6-K 1 zk1415015.htm 6-K zk1415015.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 May - 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): 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)(7): o
 
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 May 28, 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:  May 28, 2014
     
 
By:
/s/ Raviv Segal  
   
Name:  Raviv Segal
 
   
Title:    Chief Financial Officer
 
 
 
 

 
 
   
                       
FOR IMMEDIATE RELEASE
 
G. WILLI-FOOD REPORTS Q1 2014 SALES UP 4.9% FROM Q1 2013

Net Income of US$ 2 million in Q1 2014

YAVNE, Israel - May 28, 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 unaudited financial results for the first quarter ended March 31, 2013.

First Quarter Fiscal 2014 Highlights
 
·
Sales increased 4.9% from first quarter of 2013 to NIS 95.0 million (US$ 27.2 million)
 
·
Gross profit increased 0.1% from first quarter of 2013 to NIS 21.4 million (US$ 6.1 million), or 22.5% of sales
 
·
Operating income decreased 30.0% from first quarter of 2013 to NIS 6.4 million (US$ 1.8 million), or 6.8% of sales
 
·
Net income decreased 13.9% from first quarter of 2013 to NIS 7.1 million (US$ 2.0 million), or 7.5% of sales
 
·
Earning per share of NIS 0.55 (US$ 0.16) compared to earning per share of NIS 0.64 (US$ 0.18) in the first quarter of 2013
 
·
Cash and securities balance (net of short-term bank debt) of NIS 198.8 million (US$ 57.0 million) as of March 31, 2014

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.
 
First Quarter Fiscal 2013 Summary
Sales for the first quarter of 2014 increased by 4.9% to NIS 95.0 million (US$ 27.2 million) from NIS 90.6 million (US$ 26.0 million) recorded in the first quarter of 2013. Sales increased in the first quarter of 2014 primarily due to our increased marketing efforts and sales activities combined with the growing demand from domestic and international customers for our quality kosher products.
 
Gross profit for the first quarter of 2014 increased by 0.1% to NIS 21.4 million (US$ 6.1 million) compared to NIS 21.4 million (US$ 6.1 million) recorded in the first quarter of 2013. First quarter gross margin was 22.5% compared to gross margin of 23.6% for the same period in 2013. The decrease in gross margin in the first quarter of 2014 was primarily due to reductions in the prices of certain of our products as a result of continued pressure from our customers to reduce prices and an increase in global prices of food products. The Company expects the decline in its gross margins to continue in the second and third quarters of 2014 compared to 2013 second and third quarter's gross margins. To the extent that customer pressure to reduce prices continues, or global and local prices of food products continue to increase, the Company's gross margins may be impacted beyond the third quarter of 2014.
 
Willi-Food’s operating income for the first quarter of 2013 decreased by 30.0% to NIS 6.4 million (US$ 1.8 million) compared to NIS 9.2 million (US$ 2.6 million) recorded in the first quarter of 2013 due to the price pressure referred to above. Selling expenses increased by 33.5% from the comparable quarter of 2013, primarily due to an increase in promotion expenses as well as vehicle and transport expenses. Selling expenses as a percentage of sales increased in the first quarter of 2014 to 10.6% compared to 8.3% in the first quarter of 2013. General and administrative expenses increased by 8.3% from the first quarter of 2013, primarily due to an expense of NIS 0.5 million (US$ 0.14 million) related to options granted to the Company's Chairman, President and CEO on November 2013. General and administrative expenses as a percentage of sales increased in the first quarter of 2013 to 5.3% from 5.2% in the first quarter of 2013.
 
 
 

 
 
Willi-Food’s income before taxes for the first quarter of 2014 decreased by 10.6% to NIS 9.8 million (US$ 2.8 million) compared to NIS 10.9 million (US$ 3.1 million) recorded in the first quarter of 2013.
 
Willi-Food's net income in the first quarter of 2014 decreased by 13.9% to NIS 7.1 million (US$ 2.0 million), or NIS 0.55 (US$ 0.16) per share, from NIS 8.2 million (US$ 2.4 million), or NIS 0.64 (US$ 0.18) per share, recorded in the first quarter of 2013.
 
Willi-Food ended the first quarter of 2014 with NIS 198.8 million (US$ 57.0 million) in cash and securities net from short-term debt. Willi-Food's shareholders' equity at the end of March 2014 was NIS 373.5 million (US$ 107.1 million).
 
Business Outlook
Mr. Zwi Williger, Chairman of Willi-Food commented, “First quarter results were affected by the sharp decline of consumption by the Israeli consumer that although didn’t reduced the number of visits to stores, sharply decreased the consumer's consumption basket. Although we achieved organic sales growth of 5% - the highest quarterly sales in the Company’s history, our profit margins declined. Going forward, we are facing an increase in the level of uncertainty in the local economy. On May 18, 2014 the Israeli Central Bureau of Statistics announced that the Private Consumption Expenditure per Capita in the first quarter of 2014 decreased by 4% compared to the fourth quarter of 2013 after decreasing by 1% in the fourth quarter of 2013 compared to the third quarter of 2013. The economic uncertainty, coupled with changes in the Israeli market and ongoing consumer demand for price reductions, will probably negatively affect our results in near future. Saying that, we expect that we will not meet our budget for the second and third quarter of 2014."

Mr. Williger continued, “In light of the anticipated continued recession and decreasing Private Consumption as well as continuing price pressure from consumers, our foreseeable challenges ahead will be in managing our expenses, and in particular the cost of our products, in order to accommodate our consumers' continued desire to acquire lower cost products. We hope that in these difficult times we will be able to maintain our customer base both in the retail and in the wholesale markets.”

Mr. Williger concluded, "We believe that this period presents an opportunity for us to utilize cash on hand to purchase 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 and live webcast on May 28, 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=109380
 
Following the conclusion of the call, a telephonic replay will be available for 14 days beginning at 2:00 PM Eastern Time on May 28, 2014 through 11:59 PM Eastern Time on June 11, 2014 and may be accessed by dialing 1-877-870-5176 (US), or 1-858-384-5517 (International), using access code 4685109.  In addition, an archived webcast will be available for one year at:
http://public.viavid.com/reports/eventparticipantreporttab.php?id=o5arop%2BX
 
 
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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, 2014, U.S. $1.00 equals NIS 3.487. The translation was made solely for the convenience of the reader.

NOTE B: IFRS
The Company’s consolidated financial results for the three-month ended March 31, 2014 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, 2013, filed with the Securities and Exchange Commission on April 30, 2014. 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}
 
 
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G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
   
March 31,
   
December 31,
   
March 31,
   
December 31,
 
   
2 0 1 4
   
2 0 1 3
   
2 0 1 4
   
2 0 1 3
 
   
NIS
   
US dollars (*)
 
   
(in thousands)
 
ASSETS
                       
                         
Current assets
                       
Cash and cash equivalents
    53,380       36,197       15,308       10,381  
Financial assets carried at fair value through profit or loss
    148,036       112,864       42,454       32,367  
Trade receivables
    105,565       82,932       30,274       23,783  
Other receivables and prepaid expenses
    3,695       2,694       1,060       773  
Inventories
    53,500       54,001       15,343       15,486  
Loan carried at fair value through profit or loss
    -       65,300       -       18,727  
Total current assets
    364,176       353,988       104,439       101,517  
                                 
Non-current assets
                               
Property, plant and equipment
    67,193       66,663       19,270       19,118  
Less -Accumulated depreciation
    25,837       25,689       7,410       7,367  
      41,356       40,974       11,860       11,751  
                                 
Other receivables and prepaid expenses
    29       50       8       14  
Goodwill
    36       36       10       10  
Total non-current assets
    41,421       41,060       11,878       11,775  
                                 
      405,597       395,048       116,317       113,292  
                                 
EQUITY AND LIABILITIES
                               
                                 
Current liabilities
                               
Short-term bank debt
    2,644       18       758       5  
Trade payables
    21,747       20,245       6,237       5,806  
Employees Benefits
    2,144       1,880       615       539  
Current tax liabilities
    636       637       182       183  
Other payables and accrued expenses
    4,069       5,282       1,167       1,515  
Total current liabilities
    31,240       28,062       8,959       8,048  
                                 
Non-current liabilities
                               
Deferred taxes
    299       499       86       143  
retirement benefit obligation
    606       644       174       185  
Total non-current liabilities
    905       1,143       260       328  
                                 
Shareholders' equity
                               
Share capital
    1,407       1,407       403       403  
Additional paid in capital
    119,757       119,281       34,344       34,207  
Capital fund
    247       247       71       71  
Foreign currency translation reserve
    774       786       222       225  
remeasurement of the net liability in respect of defined benefit
    (25 )     (63 )     (7 )     (18 )
Retained earnings
    251,292       244,185       72,065       70,028  
Equity attributable to owners of the Company
    373,452       365,843       107,098       104,916  
                                 
      405,597       395,048       116,317       113,292  
 
(*)           Convenience translation into U.S. dollars.
 
 
4

 
 
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
   
Three months ended
   
Three months ended
 
   
March 31
   
March 31
 
   
2 0 1 4
   
2 0 1 3
   
2 0 1 4
   
2 0 1 3
 
   
NIS
   
US dollars (*)
 
   
(in thousands, except per share and share data)
 
                         
Sales
    94,969       90,585       27,235       25,978  
Cost of sales
    73,565       69,196       21,097       19,844  
Gross profit
    21,404       21,389       6,138       6,134  
                                 
Operating costs and expenses:
                               
Selling expenses
    10,067       7,542       2,887       2,163  
General and administrative expenses
    5,056       4,668       1,450       1,339  
Other Income
    (147 )     -       (42 )     -  
Total operating expenses
    14,976       12,210       4,295       3,502  
                                 
Operating income
    6,428       9,179       1,843       2,632  
                                 
Financial income
    3,497       2,639       1,003       756  
Financial expense
    162       898       46       257  
Total financial income
    3,335       1,741       957       499  
                                 
 Income before taxes on income
    9,763       10,920       2,800       3,131  
 Taxes on income
    2,656       2,670       762       765  
 Net income
    7,107       8,250       2,038       2,366  
                                 
Earnings per share:
                               
                                 
Basic earnings per share
    0.55       0.64       0.16       0.18  
                                 
Diluted earnings per share
    0.55       0.64       0.16       0.18  
                                 
Shares used in
   computation of basic EPS
    12,974,245       12,974,245       12,974,245       12,974,245  
 
(*)
Convenience translation into U.S. dollars
 
 
5

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

   
Three months ended
   
Three months ended
 
   
March 31
   
March 31
 
   
2 0 1 4
   
2 0 1 3
   
2 0 1 4
   
2 0 1 3
 
   
NIS
   
US dollars (*)
 
   
(in thousands, except per share and share data)
 
                         
Cash flows - operating activities:
                       
Profit from continuing operations
    7,107       8,250       2,038       2,366  
Adjustments to reconcile net profit to net cash used in continuing operating activities (Appendix A)
    (24,702 )     (14,963 )     (7,084 )     (4,291 )
                                 
Net cash from continuing operating activities
    (17,595 )     (6,713 )     (5,046 )     (1,925 )
                                 
Cash flows - investing activities:
                               
Acquisition of property plant and equipment
    (1,829 )     (4,395 )     (525 )     (1,260 )
Additions to prepaid expensess, net
    -       (445 )     -       (128 )
Proceeds from sale of property plant and Equipment
    745       -       214       -  
Proceeds from (used in) purchase of marketable securities, net
    (32,164 )     23,544       (9,224 )     6752  
Proceeds from Loan carried at fair value through profit or loss
    65,400       -       18,755       -  
                                 
Net cash from continuing investing activities
    32,152       18,704       9,220       5,364  
                                 
Cash flows - financing activities:
                               
Short-term bank debt
    2,626       (9,911 )     753       (2,842 )
                                 
Net cash from (used in) continuing financing activities
    2,626       (9,911 )     753       (2,842 )
                                 
Increase in cash and cash equivalents
    17,183       2,080       4,927       597  
                                 
Cash and cash equivalents  at the beginning of the financial year
    36,197       57,563       10,381       16,508  
                                 
Cash and cash equivalents of the end of the financial year
    53,380       59,643       15,308       17,105  
 
(*)           Convenience Translation into U.S. Dollars.
 
 
6

 
 
G. WILLI-FOOD INTERNATIONAL LTD.
APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
   
Three months ended
   
Three months ended
 
   
March 31
   
March 31
 
   
2 0 1 4
   
2 0 1 3
   
2 0 1 4
   
2 0 1 3
 
   
NIS
   
US dollars (*)
 
   
(in thousands, except per share and share data)
 
                         
Cash flows from operating activities:
                       
                         
A.Adjustments to reconcile net profit to net cash from operating activities
                       
                         
Increase  in deferred income taxes
    (200 )     (225 )     (57 )     (65 )
Unrealized Gain of  loan carried at fair value through profit or loss
    (100 )     -       (28 )     -  
Unrealized gain on marketable securities
    (3,008 )     (1,569 )     (863 )     (450 )
Depreciation and amortization
    890       1,011       255       290  
Capital gain on disposal of property plant and equipment
    (188 )     -       (54 )     -  
Stock based compensation reserve
    476       5       137       1  
                                 
Changes in assets and liabilities:
                               
Increase in trade receivables and other receivables
    (23,613 )     (9,565 )     (6,772 )     (2,743 )
Decrease in inventories
    501       5,478       143       1,571  
Increase (Decrease) in trade and other payables, and other current liabilities
    540       (10,098 )     155       (2,895 )
                                 
      (24,702 )     (14,963 )     (7,084 )     (4,291 )
                                 
B.Significant non-cash transactions:
                               
                                 
Supplemental cash flow information:
                               
Income tax paid
    2,447       2,172       702       623  
 
(*)           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.
 
 
7

 
 
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.
 
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