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 May 2022
Commission File Number 000-29256
G. Willi-Food International Ltd.
(Translation of registrant’s name into English)
4 Nahal Harif St., Yavne, Israel 81106
(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): ____
INFORMATION CONTAINED IN THIS REPORT ON FORM 6-K
Attached hereto and incorporated by reference herein is a press release, dated May 17, 2022, titled: “G. Willi-Food International reports its financial results for the first quarter 2022.”
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: May 17, 2022
 |
 |
FOR IMMEDIATE RELEASE
G. WILLI-FOOD INTERNATIONAL REPORTS THE RESULTS OF FIRST QUARTER 2022
YAVNE, Israel – May 17, 2022 - 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, 2022.
First Quarter Fiscal Year 2022
| • |
Sales increased by 1.2% to NIS 118.1 million (US$ 37.2 million) from NIS 116.7 million
(US$ 36.7 million) in the first quarter of 2021.
|
| • |
Gross profit decreased by 5.5% year-over-year to NIS 34.2 million (US$ 10.8 million).
|
| • |
Operating income decreased by 37.1% year-over-year to NIS 9.5 million (US$ 3.0 million).
|
| • |
Cash and securities balance of NIS 346.1 million (US$ 109.0 million) as of March 31, 2022.
|
| • |
Basic earnings per share of NIS 0.98 (US$ 0.31).
|
Management Comment
Zwi Williger & Joseph
Williger, Co-Chairmen of Willi-Food, commented: "We are pleased to present first quarter 2022 financial results to the Company shareholders. the world is experiencing a crisis which ammong other things is due to war in Ukraine and global uncertainty regarding the Corona virus. This crisis is reflecting among other things, in disruptions to international commercial shipping and disruptions in commodity pricing. The Company cannot predict how long this
crisis will last. Despite this difficult environment, the Company managed to increase the level of sales and maintain a strong level of gross margin and other operational parameters. The Company will work hard to fulfill its strategy for the
near future, to improve commercial conditions with its suppliers and customers, develop new products, enter into new categories with potentially high gross profit margins, improve the visibility of its products in the stores, strengthen its
brand and supply chain and ensure sufficient inventory. We intend to work hard to achieve the goals we have set for the Company and maintain strong profit parameters."
First Quarter Fiscal 2022 Summary
Sales for the first quarter of 2022 increased by 1.2% to NIS 118.1 million (US$ 37.2 million) from NIS 116.7 million (US$ 36.7 million) recorded in the first quarter of 2021. Sales increased
mainly due to (i) effective marketing activities carried out in the first quarter of 2022 that increased the range of the Company's products and (ii) proper inventory management.
Gross profit for the first quarter of 2022 decreased by 5.5% to NIS 34.2 million (US$ 10.8 million) compared to NIS 36.2 million (US$ 11.4 million) recorded in the first quarter of 2021. First
quarter gross margin decreased by 5.5% to 29.0% compared to gross margin of 31.0% for the same period in 2021. The decrease in gross profit was mainly due to increased costs of the Company’s imported products and increased shipping costs.
Selling expenses increased by 25.4% to NIS 19.2 million (US$ 6.1 million) compared to NIS 15.3 million (US$ 4.8 million) in the first quarter of 2021. The increase was primarily due to an
increase in expenses for advertising and promotion.
General and administrative expenses decreased by 5.8% to NIS 5.5 million (US$ 1.7 million) compared to NIS 5.9 million (US$ 1.9 million) in the first quarter of 2021.
Operating profit for the first quarter of 2022 decreased by 37.1% to NIS 9.5 million (US$ 3.0 million) compared to NIS 15.0 million (US$ 4.7 million) in the first quarter of 2021. The decrease
was primarily due to the decrease in gross profit and the increase in selling expenses.
Financial income, net was NIS 5.8 million (US$ 1.8 million) for the first quarter of 2022 compared to NIS 11.5 million (US$ 3.6 million) in the first quarter of 2021. Financial income, net for
fiscal year 2022 comprised mainly income from changes in exchange rate change an amount of NIS 2.6 (USD 0.7 million), income from revaluation of the Company’s portfolio of securities to fair value in an amount of NIS 1.9 million (USD 0.6
million) and interest and dividend income from the Company’s portfolio of securities in an amount of NIS 1.3 million (USD 0.4 million).
Willi-Food’s income before taxes for the first quarter of 2022 was NIS 15.3 million (US$ 4.8 million) compared to income before taxes of NIS 26.6 million (US$ 8.4 million) in the first quarter
of 2021.
Willi-Food's net profit in the first quarter of 2022 was NIS 13.6 million (US$ 4.3 million), or NIS 0.98 (US$ 0.31) per share, compared to NIS 20.5 million (US$ 6.5 million), or NIS 1.48 (US$
0.44) per share, recorded in the first quarter of 2021. Net profit for the first quarter of 2022 decreased by 33.4% year-over-year. The decrease in net profit was mainly due to an increase in advertising, promotion and in shipping costs of the
Company’s products.
Willi-Food ended the first quarter of 2022 with NIS 346.2 million (US$ 109.0 million) in cash and securities. Net cash from continuing activities for the first quarter of 2022 was NIS 2.3
million (US$ 0.7 million). Willi-Food's shareholders' equity at the end of March 2022 was NIS 564.9 million (US$ 177.9 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, 2022, with U.S. $1.00 equal to NIS 3.176 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, 2022 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 1,500 customers and 3,000
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, a wholly
owned subsidiary that 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: war in Ukraine, the COVID-19 pandemic, disruptions to international commercial shipping and disruptions in commodity pricing 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, 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, 2021, filed with the Securities and Exchange
Commission on March 15, 2022. 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
|
March 31,
|
December 31
|
March 31,
|
December 31
|
|||||||||||||||||||||
|
2 0 2 2
|
2 0 2 1
|
2021
|
2 0 2 2
|
2 0 2 1
|
2021
|
|||||||||||||||||||
|
NIS
|
US dollars (*)
|
|||||||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||
|
ASSETS
|
||||||||||||||||||||||||
|
Current assets
|
||||||||||||||||||||||||
|
Cash and cash equivalents
|
198,339
|
218,808
|
195,718
|
62,449
|
68,894
|
61,624
|
||||||||||||||||||
|
Financial assets carried at fair value through profit or loss
|
147,808
|
152,531
|
154,090
|
46,539
|
48,026
|
48,517
|
||||||||||||||||||
|
Trade receivables
|
139,781
|
142,124
|
134,017
|
44,012
|
44,749
|
42,197
|
||||||||||||||||||
|
Loans to others
|
-
|
11,215
|
-
|
-
|
3,532
|
-
|
||||||||||||||||||
|
Other receivables and prepaid expenses
|
6,723
|
7,084
|
4,939
|
2,117
|
2,230
|
1,555
|
||||||||||||||||||
|
Inventories
|
66,537
|
62,351
|
59,528
|
20,950
|
19,632
|
18,743
|
||||||||||||||||||
|
Current tax assets
|
4,305
|
4,039
|
5,780
|
1,355
|
1,272
|
1,820
|
||||||||||||||||||
|
Total current assets
|
563,493
|
598,152
|
554,072
|
177,422
|
188,335
|
174,456
|
||||||||||||||||||
|
Non-current assets
|
||||||||||||||||||||||||
|
Property, plant and equipment
|
89,563
|
84,449
|
87,245
|
28,200
|
26,590
|
27,470
|
||||||||||||||||||
|
Less -Accumulated depreciation
|
49,735
|
47,488
|
48,431
|
15,660
|
14,952
|
15,249
|
||||||||||||||||||
|
39,828
|
36,961
|
38,814
|
12,540
|
11,638
|
12,221
|
|||||||||||||||||||
|
Right of use asset
|
3,544
|
3,941
|
4,088
|
1,117
|
1,241
|
1,287
|
||||||||||||||||||
|
Financial assets carried at fair value through profit or loss
|
31,282
|
17,916
|
31,056
|
9,849
|
5,641
|
9,778
|
||||||||||||||||||
|
Goodwill
|
36
|
36
|
36
|
11
|
11
|
11
|
||||||||||||||||||
|
Total non-current assets
|
74,690
|
58,854
|
73,994
|
23,517
|
18,531
|
23,298
|
||||||||||||||||||
|
638,183
|
657,006
|
628,066
|
200,939
|
206,866
|
197,754
|
|||||||||||||||||||
|
EQUITY AND LIABILITIES
|
||||||||||||||||||||||||
|
Current liabilities
|
||||||||||||||||||||||||
|
Current maturities of lease liabilities
|
1,025
|
1,781
|
1,136
|
323
|
561
|
358
|
||||||||||||||||||
|
Trade payables
|
22,509
|
23,279
|
20,386
|
7,087
|
7,330
|
6,419
|
||||||||||||||||||
|
Employees Benefits
|
5,051
|
4,495
|
3,442
|
1,590
|
1,415
|
1,084
|
||||||||||||||||||
|
Financial liabilities at fair value through profit or loss
|
6,519
|
-
|
13,960
|
2,053
|
-
|
4,395
|
||||||||||||||||||
|
Other payables and accrued expenses
|
30,542
|
15,074
|
11,216
|
9,616
|
4,746
|
3,531
|
||||||||||||||||||
|
Total current liabilities
|
65,646
|
44,629
|
50,140
|
20,669
|
14,052
|
15,787
|
||||||||||||||||||
|
Non-current liabilities
|
||||||||||||||||||||||||
|
Lease liabilities
|
2,643
|
2,258
|
3,062
|
832
|
711
|
965
|
||||||||||||||||||
|
Deferred taxes
|
3,296
|
2,090
|
2,017
|
1,038
|
658
|
635
|
||||||||||||||||||
|
Retirement benefit obligation
|
1,688
|
1,805
|
1,615
|
531
|
568
|
508
|
||||||||||||||||||
|
Total non-current liabilities
|
7,627
|
6,153
|
6,694
|
2,401
|
1,937
|
2,108
|
||||||||||||||||||
|
Shareholders' equity
|
||||||||||||||||||||||||
|
Share capital
|
1,490
|
1,490
|
1,490
|
469
|
469
|
469
|
||||||||||||||||||
|
Additional paid in capital
|
170,760
|
170,760
|
170,760
|
53,766
|
53,766
|
53,766
|
||||||||||||||||||
|
Capital fund
|
247
|
247
|
247
|
78
|
78
|
78
|
||||||||||||||||||
|
Treasury shares
|
(628
|
)
|
(628
|
)
|
(628
|
)
|
(198
|
)
|
(198
|
)
|
(198
|
)
|
||||||||||||
|
Retained earnings
|
394,000
|
435,677
|
400,322
|
124,055
|
137,178
|
126,046
|
||||||||||||||||||
|
Remeasurement of the net liability in respect of defined benefit
|
(959
|
)
|
(1,322
|
)
|
(959
|
)
|
(302
|
)
|
(416
|
)
|
(302
|
)
|
||||||||||||
|
Equity attributable to owners of the Company
|
564,910
|
606,224
|
571,232
|
177,868
|
190,877
|
179,859
|
||||||||||||||||||
|
638,183
|
657,006
|
628,066
|
200,939
|
206,866
|
197,754
|
|||||||||||||||||||
(*) Convenience translation into U.S. dollars.
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
Three months
|
Three months
|
|||||||||||||||
|
ended
|
ended
|
|||||||||||||||
|
March 31,
|
March 31,
|
|||||||||||||||
|
2 0 2 2
|
2 0 2 1
|
2 0 2 2
|
2 0 2 1
|
|||||||||||||
|
NIS
|
US dollars (*)
|
|||||||||||||||
|
In thousands (except per share and share data)
|
||||||||||||||||
|
Sales
|
118,069
|
116,710
|
37,175
|
36,748
|
||||||||||||
|
Cost of sales
|
83,827
|
80,475
|
26,394
|
25,339
|
||||||||||||
|
Gross profit
|
34,242
|
36,235
|
10,781
|
11,409
|
||||||||||||
|
Operating costs and expenses:
|
||||||||||||||||
|
Selling expenses
|
19,238
|
15,343
|
6,057
|
4,831
|
||||||||||||
|
General and administrative expenses
|
5,546
|
5,884
|
1,746
|
1,853
|
||||||||||||
|
Other income
|
-
|
37
|
-
|
12
|
||||||||||||
|
Total operating expenses
|
24,784
|
21,190
|
7,804
|
6,672
|
||||||||||||
|
Operating income
|
9,458
|
15,045
|
2,978
|
4,737
|
||||||||||||
|
Financial income
|
6,030
|
11,727
|
1,898
|
3,692
|
||||||||||||
|
Financial expenses
|
(182
|
)
|
(221
|
)
|
(57
|
)
|
(69
|
)
|
||||||||
|
Total financial income, net
|
5,848
|
11,506
|
1,841
|
3,623
|
||||||||||||
|
Income before taxes on income
|
15,306
|
26,551
|
4,819
|
8,360
|
||||||||||||
|
Taxes on income
|
(1,662
|
)
|
(6,070
|
)
|
(523
|
)
|
(1,911
|
)
|
||||||||
|
Profit for the period
|
13,644
|
20,481
|
4,296
|
6,449
|
||||||||||||
|
Earnings per share:
|
||||||||||||||||
|
Basic earnings per share
|
0.98
|
1.48
|
0.31
|
0.46
|
||||||||||||
|
Diluted earnings per share
|
0.98
|
1.41
|
0.31
|
0.44
|
||||||||||||
|
Shares used in computation of basic EPS
|
13,867,017
|
13,867,017
|
13,867,017
|
13,867,017
|
||||||||||||
|
Shares used in computation of diluted EPS
|
13,867,017
|
14,517,017
|
13,867,017
|
14,517,017
|
||||||||||||
|
Actual number of shares
|
13,867,017
|
13,867,017
|
13,867,017
|
13,867,017
|
||||||||||||
(*) Convenience translation into U.S. dollars.
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Three months
ended
|
Three months
ended
|
|||||||||||||||
|
March 31,
|
March 31,
|
|||||||||||||||
|
2 0 2 2
|
2 0 2 1
|
2 0 2 2
|
2 0 2 1
|
|||||||||||||
|
NIS
|
US dollars (*)
|
|||||||||||||||
|
In thousands (except per share and share data)
|
||||||||||||||||
|
CASH FLOWS - OPERATING ACTIVITIES
|
||||||||||||||||
|
Profit from continuing operations
|
13,644
|
20,481
|
4,296
|
6,449
|
||||||||||||
|
Adjustments to reconcile net profit to net cash from (used in) continuing operating activities (Appendix A)
|
(11,347
|
)
|
(16,250
|
)
|
(3,573
|
)
|
(5,116
|
)
|
||||||||
|
Net cash from continuing operating activities
|
2,297
|
4,231
|
723
|
1,333
|
||||||||||||
|
CASH FLOWS - INVESTING ACTIVITIES
|
||||||||||||||||
|
Acquisition of property plant and equipment
|
(2,317
|
)
|
(1,344
|
)
|
(730
|
)
|
(423
|
)
|
||||||||
|
Proceeds from sale of property plant and equipment
|
-
|
37
|
-
|
12
|
||||||||||||
|
Proceeds from loans granted to others
|
-
|
7,492
|
-
|
2,358
|
||||||||||||
|
Proceeds from sale (purchase) of marketable securities, net
|
8,204
|
6,796
|
2,583
|
2,140
|
||||||||||||
|
Net cash used in continuing investing activities
|
5,887
|
12,981
|
1,853
|
4,087
|
||||||||||||
|
CASH FLOWS - FINANCING ACTIVITIES
|
||||||||||||||||
|
Lease liability payments
|
(531
|
)
|
(472
|
)
|
(167
|
)
|
(149
|
)
|
||||||||
|
Net cash used in continuing financing activities
|
(531
|
)
|
(472
|
)
|
(167
|
)
|
(149
|
)
|
||||||||
|
Increase in cash and cash equivalents
|
7,653
|
16,740
|
2,409
|
5,271
|
||||||||||||
|
Cash and cash equivalents at the beginning of the year
|
195,718
|
201,822
|
61,624
|
63,546
|
||||||||||||
|
Exchange losses on cash and cash equivalents
|
(5,032
|
)
|
246
|
(1,584
|
)
|
77
|
||||||||||
|
Cash and cash equivalents at the end of the year
|
198,339
|
218,808
|
62,449
|
68,894
|
||||||||||||
(*) Convenience Translation into U.S. Dollars.
G. WILLI-FOOD INTERNATIONAL LTD.
APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
CASH FLOWS – OPERATING ACTIVITIES:
|
A.
|
Adjustments to reconcile net profit to net cash from continuing operating activities:
|
|
Three months
|
Three months
|
|||||||||||||||
|
ended
|
ended
|
|||||||||||||||
|
March 31,
|
March 31,
|
|||||||||||||||
|
2 0 2 2
|
2 0 2 1
|
2 0 2 2
|
2 0 2 1
|
|||||||||||||
|
NIS
|
US dollars (*)
|
|||||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Decrease in deferred income taxes
|
1,279
|
1,322
|
403
|
416
|
||||||||||||
|
Unrealized gain on marketable securities
|
(2,148
|
)
|
(8,843
|
)
|
(676
|
)
|
(2,784
|
)
|
||||||||
|
Unrealized gain of financial liabilities at fair value through profit or loss
|
(7,441
|
)
|
-
|
(2,343
|
)
|
-
|
||||||||||
|
Depreciation and amortization
|
1,848
|
1,479
|
582
|
465
|
||||||||||||
|
Capital gain on disposal of property plant and equipment
|
-
|
(37
|
)
|
-
|
(12
|
)
|
||||||||||
|
Exchange losses (gain) on cash and cash equivalents
|
5,032
|
(246
|
)
|
1,584
|
(77
|
)
|
||||||||||
|
Changes in assets and liabilities:
|
||||||||||||||||
|
Increase in trade receivables and other receivables
|
(3,226
|
)
|
(6,422
|
)
|
(1,016
|
)
|
(2,022
|
)
|
||||||||
|
Increase in inventories
|
(7,009
|
)
|
(2,837
|
)
|
(2,207
|
)
|
(893
|
)
|
||||||||
|
Increase in trade and other payables, and other current liabilities
|
3,165
|
4,226
|
996
|
1,331
|
||||||||||||
|
Cash generated from operations
|
(8,500
|
)
|
(11,358
|
)
|
(2,677
|
)
|
(3,576
|
)
|
||||||||
|
Income tax paid
|
(2,847
|
)
|
(4,892
|
)
|
(896
|
)
|
(1,540
|
)
|
||||||||
|
Net cash flows from operating activities
|
(11,347
|
)
|
(16,250
|
)
|
(3,573
|
)
|
(5,116
|
)
|
||||||||
| B. |
Significant non-cash transactions:
|
|
Three months
ended
March 31,
|
Three months
ended
March 31,
|
|||||||||||||||
|
2 0 2 2
|
2 0 2 1
|
2 0 2 2
|
2 0 2 1
|
|||||||||||||
|
NIS
|
US dollars (*)
|
|||||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Dividend payable
|
19,966
|
-
|
6,287
|
-
|
||||||||||||
(*) 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.
Yitschak Barabi, Chief Financial Officer
(+972) 8-932-1000
itsik.b@willi-food.co.il
###
SOURCE: G. Willi-Food International Ltd.