6-K 1 zk1516858.htm 6-K zk1516858.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 - 2015
 
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 May 28, 2015.
 
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, 2015
     
 
By:
/s/ Itai Loewenstein  
    Name: Itai Loewenstein  
    Title: Chief Financial Officer  
 
 
 

 
 
 
 
                        FOR IMMEDIATE RELEASE

G. WILLI-FOOD REPORTS Q1 2015 FINANCIAL RESULTS

YAVNE, Israel - May 28, 2015 - 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, 2015.

First Quarter Fiscal 2015 Highlights:
 
·
Sales decreased 9.3% from first quarter of 2014 to NIS 86.2 million (US$ 21.7 million)
 
·
Gross profit decreased 20.3% from first quarter of 2014 to NIS 17.1 million (US$ 4.3 million), or 19.8% of sales
 
·
Operating income decreased 67.8% from first quarter of 2014 to NIS 2.1 million (US$ 0.5 million), or 2.4% of sales
 
·
Net income decreased 63.1% from first quarter of 2014 to NIS 2.6 million (US$ 0.7 million), or 3.0% of sales
 
·
Earning per share of NIS 0.2 (US$ 0.05)
 
·
Cash and securities balance (net of short-term bank debt) of NIS 216.0 million (US$ 54.3 million) as of March 31, 2015

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 and innovative kosher dairy food products.

First Quarter Fiscal 2015 Summary
Sales for the first quarter of 2015 decreased by 9.3% to NIS 86.2 million (US$ 21.7 million) from NIS 95.0 million (US$ 23.9 million) recorded in the first quarter of 2014. Sales decreased in the first quarter of 2015 primarily due to overall market decline in food product consumption by the Israeli consumer.

Gross profit for the first quarter of 2015 decreased by 20.3% to NIS 17.1 million (US$ 4.3 million) compared to NIS 21.4 million (US$ 5.4 million) recorded in the first quarter of 2014. First quarter gross margin was 19.8% compared to gross margin of 22.5% for the same period in 2014. The decrease in gross margin in the first quarter of 2015 was primarily due to reductions in the prices of certain of our products as a result of continued expectations from our customers for us to reduce prices and to certain expense shifting from selling expenses to gross margin, as a result of government regulations that became effective in January 2015. 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 first quarter of 2015 decreased by 67.8% to NIS 2.1 million (US$ 0.5 million) compared to NIS 6.4 million (US$ 1.6 million) recorded in the first quarter of 2014. Selling expenses increased by 2.9% from the comparable quarter of 2014, primarily due to an increase in promotional expenses that included a one-time NIS 1.6 million (US$ 0.4 million) expense related to a nationwide media campaign launched in the first quarter of 2015 which was aimed at broadening awareness of Willi-Food brand and products. Selling expenses as a percentage of sales increased in the first quarter of 2015 to 12.0% compared to 10.6% in the first quarter of 2014. General and administrative expenses decreased by 7.4% from the first quarter of 2014.

 
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Willi-Food’s income before taxes for the first quarter of 2015 decreased by 60.8% to NIS 3.8 million (US$ 1.0 million) compared to NIS 9.8 million (US$ 2.5 million) recorded in the first quarter of 2014.

Willi-Food's net income in the first quarter of 2015 decreased by 63.1% to NIS 2.9 million (US$ 0.7 million), or NIS 0.20 (US$ 0.05) per share, from NIS 7.1 million (US$ 1.8 million), or NIS 0.55 (US$ 0.16) per share, recorded in the first quarter of 2014.

Willi-Food ended the first quarter of 2015 with NIS 216.0 million (US$ 54.3 million) in cash and securities net from short-term debt. Willi-Food's shareholders' equity at the end of March 2015 was NIS 392.5 million (US$ 98.6 million).

Business Outlook
Mr. Zwi Williger, Chairman of Willi-Food, commented, “First quarter sales and profit margins were negatively affected by continued pressure from our customers to reduce prices and continued decline of food consumption by the Israeli consumer. Although these trends did not reduce the number of consumer visits to stores that stock our products, they did sharply decrease the consumer's consumption basket. In light of our expectation that these trends will continue, we face increased uncertainty in the local economy, and a principal challenge will be in managing our expenses in order to offer our products at the lower prices our customers expect.  Such expense management 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”.

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, 2015, U.S. $1.00 equals NIS 3.98. 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, 2015 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, 2015. 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 5
   
2 0 1 4
   
2 0 1 5
   
2 0 1 4
 
   
NIS
   
US dollars (*)
 
   
(in thousands)
 
ASSETS
                       
                         
Current assets
                       
Cash and cash equivalents
    76,543       82,902       19,232       20,830  
Financial assets carried at fair value through profit or loss
    119,349       122,733       29,987       30,837  
Short term deposit
    20,124       19,445       5,056       4,886  
Trade receivables
    99,908       86,690       25,105       21,781  
Other receivables and prepaid expenses
    2,934       3,700       737       930  
Inventories
    51,633       48,587       12,973       12,208  
Current tax assets
    1,624       1,372       408       345  
Total current assets
    372,115       365,428       93,498       91,817  
                                 
Non-current assets
                               
Property, plant and equipment
    74,324       73,826       18,674       18,549  
Less -Accumulated depreciation
    29,233       28,579       7,345       7,181  
      45,091       45,247       11,329       11,368  
                                 
Other receivables and prepaid expenses
    142       133       36       33  
Goodwill
    36       36       9       9  
Deferred taxes
    213       505       54       127  
Total non-current assets
    45,482       45,921       11,428       11,537  
                                 
      417,597       411,349       104,926       103,354  
                                 
EQUITY AND LIABILITIES
                               
                                 
Current liabilities
                               
Short-term bank debt
    26       -       7       -  
Trade payables
    19,558       15,518       4,914       3,899  
Employees Benefits
    2,582       2,120       649       533  
Other payables and accrued expenses
    2,370       7,010       595       1,761  
Total current liabilities
    24,536       24,648       6,165       6,193  
                                 
Non-current liabilities
                               
retirement benefit obligation
    603       635       152       159  
Total non-current liabilities
    603       635       152       159  
                                 
Shareholders' equity
                               
Share capital NIS 0.1 par value
(authorized - 50,000,000 shares, issued and
outstanding – 13,107,579 shares at March  31,
2015; 12,974,245 shares at December 31, 2014)
    1,420       1,407       357       354  
Additional paid in capital
    125,158       121,430       31,447       30,510  
Capital fund
    247       247       63       62  
Remeasurement of the net liability in respect of defined benefit
    (25 )     (57 )     (7 )     (14 )
Retained earnings
    265,658       263,039       66,749       66,090  
Equity attributable to owners of the Company
    392,458       386,066       98,609       97,002  
                                 
      417,597       411,349       104,926       103,354  
 
(*)
Convenience translation into U.S. dollars
 
 
3

 
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
   
Three months ended
   
Three months ended
 
   
March 31
   
March 31
 
   
2 0 1 5
   
2 0 1 4
   
2 0 1 5
   
2 0 1 4
 
   
NIS
   
US dollars (*)
 
   
(in thousands, except per share and share data)
 
                         
Sales
    86,176       94,969       21,652       23,862  
Cost of sales
    69,113       73,565       17,365       18,484  
Gross profit
    17,063       21,404       4,287       5,378  
                                 
Operating costs and expenses:
                               
Selling expenses
    10,360       10,067       2,603       2,530  
General and administrative expenses
    4,679       5,056       1,176       1,270  
Other Income
    (44 )     (147 )     (11 )     (37 )
Total operating expenses
    14,995       14,976       3,768       3,763  
                                 
Operating income
    2,068       6,428       519       1,615  
                                 
Financial income
    1,860       3,497       467       879  
Financial expense
    103       162       26       41  
Total financial income
    1,757       3,335       441       838  
                                 
Income before taxes on income
    3,825       9,763       960       2,453  
Taxes on income
    1,206       2,656       303       667  
Net income
    2,619       7,107       657       1,786  
                                 
Earnings per share:
                               
                                 
Basic earnings per share
    0.20       0.55       0.05       0.16  
                                 
Diluted earnings per share
    0.20       0.55       0.05       0.16  
                                 
Shares used in computation of basic EPS
    13,014,245       12,974,245       13,014,245       12,974,245  
 
(*)
Convenience translation into U.S. dollars

 
4

 
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
   
Three months ended
   
Three months ended
 
   
March 31
   
March 31
 
   
2 0 1 5
   
2 0 1 4
   
2 0 1 5
   
2 0 1 4
 
   
NIS
   
US dollars (*)
 
   
(in thousands, except per share and share data)
 
                         
Cash flows - operating activities:
                       
Profit from continuing operations
    2,619       7,107       657       1,786  
Adjustments to reconcile net profit to net cash used in
  continuing operating activities (Appendix)
    (16,542 )     (24,702 )     (4,155 )     (6,207 )
                                 
Net cash used in continuing operating activities
    (13,923 )     (17,595 )     (3,498 )     (4,421 )
                                 
Cash flows - investing activities:
                               
Acquisition of property plant and equipment
    (1,520 )     (1,829 )     (382 )     (460 )
Proceeds from sale of property plant and Equipment
    132       745       33       187  
Proceeds from (used in) purchase of marketable securities, net
    5,470       (32,164 )     1,374       (8,081 )
Proceeds from Loan carried at fair value through profit or loss
    -       65,400       -       16,432  
                                 
Net cash from continuing investing activities
    4,082       32,152       1,025       8,078  
                                 
Cash flows - financing activities:
                               
Short-term bank debt
    26       2,626       7       660  
Exercise of options into shares
    3,456       -       868       -  
                                 
Net cash from (used in) continuing financing activities
    3,482       2,626       875       660  
                                 
Increase (decrease) in cash and cash equivalents
    (6,359 )     17,183       (1,598 )     4,317  
                                 
Cash and cash equivalents  at the beginning of the financial year
    82,902       36,197       20,830       9,095  
                                 
Cash and cash equivalents of the end of the financial year
    76,543       53,380       19,232       13,412  

(*)          Convenience Translation into U.S. Dollars.
 
 
5

 
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 5
   
2 0 1 4
   
2 0 1 5
   
2 0 1 4
 
   
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 (Decrease) in deferred income taxes
    292       (200 )     74       (50 )
Unrealized gain from Short term deposit
    (679 )     -       (171 )     -  
Unrealized Gain of  loan carried at fair value through profit or loss
    -       (100 )     -       (25 )
Unrealized gain on marketable securities
    (2,086 )     (3,008 )     (524 )     (756 )
Depreciation and amortization
    977       890       245       224  
Capital gain on disposal of property plant and equipment
    (44 )     (188 )     (11 )     (47 )
Stock based compensation reserve
    285       476       72       120  
                                 
Changes in assets and liabilities:
                               
Increase in trade receivables and other receivables
    (12,713 )     (23,613 )     (3,194 )     (5,934 )
Decrease (Increase) in inventories
    (3,047 )     501       (766 )     126  
Increase  in trade and other payables, and other current liabilities
    473       540       120       135  
                                 
      (16,542 )     (24,702 )     (4,155 )     (6,207 )
B. Significant non-cash transactions:
                               
Purchase of property, plant and equipment
    (611 )     -       (154 )     -  
                                 
Supplemental cash flow information:
                               
Income tax paid
    2,190       2,447       550       615  

(*)           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.
 
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