G. Willi-Food Reports Net Income of US$ 2.3 Million for Fourth Quarter 2010

Mar 21, 2011, 07:35 ET from G Willi Food International

YAVNE, Israel, March 21, 2011 /PRNewswire-FirstCall/ --

- 2010 Q4 Sales 14.2% Over 2009 Q4 Sales;

- 2010 Q4 Operating Income up 28.7% Over 2009 Q4 Operating Income

G. Willi-Food International Ltd. (NASDAQ: WILC) (the "Company" or "Willi-Food"), a global company specializing in the development, manufacturing, marketing and international distribution of kosher foods, today announced its audited financial results for the fourth quarter and the fiscal year ending December 31, 2010.

Fourth Quarter Fiscal 2010 Highlights

- Sales increased 14.2% over fourth quarter of 2009 to NIS 91.1 million (US$ 25.7 million)

- Gross profit of NIS 25.4 million (US$ 7.1 million), or 27.9% of sales

- Operating income increased 28.7% over fourth quarter of 2009 to NIS 7.9 million (US$ 2.2 million), or 8.7% of sales

- Income from continuing operations increased 26.1% over fourth quarter of 2009 to NIS 8.1 million (US$ 2.3 million), or 8.9% of sales

- Net income increased 1.2% over fourth quarter of 2009 to NIS 8.1 million (US$ 2.3 million), or 8.9% of sales

- Cash and securities balance of NIS 181.5 million (US$ 51.1 million) as of December 31, 2010

Year End Fiscal 2010 Highlights

- Sales increased 14.8% year-over-year to NIS 348.4 million (US$ 98.2 million), the highest annual sales in the history of the Company

- Gross profit for 2010 increased 20.1% year-over-year to NIS 100.8 million (US$ 28.4 million)

- Gross margin improved to 28.9% compared to 27.6% in 2009, the highest annual gross margin in the history of the Company

- Non-GAAP operating income increased 20.2% year-over-year to NIS 33.6 million (US$ 9.5 million), or 9.6% of sales

- Non-GAAP income from continuing operations increased 20.4% year-over-year to NIS 29.3 million (US$ 8.3 million), or 8.4% of sales

- Non-GAAP net income increased 14.7% year-over-year to NIS 30.2 million (US$ 8.5 million), or 8.7% of sales

Willi-Food's operating divisions include Willi-Food, a distributor of a broad variety of kosher foods; its wholly owned Gold Frost - a designer, developer and distributor of branded kosher dairy food products, and Shamir Salads - an Israeli distributor and manufacturer of Mediterranean style salads.

Fourth Quarter Fiscal 2010 Summary

Sales for the fourth quarter of 2010 increased by 14.2% to NIS 91.1 million (US$ 25.7 million) compared to sales of NIS 79.8 million (US$ 22.5 million) in the fourth quarter of 2009. The growth in sales in the fourth quarter was primarily due to the introduction of new products and the impact of a national media campaign that increased awareness of the Willi-Food brand throughout Israel and increased sales and promotional activities.

Gross profit for the fourth quarter of 2010 increased by 4.8% to NIS 25.4 million (US$ 7.1 million) compared to gross profit of NIS 24.2 million (US$ 6.8 million) in the fourth quarter of 2009. Fourth quarter gross margin was 27.9% compared to gross margin of 30.3% for the same period in 2009. The Company is mitigating the effects of worldwide inflation in agricultural commodities and dairy products by working closely with suppliers to anticipate adverse price trends, building inventory accordingly and raising prices to its customers.

Willi-Food's operating income for the fourth quarter of 2010 increased 28.7% to NIS 7.9 million (US$ 2.2 million) over the fourth quarter of 2009. Selling expenses decreased by 2.3% from the comparable quarter of 2009. Selling expenses as a percentage of sales decreased in the fourth quarter of 2010 to 13.5% compared to 15.7% in the fourth quarter of 2009 primarily due to aggressive expense reduction initiatives. General and administrative expenses decreased by 5.7% from the comparable quarter of 2009. General and administrative expenses as a percentage of sales decreased in the fourth quarter of 2010 to 5.7% from 6.9% in the fourth quarter of 2009.

Willi-Food's income before taxes for the fourth quarter of 2010 increased 42.0% to NIS 9.8 million (US$ 2.8 million) over the fourth quarter of 2009. Income from continuing operations for the fourth quarter of 2010 increased 26.1% to NIS 8.1 million (US$ 2.3 million) over the fourth quarter of 2009.

Willi-Food's net income in the fourth quarter of 2010 increased 1.2% to NIS 8.1 million (US$ 2.3 million) from NIS 8.0 million (US$ (2.2 million) recorded in the fourth quarter of 2009. Willi-Food's net income related to Company Shareholders in the fourth quarter of 2010 was NIS 7.4 million (US$ 2.1 million), or NIS 0.55 (US$ 0.15) per share, compared to NIS 7.8 million (US$ 2.2 million), or NIS 0.76 (US$ 0.21) per share, recorded in the fourth quarter of 2009.

Willi-Food generated NIS 4.7 million (US $1.3 million), or NIS 0.35 (US $0.10) per share from continuing operating activities in the fourth quarter of 2010 compared to net cash used in continuing operating activities of NIS 9.3 million (US$ 2.6 million), or NIS 0.72 (US$ 0.20) per share, recorded in the fourth quarter of 2009.

Willi-Food ended the fourth quarter of 2010 with NIS 181.5 million in cash and securities (US$ 51.1 million) and NIS 2.9 million (US$ 0.8 million) in short-term debt (51% of the debt of Shamir Salads). Willi-Food's shareholders' equity at the end of 2010 was NIS 306.9 million (US$ 86.5 million).

Fiscal 2010 Summary

Sales for fiscal 2010 increased 14.8% to NIS 348.4 million (US$ 98.2 million) compared to sales of NIS 303.5 million (US$ 85.5 million) in fiscal 2009. Gross profit for fiscal 2009 increased by 20.1% to NIS 100.8 million (US$ 28.4 million) compared to gross profit of NIS 83.9 million (US$ 23.6 million) in fiscal 2009. Gross margin in 2009 improved to 28.9% compared to gross margin of 27.6% in 2009 - the highest annual gross margin in the history of Willi-Food.

All following non-GAAP calculations exclude an unrealized one-time capital gain resulting from the completion of a tender offer for Gold Frost's shares that was recorded as "Other income" in the third quarter of 2009 in the amount of NIS 5.2 million (US$ 1.5 million) (the "Capital Gain"). Non-GAAP operating income for fiscal 2010 increased 20.2% to NIS 33.6 million (US$ 9.5 million) over fiscal 2009. On a GAAP basis (without excluding the Capital Gain), operating income for fiscal 2010 increased 1.2% from NIS 33.2 million (US$ 9.3 million) recorded in fiscal 2009.

Non-GAAP net income for fiscal 2010 increased 14.7% to NIS 30.2 million (US$ 8.5 million) over fiscal 2009. Non-GAAP net income attributable to Company Shareholders for fiscal 2010 increased 11.9% to NIS 28.2 million (US$ 7.9 million), or NIS 2.2 (US$ 0.62) per share, compared to NIS 25.1 million (US$ 7.1 million), or NIS 2.4 (US$ 0.69) per share, recorded in fiscal 2009.

On a GAAP basis, net income fiscal 2010 decreased 4.3% from NIS 31.5 million (US$ 8.9 million) recorded in fiscal 2009. GAAP net income attributable to Company Shareholders for fiscal 2010 decreased 7.4% from NIS 30.4 million (US$ 8.6 million), or NIS 3.0 (US$ 0.83) per share, recorded in fiscal 2009.

Outlook

Mr. Zwi Williger, President and COO of Willi-Food commented: "Fiscal 2010 was a very strong year for Willi Food. For six consecutive quarters, we have grown sales and gross profits while controlling SG&A expense growth. Fourth quarter operating income grew nearly 30%, despite the well-known pressures in commodity costs being felt around the world. Throughout 2010 we introduced great-tasting, higher margin food products, which we develop together with our suppliers. For instance, we recently introduced two new lines of kosher Swiss premium products: our 'KAMBLY' fine biscuit and cookie products, and a new line of fine chocolate bar products. These lines build upon categories that we introduced only a few months ago, such as 'GELATO' kosher Italian ice-cream products, and other chilled desserts.

"Looking forward, we are confident that we can deliver sales and profit growth in 2011. We believe that momentum will continue to build in recently introduced products, and several new product line introductions can further boost sales. The first quarter of 2011 is off to a good start, and the shift of Passover to the second quarter will help drive sales in that period. We are understandably cautious regarding ongoing global commodity price inflation, but are well-positioned to limit any impacts. We will sustain our flexible purchasing strategy, and are highly focused on reducing production costs and SG&A expenses."

"We believe that we can continue to benefit from a multi-channel approach and broad kosher product base that addresses a trend toward more health-conscious food choices. We intend to expand our reach to retail and wholesale markets in the U.S., and have previously discussed the potential for a distribution acquisition in the United States. In addition, several other strategic options are under active evaluation."

Conference Call

The Company will host a conference call to discuss results on Monday, March 21, 2011 at 11:00 AM Eastern time. Interested parties may participate in the conference call by dialing 1-877-941-2321 (US), or 1-480-629-9714 (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://viavid.net/dce.aspx?sid=000082CE

A replay of the conference call will be available for 14 days from 2:00 PM EST on March 21, 2011 through 11:59 PM EST on April 4, 2011 by dialing 1-877-870-5176 (US), or 1-858-384-5517 (International), access code 4423592. In addition, a recording of the call will be available via the the link shown above for one year.

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 December 31, 2010, U.S. $1.00 equals NIS 3.549. 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 December 31, 2010 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. The comparative income (loss) from discontinued operations has been re-casted to include those operations classified as discontinued in the current period.

NOTE D: Use of Non-GAAP Measures

This press release provides financial measures for operating income, income from continuing operations, net income, net income attributable to Company Shareholders and basic earnings per share, which exclude an unrealized one-time capital gain resulting from the completion of a tender offer for Gold Frost's shares that was recorded as "Other income" in the third quarter of 2009 in the amount of NIS 5.4 million (US$ 1.5 million) and is therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding the performance of the Company because it reflects the operational results and enhances management's and investors' ability to evaluate the Company's operating margin and income, income from continuing operations, net income, net income attributable to Company Shareholders and basic earnings per share. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when evaluating the business internally and, therefore, felt it important to make these non-GAAP adjustments available to investors. A reconciliation of each GAAP to non-GAAP financial measure discussed in this press release is contained in the accompanying financial tables.

    -------------------------------------------------------------------------
    GAAP segment results for fiscal 2010 and 2009 (in NIS thousands):

                                           % of              % of
                                 2010     Sales     2009    Sales

    Operating expenses         67,218     19.3%   50,719    16.7%
    Operating income           33,568      9.6%   33,172    10.9%
    Income before taxes on     37,810     10.9%   34,643    11.4%
    income
    Income from continuing     29,327      8.4%   29,600     9.8%
    operations
    Net income                 30,157      8.7%   31,528    10.4%

    Attribute to:
    Owners of the Company      28,177      8.1%   30,436    10.0%
    Non-controlling interest    1,980      0.6%    1,092     0.4%
    Earnings per share:
    Basic earnings per share     2.18               2.96

    ---------------------------------------------------------------------
    Non-GAAP segment results for fiscal 2010 and 2009 (in NIS thousands):

                                               % of                     % of
                                 2010         Sales         2009       Sales


    Operating expenses         67,218        19.3%        55,964       18.4%
    Operating income           33,568         9.6%        27,927        9.2%
    Income before taxes on     37,810        10.9%        29,398        9.7%
    income
    Income from continuing     29,327         8.4%        24,355        8.0%
    operations
    Net income                 30,157         8.7%        26,283        8.7%

    Attribute to:
    Owners of the Company      28,177         8.1%        25,191        8.3%
    Non-controlling interest    1,980         0.6%         1,092        0.4%
    Earnings per share:
    Basic earnings per share     2.18                       2.44

    ---------------------------------------------------------------------
    About G. Willi-Food International Ltd.

G. Willi-Food International Ltd. (http://www.willi-food.co.il) 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, manufacture, marketing and distribution of over 1,000 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; Gold Frost, a wholly owned subsidiary which designs, develops and distributes branded kosher, dairy-food products; and Shamir Salads, an Israeli manufacturer and distributor of a broad line of over 400 Mediterranean-style chilled salads.

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 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 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, 2009, filed with the Securities and Exchange Commission on June 28, 2010. 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 31,
                                                   2010     2009     2010(*)
                                                       NIS       US Dollars
                                                       (in thousands)
    ASSETS
    Current assets
    Cash and cash equivalents                    113,631  87,104      32,018
    Financial assets carried at fair value        67,890  11,356      19,083
    through profit or loss
    Trade receivables                             85,902  77,752      24,202
    Other receivables                              2,307   1,990         697
    Inventories                                   37,614  44,810      10,599
    Total current assets                         307,344 223,012      86,599

    Non-current assets
    Property, plant and equipment                 71,350  67,120      20,105
    Less -accumulated depreciation                20,512  17,542       5,780
                                                  50,838  49,578      14,325

    Long term receivables                              -     760           -
    Prepaid expenses                               2,405   2,384         678
    Goodwill                                       1,936   1,936         546
    Intangible assets, net                         4,067   4,674       1,146
    Deferred taxes                                   694     375         195
    Total non-current assets                      59,940  59,707      16,890

    TOTAL ASSETS                                 367,284 282,719     103,489

    EQUITY AND LIABILITIES
    Current liabilities
    Short-term bank credit                         5,780  10,372       1,629
    Trade payables                                32,959  49,382       9,285
    Accruals                                         268     145          76
    Current tax liabilities                        5,910   2,801       1,665
    Other payables and accrued expenses           10,326   8,976       2,910
    Employees Benefits                             3,057   2,977         862
    Total current liabilities                     58,300  74,653      16,427

    Non-current liabilities
    Long-term bank loans                             309      97          87
    Deferred taxes                                   522     445         147
    Employees Benefits                             1,281   1,044         361
    Total non-current liabilities                  2,112   1,586         595

    Shareholders' equity
    Share capital NIS 0.10 par value
    (authorized - 50,000,000 shares, issued and
    outstanding - 13,573,679 shares at December
    31, 2010; 10,267,893 shares at December 31,
    2009)
                                                   1,444   1,113         407
    Additional paid in capital                   128,863  59,056      36,310
    Capital fund                                     247     247          70
    Foreign currency translation reserve             736     639         207
    Retained earnings                            170,060 141,883      47,917
    Non-controlling interest                       5,522   3,542       1,556
                                                 306,872 206,480      86,467

    TOTAL EQUITY AND LIABILITIES                 367,284 282,719     103,489

    (*) Convenience Translation into U.S.
    Dollars.


    G. WILLI-FOOD INTERNATIONAL LTD.

               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


                                         Year ended December 31,
                                     2010        2009        2008     2010(*)
                                             NIS                  US Dollars
                             In thousands (except per share and share data)

    Sales                         348,358     303,460     289,068      98,156
    Cost of sales                 247,572     219,569     228,839      69,758
    Gross profit                  100,786      83,891      60,229      28,398

    Selling expenses               45,048      35,598      31,800      12,693
    General and                    22,217      20,451
    administrative expenses                                16,863       6,260
    Other (income) expenses          (47)     (5,330)       1,846        (13)
    Total operating                67,218      50,719
    expenses                                               50,509      18,940

    Operating income               33,568      33,172       9,720       9,458

    Finance income                  5,543       2,744     (4,167)       1,562
    Finance expense                 1,301       1,273         673         368
    Finance income                  4,242       1,471
    (expense), net                                        (4,840)       1,194

    Income before taxes on         37,810      34,643
    income                                                  4,880      10,652
    Taxes on income                 8,483       5,043       1,117       2,390
    Income from continuing         29,327      29,600
    operations                                              3,763       8,262
    Income (loss) from                830       1,928
    discontinued operations                               (3,496)         234
    Net income                     30,157      31,528         267       8,496

    Attributable to:
    Owners of the Company          28,177      30,436       (786)       7,939
    Non-controlling                 1,980       1,092
    interest                                                1,053         557
    Net income                     30,157      31,528         267       8,496

    Earnings (loss) per
    share
    Basic from continuing            2.12        2.81
    operations                                               0.30        0.60
    Basic from discontinued          0.06        0.15
    operations                                             (0.38)        0.02
    Basic earnings (loss)            2.18        2.96
    per share                                              (0.08)        0.62

    Diluted from continuing          2.12        2.81
    operations                                               0.30        0.60
    Diluted from                     0.06        0.15
    discontinued operations                                (0.38)        0.02
    Diluted earnings (loss)          2.18        2.96
    per share                                              (0.08)        0.62

    Shares used in
    computation of basic
    EPS                        12,876,294  10,267,893  10,267,893  12,876,294

    Shares used in
    computation of diluted
    EPS                        12,876,294  10,267,893  10,267,893  12,876,294



    (*) Convenience translation into U.S. Dollars.

                        G. WILLI-FOOD INTERNATIONAL LTD.

                  CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY

                               (NIS in thousands)


                                                                    Foreign
                                          Additional               currency
                                    Share    paid in              translation
                                   capital   capital  Capital fund   reserve

    Balance - January 1, 2009       1,113     59,056          247         369

    Profit for the year                 -          -            -           -
    Currency translation
    differences                         -          -            -          39
    Total comprehensive
    income for the year                                                   408

    Purchase of
    non-controlling interest            -          -            -           -
    Dividend paid to
    non-controlling interests           -          -            -           -
    Disposal of subsidiary              -          -            -         231

    Balance - December 31,
    2009                            1,113     59,056          247         639

    Profit for the year                 -          -            -           -
    Currency translation
    differences                         -          -            -          97
    Total comprehensive
    income for the year                                                   736

    Public offering                   331     69,807            -           -

    Balance - December 31,
    2010                            1,444    128,863          247         736



    Table continues.

                              Attributable
                                   to
                                 owners of   Non-controlling        Total
                     Retained   the parent      interest        shareholders'
                     earnings                                      equity

    Balance -
    January 1, 2009   111,447      172,232          13,350            185,582

    Profit for the
    year               30,436       30,436           1,092             31,528
    Currency
    translation
    differences             -           39              13                 52
    Total
    comprehensive
    income for the
    year              141,883      202,707          14,455            217,162

    Purchase of
    non-controlling
    interest                -            -         (7,559)            (7,559)
    Dividend paid to
    non-controlling
    interests               -            -           (101)              (101)
    Disposal of
    subsidiary              -          231         (3,253)            (3,022)

    Balance -
    December 31,
    2009              141,883      202,938           3,542            206,480

    Profit for the
    year               28,177       28,177           1,980             30,157
    Currency
    translation
    differences             -           97               -                 97
    Total
    comprehensive
    income for the
    year              170,060      231,212           5,522            236,734

    Public offering         -       70,138               -             70,138

    Balance -
    December 31,
    2010              170,060      301,350           5,522            306,872




                       G. WILLI-FOOD INTERNATIONAL LTD.

                    CONDENSED CONSOLIDATED STATEMENTS OF CASH
                                    FLOWS


                                               Year ended December 31,
                                            2010     2009    2008    2010 (*)
                                                   NIS            US Dollars
                                                   (in thousands)
    Cash flows - operating activities
    Profit from continuing operations     29,327   29,600   3,763       8,262
    Adjustments to reconcile net income
    to net cash from continuing
    operating activities (Appendix)      (8,890) (14,803)  11,790     (2,504)

    Net cash from continuing operating
    activities                            20,437   14,797  15,553       5,758

    Net cash from (used in) discontinued    (21)    2,876
    operating activities                                    3,346         (6)

    Cash flows - investing activities
    Acquisition of property plant and    (6,206)  (1,839)
    equipment                                             (3,109)     (1,749)
    Proceeds from sale of property plant     717      276
    and Equipment                                             165         202
    Additions to intangible assets             -        -   (300)           -
    Additions to prepaid expenses, net   (1,077)  (1,086) (1,579)       (303)
    Long term deposit, net                    14      (7)    (44)           4
    Proceeds from realization (purchase)
    of marketable securities, net       (53,234)      663  16,714    (15,000)
    Purchase of additional shares in           -  (2,314)
    subsidiary                                            (9,250)           -
    Disposal of subsidiary                     -    2,185       -           -
    Purchase of subsidiaries                   -        - (5,664)           -

    Net cash used in continuing         (59,786)  (2,122)
    investing activities                                  (3,067)    (16,846)

    Net cash used in discontinued              -     (30)
    investing activities                                     (36)           -

    Cash flows - financing activities
    Proceeds of Public offering, net      70,248        -       -      19,794
    Deferred expenses related to Public        -    (110)
    Offering                                                    -           -
    Short-term bank credit, net          (3,609)  (3,362) (1,797)     (1,017)
    Repayment of loans                   (1,016)  (1,601) (1,369)       (286)
    Proceeds of loans                      1,200      487   6,803         338

    Net cash from (used in) continuing    66,823  (4,586)
    financing activities                                    3,637      18,829

    Net cash used in discontinued
    financing activities                   (926)  (2,566) (2,312)       (261)

    Increase in cash and cash             26,527    8,369
    equivalents                                            17,121       7,474

    Cash and cash equivalents at the
    beginning of the financial year       87,104   78,749  61,649      24,544

    Net foreign exchange difference on
    cash and cash equivalents from
    discontinued activities                    -     (14)    (21)           -

    Cash and cash equivalents of the end
    of the financial year                113,631   87,104  78,749      32,018



    (*) 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


                                               Year ended December 31,
                                            2010     2009    2008    2010 (*)
                                                   NIS            US Dollars
                                                   (in thousands)

    Revaluation of loans from banks and
    others                                  (11)       32     106         (3)
    Deferred income taxes                  1,343      739   (505)         378
    Capital Gain on purchase of
    additional shares in subsidiary            -  (5,245)       -           -
    Unrealized loss (gain) on marketable
    securities                           (3,300)  (2,652)   5,186       (930)
    Depreciation and amortization          5,815    5,777   5,022       1,638
    Capital gain on disposal of property
    plant and equipment                     (47)     (85)    (85)        (13)
    Employees benefit, net                   237       50     545          67
    Change in value of warrants to issue
    shares                                     -      (5) (1,035)           -

    Changes in assets and liabilities:
    Increase in trade receivables and
    other receivables                    (8,470)  (7,196) (4,665)     (2,385)
    Decrease (Increase) in inventories     7,196 (10,986) (3,789)       2,028
    Decrease in long term receivables        760      103       -         214
    Increase (Decrease) in trade and
    other payables, and other current
    liabilities                         (12,413)    4,665  11,010     (3,498)

                                         (8,890) (14,803)  11,790     (2,504)


    (*) Convenience Translation into U.S. Dollars.

                       G. WILLI-FOOD INTERNATIONAL LTD.
                NON-GAAP FINANCIALS MEASURES AND RECONCILIATION


                                Year ended        Year ended December
                               December 31                 31
                                2010     2009       2010         2009
                                     NIS              US Dollars (*)
                                           In thousands

    GAAP Operating income     33,568   33,172      9,458        9,347
    Other income - capital
    gain - tender offer            -  (5,245)          -      (1,478)

    Non-GAAP Operating
    income                    33,568   27,927      9,458        7,869

    GAAP Income before taxes           34,643
    on income                 37,810              10,654        9,761
    Other income - capital
    gain - tender offer            -  (5,245)          -      (1,478)

    Non-GAAP Income before
    taxes on income           37,810   29,398     10,654        8,283

    GAAP Income from
    continuing operations     29,327   29,600      8,263        8,340
    Other income - capital
    gain - tender offer            -  (5,245)          -      (1,478)

    Non-GAAP Income from
    continuing operations     29,327   24,355      8,263        6,862

    GAAP Net income           30,157   31,528      8,496        8,884
    Other income - capital
    gain - tender offer            -  (5,245)          -      (1,478)

    Non-GAAP Net income       30,157   26,283      8,496        7,406


(*) 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
    baruch@willi-food.co.il

SOURCE G Willi Food International