6-K 1 zk1821727.htm 6-K

 
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 2018
 
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 the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ☒          Form 40-F ☐
 
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 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 ☐          No ☒
 
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, dated May 24, 2018, entitled " G. Willi-Food international Reports Major Improvements in All Major Operational Parameters in First Quarter 2018 Compared to First Quarter 2017".
 
This 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 
 
Pursuant to 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

By: /s/ Amir Kaplan
Name: Amir Kaplan
Title: Chief Financial Officer
 
Date: May 24, 2018
 

 
 
FOR IMMEDIATE RELEASE

G. WILLI-FOOD INTERNATIONAL REPORTS MAJOR IMPROVEMENTS IN
ALL MAJOR OPERATIONAL PARAMETERS IN FIRST QUARTER 2018
COMPARED TO FIRST QUARTER 2017
 
YAVNE, Israel – May 24, 2018 - 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, 2018.

Willi-Food’s operating divisions include Willi-Food, a distributor of a broad variety of kosher foods, and Gold Frost, its wholly-owned subsidiary, a designer, developer and distributor of branded kosher innovative dairy food products.
 
First Quarter Fiscal Year 2018

·
Sales increased by 12.1% year-over-year to NIS 93.4 million (US$ 26.6 million).
·
Gross profit increased by 12.5% year-over-year to NIS 24.8 million (US$ 7.1 million).
·
Operating profit increased by 43.4% year-over-year to NIS 9.6 million (US$ 2.7 million).
·
Net profit increased by 67.9% year-over-year to NIS 7.2 million (US$ 2.1 million).
·
Net cash from operating activities of NIS 3.3 million (US$ 0.9 million).
·
Cash and securities balance net of short-term bank debt of NIS 261.5 million (US$ 74.4 million) as of March 31, 2018.
·
Earnings per share of NIS 0.54 (US$ 0.15).

Management Comment

Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food, commented: "We are pleased to present first quarter 2018 financial report which shows improvements in sales, gross profit, operating profit and net profit. Sales increased by 12.1% versus first quarter of 2017, gross profit increased by 12.5% versus first quarter of 2017, operating profit increased by 43.4% versus first quarter of 2017, and net profit increased by 67.9% versus first quarter of 2017.
 
Since the ownership of the company has been changed, the new management appointed and the new management's initiatives were introduced, Willi-Food shows major improvements in all operational parameters. The new management's initiatives allow for organizational stability and provide a solid basis for enhanced future growth."
 

 
First Quarter Fiscal 2018 Summary

Sales for the first quarter of 2018 increased by 12.1% to NIS 93.4 million (US$ 26.6 million) from NIS 83.3 million (US$ 23.7 million) recorded in the first quarter of 2017. Sales increased in the first quarter of 2018 primarily due redirection of resources in favor of sales, increasing the range of the Company's products and proper inventory management.

Gross profit for the first quarter of 2018 increased by 12.5% to NIS 24.8 million (US$ 7.1 million) compared to NIS 22 million (US$ 6.3 million) recorded in the first quarter of 2017 primarily due to the sales increase. First quarter gross margin increased by 0.4% to 26.5% compared to gross margin of 26.4% for the same period in 2017. The increase in gross margin was the result of the Company's continued strategic focus on selling a favorable mix of products which generate a higher gross margin.

Willi-Food’s operating profit for the first quarter of 2018 increased by 43.4% to NIS 9.6 million (US$ 2.7 million) compared to NIS 6.7 million (US$ 1.9 million) in the first quarter of 2017 primarily due to the sales increase. Selling expenses decreased by 9.5% from the comparable quarter of 2017 primarily due to a decrease in promotional expenses. Selling expenses as a percentage of sales were 11.5%, compared to 14.2% in the first quarter of 2017.

General and administrative expenses were NIS 4.5 million (US$ 1.3 million) in the first quarter of 2018, an increase of 27.1% compared to NIS 3.5 million (US$ 1 million) in the first quarter of 2017. This was primarily due to an increase in manpower and management salary.

Willi-Food’s income before taxes for the first quarter of 2018 was NIS 9.5 million (US$ 2.7 million) compared to income before taxes of NIS 5.8 million (US$ 1.6 million) in the first quarter of 2017.

Willi-Food's net profit in the first quarter of 2018 was NIS 7.2 million (US$ 2.1 million), or NIS 0.54 (US$ 0.15) per share, compared to NIS 4.3 million (US$ 1.2 million), or NIS 0.32 (US$ 0.09) per share, recorded in the first quarter of 2017.

Willi-Food ended the first quarter of 2018 with NIS 261.5 million (US$ 74.4 million) in cash and securities net of short-term bank debt. Net cash from operating activities for the first quarter of 2018 was NIS 3.3 million (US$ 0.9 million). Willi-Food's shareholders' equity at the end of March 2018 was NIS 422.8 million (US$ 120.3 million).


 
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, 2018, U.S. $1.00 equals NIS 3.514 The translation was made solely for the convenience of the reader.

IFRS

The Company’s consolidated financial results for the three-month period ended March 31, 2018 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, 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, 2017, filed with the Securities and Exchange Commission on April 30, 2018. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. We do not assume any obligation to update the forward-looking information contained in this press release.
 
{FINANCIAL TABLES TO FOLLOW}
 

 
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS

   
March 31,
   
December 31
   
March 31,
   
December 31
 
   
2 0 1 8
   
2 0 1 7
   
2 0 1 7
   
2 0 1 8
   
2 0 1 7
   
2 0 1 7
 
   
NIS
   
US dollars (*)
 
   
(in thousands)
 
ASSETS
                                   
                                     
Current assets
                                   
Cash and cash equivalents
   
140,337
     
84,590
     
113,062
     
39,937
     
24,072
     
32,175
 
Financial assets carried at fair value through profit or loss
   
141,341
     
108,353
     
143,514
     
40,222
     
30,835
     
40,841
 
Trade receivables
   
103,406
     
94,013
     
85,943
     
29,427
     
26,754
     
24,457
 
Other receivables and prepaid expenses
   
3,679
     
7,524
     
5,996
     
1,046
     
2,141
     
1,706
 
Inventories
   
39,508
     
76,548
     
39,899
     
11,243
     
21,784
     
11,355
 
Current tax assets
   
2,466
     
6,319
     
6,760
     
702
     
1,798
     
1,924
 
Total current assets
   
430,737
     
377,347
     
395,174
     
122,577
     
107,384
     
112,458
 
                                                 
Non-current assets
                                               
Property, plant and equipment
   
78,655
     
77,946
     
78,598
     
22,383
     
22,182
     
22,367
 
Less -Accumulated depreciation
   
38,309
     
36,323
     
37,389
     
10,902
     
10,337
     
10,640
 
     
40,346
     
41,623
     
41,209
     
11,481
     
11,845
     
11,727
 
                                                 
Goodwill
   
36
     
36
     
36
     
10
     
10
     
10
 
Deferred taxes
   
862
     
1,830
     
503
     
245
     
521
     
143
 
Total non-current assets
   
41,244
     
43,489
     
41,748
     
11,736
     
12,376
     
11,880
 
                                                 
     
471,981
     
420,836
     
436,922
     
134,313
     
119,760
     
124,338
 
                                                 
EQUITY AND LIABILITIES
                                               
                                                 
Current liabilities
                                               
Short-term bank debt
   
20,161
     
-
     
-
     
5,737
     
-
     
-
 
Trade payables
   
16,730
     
18,470
     
12,800
     
4,761
     
5,256
     
3,642
 
Employees Benefits
   
3,162
     
3,956
     
2,147
     
900
     
1,126
     
611
 
Other payables and accrued expenses
   
7,989
     
2,248
     
5,246
     
2,273
     
640
     
1,493
 
Total current liabilities
   
48,042
     
24,674
     
20,193
     
13,671
     
7,022
     
5,746
 
                                                 
Non-current liabilities
                                               
retirement benefit obligation
   
1,148
     
864
     
1,148
     
327
     
246
     
327
 
Total non-current liabilities
   
1,148
     
864
     
1,148
     
327
     
246
     
327
 
                                                 
Shareholders' equity
                                               
Share capital NIS 0.1 par value (authorized - 50,000,000 shares, issued and outstanding - 13,240,913 shares at March 31, 2018; and December 31, 2017)
   
1,425
     
1,425
     
1,425
     
406
     
406
     
406
 
Additional paid in capital
   
128,354
     
128,354
     
128,354
     
36,526
     
36,526
     
36,526
 
Capital fund
   
247
     
247
     
247
     
71
     
71
     
71
 
Remeasurement of the net liability in respect of defined benefit
   
293,719
     
265,780
     
286,509
     
83,583
     
75,634
     
81,533
 
Retained earnings
   
(954
)
   
(508
)
   
(954
)
   
(271
)
   
(145
)
   
(271
)
Equity attributable to owners of the Company
   
422,791
     
395,298
     
415,581
     
120,315
     
112,492
     
118,265
 
                                                 
     
471,981
     
420,836
     
436,922
     
134,313
     
119,760
     
124,338
 
 
 (*)          Convenience translation into U.S. dollars.
 

 
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
   
Three months
   
Three months
 
   
ended
   
ended
 
   
March 31,
   
March 31,
 
   
2 0 1 8
   
2 0 1 7
   
2 0 1 8
   
2 0 1 7
 
   
NIS
   
US dollars (*)
 
   
In thousands (except earnings per share and share data)
 
                         
Sales
   
93,371
     
83,291
     
26,571
     
23,703
 
Cost of sales
   
68,582
     
61,266
     
19,517
     
17,435
 
                                 
Gross profit
   
24,789
     
22,025
     
7,054
     
6,268
 
                                 
Operating costs and expenses:
                               
                                 
Selling expenses
   
10,722
     
11,853
     
3,051
     
3,373
 
General and administrative expenses
   
4,511
     
3,549
     
1,284
     
1,010
 
Other (expense) income
   
-
     
39
     
-
     
11
 
                                 
Total operating expenses
   
15,233
     
15,363
     
4,335
     
4,372
 
                                 
Operating income
   
9,556
     
6,662
     
2,719
     
1,896
 
                                 
Investments income  
   
(460
)    
2,147
     
(131
)
   
611
 
Finance cost
   
(437
)    
3,018
     
(125
)
   
859
 
                                 
Total financial income (expenses), net
   
(23
)    
(871
)
   
(6
)
   
(248
)
                                 
Income before taxes on income
   
9,533
     
5,791
     
2,713
     
1,648
 
Taxes on income
   
(2,323
)
   
(1,497
)
   
(661
)
   
(426
)
                                 
Profit for the period
   
7,210
     
4,294
     
2,052
     
1,222
 
                                 
Earnings per share:
                               
Basic earnings per share
   
0.54
     
0.32
     
0.15
     
0.09
 
                                 
Diluted earnings per share
   
0.54
     
0.32
     
0.15
     
0.09
 
                                 
Shares used in computation of basic EPS
   
13,240,913
     
13,240,913
     
13,240,913
     
13,240,913
 
 
(*)          Convenience translation into U.S. dollars.
 


G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
   
Three months
   
Three months
 
   
ended
   
ended
 
   
March 31,
   
March 31,
 
   
2 0 1 8
   
2 0 1 7
   
2 0 1 8
   
2 0 1 7
 
   
NIS
   
US dollars (*)
 
   
(in thousands)
 
                         
CASH FLOWS - OPERATING ACTIVITIES
                       
Profit from operations
   
7,210
     
4,293
     
2,052
     
1,222
 
Adjustments to reconcile net profit to net cash used in operating activities (Appendix)
   
(3,914
)
   
(47,608
)
   
(1,114
)
   
(13,548
)
                                 
Net cash used in (used to) operating activities
   
3,296
     
(43,315
)
   
938
     
(12,326
)
                                 
CASH FLOWS - INVESTING ACTIVITIES
                               
Acquisition of property plant and equipment
   
(57
)
   
(311
)
   
(16
)
   
(89
)
Proceeds from sale of property plant and Equipment
   
-
     
39
     
-
     
11
 
Proceeds from (used in) purchase of marketable securities, net
   
(95
)
   
(2,170
)
   
(27
)
   
(618
)
Receipt of non current financial assets
   
3,970
     
770
     
1,130
     
219
 
                                 
Net cash from continuing investing activities
   
3,818
     
(1,672
)
   
1,087
     
(477
)
                                 
CASH FLOWS - FINANCING ACTIVITIES
                               
Short-term bank debt
   
20,161
     
-
     
5,737
     
-
 
                                 
Net cash used in continuing financing activities
   
20,161
     
-
     
5,737
     
-
 
                                 
Increase (decrease) in cash and cash equivalents
   
27,275
     
(44,987
)
   
7,762
     
(12,803
)
                                 
Cash and cash equivalents  at the beginning of the financial year
   
113,062
     
129,577
     
32,175
     
36,875
 
                                 
Cash and cash equivalents of the end of the financial year
   
140,337
     
84,590
     
39,937
     
24,072
 
 
(*)          Convenience Translation into U.S. Dollars.
 

 
G. WILLI-FOOD INTERNATIONAL LTD.
APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
CASH FLOWS - OPERATING ACTIVITIES:

A.          Adjustments to reconcile net profit to net cash from operating activities:

   
Three months
   
Three months
 
   
ended
   
ended
 
   
March 31,
   
March 31,
 
   
2 0 1 8
   
2 0 1 7
   
2 0 1 8
   
2 0 1 7
 
   
NIS
   
US dollars (*)
 
   
(in thousands)
 
                         
Decrease in deferred income taxes
   
(359
)
   
524
     
(102
)
   
149
 
Unrealized loss (gain) on marketable securities
   
2,268
     
(1,260
)
   
645
     
(359
)
Depreciation and amortization
   
920
     
929
     
262
     
264
 
Capital loss (gain) on disposal of  property plant and equipment
   
-
     
(39
)
   
-
     
(11
)
                                 
Changes in assets and liabilities:
                               
increase in trade receivables and other receivables
   
(14,822
)
   
(19,210
)
   
(4,218
)
   
(5,467
)
increase in inventories
   
391
     
(34,671
)
   
111
     
(9,866
)
Increase (decrease) in trade and other payables, and other current liabilities
   
7,688
     
6,119
     
2,188
     
1,742
 
                                 
     
(3,914
)
   
(47,608
)
   
(1,114
)
   
(13,548
)
 
B.          Significant non-cash transactions:

   
Three months
   
Three months
 
   
ended
   
ended
 
   
March 31,
   
March 31,
 
   
2 0 1 8
   
2 0 1 7
   
2 0 1 8
   
2 0 1 7
 
   
NIS
   
US dollars (*)
 
   
(in thousands)
 
                         
Supplemental cash flow information:
                       
Income tax paid
   
2,166
     
2,650
     
616
     
754
 
 
(*)          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.
Amir Kaplan, Chief Financial Officer
 (+972) 8-932-1000
amir.k@willi-food.co.il

###

SOURCE: G. Willi-Food International Ltd.