G. Willi-Food International Reports the Results of First Quarter 2019 Compared to First Quarter 2018 Which Show Highest Quarterly Sales, Gross Profit and Net Profit

YAVNE, Israel, May 20, 2019 /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, 2019.

First Quarter Fiscal Year 2019

• Sales increased by 4.8% year-over-year to NIS 97.8 million (US$ 26.9 million).
• Gross profit increased by 21.8% year-over-year to NIS 30.2 million (US$ 8.3 million).
• Operating profit increased by 32.0% year-over-year to NIS 12.6 million (US$ 3.5 million).
• Net profit increased by 118.7% year-over-year to NIS 15.8 million (US$ 4.3 million).
• Cash and securities balance of NIS 260.5 million (US$ 71.7 million) as of March 31, 2019.
• Earnings per share of NIS 1.19 (US$ 0.33).

Willi-Food's operating divisions include Willi-Food, a distributor of a broad variety of kosher foods, and Gold Frost, its wholly-owned subsidiary, a designer, developer and distributor of branded kosher innovative dairy food products.

Management Comment

Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food, commented: "We are pleased to present the first quarter 2019 financial results, which show continued quarterly improvements in sales, gross profit and operating profit year-over-year for seven quarters in a row. The results of operations show the Company's highest quarterly sales, gross profit and net profit. According to retail data analytics provided by StoreNext Ltd^[1], the Company recorded a higher growth rate in the last quarter for "sale out" sales (in other words, sales to the final consumer) than any other Israeli food and beverage company, growing 23.3% compared to the average of such companies, which declined by 0.6%.

We are focusing on increasing the Company's market share in the food sector in Israel, and we believe that the previously announced memorandums of understanding with respect to the potential acquisitions of Bikurei Hasadeh North 1994 Ltd. and Miki Food Industries Fish and Salads (1992) Ltd., upon closing, and together with our growing business and other Company plans for the coming years, will further improve Company results."

^1. StoreNext Ltd. has a direct connection to the cash register systems of over 2,200 points of sales, providing information regarding 80% of real time sales data in Israel.

First Quarter Fiscal 2019 Summary

Sales for the first quarter of 2019 increased by 4.8% to NIS 97.8 million (US$ 26.9 million) from NIS 93.4 million (US$ 25.7 million) recorded in the first quarter of 2018. Sales increased primarily due to a redirection of resources in favor of sales, increasing the variety of Company products and improved inventory management.

Gross profit for the first quarter of 2019 increased by 21.8% to NIS 30.2 million (US$ 8.3 million) compared to NIS 24.8 million (US$ 6.8 million) recorded in the first quarter of 2018. First quarter gross margin increased by 16.6% to 30.9% compared to gross margin of 26.5% for the same period in 2018, primarily due to the increased sales and the gross margin increase resulting from the Company's strategy of selling a more favorable mix of products which generate a higher gross margin

Selling expenses increased by 16.3% to NIS 12.5 million (US$ 3.4 million) compared to NIS 7.2 million (US$ million 3.0) in the first quarter of 2018 primarily due to an increase in manpower and payroll expenses. Selling expenses as a percentage of sales were 12.8%, compared to 11.5% in the first quarter of 2018.

General and administrative expenses increased by 13.5% to NIS 5.1 million (US$ 1.4 million) compared to NIS 4.5 million (US$ million 1.2) in the first quarter of 2018. The increase in general and administrative expenses was primarily due to an increase in management payroll expenses.

As a result, operating profit for the first quarter of 2019 increased by 32.0% to NIS 12.6 million (US$ 3.5 million) compared to NIS 9.6 million (US$ 2.6 million) in the first quarter of 2018.

Willi-Food's income before taxes for the first quarter of 2019 was NIS 19.8 million (US$ 5.5 million) compared to income before taxes of NIS 9.5 million (US$ 2.6 million) in the first quarter of 2018.

Willi-Food's net profit in the first quarter of 2019 was NIS 15.8 million (US$ 4.3 million), or NIS 1.19 (US$ 0.33) per share, compared to NIS 7.2 million (US$ 2.0 million), or NIS 0.54 (US$ 0.15) per share, recorded in the first quarter of 2018.

Willi-Food ended the first quarter of 2019 with NIS 260.5 million (US$ 71.7 million) in cash and securities. Net cash from operating activities for the first quarter of 2019 was NIS 0.5 million (US$ 0.1 million). Willi-Food's shareholders' equity at the end of March 2019 was NIS 456.0 million (US$ 125.6 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, 2019, with U.S. $1.00 equal to NIS 3.632 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, 2019 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 1,250 customers and 2,500 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 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: the risk that the potential acquisitions of Bikurei Hasadeh North 1994 Ltd. and Miki Food Industries Fish and Salads (1992) Ltd. will not be completed; 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; 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, 2018, filed with the Securities and Exchange Commission on March 27, 2019. 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.

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.
Amir Kaplan, Chief Financial Officer
(+972) 8-932-1000
[email protected]

SOURCE G. Willi-Food International Ltd.