6-K 1 zk1822036.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 August 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 August 15, 2018, titled "G. Willi-Food international Reports Major Improvements in All Major Operational Parameters in Second Quarter 2018 Compared to Second 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: August 15, 2018
 


 
 
                          
FOR IMMEDIATE RELEASE

G. WILLI-FOOD INTERNATIONAL REPORTS MAJOR IMPROVEMENTS IN
ALL MAJOR OPERATIONAL PARAMETERS IN SECOND QUARTER 2018
COMPARED TO SECOND QUARTER 2017

THE COMPANY'S OPERATING PROFIT IN THE FIRST HALF OF 2018 EXCEEDED ITS
OPERATING PROFIT IN ALL OF 2017
 
YAVNE, Israel – August 15, 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 second quarter ended June 30, 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.
 
Second Quarter Fiscal Year 2018 Highlights
 
·
Sales increased by 2.6% year-over-year to NIS 78.4 million (US$ 21.5 million).
·
Gross profit increased by 51.8% year-over-year to NIS 22.2 million (US$ 6.1 million).
·
Operating profit of NIS 7.6 million (US$ 2.1 million), or 9.7% of sales, compared to operating loss of NIS (1.6) million (US$ 0.4 million) in the comparable quarter of 2017.
·
Net profit increased by 312% year-over-year to NIS 6.5 million (US$ 1.8 million), or 8.2% of sales.
·
Net cash from operating activities of NIS 7.8 million (US$ 2.1 million).
·
Cash and securities balance of NIS 270.8 million (US$ 74.2 million) as of June 30, 2018.
·
Earnings per share of NIS 0.49 (US$ 0.13).
 
Management Comment

Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food, commented: "We are pleased to present the second quarter 2018 financial results which show improvements in sales, gross profit, operating profit and net profit over the comparable period last year. Sales increased by 2.6% versus second quarter of 2017, gross profit increased by 51.8% versus second quarter of 2017, operating profit increased by 560% versus second quarter of 2017, and net profit increased by 312% versus second quarter of 2017.

This is the fourth consecutive quarter since the Company's control has been changed and new managers have been appointed in which the Company presents improvement in its operating results over the comparable quarter of the previous year. We believe that the activities we are taking will continue to generate steady growth and increase profitability over time.
 
We are happy to update that the Company has contracted with several European dairies to supply a range of alternative dairy products to the products previously provided by Arla Foods Amba (a former significant supplier of our dairy products segment). In August 2018, the Company launched a dairy line with the products from the European dairies under an independent brand called Euro Dairy Europe.



 
Second Quarter Fiscal 2018 Summary

Sales for the second quarter of 2018 increased by 2.6% to NIS 78.4 million (US$ 21.5 million) from NIS 76.4 million (US$ 20.9 million) recorded in the second quarter of 2017. Sales increased in the second quarter of 2018 primarily due to redirection of resources in favor of sales, increasing the range of the Company's products and proper inventory management.

Gross profit for the second quarter of 2018 increased by 51.8% to NIS 22.2 million (US$ 6.1 million) compared to NIS 14.6 million (US$ 4.0 million) recorded in the second quarter of 2017. Second quarter gross margin increased by 48.2% to 28.3% compared to gross margin of 19.1% 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 second quarter of 2018 increased by 559.9% to NIS 7.6 million (US$ 2.1 million) compared to operating loss of NIS (1.6) million (US$ (0.4) million) in the second quarter of 2017.

Selling expenses decreased by 9% from the comparable quarter of 2017 primarily due to a decrease in promotional expenses. Selling expenses as a percentage of sales were 13.0%, compared to 14.6% in the second quarter of 2017.

General and administrative expenses were NIS 4.4 million (US$ 1.2 million) in the second quarter of 2018, a decrease of 17% compared to NIS 5.3 million (US$ 1.5 million) in the second quarter of 2017. This was primarily due to a decrease in legal and consulting expenses.

Willi-Food’s operating income before taxes for the second quarter of 2018 was NIS 8.0 million (US$ 2.2 million) compared to operating income before taxes of NIS 1.0 million (US$ 0.3 million) in the second quarter of 2017.

Willi-Food's net profit in the second quarter of 2018 was NIS 6.5 million (US$ 1.8 million), or NIS 0.49 (US$ 0.13) per share, compared to NIS 1.6 million (US$ 0.4 million), or NIS 0.12 (US$ 0.03) per share, recorded in the second quarter of 2017.

Willi-Food ended the second quarter of 2018 with NIS 270.8 million (US$ 74.2 million) in cash and securities. Net cash from operating activities for the second quarter of 2018 was NIS 7.8 million (US$ 2.1 million). Willi-Food's shareholders' equity at the end of June 2018 was NIS 429.3 million (US$ 117.6 million).
 
First Half Fiscal 2018 Highlights

·
Sales increased by 7.5% year-over-year to NIS 171.8 million (US$ 47.1 million).
·
Gross profit increased by 28.2% year-over-year to NIS 46.9 million (US$ 12.8 million), or 10% of sales.
·
Operating profit increased by 241.5% year-over-year to NIS 17.1 million (US$ 4.7 million), or 10% of sales.
·
Net profit increased 133% to NIS 13.7 million (US$ 3.7 million), or 8% of sales.
·
Net cash from operating activities of NIS 7.8 million (US$ 2.1 million).
·
Earnings per share of NIS 1.03 (US$ 0.28).





First Half Fiscal 2018 Summary

Willi-Food’s sales for the six-month period ending June 30, 2018 increased by 7.5% to NIS 171.8 million (US$ 47.1 million) compared to sales of NIS 159.7 million (US$ 43.8 million) in the first half of 2017. Sales increased in the first half of 2018 primarily to due redirection of resources in favor of sales, increasing the range of the Company's products and proper inventory management.

Gross profit for the period increased by 28.2% to NIS 46.9 million (US$ 12.8 million) compared to gross profit of NIS 36.6 million (US$ 10.0 million) for the first half of 2017. First half 2018 gross margin was 27.3% compared to a gross margin of 22.9% 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.

Operating income for the first half of 2018 increased by 241% to NIS 17.1 million (US$ 4.7 million) from NIS 5.0 million (US$ 1.4 million) reported in the comparable period of last year primarily due to the increase of gross profit and decrease of selling expenses.
 
First half 2018 income before taxes increased by 157.5% to NIS 17.6 million (US$ 4.8 million) compared to NIS 6.8 million (US$ 1.9 million) recorded in the first half of 2017.
 
Net income for the first half of 2018 increased by 133.5% to NIS 13.7 million (US$ 3.7 million), or NIS 1.03 (US$ 0.28) per share, from NIS 5.9 million (US$ 1.6 million), or NIS 0.44 (US$ 0.12) per share, recorded in the first half of 2017.
 
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 June 30, 2018, U.S. $1.00 equals NIS 3.65. The translation was made solely for the convenience of the reader.

IFRS

The Company’s consolidated financial results for the six-month period ended June 30, 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
 
   
June 30,
   
December 31
   
June 30,
   
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
   
130,882
     
89,188
     
113,062
     
35,858
     
24,435
     
30,976
 
Financial assets carried at fair value through profit or loss
   
139,961
     
110,545
     
143,514
     
38,345
     
30,286
     
39,319
 
Trade receivables
   
97,339
     
92,917
     
85,943
     
26,668
     
25,457
     
23,546
 
Other receivables and prepaid expenses
   
3,155
     
5,112
     
5,996
     
864
     
1,401
     
1,643
 
Inventories
   
44,695
     
70,927
     
39,899
     
12,245
     
19,432
     
10,931
 
Current tax assets
   
2,572
     
6,165
     
6,760
     
705
     
1,689
     
1,852
 
Total current assets
   
418,604
     
374,854
     
395,174
     
114,685
     
102,700
     
108,267
 
                                               
Non-current assets
                                               
Property, plant and equipment
   
79,176
     
79,886
     
78,598
     
21,692
     
21,887
     
21,534
 
Less -Accumulated depreciation
   
39,225
     
37,842
     
37,389
     
10,747
     
10,368
     
10,244
 
     
39,951
     
42,044
     
41,209
     
10,945
     
11,519
     
11,290
 
                                                 
Goodwill
   
36
     
36
     
36
     
10
     
10
     
10
 
Deferred taxes
   
1,306
     
3,128
     
503
     
358
     
857
     
138
 
Total non-current assets
   
41,293
     
45,208
     
41,748
     
11,313
     
12,386
     
11,438
 
     
459,897
     
420,062
     
436,922
     
125,998
     
115,086
     
119,705
 
                                                 
EQUITY AND LIABILITIES
                                               
                                                 
Current liabilities
                                               
Trade payables
   
19,945
     
16,223
     
12,800
     
5,464
     
4,445
     
3,507
 
Employees Benefits
   
2,671
     
2,428
     
2,147
     
732
     
665
     
588
 
Other payables and accrued expenses
   
6,912
     
3,666
     
5,246
     
1,893
     
1,004
     
1,437
 
Total current liabilities
   
29,528
     
22,317
     
20,193
     
8,089
     
6,114
     
5,532
 
                                                 
Non-current liabilities
                                               
retirement benefit obligation
   
1,090
     
875
     
1,148
     
299
     
241
     
315
 
Total non-current liabilities
   
1,090
     
875
     
1,148
     
299
     
241
     
315
 
                                                 
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
     
1,424
     
1,425
     
390
     
390
     
390
 
Additional paid in capital
   
128,354
     
128,354
     
128,354
     
35,165
     
35,165
     
35,165
 
Capital fund
   
247
     
247
     
247
     
68
     
68
     
68
 
Remeasurement of the net liability in respect of defined benefit
   
(954
)
   
(508
)
   
(954
)
   
(261
)
   
(139
)
   
(261
)
Retained earnings
   
300,207
     
267,353
     
286,509
     
82,248
     
73,247
     
78,496
 
Equity attributable to owners of the Company
   
429,279
     
396,870
     
415,581
     
117,610
     
108,731
     
113,858
 
     
459,897
     
420,062
     
436,922
     
125,998
     
115,086
     
119,705
 
                                                 
(*)          Convenience translation into U.S. dollars.
 

 
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
   
Six months
   
Three months
   
Six months
 
   
ended
   
ended
   
ended
 
   
June 30,
   
June 30,
   
June 30,
 
   
2 0 1 8
   
2 0 1 7
   
2018
   
2 0 1 7
   
2 0 1 8
   
2 0 1 7
 
   
NIS
   
US dollars (*)
 
   
In thousands (except per share and share data)
 
                                     
Sales
   
171,781
     
159,730
     
78,410
     
76,440
     
47,063
     
43,762
 
Cost of sales
   
124,828
     
123,104
     
56,246
     
61,838
     
34,199
     
33,727
 
                                                 
Gross profit
   
46,953
     
36,626
     
22,164
     
14,602
     
12,864
     
10,035
 
                                                 
Operating costs and expenses:
                                               
                                                 
Selling expenses
   
20,895
     
23,036
     
10,173
     
11,183
     
5,725
     
6,311
 
General and administrative expenses
   
8,932
     
8,876
     
4,421
     
5,327
     
2,447
     
2,432
 
Other income
   
-
     
301
     
-
     
262
     
-
     
82
 
                                                 
Total operating expenses
   
29,827
     
31,611
     
14,594
     
16,248
     
8,172
     
8,661
 
Operating income (loss)
   
17,126
     
5,015
     
7,570
     
(1,646
)
   
4,692
     
1,374
 
                                                 
Financial income
   
(655
)
   
5,501
     
(195
)
   
3,354
     
(180
)
   
1,507
 
Financial expense
   
(1,111
)
   
3,688
     
(674
)
   
670
     
(304
)
   
1,010
 
                                                 
Total financial income
   
456
     
1,813
     
479
     
2,684
     
124
     
497
 
                                                 
Income before taxes on income
   
17,582
     
6,828
     
8,049
     
1,038
     
4,816
     
1,871
 
Taxes on income
   
(3,888
)
   
(962
)
   
(1,565
)
   
535
     
(1,065
)
   
(264
)
                                                 
Profit (loss) for the period
   
13,694
     
5,866
     
6,484
     
1,573
     
3,751
     
1,607
 
                                                 
Earnings per share:
                                               
Basic earnings per share
   
1.03
     
0.44
     
0.49
     
0.12
     
0.28
     
0.12
 
                                                 
Diluted earnings per share
   
1.03
     
0.44
     
0.49
     
0.12
     
0.28
     
0.12
 
                                                 
Shares used in computation of basic EPS
   
13,240,913
     
13,240,913
     
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
 
   
Six months
   
Three months
   
Six months
 
   
ended
   
ended
   
ended
 
   
June 30,
   
June 30,
   
June 30,
 
   
2 0 1 8
   
2 0 1 7
   
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 continuing operations
   
13,694
     
5,866
     
6,484
     
1,572
     
3,751
     
1,607
 
Adjustments to reconcile net profit to net cash used in continuing operating activities (Appendix)
   
(2,573
)
   
(42,136
)
   
1,341
     
5,472
     
(705
)
   
(11,544
)
                                                 
Net cash used in (used to) continuing operating activities
   
11,121
     
(36,270
)
   
7,825
     
7,044
     
3,046
     
(9,937
)
                                                 
CASH FLOWS - INVESTING ACTIVITIES
                                               
Acquisition of property plant and equipment
   
(578
)
   
(1,593
)
   
(521
)
   
(1,282
)
   
(158
)
   
(436
)
Proceeds from sale of property plant and Equipment
   
-
     
301
     
-
     
262
     
-
     
82
 
Proceeds from purchase of marketable securities, net
   
3,307
     
(3,597
)
   
3,402
     
(1,426
)
   
906
     
(985
)
Short term deposit
   
-
     
-
             
-
             
-
 
Proceeds (acquisition) of non current financial assets
   
3,970
     
770
     
-
     
-
     
1,088
     
211
 
                                                 
Net cash from continuing investing activities
   
6,699
     
(4,119
)
   
2,881
     
(2,446
)
   
1,836
     
(1,128
)
                                                 
CASH FLOWS - FINANCING ACTIVITIES
                                               
Short-term bank debt
   
-
     
-
     
(20,161
)
   
-
     
-
     
-
 
                                                 
Net cash used in continuing financing activities
   
-
     
-
     
(20,161
)
   
-
     
-
     
-
 
                                                 
Increase (decrease) in cash and cash equivalents
   
17,820
     
(40,389
)
   
(9,455
)
   
4,598
     
4,882
     
(11,065
)
                                                 
Cash and cash equivalents  at the beginning of the financial period
   
113,062
     
129,577
     
140,337
     
84,590
     
30,976
     
35,500
 
                                                 
Cash and cash equivalents of the end of the financial year
   
130,882
     
89,188
     
130,882
     
89,188
     
35,858
     
24,435
 
 
(*)          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:

   
Six months
   
Three months
   
Six months
 
   
ended
   
ended
   
ended
 
   
June 30,
   
June 30,
   
June 30,
 
   
2 0 1 8
   
2 0 1 7
   
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
   
(803
)
   
(774
)
   
(444
)
   
(1,298
)
   
(220
)
   
(212
)
Unrealized loss (gain) on marketable securities
   
246
     
(2,028
)
   
(2,022
)
   
(766
)
   
67
     
(556
)
Depreciation and amortization
   
1,836
     
1,790
     
916
     
861
     
503
     
490
 
Capital loss (gain) on disposal of  property plant and equipment
   
-
     
(301
)
   
-
     
(262
)
   
-
     
(82
)
                                                 
Changes in assets and liabilities:
                                               
increase in trade receivables and other receivables
   
(8,338
)
   
(14,499
)
   
6,484
     
4,598
     
(2,284
)
   
(3,972
)
increase in inventories
   
(4,796
)
   
(29,051
)
   
(5,187
)
   
5,621
     
(1,314
)
   
(7,959
)
Increase (decrease) in trade and other payables, and other current liabilities
   
9,282
     
2,727
     
1,594
     
(3,282
)
   
2,543
     
747
 
                                                 
     
(2,573
)
   
(42,136
)
   
1,341
     
5,472
     
(705
)
   
(11,544
)
 
B.          Significant non-cash transactions:

   
Six months
   
Three months
   
Six months
 
   
ended
   
ended
   
ended
 
   
June 30,
   
June 30,
   
June 30,
 
   
2 0 1 8
   
2 0 1 7
   
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
   
3,434
     
3,719
     
1,268
     
1,069
     
941
     
1,019
 
 
(*)          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.