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 November 2020

Commission File Number 000-29256

 

(Translation of registrant’s name into English)

  

 (Address of principal executive office)

 

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): ____

 

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INFORMATION CONTAINED IN THIS REPORT ON FORM 6-K

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: November 10, 2020

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According to retail data analytics provided by StoreNext Ltd¹, the Company recorded growth of 27.3% in the first nine months of 2020 for "sale out" sales (in other words, sales to the final consumer) compared to an 8.7% average increase for the food and beverage industry as a whole.

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Sales for the third quarter of 2020 increased by 17.4% to NIS 111.9 million (US$ 32.5 million) from NIS 95.4 million (US$ 27.7 million) recorded in the third quarter of 2019. Sales increased primarily due to a redirection of resources in favor of sales, increasing the variety of the Company's products and improved inventory management.

Gross profit for the third quarter of 2020 increased by 14.1% to NIS 34.0 million (US$ 9.9 million) compared to NIS 29.8 million (US$ 8.7 million) recorded in the third quarter of 2019. The increase in gross profit was due to increase in sales.

Selling expenses increased by 17.9% to NIS 14.5 million (US$ 4.2 million) compared to NIS 12.3 million (US$ 3.6 million) in the third quarter of 2019. The increase in selling expenses was primarily due to an increase in payroll expenses in the logistics department as a result of working in two shifts to comply with government workplace restrictions due to the COVID-19 pandemic, and an increase of freight to customers' expenses to support sales growth.

General and administrative expenses increased by 10.5% to NIS 5.5 million (US$ 1.6 million) compared to NIS 5.0 million (US$ 1.4 million) in the third quarter of 2019. The increase in general and administrative expenses was primarily due to an increase in payroll expenses.

As a result of the foregoing, operating profit for the third quarter of 2020 increased by 11.8% to NIS 14.0 million (US$ 4.1 million) compared to NIS 12.6 million (US$ 3.6 million) in the third quarter of 2019.

Finance income, net totaled NIS 14.5 million (US$ 4.2 million) compared to NIS 0.8 million (US$ 0.2 million) in the third quarter of 2019. The increase in finance income, net was primarily due to an increase in interest income and dividends received from the Company's securities portfolio and from revaluation of the Company's securities portfolio to its fair value.

Income before taxes on income for the third quarter of 2020 increased by 114.3% to NIS 28.5 million (US$ 8.3 million) compared to NIS 13.3 million (US$ 3.9 million) in the third quarter of 2019.

Net profit in the third quarter of 2020 increased by 112.2% to NIS 21.9 million (US$ 6.4 million), or NIS 1.63 (US$ 0.47) per share, compared to NIS 10.3 million (US$ 3.0 million), or NIS 0.78 (US$ 0.23) per share, recorded in the third quarter of 2019.

Willi-Food ended the third quarter of 2020 with NIS 364.6 million (US$ 106.0 million) in cash and securities. Net cash from operating activities for the third quarter of 2020 was NIS 28.2 million (US$ 8.2 million). Willi-Food's shareholders' equity at the end of September 2020 was NIS 572.1 million (US$ 166.3 million).

Willi-Food’s sales for the nine-month period ending September 30, 2020 increased by 17.7% to NIS 345.2 million (US$ 100.3 million) compared to sales of NIS 293.3 million (US$ 85.3 million) in the first nine months of 2019. Sales increased primarily due to the COVID-19 pandemic, which led to an increase in demand for the Company's products, primarily in retail chains, and due to a redirection of resources in favor of sales, increasing the variety of the Company's products and improved inventory management.

Gross profit for the period increased by 28.0% to NIS 115.1 million (US$ 33.4 million) compared to gross profit of NIS 89.9 million (US$ 26.1 million) for the first nine months of 2019. The increase in gross profit was primarily due to the increase in sales.

Gross margin for the first nine months of 2020 was 33.3% compared to a gross margin of 30.6% for the same period in 2019. The increase in gross margin was primarily due to the Company's strategy of selling a more favorable mix of products which generate a higher gross margin.

Operating profit for the first nine months of 2020 increased by 42.6% to NIS 49.9 million (US$ 14.5 million) from NIS 35.0 million (US$ 10.2 million) reported in the comparable period of last year primarily due to the increase of gross profit.

 

Income before taxes for the first nine months of 2020 increased by 6.0% to NIS 50.3 million (US$ 14.6 million) compared to NIS 47.5 million (US$ 13.8 million) recorded in the first nine months of 2019.

 

Net profit for the first nine months of 2020 increased by 2.3% to NIS 38.3 million (US$ 11.1 million), or NIS 2.88 (US$ 0.84) per share, from NIS 37.4 million (US$ 10.9 million), or NIS 2.83 (US$ 0.82) per share, recorded in the first nine months of 2019.

 

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 September 30, 2020, U.S. $1.00 equals NIS 3.44 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 nine-month period ended September 30, 2020 are presented in accordance with International Financial Reporting Standards (“IFRS”).

 

 

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 19, 2020. 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.

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

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

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

CASH FLOWS - OPERATING ACTIVITIES:

A.          Adjustments to reconcile net profit to net cash from operating activities:

B.          Significant non-cash transactions:

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

Company Contact:

G. Willi - Food International Ltd.

Yitschak Barabi, Chief Financial Officer

(+972) 8-932-1000

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SOURCE: G. Willi-Food International Ltd.

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