G. Willi-Food Reports First Quarter 2010 Financial Results; Net Income Attributable to the Owners of the Company up 18.7% to $2.0 Million
First Quarter Sales Increased 15.5% Over First Quarter 2009 Sales; First Quarter Gross Profit Increased 39.9% Over First Quarter 2009 Gross Profit; First Quarter Operating Profit Increased 38.3% Over First Quarter 2009 Operating Profit
YAVNE, Israel, May 17, 2010 /PRNewswire-FirstCall/ -- G. Willi-Food International Ltd. (NASDAQ: WILC) (the "Company" or "Willi Food"), a global food company specializing in the development, manufacture, marketing and international distribution of kosher foods, today announced its unaudited financial results for the first quarter ended March 31, 2010.
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First Quarter Fiscal 2010 Highlights
- Sales increased 15.5% over first quarter of 2009 to NIS 95.0
million (US $25.6 million)
- Gross profit increased 39.9% over first quarter of 2009 to NIS
28.3 million (US $7.6 million)
- Gross margins improved to 29.7% compared to 24.6% in the first
quarter of 2009
- Operating income increased 38.3% over first quarter of 2009 to
NIS 10.5 million (US $2.8 million)
- Net income attributable to the owners of the company increased
18.7% over first quarter of 2009 to NIS 7.3 million
(US $2.0 million)
Sales for the first quarter of fiscal 2010 increased by 15.5% to NIS 95.0 million (US $25.6 million) compared to sales of NIS 82.3 million (US $22.2 million) in the first quarter of 2009. The increase was driven by the introduction of new products as well as increased awareness of the Willi-Food brand in the Israeli market following a national media campaign launched during the quarter.
Gross profit for the first quarter of 2010 increased by 39.9% to NIS 28.3 million (US $7.6 million) compared to gross profit of NIS 20.2 million (US $5.4 million) in the first quarter of 2009. First quarter gross margin was 29.7% compared to a gross margin of 24.6% during the same period in 2009. The increase in gross margins was largely due to the introduction of higher-margin products into the product lineup.
Mr. Zwi Williger, President and COO of Willi-Food commented: "We are very pleased to report a robust first quarter with gross profit up 40 percent. Our strong performance in the quarter was driven by expanded sales volume in the Israeli market as a result of our nationwide media campaign launched in the first quarter and aimed at broadening awareness of our brand. As we see global consumer demand for kosher foods continuing to increase, we are confident that our focused marketing strategy in Israel and the introduction of higher-margin products targeted to health-conscious and kosher consumers worldwide will continue to support our growth in 2010. We will continue to pursue strategic distribution partnerships to enable us to further penetrate the U.S. markets."
Willi-Food's operating income for the first quarter of 2010 increased by 38.3% to NIS 10.5 million (US $2.8 million) compared to NIS 7.6 million (US $2.1 million) reported in the first quarter of 2009. Selling expenses as a percentage of revenues increased in the first quarter of 2010 to 12.1% compared to 9.6% in the first quarter of 2009 mainly as a result of a one-time expense related to the media campaign referred to above. General and administrative expenses as a percentage of revenue increased in the first quarter of 2010 to 6.6% from 5.8% in the first quarter of 2009.
Willi-Food's income before taxes for the first quarter of 2010 increased by 32.8% to NIS 10.1 million (US $2.7 million) compared to income before taxes of NIS 7.6 million (US $2.0 million) recorded in the first quarter of 2009. Willi Food's net income attributable to the owners of the Company in the first quarter of 2010 increased by 18.7% to NIS 7.3 million (US $2.0 million), or NIS 0.68 (US $0.18) per share compared to a net income attributable to the owners of the Company of NIS 6.2 million (US $1.7 million), or NIS 0.57 (US $0.15) per share, recorded in the first quarter of 2009.
Willi-Food ended the quarter with US $38.9 million in cash and securities and $1.4 million in short-term debt (51% of the debt of Shamir Salads).
Business Outlook
In March 2010, the Company announced a public offering that raised net proceeds of approximately $19 million. The funds raised will be used to accelerate research and development of new products, to support future growth including potential acquisitions in both Israel and the United States, for working capital, and to support the newly established Israeli-based export division seen as a key driver of organic growth internationally.
Mr. Williger commented: "For the third consecutive quarter, Willi-Food continued to achieve gross margins of about 30 percent due to the introduction of great-tasting, higher profit margin food products into the product mix lineup. We are very pleased with our strong performance in the first quarter of 2010, and especially with our almost 40 percent increase in operating income over the first quarter of 2009. This increase represents a more than 70 percent increase over the previous quarter, the fourth quarter of 2009, despite the fact that we had a one-time expense of over NIS 1.5 million (US $0.4 million) in the first quarter for the media campaign to expand awareness of the Willi-Food brand, a campaign, as the direct result of which we continue to see expanding sales volume."
"Revenue from new products introduced in the quarter also continues to maintain good momentum. Sales generated by our newly established export division in Israel are also adding to our top line. We are optimistic about the rest of 2010 and believe 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 will continue to focus on controlling expenses and production costs to keep our prices competitive, and we will continue our efforts to expand our reach to retail and wholesale markets in the U.S. We remain committed to our strategy of expanding marketing channels for our higher-margin products in the U.S. and Israeli markets and on promoting our broad base of kosher products to health-conscious consumers across Europe, Israel and in the United States."
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, 2010, U.S. $1.00 equals NIS 3.713. 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, 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 from discontinued operations has been re-casted to include those operations classified as discontinued in the current period.
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 who 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 Amendment No. 5 to Form F-1, filed with the Securities and Exchange Commission on March 11, 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.
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31, March 31, December 31,
2 0 1 0 2 0 0 9 2 0 1 0 2 0 0 9
NIS US dollars (*)
(in thousands)
ASSETS
Current assets
Cash and cash equivalents 131,024 87,104 35,288 23,459
Financial assets carried at
fair value through profit or
loss 13,594 11,356 3,661 3,058
Trade receivables 94,550 77,752 25,465 20,941
Other receivables and prepaid
expenses 1,554 1,990 418 536
Inventories 56,026 44,810 15,089 12,068
Total current assets 296,748 223,012 79,921 60,062
Non-current assets
Property, plant and equipment 67,109 67,120 18,074 18,077
Less -Accumulated
depreciation 18,405 17,542 4,957 4,724
48,704 49,578 13,117 13,353
Long term receivables 480 760 129 205
Prepaid expenses 2,258 2,384 608 642
Goodwill 1,936 1,936 521 521
Intangible assets 4,522 4,674 1,218 1,259
Deferred taxes 383 375 103 101
Total non-current assets 58,283 59,707 15,696 16,081
355,031 282,719 95,617 76,143
EQUITY AND LIABILITIES
Current liabilities
Short-term bank credit 10,076 10,372 2,714 2,793
Trade payables 46,251 49,382 12,457 13,300
Accruals 475 145 128 39
Current tax liabilities 5,157 2,801 1,389 754
Other payables and accrued
expenses 3,870 8,976 1,042 2,418
Employees Benefits 3,443 2,977 927 802
Total current liabilities 69,272 74,653 18,657 20,106
Non-current liabilities
Long-term bank loans 75 97 20 26
Deferred taxes 390 445 105 120
Employees Benefits 1,082 1,044 291 281
Total non-current liabilities 1,547 1,586 416 427
Shareholders' equity
Share capital NIS 0.10 par
value (authorized -
50,000,000 shares, issued
and outstanding -
13,573,678 shares at March
31, 2010; 10,267,893 shares
at December 31, 2009) 1,444 1,113 389 300
Additional paid in capital 128,978 59,056 34,737 15,905
Capital fund 247 247 66 66
Foreign currency translation
reserve 687 639 185 172
Retained earnings 149,212 141,883 40,186 38,213
Noncontrolling interest 3,644 3,542 981 954
284,212 206,480 76,544 55,610
355,031 282,719 95,617 76,143
(*)Convenience translation into U.S. dollars
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended Three months ended
March 31 March 31
2 0 1 0 2 0 0 9 2 0 1 0 2 0 0 9
NIS US dollars (*)
(in thousands, except per share and
share data)
Sales 95,039 82,292 25,596 22,163
Cost of sales 66,782 62,088 17,986 16,722
Gross profit 28,257 20,204 7,610 5,441
Selling expenses 11,466 7,883 3,088 2,123
General and administrative
expenses 6,273 4,796 1,689 1,292
Other Income (17) (95) (4) (26)
Total operating expenses 17,722 12,584 4,773 3,389
Operating income 10,535 7,620 2,837 2,052
Financial income (153) 662 (41) 178
Financial expense 291 683 79 184
Income before taxes on income 10,091 7,599 2,717 2,046
Taxes on income 2,660 1,532 716 412
Income from continuing 7,431 6,067
operations 2,001 1,634
Income from discontinued
operations - 691 - 186
Net income 7,431 6,758 2,001 1,820
Attributable to:
Owners of the company 7,329 6,176 1,974 1,663
Non - controlling interests 102 582 27 157
Net income 7,431 6,758 2,001 1,820
Earnings per share data:
Earnings per share:
Basic from continuing
operations 0.68 0.57 0.18 0.15
Basic from discontinued
operations - 0.03 - 0.01
Basic 0.68 0.60 0.18 0.16
Diluted from continuing
operations 0.68 0.57 0.18 0.15
Diluted from discontinued
operations - 0.03 - 0.01
Diluted 0.68 0.60 0.18 0.16
Shares used in computing basic
and diluted earnings per
ordinary share: 10,745,395 10,267,893 10,745,395 10,267,893
(*) 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.
Contact:
At the Company:
G. Willi Food International Ltd.
Ety Sabach, CFO
+972-8-932-1000
[email protected]
Investor Relations:
RedChip Companies, Inc.
Dave Gentry
+1-800-733-2447, Ext. 104
+1-407-644-4256, Ext. 104
[email protected]
SOURCE G. Willi-Food International Ltd
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