6-K 1 zk1414612.htm 6-K zk1414612.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 March - 2014
 
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. (“Registrant”) on March 18, 2014.
 
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:  March 18, 2014
     
 
By:
/s/ Raviv Segal
 
   
Name:  Raviv Segal
Title:  Chief Financial Officer
 
 
 
 

 
 
 
FOR IMMEDIATE RELEASE

G. WILLI-FOOD REPORTS FISCAL 2013 NET PROFIT UP 33% FROM FISCAL
2012 NET PROFIT

YAVNE, Israel – March 18, 2014 -- 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, 2013.

Fiscal 2013 Highlights
 
·
Sales increased 17.3% from fiscal 2012 to NIS 336.0 million (US$ 96.8 million)
 
·
Gross profit increased 21.2% from fiscal 2012 to NIS 83.7 million (US$ 24.1 million), or 24.9% of sales
 
·
Operating income increased 24.5% from fiscal 2012 to NIS 29.2 million (US$ 8.4 million), or 8.7% of sales
 
·
Income before taxes increased 30.1% from fiscal 2012 to NIS 41.3 million (US$ 11.9 million), or 12.3% of sales
 
·
Net income increased 32.5% from fiscal 2012 to NIS 31.8 million (US$ 9.2 million), or 9.5% of sales
 
·
Earnings per share of NIS 2.45 (US$ 0.71) increased 32.5% compared to earnings per share of NIS 1.85 (US$ 0.53) in fiscal 2012
 
·
Cash, securities balance and loan to C.D-B.A Holdings (Designated) (2013) Ltd. ("Newco") (net of short-term bank debt) of NIS 214.4 million (US$ 61.8 million) as of December 31, 2013

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 innovative dairy food products.
 
Fiscal 2013 Results

Sales for fiscal 2013 increased by 17.3% to NIS 336.0 million (US$ 96.8 million) from NIS 286.5 million (US$ 82.5 million) in fiscal 2012. Sales increased in fiscal 2013 due to our increased marketing efforts and the growing demand from domestic and international customers for our quality kosher products. In addition, we continued to benefit from a shift in behavior in Israel as cost-conscious consumers recognize our products as a viable alternative to higher cost leading brands.
 
Gross profit for fiscal 2013 increased by 21.2% to NIS 83.7 million (US$ 24.1 million) compared to NIS 69.0 million (US$ 19.9 million) recorded in fiscal 2012. Fiscal 2013 gross margin was 24.9% compared to gross margin of 24.1% for fiscal 2012. The improvement in gross margin was the result of a favorable mix of product revenue during the year as sales of higher gross margin products increased faster than sales of lower gross margin products.
 
Mr. Zwi Williger, Chairman of Willi-Food commented, “We are very pleased to report a strong year, with organic sales growth of 17.3%, gross profit growth of 21.2%, operating income growth of 24.5% and net income growth of 32.5% as our customer base continues to expand and market demand for our products continues to increase. Despite the pressure imposed on the Company by the supermarket chains to reduce prices and despite the well-known pressures in commodity costs imposed worldwide, we continued to gain traction with new customers while product sales to existing customers also continued to grow."
 
 
 

 
 
Willi-Food’s operating income for fiscal 2013 increased by 24.5% to NIS 29.2 million (US$ 8.4 million) compared to NIS 23.5 million (US$ 6.8 million) recorded in fiscal 2012. Selling expenses increased by 21.5% from 2012, primarily due to an increase in promotional expenses as well as vehicles and transport expenses, each of which increased due to the growth in sales. Selling expenses as a percentage of sales increased in fiscal 2013 to 10.5% compared to 10.0% in fiscal 2012. General and administrative expenses increased by 16.1% from fiscal 2012, primarily due to an increase in management profit-related bonuses. General and administrative expenses as a percentage of sales in fiscal 2013 were 5.8%, approximately the same percentage as in fiscal 2012.
 
Willi-Food’s income before taxes for fiscal 2013 increased by 30.1% to NIS 41.3 million (US$ 11.9 million) compared to NIS 31.8 million (US$ 9.2 million) recorded in fiscal 2012.
 
Willi-Food's net income for fiscal 2013 increased by 32.5% to NIS 31.8 million (US$ 9.2 million), or NIS 2.45 (US$ 0.75) per share, from NIS 24.0 million (US$ 6.9 million), or NIS 1.85 (US$ 0.53) per share, recorded in fiscal 2012.
 
Willi-Food ended 2013 with NIS 214.4 million (US$ 61.8 million) in cash, securities and loan to Newco net from short-term debt. Willi-Food's shareholders' equity at the end of December 2013 was NIS 365.8 million (US$ 105.4 million).
 
Business Outlook

Mr. Williger continued, ”Our strong performance in 2013 was driven by expanded sales volume of our higher-margin products to new and existing customers. With sales increases in all of our business segments, we were able to achieve the highest sales and gross profit in the Company’s history. The broad-based strength of our business enabled us to deliver record results, both on the top and bottom lines. We have significantly expanded our product lines and continue to deliver improved margins. As we see consumer demand for kosher foods continuing to increase, we are confident that our focused marketing strategy and the introduction of higher-margin products targeted to health-conscious and kosher consumers will continue to support our growth in 2014.”

 “Due to increased awareness in Israel of the rising food prices, customers have realized that they can obtain food products from us of comparable or better quality than those of the leading brands but at more affordable prices, causing our customer base and the demand for our products to increase," Mr. Williger noted.  "Our financial results have significantly improved over the last six quarters as a direct result of our strategy to organically grow our customer base and product line, while at the same time expanding our margins. We implemented our plan to increase the awareness of our products by initiating promotional activities that created broad awareness of our new and old products, broadening our customer base. This plan has helped us achieve our goals to strengthen our position in the market due to our broad range of quality food products. We intend to reinvest in the development of the Company in order to maximize profitability and increase long-term value for our shareholders. Moreover, we are pleased to consistently deliver significantly higher margins than those generated by most of the other companies in our industry, as we are able to differentiate our Company through our success by becoming a high margin business in a low margin industry.”
 
Furthermore, Mr. Williger added, "About two weeks ago, my brother Joseph and I signed an agreement to sell to Emblaze, which is traded on the London Stock Exchange, our controlling stake in Willi-Food Investments Ltd., the controlling shareholder of the Company. We view this sale as an opportunity for the Company to continue its accelerated development in the food sector, both in Israel and outside Israel and possibly to expand into additional activities. Both my brother and I will continue to manage the Company, together with the Company's personnel and the management of Emblaze, in order to continue to develop the Company."
 
 “We believe we are well positioned to continue our expansion and the recent financial results certainly confirm our belief in our strategy,” concluded Mr. Williger. “We are constantly focusing on looking to meet the demands of consumers for new kosher products, and we have the infrastructure in place and development expertise to develop and deliver these products. At the same time, we remain focused on maximizing long-term profitability and creating additional value for our shareholders.”
 
 
 

 
 
Conference Call

The Company will host a conference call and live webcast on March 18, 2014 to discuss the financial results beginning at 11:00 AM Eastern Time. Interested parties may participate on the call by dialing 1-877-941-1427 (US), or 1-480-629-9664 (International), approximately 10 minutes prior to the scheduled start time. Participants may also access a live listen only webcast at:
 http://public.viavid.com/index.php?id=108184
 
Following the conclusion of the call, a telephonic replay will be available for 14 days beginning at 2:00 PM Eastern Time on March 18, 2014 through 11:59 PM Eastern Time on April 1, 2014 and may be accessed by dialing 1-877-870-5176 (US), or 1-858-384-5517 (International), using access code 4672792.  In addition, an archived webcast will be available for one year at:
http://public.viavid.com/report-s/eventparticipantreporttab.php?id=o5aqoJ%2Bb
 
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 December 31, 2013, U.S. $1.00 equals NIS 3.471. 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 fiscal year ended December 31, 2013 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 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.
 
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, 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 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, 2012, filed with the Securities and Exchange Commission on April 30, 2013. 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 3
   
2 0 1 2
   
2 0 1 3
   
2 0 1 2
 
   
NIS
   
US dollars (*)
 
   
(in thousands)
 
          ASSETS
                       
Current assets
                       
Cash and cash equivalents
    36,197       57,563       10,428       16,584  
Financial assets carried at fair value through profit or loss
    112,864       158,810       32,516       45,753  
Trade receivables
    82,932       71,340       23,894       20,553  
Other receivables and prepaid expenses
    2,694       5,988       777       1,725  
Inventories
    54,001       49,270       15,558       14,195  
Loan carried at fair value through profit or loss
    65,300       -       18,813       -  
Total current assets
    353,988       342,971       101,986       98,810  
                                 
Non-current assets
                               
Property, plant and equipment
    66,663       63,022       19,206       18,157  
Less -Accumulated depreciation
    25,689       21,394       7,401       6,164  
      40,974       41,628       11,805       11,993  
                                 
Prepaid expenses
    50       62       14       18  
Goodwill
    36       36       10       10  
Deferred taxes
    -       20       -       6  
Total non-current assets
    41,060       41,746       11,829       12,027  
      395,048       384,717       113,815       110,837  
EQUITY AND LIABILITIES
                               
Current liabilities
                               
Short-term bank debt
    18       9,930       5       2,861  
Trade payables
    20,245       28,744       5,833       8,281  
Employees Benefits
    1,880       1,659       542       478  
Accruals
    -       3,446       -       993  
Current tax liabilities
    637       2,117       184       610  
Other payables and accrued expenses
    5,282       4,479       1,522       1,290  
Total current liabilities
    28,062       50,375       8,086       14,513  
                                 
Non-current liabilities
                               
Retirement benefit obligation
    644       581       186       167  
Deferred taxes
    499       -       144       -  
Total non-current liabilities
    1,143       581       330       167  
                                 
Shareholders' equity
                               
Share capital NIS 0.10 par value (authorized - 50,000,000 shares, issued and outstanding – 12,974,245 shares at December 31, 2013; 12,974,245 shares at December 31, 2012)
    1,407       1,444       416       416  
Additional paid in capital
    119,281       129,897       37,478       37,424  
Capital fund
    247       247       71       71  
Foreign currency translation reserve
    786       639       226       184  
Retained earnings
    244,185       212,377       70,350       61,186  
Treasury shares
    -       (10,843 )     (3,124 )     (3,124 )
Capital Fund remeasurement of the net liability in respect of defined benefit
    (63 )     -       (18 )     -  
      365,843       333,761       105,399       96,157  
      395,048       384,717       113,815       110,837  

(*)
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 3
   
2 0 1 2
   
2 0 1 3
   
2 0 1 2
 
   
NIS
   
US dollars (*)
 
   
In thousands (except per share and share data)
 
                         
Sales
    336,032       286,509       96,811       82,544  
Cost of sales
    252,355       217,468       72,704       62,653  
                                 
Gross profit
    83,677       69,041       24,107       19,891  
                                 
 Selling expenses
    35,130       28,915       10,121       8,330  
 General and administrative expenses
    19,408       16,715       5,591       4,816  
 Other income
    (54 )     (46 )     (16 )     (13 )
                                 
Total operating expenses
    54,484       45,584       15,696       13,133  
                                 
Operating income
    29,193       23,457       8,411       6,758  
                                 
Financial income
    13,008       8,716       3,748       2,511  
Financial expense
    876       410       252       118  
Total financial income
    12,132       8,306       3,496       2,393  
                                 
 Income before taxes on income
    41,325       31,763       11,907       9,151  
 Taxes on income
    (9,517 )     (7,757 )     (2,742 )     (2,235 )
                                 
Net income
    31,808       24,006       9,165       6,916  
                                 
Earnings per share:
                               
                                 
Basic earnings per share
    2.45       1.85       0.71       0.53  
                                 
Diluted earnings per share
    2.45       1.85       0.71       0.53  
                                 
Shares used in computation of basic EPS
    12,974,245       12,977,481       12,974,245       12,977,481  

(*)
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 3
   
2 0 1 2
   
2 0 1 3
   
2 0 1 2
 
   
NIS
   
US dollars (*)
 
   
In thousands (except per share and share data)
 
CASH FLOWS - OPERATING ACTIVITIES
                       
Profit from continuing operations
    31,808       24,006       9,165       6,916  
Adjustments to reconcile net income to net cash provided by
   operating activities:
    (28,078 )     (31,127 )     (8,090 )     (8,967 )
Net cash from (used in) continuing operating activities
    3,730       (7,121 )     1,075       (2,051 )
Net cash from discontinued operating activities
    -       -       -       -  
                                 
CASH FLOWS - INVESTING ACTIVITIES
                               
Acquisition of property plant and equipment
    (6,077 )     (1,628 )     (1,751 )     (469 )
Proceeds from sale of property plant and Equipment
    29       269       8       77  
Additions to long term other receivables
    (445 )     -       (128 )        
Proceeds from  purchase of marketable securities, net
    56,309       8,654       16,223       2,493  
Proceeds used in purchase of  loan carried at fair value through profit
  or loss
    (65,000 )     -       (18,727 )     -  
Net cash from (used in) continuing investing activities
    (15,184 )     7,295       (4,375 )     2,101  
Net cash from discontinued investing activities
    -       13,500       -       3,889  
                                 
CASH FLOWS - FINANCING ACTIVITIES
                               
Short-term bank debt, net
    (9,912 )     9,930       (2,856 )     2,861  
Investment used in treasury stocks
    -       (702 )     -       (202 )
Net cash from (used in) continuing financing activities
    (9,912 )     9,228       (2,856 )     2,659  
Net cash used in discontinued financing activities
    -       -       -       -  
Increase (decrease) in cash and cash equivalents
    (21,366 )     22,902       (6,156 )     6,598  
Cash and cash equivalents  at the beginning of the financial period
    57,563       34,661       16,584       9,986  
Cash and cash equivalents of the end of the financial period
    36,197       57,563       10,428       16,584  

(*) 
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 3
   
2 0 1 2
   
2 0 1 3
   
2 0 1 2
 
   
NIS
   
US dollars (*)
 
   
In thousands (except per share and share data)
 
                         
Adjustments to reconcile net income to net cash from operating activities
                       
                                 
Depreciation and amortization
    4,459       3,134       1,285       903  
Unrealized Gain of  loan carried at fair value through profit or loss
    (300 )     -       (86 )     -  
Decrease in deferred income taxes
    519       913       150       263  
Capital Gain  on disposal of property plant and equipment
    (29 )     (89 )     (8 )     (26 )
Unrealized Gain on marketable securities
    (10,363 )     (4,034 )     (2,986 )     (1,162 )
Stock based compensation reserve
    190       88       55       25  
Employees benefit, net
    -       63       -       19  
                                 
Changes in assets and liabilities:
                               
Increase in trade receivables and other receivables
    (9,046 )     (16,613 )     (2,607 )     (4,786 )
Increase in inventories
    (4,731 )     (16,657 )     (1,364 )     (4,799 )
Increase (decrease) in payables and other current liabilities
    (8,777     2,068       (2,529 )     596  
      (28,078 )     (31,127 )     (8,090 )     (8,967 )
 
(*) 
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.
Raviv Segal, CFO
 (+972) 8-932-1000
raviv@willi-food.co.il

###

SOURCE: G. Willi-Food International Ltd.