensation reserve
200
426
54
116
Capital gain on disposal of property plant and equipment
-
(25)
-
(7)
Exchange gains on cash and cash equivalents
(422)
(689)
(115)
(187)
Changes in assets and liabilities:
Decrease (Increase) in trade receivables and other receivables
7,682
(11,247)
2,087
(3,055)
Increase in inventories
(12,407)
(23,667)
(3,371)
(6,431)
Increase (decrease) in trade payables, other payables and other current liabilities
(2,537)
2,564
(689)
697
Cash generated from operations
(12,263)
(28,524)
(3,333)
(7,749)
Income tax paid
(2,518)
(3,334)
(684)
(906)
Net cash flows used in operating activities
(14,781)
(31,858)
(4,017)
(8,655)
(*) 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) 8-932-1000 itsik.b@willi-food.co.il
