G. Willi-Food Reports Q1 2012 Sales up 4.6% From Q1 2011
Net Income of US$ 1.3 million in Q1 2012
YAVNE, Israel, May 31, 2012 /PRNewswire/ --
G. Willi-Food International Ltd. (NASDAQ: WILC) (the "Company" or "Willi-Food"), a global company specializing in the development, marketing and international distribution of kosher foods, today announced its unaudited financial results for the first quarter ended March 31, 2012.
First Quarter Fiscal 2012 Highlights
- Sales increased 4.6% from first quarter of 2011 to NIS 73.7 million (US$ 19.8 million)
- Gross profit decreased 12.8% from first quarter of 2011 to NIS 15.7 million (US$ 4.2 million), or 21.3% of sales
- Operating income decreased 25.4% from first quarter of 2011 to NIS 4.7 million (US$ 1.3 million), or 6.4% of sales
- Net income decreased 21.8% from first quarter of 2011 to NIS 4.8 million (US$ 1.3 million), or 6.6% of sales
- Cash and securities balance of NIS 196.5 million (US$ 52.9 million) as of March 31, 2012
Willi-Food's operating divisions include Willi-Food, a distributor of a broad variety of kosher foods, and its wholly-owned Gold Frost, a designer, developer and distributor of branded kosher dairy food products.
First Quarter Fiscal 2012 Summary
Sales for the first quarter of 2012 increased by 4.6% to NIS 73.7 million (US$ 19.8 million) from NIS 70.4 million (US$ 18.9 million) recorded in the first quarter of 2011. The growth in sales in the first quarter of 2012 was driven by the introduction of new products and by the timing of the Passover festival that it sells fell during the first quarter this year, while last year it sales fell during the second quarter.
Gross profit for the first quarter of 2012 decreased by 12.8% to NIS 15.7 million (US$ 4.2 million) compared to NIS 18.0 million (US$ 4.8 million) recorded in the first quarter of 2011. First quarter gross margin was 21.3% compared to gross margin of 25.6% for the same period in 2011. The decrease in gross profit and gross margins was primarily due to reductions in the prices of certain of our products as a result of the ongoing national protest against the cost of food products and continued pressure from our customers to reduce prices and due to an increase in global prices of food products compounded by the continued global economic recession. The Company expects the decline in its gross margins to continue in the second quarter of 2012 compared to 2011 second quarter's gross margins.
Willi-Food's operating income for the first quarter of 2012 decreased by 25.4% to NIS 4.7 million (US$ 1.3 million) compared to NIS 6.3 million (US$ 1.7 million) recorded in the first quarter of 2011. Selling expenses increased by 1.5% from the comparable quarter of 2011, primarily due to the sales growth. Selling expenses as a percentage of sales decreased in the first quarter of 2012 to 9.4% compared to 9.6% in the first quarter of 2011. General and administrative expenses decreased by 15.8% from the comparable quarter of 2011, primarily due to aggressive expense reduction initiatives. General and administrative expenses as a percentage of sales decreased in the first quarter of 2011 to 5.6% from 7.0% in the first quarter of 2011.
Willi-Food's income before taxes for the first quarter of 2012 decreased by 16.4% to NIS 6.6 million (US$ 1.8 million) compared to NIS 7.8 million (US$ 2.1 million) recorded in the first quarter of 2011. Willi-Food's profit from continuing operations for the first quarter of 2012 decreased by 17.6% to NIS 4.8 million (US$ 1.3 million) from NIS 5.9 million (US$ 1.6 million) recorded in the first quarter of 2011.
Willi-Food's net income in the first quarter of 2012 decreased 21.8% to NIS 4.8 million (US$ 1.3 million) from NIS 6.2 million (US$ 1.7 million) recorded in the first quarter of 2011. Willi-Food's net income attributed to the owners of the Company in the first quarter of 2012 decreased 20.1% to NIS 4.8 million (US$ 1.3 million), or NIS 0.37 (US$ 0.10) per share, compared to NIS 6.0 million (US$ 1.6 million), or NIS 0.45 (US$ 0.13) per share, recorded in the first quarter of 2011.
Willi-Food ended the first quarter of 2012 with NIS 196.5 million (US$ 52.9 million) in cash and securities and with no short-term debt. Willi-Food's shareholders' equity at the end of March 2012 was NIS 314.5 million (US$ 84.7 million).
Business Outlook
Mr. Zwi Williger, Chairman of Willi-Food commented, "As with the second half of 2011, first quarter 2012 results were affected by continued consumer pressure to reduce prices which accordingly, caused us to reduce the prices of some of our products. The actions taken in the first quarter, by way of price reductions, resulted in a decrease of our profitability. Going forward, we anticipate a significant increase in the level of uncertainty in the global economy. In Israel, economic uncertainty is coupled with changes in the Israeli market and ongoing consumer demand for price reductions that we expect will negatively affect our gross margins in the second quarter of 2012 compared to 2011 second quarter's gross margins."
Mr. Williger concluded, "Our foreseeable challenge will be to manage the cost of our products and our other expenses in order to accommodate the continued desire of our customers to acquire lower cost products. However, we believe that this period presents us with an opportunity utilize our cash on hand to acquire synergetic companies at prices lower than before. We continue to look for opportunities to create additional value for our shareholders."
Conference Call
The Company will host a conference call to discuss results on Thursday, May 31, 2012 at 10:30 AM Eastern time. Interested parties may participate in the conference call by dialing 1-877-941-2068 (US), or 1-480-629-9712 (International), approximately 10 minutes prior to the scheduled start time. Interested parties can also listen via a live Internet webcast, which will be available on the day of the call through the following link: http://public.viavid.com/index.php?id=1009628
A replay of the conference call will be available for 14 days from 1:30 PM EST on May 31, 2012 through 11:59 PM EST on June 13, 2012 by dialing 1-877-870-5176 (US), or 1-858-384-5517 (International), access code 4543184. In addition, a recording of the call will be available via the following link for one year: http://public.viavid.com/reports/eventparts.php?id=o5aipZmf
NOTE A: Convenience Translation to Dollars
The convenience translation of New Israeli Shekels (NIS) into U.S. dollars was made at the rate of exchange prevailing on March 31, 2012, U.S. $1.00 equals NIS 3.715. 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 fiscal year ended March 31, 2012 are presented in accordance with International Financial Reporting Standards ("IFRS").
NOTE C: Discontinued Operations
Discontinued operations are measured and presented in accordance with the provisions of IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations". The results of discontinued operations are presented in the income statement in a separate item below income from continuing operations.
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 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 Gold Frost, a wholly owned subsidiary who designs, develops and distributes branded kosher, dairy-food products.
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, in particular Arla Foods, 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, our inability to anticipate changes in consumer preferences, 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, 2011, filed with the Securities and Exchange Commission on April 30, 2012. 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.
{FINANCIAL TABLES TO FOLLOW}
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
December March 31, December 31, March 31, 31, 2 0 1 2 2 0 1 1 2 0 1 2 2 0 1 1 NIS US dollars (*) (in thousands) ASSETS Current assets Cash and cash equivalents 39,852 34,661 10,727 9,072 Financial assets carried at fair value through profit or loss 156,659 163,430 42,169 42,773 Trade receivables 71,275 57,628 19,186 15,082 Other receivables and prepaid expenses 5,746 15,720 1,547 4,113 Inventories 34,133 32,613 9,188 8,535 Total current assets 307,665 304,052 82,817 79,575 Non-current assets Property, plant and equipment 61,526 61,401 16,562 16,069 Less -Accumulated depreciation 19,503 18,856 5,250 4,935 42,023 42,545 11,312 11,134 Prepaid expenses 114 117 31 31 Goodwill 36 36 9 9 Deferred taxes 747 933 201 244 Total non-current assets 42,920 43,631 11,553 11,418 350,585 347,683 94,370 90,993 EQUITY AND LIABILITIES Current liabilities Trade payables 27,734 25,683 7,465 6,722 Provisions 1,273 1,164 343 305 Current tax liabilities 1,348 3,837 363 1,004 Other payables and accrued expenses 3,316 4,551 893 1,190 Employees Benefits 1,732 1,613 466 422 Total current liabilities 35,403 36,848 9,530 9,643 Non-current liabilities Employees Benefits 641 518 173 136 Total non-current liabilities 641 518 173 136 Shareholders' equity Share capital NIS 0.10 par value (authorized - 50,000,000 shares, issued and outstanding - 12,974,245 shares at March 31, 2012; 13,020,360 shares at December 31, 2011) 1,444 1,444 389 378 Additional paid in capital 129,846 129,809 34,953 33,972 Capital fund 247 247 65 65 Foreign currency translation reserve 648 587 174 154 Treasury shares (10,843) (10,141) (2,919) (2,654) Retained earnings 193,199 188,371 52,005 49,299 314,541 310,317 84,667 81,214 350,585 347,683 94,370 90,993
(*) Convenience translation into U.S. dollars
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended March 31, 2 0 1 2 2 0 1 1 2 0 1 2 2 0 1 1 NIS US dollars (*) (in thousands, except per share and share data) Sales 73,651 70,393 19,825 20,222 Cost of sales 57,975 52,407 15,606 15,055 Gross profit 15,676 17,986 4,219 5,167 Selling expenses 6,897 6,792 1,857 1,951 General and administrative expenses 4,120 4,893 1,109 1,406 Other Income (66) (34) (18) (10) Total operating expenses 10,951 11,651 2,948 3,347 Operating income 4,725 6,335 1,271 1,820 Financial income 2,014 1,726 542 496 Financial expense 188 219 51 63 Income before taxes on income 6,551 7,842 1,762 2,253 Taxes on income 1,723 1,979 464 569 Profit from continuing operations 4,828 5,863 1,298 1,684 Profit from discontinued operations - 313 - 90 Profit for the year 4,828 6,176 1,298 1,774 Attributable to: Owners of the company 4,828 6,043 1,298 1,736 Non - controlling interests - 133 - 38 Net income 4,828 6,176 1,298 1,774 Earnings per share data: Earnings per share: Earnings per share Basic from continuing operations 0.37 0.43 0.10 0.12 Basic from discontinued operations - 0.02 - 0.01 Basic earnings per share 0.37 0.45 0.10 0.13 Diluted from continuing operations 0.37 0.43 0.10 0.12 Diluted from discontinued operations - 0.02 - 0.01 Diluted earnings per share 0.37 0.45 0.10 0.13 Shares used in computation of basic EPS 12,987,367 13,573,679 12,987,367 13,573,679
(*) Convenience translation into U.S. dollars
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended March 31, 2 0 1 2 2 0 1 1 2 0 1 2 2 0 1 1 NIS US dollars (*) (in thousands) Cash flows - operating activities Profit from continuing operations 4,828 5,863 1,298 1,684 Adjustments to reconcile net income to net cash from continuing operating activities (Appendix) (6,293) (5,805) (1,690) (1,667) Net cash from (used in) continuing operating activities (1,465) 58 (392) 17 Net cash from (used in) discontinued investing activities - 687 - 197 Cash flows - investing activities Acquisition of property plant and equipment (281) (348) (76) (100) Proceeds from sale of property plant and Equipment - 146 - 42 Additions to prepaid expenses, net - (13) - (4) Proceeds used in purchase of marketable securities, net 7,639 (4,443) 2,056 (1,276) Net cash used in continuing investing activities 7,358 (4,658) 1,980 (1,338) Net cash used in discontinued investing activities - (840) - (241) Cash flows - financing activities Investment in treasury stocks (702) - (189) - Short-term bank credit, net - (738) - (212) Net cash from (used in) continuing financing activities (702) (738) (189) (212) Net cash used in discontinued financing activities - 153 - 44 Increase (decrease) in cash and cash equivalents 5,191 (5,338) 1,399 (1,533) Cash and cash equivalents at the beginning of the financial year 34,661 113,631 9,330 32,643 Cash and cash equivalents of the end of the financial year 39,852 108,293 10,729 31,110
(*) Convenience Translation into U.S. Dollars.
G. WILLI-FOOD INTERNATIONAL LTD.
APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Adjustments to reconcile net income to net cash from operating activities
Three months ended March 31, 2012 2011 2012 2011 NIS US dollars (*) (in thousands) Deferred income taxes 187 (134) 50 (38) Unrealized loss (gain) on marketable securities (868) 42 (234) 12 Depreciation and amortization 873 690 235 198 Capital gain on disposal of property (66) - (18) - Employees benefit, net 123 (4) 36 (1) Stock based compensation reserve 37 - 9 - Changes in assets and liabilities: Increase in trade receivables and other receivables (3,614) (4,444) (972) (1,277) Increase in inventories (1,520) (5,793) (408) (1,664) Increase (Decrease) in trade and other payables, and other current liabilities (1,445) 3,838 (388) 1,103 (6,293) (5,805) (1,690) (1,667)
(*) 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.
Baruch Shusel, CFO
+972-8-932-1000
[email protected]
SOURCE G. Willi-Food International Ltd.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article