6-K 1 zk1211885.htm 6-K zk1211885.htm


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 August 2012


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 registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

FORM 20-F x    FORM 40-F o

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 registrant 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 o    NO x

If "YES" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):  82-________.
 
 
 

 

Attached hereto and incorporated by reference herein is a press release issued by G. Willi-Food International Ltd. on August 15, 2012.
 
This report on Form 6-K is hereby incorporated by reference in the Registration Statements on Form F-3 (File No. 333-11848 and 333-138200) of the Registrant.

 
 

 

SIGNATURES
 
In accordance with 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.
 
       
Dated: August 15, 2012
By:
/s/ Baruch Shusel
 
   
Name: Baruch Shusel
 
   
Title: Chief Financial Officer
 
       
 
 
 

 
 
 
 News
 
FOR IMMEDIATE RELEASE

G. WILLI-FOOD REPORTS Q2 2012 SALES DOWN 5.4% FROM Q2 2011

Net Income of US$ 1 million in Q2 2012

YAVNE, Israel – August 15, 2012 -- 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 second quarter and the six-months ended June 30, 2012.

Second Quarter Fiscal 2012 Highlights
·  
Sales decreased 5.4% from second quarter of 2011 to NIS 66.3 million (US$ 16.9 million)
·  
Gross profit decreased 21.2% from second quarter of 2011 to NIS 16.5 million (US$ 4.2 million), or 24.9% of sales
·  
Operating income decreased 47.9% from second quarter of 2011 to NIS 5.5 million (US$ 1.4 million), or 8.4% of sales
·  
Net income decreased 43.8% from second quarter of 2011 to NIS 4.1 million (US$ 1.0 million), or 6.2% of sales
·  
Cash and securities balance of NIS 203.7 million (US$ 51.9 million) as of June 30, 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.
 
Second Quarter Fiscal 2012 Summary
Sales for the second quarter of 2012 decreased by 5.4% to NIS 66.3 million (US$ 16.9 million) from NIS 70.1 million (US$ 17.9 million) recorded in the second quarter of 2011. The decline in sales in the second quarter of 2012 was a result of 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 second quarter of 2012 decreased by 21.2% to NIS 16.5 million (US$ 4.2 million) compared to NIS 21.0 million (US$ 5.4 million) recorded in the second quarter of 2011. Second quarter gross margin was 24.9% compared to gross margin of 29.9% 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 recent strengthening of the U.S. dollar versus the NIS (which depreciated 5.6% in the second quarter of 2012) and the continued effects of the global economic recession.
 
Willi-Food’s operating income for the second quarter of 2012 decreased by 47.9% to NIS 5.5 million (US$ 1.4 million) compared to NIS 10.7 million (US$ 2.7 million) recorded in the second quarter of 2011. Selling expenses increased by 12.7% from the comparable quarter of 2011, primarily due to increase in advertising and promotion expenses. Selling expenses as a percentage of sales increased in the second quarter of 2012 to 10.5% compared to 8.8% in the second quarter of 2011. General and administrative expenses decreased by 7.8% from the comparable quarter of 2011, primarily due to a decrease in management profit-related bonuses. General and administrative expenses as a percentage of sales decreased in the second quarter of 2011 to 6.0% from 6.2% in the second quarter of 2011.
 
Willi-Food’s income before taxes for the second quarter of 2012 decreased by 36.2% to NIS 5.4 million (US$ 1.4 million) compared to NIS 8.5 million (US$ 2.2 million) recorded in the second quarter of 2011. Willi-Food’s profit from continuing operations for the second quarter of 2012 decreased by 38.6% to NIS 4.1 million (US$ 1.0 million) from NIS 6.7 million (US$ 1.7 million) recorded in the second quarter of 2011.
 
 
 

 
 
Willi-Food's net income in the second quarter of 2012 decreased by 43.8% to NIS 4.1 million (US$ 1.0 million) from NIS 7.3 million (US$ 1.9 million) recorded in the second quarter of 2011. Willi-Food's net income attributed to the owners of the Company in the second quarter of 2012 decreased 41.2% to NIS 4.1 million (US$ 1.0 million), or NIS 0.32 (US$ 0.08) per share, compared to NIS 7.0 million (US$ 1.8 million), or NIS 0.51 (US$ 0.13) per share, recorded in the second quarter of 2011.
 
Willi-Food generated NIS 8.7 million (US$ 2.2 million), or NIS 0.67 (US$ 0.17) per share from continuing operating activities in the second quarter of 2012.

Willi-Food ended the second quarter of 2012 with NIS 203.7 million (US$ 51.9 million) in cash and securities and with no short-term debt. Willi-Food's shareholders' equity at the end of June 2012 was NIS 318.5 million (US$ 81.2 million).
 
Six-Month Results
Willi-Food’s sales for the six-month period ending June 30, 2012 decreased by 0.4% to NIS 140.0 million (US$ 35.7 million) compared to sales of NIS 140.5 million (US$ 35.8 million) in the first half of 2011. Gross profit for the period decreased by 17.4% to NIS 32.2 million (US$ 8.2 million) compared to gross profit of NIS 39.0 million (US$ 9.9 million) for the first half of 2011. First half gross margins in 2012 were 23.0% compared to gross margins of 27.7% in the same period of 2011.

Operating income for the first half of 2012 decreased by 39.5% to NIS 10.3 million (US$ 2.6 million) from NIS 17.0 million (US$ 4.3 million) reported in the comparable period of last year.  First half 2012 income before taxes decreased by 26.7% to NIS 12.0 million (US$ 3.0 million) compared to NIS 16.3 million (US$ 4.2 million) recorded in the first half of 2011. Net income for the first half of 2012 decreased by 33.7% to NIS 8.9 million (US$ 2.3 million) from NIS 13.5 million (US$ 3.4 million) in the first half of 2011. Net income attributable to the owners of the Company for the first half of 2012 decreased by 31.4% to NIS 8.9 million (US$ 2.3 million), or NIS 0.69 (US$ 0.18) per share compared to net income attributable to the owners of the Company for the first half of 2011 of NIS 13.0 million (US$ 3.3 million), or NIS 0.96 (US$ 0.24) per share.

Business Outlook
Mr. Zwi Williger, Chairman of Willi-Food commented, “As with the second half of 2011 and the first quarter of 2012, second 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 recent quarters, by way of price reductions, resulted in a decrease of our profitability. Our results were also affected by the depreciation of the NIS versus the U.S. dollar by more than 5% in the second quarter. Going forward, we anticipate a significant increase in the level of uncertainty in the global economy and in particular - challenges pertaining to food commodities that exceeded global inflation rates. In Israel, economic uncertainty coupled with ongoing consumer demand for price reductions will not enable us to increase prices even with the global price increase of food products and the U.S. dollar strengthening."

Mr. Williger concluded, “In light of the anticipated continued depreciation of the NIS and the global price increase of food products, our foreseeable challenges ahead will be to manage our expenses and in particular the cost of our products in order to accommodate our customers' continued anticipated desire 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 Wedensday, August 15, 2012 at 11:00 AM Eastern time. Interested parties may participate in the conference call by dialing 1-877-941-8416 (US), or 1-480-629-9808 (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=101412

 
 

 
 
A replay of the conference call will be available for 14 days from 2:00 PM EST on August 15, 2012 through 11:59 PM EST on August 29, 2012 by dialing 1-877-870-5176 (US), or 1-858-384-5517 (International), access code 4558985.  In addition, a recording of the call will be available via the following link for one year:
http://public.viavid.com/reports/eventparticipantreporttab.php?id=o5ajo5iZ

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 June 30, 2012, U.S. $1.00 equals NIS 3.923. 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 six-month ended June 30, 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

   
June 30,
   
December 31,
   
June 30,
   
December 31,
 
   
2 0 1 2
   
2 0 1 1
   
2 0 1 2
   
2 0 1 1
 
   
NIS
   
U.S. dollars (*)
 
   
(in thousands)
 
ASSETS
                       
                         
Current assets
                       
Cash and cash equivalents
    72,804       34,661       18,558       8,835  
Financial assets carried at fair value through profit or loss
    130,935       163,430       33,376       41,659  
Trade receivables
    65,968       57,628       16,816       14,690  
Other receivables and prepaid expenses
    4,250       15,720       1,082       4,007  
Inventories
    32,981       32,613       8,408       8,313  
Current tax assets
    774       -       197       -  
Total current assets
    307,712       304,052       78,437       77,504  
                                 
Non-current assets
                               
Property, plant and equipment
    61,078       61,401       15,569       15,652  
Less -Accumulated depreciation
    20,270       18,856       5,167       4,807  
      40,808       42,545       10,402       10,845  
                                 
Prepaid expenses
    102       117       26       30  
Goodwill
    35       36       9       9  
Deferred taxes
    1,185       933       302       238  
Total non-current assets
    42,130       43,631       10,739       11,122  
                                 
      349,842       347,683       89,176       88,626  
EQUITY AND LIABILITIES
                               
                                 
Current liabilities
                               
Trade payables
    25,210       25,683       6,426       6,547  
Provisions
    958       1,164       244       297  
Current tax liabilities
    -       3,837       -       978  
Other payables and accrued expenses
    3,179       4,551       810       1,160  
Employees Benefits
    1,531       1,613       390       411  
Total current liabilities
    30,878       36,848       7,870       9,393  
                                 
Non-current liabilities
                               
Employees Benefits
    429       518       109       132  
Total non-current liabilities
    429       518       109       132  
                                 
Shareholders' equity
                               
Share capital NIS 0.10 par value
                               
(authorized - 50,000,000 shares, issued and outstanding – 12,974,245 shares at June  30, 2012; 13,020,360 shares at December 31, 2011)
    1,444       1,444       368       368  
Additional paid in capital
    129,856       129,809       33,101       33,089  
Capital fund
    247       247       63       63  
Foreign currency translation reserve
    533       587       136       150  
Treasury shares
    (10,843 )     (10,141 )     (2,764 )     (2,586 )
Retained earnings
    197,298       188,371       50,293       48,017  
      318,535       310,317       81,197       79,101  
      349,842       347,683       89,176       88,626  
 
(*) 
Convenience translation into U.S. dollars

 
 
 

 
 
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
   
Six months
   
Three months
   
Six months
 
   
ended June 30,
   
ended June 30,
 
   
2 0 1 2
   
2 0 1 1
   
2 0 1 2
   
2 0 1 1
   
2 0 1 2
   
2 0 1 1
 
   
NIS
   
U.S. dollars (*)
 
   
In thousands (except per share and share data)
 
                                     
Sales
    139,984       140,528       66,333       70,135       35,683       35,822  
Cost of sales
    107,764       101,543       49,789       49,136       27,470       25,884  
                                                 
Gross profit
    32,220       38,985       16,544       20,999       8,213       9,938  
                                                 
Selling expenses
    13,883       12,993       6,986       6,201       3,539       3,312  
General and administrative expenses
    8,109       9,219       3,989       4,326       2,067       2,350  
Other income
    (47 )     (215 )     19       (181 )     (12 )     (55 )
                                                 
Total operating expenses
    21,945       21,997       10,994       10,346       5,594       5,607  
                                                 
Operating income
    10,275       16,988       5,550       10,653       2,619       4,331  
                                                 
Financial income
    1,734       (360 )     (280 )     (2,086 )     442       (92 )
Financial expense
    55       324       (133 )     105       14       83  
                                                 
Income before taxes on income
    11,954       16,304       5,403       8,462       3,047       4,156  
Taxes on income
    3,027       3,763       1,304       1,784       771       959  
                                                 
Income from continuing operations
    8,927       12,541       4,099       6,678       2,276       3,197  
Income from discontinued operations
    -       932       -       620       -       237  
                                                 
Net income
    8,927       13,473       4,099       7,298       2,276       3,434  
                                                 
Owners of the Company
    8,927       13,017       4,099       6,975       2,276       3,318  
Non-controlling interest
    -       456       -       323       -       116  
                                                 
Net income
    8,927       13,473       4,099       7,298       2,276       3,434  
                                                 
Earnings per share data:
                                               
Earnings per share:
                                               
Basic from continuing operations
    0.69       0.92       0.32       0.49       0.18       0.23  
Basic from discontinued operations
    -       0.04       -       0.02       -       0.01  
Basic
    0.69       0.96       0.32       0.51       0.18       0.24  
Diluted from continuing operations
    0.69       0.92       0.32       0.49       0.18       0.23  
Diluted from discontinued operations
    -       0.04       -       0.02       -       0.01  
Diluted
    0.69       0.96       0.32       0.51       0.18       0.24  
                                                 
Shares used in computing basic and diluted earnings per ordinary share:
    12,980,550       13,573,679       12,974,245       13,573,679       12,980,550       13,573,679  
 
(*)
Convenience translation into U.S. dollars
 
 
 

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

   
Six months
   
Three months
   
Six months
 
   
ended June 30,
   
ended June 30,
 
   
2 0 1 2
   
2 0 1 1
   
2 0 1 2
   
2 0 1 1
   
2 0 1 2
   
2 0 1 1
 
   
NIS
   
U.S. dollars (*)
 
   
(in thousands)
 
Cash flows - operating activities
                                   
Profit from continuing operations
    8,927       12,541       4,099       6,678       2,276       3,197  
Adjustments to reconcile net income to net cash from continuing operating activities (Appendix)
    (15,192 )     (2,585 )     4,601       3,220       (3,873 )     (658 )
                                                 
Net cash from continuing operating activities
    (6,265 )     9,956       8,700       9,898       (1,597 )     2,539  
                                                 
Net cash from (used in) discontinued operating activities
    -       252       -       (435 )     -       64  
                                                 
Cash flows - investing activities
                                               
Long term deposit, net
    -       (50 )     -       (50 )     -       (13 )
Acquisition of property plant and equipment
    (199 )     (355 )     82       (7 )     (51 )     (90 )
Proceeds from sale of property plant and Equipment
    42       214       42       68       11       55  
Additions to prepaid expenses, net
    -       -       -       13       -       -  
Proceeds from disposal of subsidiary
    13,500       -       -       -       3,441       -  
Proceeds from (used in) purchase of marketable securities, net
    31,767       (58,602 )     24,128       (54,159 )     8,098       (14,938 )
Net cash from (used in) continuing investing activities
    45,110       (58,793 )     24,252       (54,135 )     11,499       (14,986 )
                                                 
Net cash used in discontinued investing activities
    -       (1,269 )     -       (429 )     -       (324 )
                                                 
Cash flows - financing activities
                                               
Investment in treasury stocks
    (702 )     -       -       -       (179 )     -  
Short-term bank credit, net
    -       -       -       738       -       -  
                                                 
Net cash from (used in) continuing financing activities
    (702 )     -       -       738       (179 )     -  
Net cash from discontinued financing activities
    -       1,904       -       1,751       -       485  
                                                 
Increase (decrease) in cash and cash equivalents
    38,143       (47,950 )     32,952       (42,612 )     9,723       (12,222 )
                                                 
Cash and cash equivalents  at the beginning of the financial year
    34,661       113,631       39,852       108,293       8,835       28,965  
                                                 
Cash and cash equivalents of the end of the financial year
    72,804       65,681       72,804       65,681       18,558       16,743  

(*) 
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

   
Six months
   
Three months
   
Six months
 
   
Ended June 30,
   
Ended June 30,
 
   
2 0 1 2
   
2 0 1 1
   
2 0 1 2
   
2 0 1 1
   
2 0 1 2
   
2 0 1 1
 
   
NIS
   
U.S. dollars (*)
 
   
(in thousands)
 
                                     
CASH FLOWS - INVESTING ACTIVITIES
                                   
                                     
Deferred income taxes
    (252 )     (1,119 )     (439 )     (985 )     (65 )     (285 )
Unrealized loss on marketable securities
    728       3,294       1,596       3,252       185       840  
Depreciation and amortization
    1,971       1,587       1,098       897       502       405  
Capital loss (gain) on disposal of property plant and equipment
    (60 )     (214 )     6       (214 )     (15 )     (55 )
Employees benefit, net
    (89 )     -       (212 )     4       (23 )     -  
Stock based compensation reserve
    47       -       10       -       12       -  
                                                 
Changes in assets and liabilities:
                                               
Decrease (increase) in trade receivables and other receivables
    (11,198 )     (2,916 )     5,916       1,528       (2,854 )     (743 )
Decrease (increase) in inventories
    (368 )     (4,306 )     1,152       1,487       (93 )     (1,098 )
Increase (decrease) in trade and other payables, and other current liabilities
    (5,971 )     1,089       (4,526 )     (2,749 )     (1,522 )     278  
                                                 
      (15,192 )     (2,585 )     4,601       3,220       (3,873 )     (658 )
 
(*) 
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
baruch@willi-food.co.il

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SOURCE: G. Willi-Food International Ltd.