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.
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