SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K
  
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of March 2020
 
G. Willi-Food International Ltd.
(Translation of registrant’s name into English)
  
4 Nahal Harif St., Yavne, Israel 81106
 (Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ☒     Form 40-F ☐
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____ 
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____ 
 
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. 
 
Yes ☐    No ☒ 
 
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________   



INFORMATION CONTAINED IN THIS REPORT ON FORM 6-K

Attached hereto and incorporated by reference herein is a press release, dated March 19, 2020, titled: "G. Willi-Food International Reports a Record High Year With More Than Doubling of Net Income in Fiscal Year 2019 Compared to Prior Year".

This Report on Form 6-K is hereby incorporated by reference into the Company's Registration Statement on Form S-8 (File No. 333-199295).



Signatures 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 
 
 
G. Willi-Food International Ltd.
             
By: /s/ Yitschak Barabi
Name: Yitschak Barabi
Title: Chief Financial Officer

Date: March 19, 2020


         
                  

FOR IMMEDIATE RELEASE

G. WILLI-FOOD INTERNATIONAL REPORTS A RECORD HIGH YEAR WITH
MORE THAN DOUBLING OF NET INCOME IN FISCAL YEAR 2019
COMPARED TO PRIOR YEAR

FISCAL YEAR 2019 RESULTS SHOW A RECORD HIGH FOR THE COMPANY IN SALES,
GROSS PROFIT, OPERATING PROFIT AND NET INCOME

YAVNE, Israel - March 19, 2020 - 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 financial results for the fiscal year ended December 31, 2019.

Fiscal Year 2019 Highlights

Sales increased by 17.0% from fiscal year 2018 to NIS 395.6 million (US$ 114.5 million).
Gross profit increased by 26.1% from fiscal year 2018 to NIS 123.9 million (US$ 35.8 million).
Operating profit increased by 25.2% from fiscal year 2018 to NIS 47.3 million (US$ 13.7 million), or 12.0% of sales.
Income before taxes(Net income) increased by 98.8% from fiscal year 2018 to NIS 65.2 million (US$ 18.9 million).
Income after taxes increased by 106.3% from fiscal year 2018 to NIS 51.5 million (US$ 14.9 million).
Cash and securities balance of NIS 263.4 million (US$ 76.2 million) as of December 31, 2019.

Willi-Food’s operating divisions include Willi-Food, a distributor of a broad variety of kosher foods, and its wholly-owned Euro European Dairies Ltd. (formerly "Gold Frost Ltd."), a designer, developer and distributor of innovative branded kosher dairy food products.
 
Management Comment
 
Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food, commented: “We are pleased to present fiscal year 2019 results which show our best financial results ever in sales, gross profit, operating profit and net profit.
 
At the beginning of fiscal year 2020, we appointed a new CEO and other new officers whom we believe will initiate new management systems, routines and procedures. These management changes and new management initiatives allow for organizational stability and provide a solid basis for enhanced growth.”

According to retail data analytics provided by StoreNext Ltd1, the Company recorded a higher growth rate in 2019 for "sale out" sales (i.e., sales to the final consumer) than any other Israeli food and beverage company growing 30.6% compared to the 2.3% average growth of such companies.
 


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.



 
Fiscal 2019 Summary
 
Revenues for fiscal year 2019 increased by NIS 57,392 thousand (USD 16,606 thousand), or 17.0%, to NIS 395,637 thousand (USD 114,478 thousand) from NIS 338,245 thousand (USD 97,872 thousand) recorded in fiscal year 2018. Revenues increased primarily due to a redirection of resources in favor of sales, increasing the variety of the Company's products and improved inventory management.
 
Cost of sales for fiscal year 2019 increased by 13.2% to NIS 271,784 thousand (USD 78,641 thousand), or 68.7% of revenues, from NIS 240,032 thousand (USD 69,454 thousand), or 71.0% of revenues, recorded in fiscal year 2018. The increase in cost of sales was primary due to increase in sales.
 
Gross profit for fiscal year 2019 increased by 26.1% to NIS 123,853 thousand (USD 35,837 thousand), or 31.3% of revenues, from NIS 98,213 thousand (USD 28,418 thousand), or 29.0% of revenues, recorded in fiscal year 2018. The increase in gross profit was primary due to the sales and the gross margin increase resulting from the Company's strategy of selling a favorable mix of products which generate a higher gross margin and depreciation of the Euro and USD exchange rates against the NIS.
 
Selling expenses for fiscal year 2019 increased by 26.6% to NIS 55,490 thousand (USD 16,056 thousand), or 14.0% of revenues from NIS 43,823 thousand (USD 12,680 thousand), or 13% of revenues, recorded in fiscal year 2018. The increase in selling expenses was primarily due to an increase of salary resulting from an increase in personnel in the sales department, increase in advertising expenses and sales promotion and increase of freight to customers' expenses.
 
General and administrative expenses for fiscal year 2019 increased by 26.3% to NIS 21,067 thousand (USD 6,096 thousand), or 5.3% of revenues, from NIS 16,686 thousand (USD 4,828 thousand), or 4.9% of revenues, recorded in fiscal year 2018. The increase in general and administrative expenses was primarily due to increases in personnel and management salaries.
 
Operating profit for fiscal year 2019 increased by NIS 9,523 thousand (USD 2,755 thousand), or by 25.2%, to NIS 47,296 thousand (USD 13,685 thousand), or 12.0% of revenues, from NIS 37,773 thousand (USD 10,930 thousand), or 11.2% of revenues, recorded in fiscal year 2018. The increase in operating profit was primarily due to increase in gross profit.
 
Financing expense, net, for fiscal year 2019 amounted to NIS 17,950 thousand (USD 5,194 thousand) compared to net income of NIS (4,956) thousand (USD (1,434) thousand) recorded in fiscal year 2018. The increase in financing income, net, consisted primarily of change in the fair value of financial assets at fair value.
 
Profit before taxes on income for fiscal year 2019 increased by NIS 32,429 thousand (USD 9,383 thousand), or by 98.8%, to NIS 65,246 thousand (USD 18,879 thousand) from NIS 32,817 thousand (USD 9,496 thousand) recorded in fiscal year 2018. The increase in profit before taxes on income was primarily due to increase in gross profit and increase in finance income, net.
 
Net profit for fiscal year 2019 was NIS 51.5 million (US$ 14.9 million), or NIS 3.90 (US$ 1.13) per share.
 
Willi-Food ended fiscal year 2019 with NIS 263.4 million (US$ 76.2 million) in cash and securities with no short-term debt. Net cash used to continuing operating activities in fiscal year 2019 was NIS 2.6 million (US$ 0.7 million). Willi-Food's shareholders' equity at the end of December 2019 was NIS 491.4 million (US$ 142.2 million).

NOTE A: NIS to US$ exchange rate used for convenience only
The conversion from New Israeli Shekels (NIS) into U.S. dollars was made at the exchange rate as of December 31, 2019, on which U.S. $1.00 equaled NIS 3.456 The use of US$ is solely for the convenience of the reader.



NOTE B: IFRS
The Company’s consolidated financial results for fiscal year ended December 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 Euro European Dairies Ltd. (Former: "Gold-Frost Ltd."), a wholly owned subsidiary who designs, develops and distributes branded kosher, dairy-food products.

During 2019, the company began to engage in the non-bank credit field. This activity is executed and managed through W.F.D (Import, Marketing and Trading) Ltd., a wholly-owned and controlled subsidiary of the Company. The activity is funded from the Willi-Food group’s own resources and executed in parallel to the existing activity of importing, marketing and distributing of 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: 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 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, 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, 2019, 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.
 


G. WILLI‑FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS

   
December 31,
   
December 31,
 
   
2 0 1 9
   
2 0 1 8
   
2 0 1 9
   
2 0 1 8
 
   
NIS
   
US dollars (*)
 
   
(in thousands)
 
ASSETS
                       
Current assets
                       
Cash and cash equivalents
   
121,860
     
134,287
     
35,260
     
38,856
 
Financial assets at fair value through profit or loss
   
141,543
     
137,904
     
40,956
     
39,903
 
Loans to others
   
17,650
     
-
     
5,107
     
-
 
Trade receivables
   
133,039
     
98,017
     
38,495
     
28,361
 
Other receivables and prepaid expenses
   
9,360
     
3,744
     
2,708
     
1,083
 
Inventories
   
71,548
     
49,289
     
20,703
     
14,263
 
Current tax assets
   
-
     
862
     
-
     
249
 
Total current assets
   
495,000
     
424,103
     
143,229
     
122,715
 
                                 
Non-current assets
                               
Property, plant and equipment
   
81,402
     
79,611
     
23,554
     
23,036
 
Less -Accumulated depreciation
   
43,881
     
40,219
     
12,697
     
11,638
 
     
37,521
     
39,392
     
10,857
     
11,398
 
                                 
Right of use asset
   
3,860
     
-
     
1,117
     
-
 
Goodwill
   
36
     
36
     
10
     
10
 
Deferred taxes
   
818
     
2,882
     
237
     
834
 
Total non-current assets
   
42,235
     
42,310
     
12,221
     
12,242
 
                                 
     
537,235
     
466,413
     
155,450
     
134,957
 
EQUITY AND LIABILITIES
                               
Current liabilities
                               
                                 
Current maturities of lease liabilities
   
1,675
     
-
     
485
     
-
 
Trade payables
   
24,650
     
16,239
     
7,133
     
4,699
 
Employees Benefits
   
2,911
     
2,577
     
842
     
746
 
Current tax liabilities
   
3,750
     
-
     
1,085
     
-
 
Other payables and accrued expenses
   
9,195
     
5,882
     
2,661
     
1,701
 
Total current liabilities
   
42,181
     
24,698
     
12,206
     
7,146
 
                                 
Non-current liabilities
                               
Lease liabilities
   
2,212
     
-
     
640
     
-
 
Retirement benefit obligation
   
1,486
     
836
     
430
     
242
 
Total non-current liabilities
   
3,698
     
836
     
1,070
     
242
 
                                 
Shareholders' equity
                               
Share capital NIS 0.1 par value (authorized - 50,000,000 shares, issued and outstanding – 13,217,017 shares at December 31, 2019 and 13,240,913 at December 31, 2018)
   
1,425
     
1,425
     
412
     
412
 
Additional paid in capital
   
128,354
     
128,354
     
37,139
     
37,139
 
Capital fund
   
247
     
247
     
71
     
71
 
Treasury shares
   
(628
)
   
-
     
(182
)
   
-
 
Retained earnings
   
362,987
     
311,476
     
105,031
     
90,127
 
Remeasurement of the net liability in respect of defined benefit
   
(1,029
)
   
(623
)
   
(297
)
   
(180
)
Equity attributable to owners of the Company
   
491,356
     
440,879
     
142,174
     
127,569
 
                                 
     
537,235
     
466,413
     
155,450
     
134,957
 
                                 
(*)
Convenience translation into U.S. dollars.




G. WILLI‑FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

   
For the year ended
December 31,
   
For the year ended
December 31,
 
   
2 0 1 9
   
2 0 1 8
   
2 0 1 9
   
2 0 1 8
 
   
NIS
   
US dollars (*)
 
   
In thousands (except per share and share data)
 
                         
Sales
   
395,637
     
338,245
     
114,478
     
97,872
 
Cost of sales
   
271,784
     
240,032
     
78,641
     
69,454
 
                                 
Gross profit
   
123,853
     
98,213
     
35,837
     
28,418
 
                                 
Operating costs and expenses:
                               
 Selling expenses
   
55,490
     
43,823
     
16,056
     
12,680
 
 General and administrative expenses
   
21,067
     
16,686
     
6,096
     
4,828
 
 Other income
   
-
     
(69
)
   
-
     
(20
)
Total operating expenses
   
76,557
     
60,440
     
22,152
     
17,488
 
                                 
Operating profit
   
47,296
     
37,773
     
13,685
     
10,930
 
                                 
Financial income
   
20,966
     
(7,212
)
   
6,067
     
(2,087
)
Financial expense
   
3,016
     
(2,256
)
   
873
     
(653
)
Total Finance Income
   
17,950
     
(4,956
)
   
5,194
     
(1,434
)
                                 
 Profit before taxes on income
   
65,246
     
32,817
     
18,879
     
9,496
 
 Taxes on income
   
(13,735
)
   
(7,850
)
   
(3,975
)
   
(2,271
)
                                 
Income after taxes on income
   
51,511
     
24,967
     
14,904
     
7,225
 
                                 
Earnings per share:
                               
Basic / diluted earnings per share
   
3.90
     
1.89
     
1.13
     
0.55
 
                                 
Shares used in computation of basic and diluted EPS
   
13,217,017
     
13,240,913
     
13,217,017
     
13,240,913
 

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



G. WILLI‑FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

   
For the year ended
   
For the year ended
 
   
December 31,
   
December 31,
 
   
2 0 1 9
   
2 0 1 8
   
2 0 1 9
   
2 0 1 8
 
   
NIS
   
US dollars (*)
 
   
In thousands (except per share and share data)
 
CASH FLOWS - OPERATING ACTIVITIES
                       
Profit from continuing operations
   
51,511
     
24,967
     
14,904
     
7,224
 
Adjustments to reconcile net profit to net cash from (used to) continuing operating activities (Appendix A)
   
(54,077
)
   
2,074
     
(15,647
)
   
600
 
Net cash from (used to) continuing operating activities
   
(2,566
)
   
27,041
     
(743
)
   
7,824
 
                                 
CASH FLOWS - INVESTING ACTIVITIES
                               
Acquisition of property plant and equipment
   
(1,791
)
   
(2,143
)
   
(518
)
   
(620
)
Proceeds from sale of property plant and equipment
   
-
     
415
     
-
     
120
 
Loans granted to others
   
(43,650
)
   
-
     
(12,630
)
   
-
 
Proceeds from loans granted to others
   
26,000
     
-
     
7,523
     
-
 
Proceeds of non current financial assets
   
-
     
3,970
     
-
     
1,149
 
Proceeds from purchase of marketable securities, net
   
11,336
     
(8,058
)
   
3,280
     
(2,332
)
Net cash used to continuing investing activities
   
(8,105
)
   
(5,816
)
   
(2,345
)
   
(1,683
)
                                 
CASH FLOWS - FINANCING ACTIVITIES
                               
Lease liability payments
   
(1,128
)
   
-
     
(326
)
   
-
 
Acquisition of treasury shares
   
(628
)
   
-
     
(182
)
   
-
 
Net cash used to continuing financing activities
   
(1,756
)
   
-
     
(508
)
   
-
 
                                 
Increase (decrease) in cash and cash equivalents
   
(12,427
)
   
21,225
     
(3,596
)
   
6,141
 
Cash and cash equivalents at the beginning of the year
   
134,287
     
113,062
     
38,856
     
32,715
 
Cash and cash equivalents at the end of the year
   
121,860
     
134,287
     
35,260
     
38,856
 

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



G. WILLI-FOOD INTERNATIONAL LTD.
APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

   
For the year ended
   
For the year ended
 
   
December 31,
   
December 31,
 
   
2 0 1 9
   
2 0 1 8
   
2 0 1 9
   
2 0 1 8
 
   
NIS
   
US dollars (*)
 
   
In thousands (except per share and share data)
 
                         
CASH FLOWS - OPERATING ACTIVITIES:
                       
A.          Adjustments to reconcile net profit to net cash from (used to)
              continuing operating activities
                       
Decrease (Increase) in deferred income taxes
   
2,064
     
(2,379
)
   
597
     
(688
)
Unrealized loss (gain) on marketable securities
   
(14,972
)
   
13,673
     
(4,332
)
   
3,956
 
Depreciation and amortization
   
4,815
     
3,614
     
1,393
     
1,046
 
Capital gain on disposal of property plant and equipment
   
-
     
(69
)
   
-
     
(20
)
                                 
Changes in assets and liabilities:
                               
Increase in trade receivables and other receivables
   
(39,775
)
   
(7,898
)
   
(11,508
)
   
(2,285
)
Increase in inventories
   
(22,259
)
   
(9,390
)
   
(6,441
)
   
(2,717
)
Increase in trade and other payables, and other current liabilities
   
16,050
     
4,523
     
4,644
     
1,308
 
     
(54,077
)
   
2,074
     
(15,647
)
   
600
 
                                 
B.          Supplemental cash flow information:
                               
Income tax paid
   
9,999
     
7,711
     
2,893
     
2,231
 

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

Company Contact:
G. Willi - Food International Ltd.
Yitschak Barabi, Chief Financial Officer
(+972) 8-932-1000
itsik.b@willi-food.co.il

###

SOURCE: G. Willi-Food International Ltd.