6-K 1 zk1415832.htm 6-K zk1415832.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 November - 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 November 13, 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.


 
2

 
 
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:  November 13, 2014
   
 
By:
/s/ Itai Loewenstein
   
Name:  Itai Loewenstein
Title:  Chief Financial Officer
 
 
3

 

 
 NEWS
 
FOR IMMEDIATE RELEASE

G. WILLI-FOOD REPORTS Q3 2014 SALES UP 0.1% FROM Q3 2013 SALES

Net Cash from operating activities of NIS 9.1 million (US$ 2.5 million) in Q3 2014

YAVNE, Israel – November 13, 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 third quarter and the nine months ended September 30, 2014.

Third Quarter Fiscal 2014 Highlights (income statement highlights compared to same period last year)
 
·
Sales increased 0.1% to NIS 79.1 million (US$ 21.4 million);
 
·
Gross profit decreased 4.6% to NIS 19.8 million (US$ 5.3 million), or 25.0% of sales;
 
·
Operating income decreased 35.1% to NIS 4.7 million (US$ 1.3 million), or 5.9% of sales;
 
·
Net income decreased 40.9% to NIS 5.1 million (US$ 1.4 million), or 6.4% of sales;
 
·
Earning per share of NIS 0.39 (US$ 0.11);
 
·
Net cash from operating activities of NIS 9.1 million (US$ 2.5 million); and
 
·
Cash and securities balance of NIS 224.0 million (US$ 60.6 million) as of September 30, 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.
 
Third Quarter Fiscal 2014 Summary
Sales for the third quarter of 2014 increased by 0.1% to NIS 79.1 million (US$ 21.4 million) from NIS 79.0 million (US$ 21.4 million) recorded in the third quarter of 2013. Willi-Food accomplished this minor sales increase in the third quarter of 2014 despite Operation Protective Edge, an almost two month military operation launched by the State of Israel on July 8, 2014 in the Hamas-controlled Gaza Strip, which negatively hurt Willi-Food sales in July-August 2014 and the decline in consumption in food products by the Israeli consumer.
 
Gross profit for the third quarter of 2014 decreased by 4.6% to NIS 19.8 million (US$ 5.3 million) compared to NIS 20.7 million (US$ 5.6 million) recorded in the third quarter of 2013. Third quarter gross margin was 25.0% compared to gross margin of 26.2% for the same period in 2013. The decrease in gross margin in the third 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. The decrease in gross margin was also less significantly caused by the strengthening of the U.S. dollar versus the NIS.
 
Willi-Food’s operating income for the third quarter of 2014 decreased by 35.1% to NIS 4.7 million (US$ 1.3 million) compared to NIS 7.2 million (US$ 1.9 million) recorded in the third quarter of 2013. Selling expenses increased by 11.4% 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 third quarter of 2014 to 12.5% compared to 11.3% in the third quarter of 2013. General and administrative expenses increased by 11.8% from the comparable quarter of 2013 primarily due to an expense of NIS 477 million (US$ 129 million) related to options granted to the Company's Chairman, President and CEO in November 2013, which was recorded in the third quarter of 2014. General and administrative expenses as a percentage of sales increased in the third quarter of 2014 to 6.6% from 5.9% in the third quarter of 2013.
 
 
4

 
 
Willi-Food’s income before taxes for the third quarter of 2014 decreased by 42.2% to NIS 6.6 million (US$ 1.8 million) compared to NIS 11.5 million (US$ 3.1 million) recorded in the third quarter of 2013.
 
Willi-Food's net income in the third quarter of 2014 decreased by 40.9% to NIS 5.1 million (US$ 1.4 million), or NIS 0.39 (US$ 0.11) per share, from NIS 8.6 million (US$ 2.3 million), or NIS 0.66 (US$ 0.18) per share, recorded in the third quarter of 2013.
 
Willi-Food ended the third quarter of 2014 with NIS 224.0 million (US$ 60.6 million) in cash and securities net from short-term debt. Net cash from operating activities for 2014 third quarter was NIS 9.1 million (US$ 2.5 million). Willi-Food's shareholders' equity at the end of September 2014 was NIS 383.3 million (US$ 103.7 million).
 
Nine Month Fiscal 2014 Highlights (compared to same period last year)
 
·
Sales decreased 0.3% to NIS 253.2 million (US$ 68.5 million);
 
·
Gross profit decreased 3.5% to NIS 61.7 million (US$ 16.7 million), or 24.4% of sales;
 
·
Operating income decreased 32.4% to NIS 16.7 million (US$ 4.5 million), or 6.6% of sales;
 
·
Net income decreased 32.8% to NIS 16.6 million (US$ 4.5 million), or 6.5% of sales; and
 
·
Earning per share of NIS 1.28 (US$ 0.35).
 
Nine Month Results

Willi-Food’s sales for the nine month period ending September 30, 2014 decreased by 0.3% to NIS 253.2 million (US$ 68.5 million) compared to sales of NIS 254.0 million (US$ 68.7 million) in the first nine month of 2013. Gross profit for the period decreased by 3.5% to NIS 61.7 million (US$ 16.7 million) compared to gross profit of NIS 63.9 million (US$ 17.3 million) for the nine month of 2013. Nine month 2014 gross margins were 24.4% compared to gross margins of 25.2% in the same period of 2013.
 
Operating income for the first nine month of 2014 decreased by 32.4% to NIS 16.7 million (US$ 4.5 million) from NIS 24.7 million (US$ 6.7 million) reported in the comparable period of last year. First nine months 2014 income before taxes decreased by 32.5% to NIS 22.1 million (US$ 6.0 million) compared to NIS 32.7 million (US$ 8.9 million) recorded in the first nine month of 2013. Net income for the first nine month of 2014 decreased by 32.8% to NIS 16.6 million (US$ 4.5 million), or NIS 1.28 (US$ 0.35) per share, from NIS 24.6 million (US$ 6.6 million), or NIS 1.9 (US$ 0.51) per share, recorded in the first nine month of 2013.
 
Business Outlook
Mr. Zwi Williger, Chairman of Willi-Food, commented, “Our results in the third quarter were negatively impacted by Operation Protective Edge that lasted almost two thirds of the third quarter.  Despite that, and despite the fact that consumption of food products by Israeli consumers continued to decline sharply for the third quarter in a row, we were able to sustain the level of sales and maintain gross margins of 25%. 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 in order to offer our products at the low prices that our customers desire.  This will be needed in order to maintain our customer base both in the retail and wholesale markets during these difficult times for the food industry”.

Conference Call
The Company will host a conference call and live webcast on November 13, 2014 to discuss the financial results beginning at 11:00 AM Eastern Time. Interested parties may participate on the call by dialing 1-888-438-5535 (US), or 1-719-325-2428 (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=111801
 
Following the conclusion of the call, a telephonic replay will be available for 14 days beginning at 2:00 PM Eastern Time on November 13, 2014 through 11:59 PM Eastern Time on November 27, 2014 and may be accessed by dialing 1-877-870-5176 (US), or 1-858-384-5517 (International), using access code 5212111.  In addition, an archived webcast will be available for one year at:
http://public.viavid.com/reports/eventparticipantreporttab.php?id=o5ejp5eY
 

 
5

 

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 September 30, 2014, U.S. $1.00 equals NIS 3.695. 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 September 30, 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}
 
 
6

 
 
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
   
September 30,
   
December 31,
   
September 30,
   
December 31,
 
   
2 0 1 4
   
2 0 1 3
   
2 0 1 3
   
2 0 1 4
   
2 0 1 3
   
2 0 1 3
 
   
NIS
   
US dollars (*)
 
   
(in thousands)
 
ASSETS
                                   
                                     
Current assets
                                   
Cash and cash equivalents
    59,219       47,746       36,197       16,027       12,922       9,796  
Financial assets carried at fair value through profit or loss
    164,917       170,266       112,864       44,632       46,080       30,545  
Trade receivables
    93,579       80,338       82,932       25,326       21,742       22,444  
Other receivables and prepaid expenses
    2,723       3,624       2,694       738       981       729  
Inventories
    44,544       47,620       54,001       12,055       12,888       14,615  
Current tax assets
    530       -       -       143       -       -  
Loan carried at fair value through profit or loss
    -       -       65,300       -       -       17,673  
Total current assets
    365,512       349,594       353,988       98,921       94,613       95,802  
                                                 
Non-current assets
                                               
Property, plant and equipment
    71,722       65,538       66,663       19,411       17,737       18,041  
Less -Accumulated depreciation
    27,635       24,002       25,689       7,479       6,496       6,952  
      44,087       41,536       40,974       11,932       11,241       11,089  
                                                 
Other receivables and prepaid expenses
    33       280       50       9       76       13  
Deferred taxes
    44       -       -       12       -       -  
Goodwill
    36       36       36       10       10       10  
Total non-current assets
    44,200       41,852       41,060       11,963       11,327       11,112  
                                                 
      409,712       391,446       395,048       110,884       105,940       106,914  
                                                 
EQUITY AND LIABILITIES
                                               
                                                 
Current liabilities
                                               
Short-term bank debt
    114       -       18       31       -       5  
Trade payables
    18,026       21,817       20,245       4,878       5,904       5,480  
Employees Benefits
    1,962       1,773       1,880       531       480       509  
Current tax liabilities
    -       752       637       -       204       172  
Other payables and accrued expenses
    5,843       6,732       5,282       1,581       1,822       1,429  
Total current liabilities
    25,945       31,074       28,062       7,021       8,410       7,595  
                                                 
Non-current liabilities
                                               
Deferred taxes
    -       1,276       499       -       345       135  
Retirement benefit obligation
    501       568       644       136       154       174  
Total non-current liabilities
    501       1,844       1,143       136       499       309  
                                                 
Shareholders' equity
                                               
Share capital
    1,407       1,444       1,407       381       391       381  
Additional paid in capital
    120,727       129,906       119,281       32,674       35,157       32,281  
Capital fund
    247       247       247       67       67       67  
Foreign currency translation reserve
    -       747       786       -       202       213  
Remeasurement of the net liability in respect of defined benefit
    140       14       (63 )     38       4       (17 )
Treasury shares
    -       (10,843 )     -       -       (2,935 )     -  
Retained earnings
    260,746       237,013       244,185       70,567       64,145       66,085  
Equity attributable to owners of the Company
    383,267       358,528       365,843       103,727       97,031       99,010  
                                                 
      409,713       391,446       395,048       110,884       105,940       106,914  

(*)           Convenience translation into U.S. dollars.
 
 
7

 

G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
   
Nine months
   
Three months
   
Nine months
 
   
ended September 30,
   
ended September 30,
   
ended September 30,
 
   
2 0 1 4
   
2 0 1 3
   
2 0 1 4
   
2 0 1 3
   
2 0 1 4
   
2 0 1 3
 
   
NIS
   
U.S. dollars (*)
 
   
In thousands (except per share and share data)
 
                                     
Sales
    253,245       253,956       79,067       78,957       68,537       68,730  
Cost of sales
    191,524       190,020       59,315       58,250       51,833       51,427  
                                                 
Gross profit
    61,721       63,936       19,752       20,707       16,704       17,303  
                                                 
Selling expenses
    30,336       25,391       9,916       8,903       8,210       6,872  
General and administrative expenses
    14,868       13,926       5,184       4,636       4,024       3,768  
Other income
    (147 )     (34 )     -       -       (40 )     (9 )
                                                 
Total operating expenses
    45,057       39,283       15,100       13,539       12,194       10,631  
                                                 
Operating income
    16,664       24,653       4,652       7,168       4,510       6,672  
                                                 
Financial income
    5,738       8,836       1,582       4,249       1,553       2,391  
Financial (income) expense
    293       747       (391 )     (54 )     79       202  
Total financial income
    5,445       8,089       1,973       4,303       1,474       2,189  
                                                 
Income before taxes on income
    22,109       32,742       6,625       11,471       5,984       8,861  
Taxes on income
    5,548       8,106       1,545       2,876       1,501       2,194  
                                                 
Profit for the period
    16,561       24,636       5,080       8,595       4,483       6,667  
                                                 
Earnings per share:
                                               
                                                 
Earnings per share
                                               
Basic earnings per share
    1.28       1.90       0.39       0.66       0.35       0.51  
                                                 
Diluted earnings per share
    1.28       1.90       0.39       0.66       0.35       0.51  
                                                 
Shares used in computation of basic EPS
    12,974,245       12,974,245       12,974,245       12,974,245       12,974,245       12,974,245  

(*)           Convenience translation into U.S. dollars
 
 
8

 
 
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
   
Nine months
   
Three months
   
Nine months
 
   
ended September 30,
   
ended September 30,
   
ended September 30,
 
   
2 0 1 4
   
2 0 1 3
   
2 0 1 4
   
2 0 1 3
   
2 0 1 4
   
2 0 1 3
 
   
NIS
   
U.S. dollars (*)
 
   
In thousands (except per share and share data)
 
Cash flows - operating activities
                                   
Profit from operations
    16,561       24,636       5,080       8,595       4,483       6,667  
Adjustments to reconcile net income to net cash from operating activities (Appendix)
    (4,150 )     (13,967 )     4,049       (3,442 )     (1,123 )     (3,780 )
                                                 
Net cash from operating activities
    12,411       10,669       9,129       5,153       3,360       2,887  
                                                 
Cash flows - investing activities
                                               
Acquisition of property plant and equipment
    (6,586 )     (5,705 )     (2,582 )     (145 )     (1,782 )     (1,545 )
Proceeds from sale of property plant and Equipment
    970       29       -       -       263       8  
Additions to long term other receivables
    -       (445 )     -       -       -       (120 )
Proceeds used in purchase of marketable securities, net
    (49,269 )     (4,435 )     (6,001 )     (33,300 )     (13,335 )     (1,200 )
Proceeds from Loan carried at fair value through profit or loss
    65,400       -       -       -       17,700       -  
Net cash from (used in) investing activities
    10,515       (10,556 )     (8,583 )     (33,445 )     2,846       (2,857 )
                                                 
Cash flows - financing activities
                                               
Short-term bank credit, net
    96       (9,930 )     114       -       25       (2,687 )
                                                 
Net cash from (used in) in financing activities
    96       (9,930 )     114       -       25       (2,687 )
                                                 
Increase (decrease) in cash and cash equivalents
    23,022       (9,817 )     660       (28,292 )     6,231       (2,657 )
                                                 
Cash and cash equivalents  at the beginning of the financial year
    36,197       57,563       58,559       76,038       9,796       15,579  
                                                 
Cash and cash equivalents of the end of the financial year
    59,219       47,746       59,219       47,746       16,027       12,922  

(*)           Convenience Translation into U.S. Dollars.
 
 
9

 
 
G. WILLI-FOOD INTERNATIONAL LTD.
APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
   
Nine months
   
Three months
   
Nine months
 
   
ended September 30,
   
ended September 30,
   
ended September 30,
 
   
2 0 1 4
   
2 0 1 3
   
2 0 1 4
   
2 0 1 3
   
2 0 1 4
   
2 0 1 3
 
   
NIS
   
U.S. 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
                                   
Deferred income taxes
    (543 )     1,296       89       993       (147 )     351  
Unrealized gain on marketable securities
    (2,784 )     (7,021 )     (262 )     (3,901 )     (753 )     (1,901 )
Depreciation and amortization
    2,691       3,302       912       1,136       728       894  
Capital gain on disposal of  property plant and equipment
    (188 )     (29 )     -       -       (51 )     (8 )
Stock based compensation reserve
    1,423       10       476       4       385       3  
Net foreigh exchange gain
    (786 )     -       -       -       (213 )     -  
Unrealized Gain of loan carried at fair value through profit or loss
    (100 )     -       -       -       (27 )     -  
Changes in assets and liabilities:
                                               
Decrease (increase) in trade receivables and other receivables
    (11,189 )     (7,389 )     5,614       2,085       (3,028 )     (2,000 )
Decrease (increase) in inventories
    9,457       1,650       (5,669 )     (3,779 )     2,560       447  
Increase (decrease) in trade and other payables, and other current liabilities
    (2,131 )     (5,786 )     2,889       20       (577 )     (1,566 )
                                                 
      (4,150 )     (13,967 )     4,049       (3,442 )     (1,123 )     (3,780 )

(*)           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.
Itai Loewenstein, CFO
 (+972) 8-932-1000
itai@willi-food.co.il

###

SOURCE: G. Willi-Food International Ltd.
 
10