6-K 1 zk1822271.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 November 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 November 15, 2018, titled"G. Willi-Food international Reports improvements in major operational parameters in third quarter 2018 compared to third 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: November 15, 2018
 

 
 

                        
FOR IMMEDIATE RELEASE

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

THE COMPANY'S OPERATING PROFIT IN THE FIRST NINE MONTHS OF 2018 INCREASED
BY 107.8% COMPARED TO  ITS OPERATING PROFIT IN THE FIRST NINE MONTHS OF 2017

YAVNE, Israel – November 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 third quarter ended September 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.
 
Third Quarter Fiscal Year 2018 Highlights
 
·
Sales increased by 3.0% year-over-year to NIS 82.4 million (US$ 22.7 million)
·
Gross profit increased by 22.3% year-over-year to NIS 25.5 million (US$ 7.0 million)
·
Operating profit of NIS 10.5 million (US$ 2.9 million), or 12.7% of sales, compared to operating profit of NIS 8.3 million (US$ 2.3 million), or 10.3% of sales, in the comparable quarter of 2017
·
Net profit increased by 25.6% year-over-year to NIS 10.3 million (US$ 2.8 million), or 12.5% of sales
·
Net cash from operating activities of NIS 6.3 million (US$ 1.7 million)
·
Cash and securities balance of NIS 274.4 million (US$ 75.6 million) as of September 30, 2018
·
Earnings per share of NIS 0.78 (US$ 0.22)
 
Management Comment

Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food, commented: "We are pleased to present the third 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 3% versus third quarter of 2017, gross profit increased by 22.3% versus third quarter of 2017, operating profit increased by 26.7% versus third quarter of 2017, and net profit increased by 25.6% versus third quarter of 2017.

This is the fifth consecutive quarter since the Company's control has been changed and new managers have been appointed, in which the Company presents continued improvement over the comarable quarter of the previous year in its business results. We believe that the activities we are taking will continue to generate steady growth and increase profitability over time.


 
Third Quarter Fiscal 2018 Summary
 
Sales for the third quarter of 2018 increased by 3.0% to NIS 82.4 million (US$ 22.7 million) from NIS 80.0 million (US$ 22.1 million) recorded in the third quarter of 2017. Sales increased in the third quarter of 2018 primarily due to an increase in advertising and promotion of our products and increasing the Company's range of products.
 
Gross profit for the third quarter of 2018 increased by 22.3% to NIS 25.5 million (US$ 7.0 million) compared to NIS 20.9 million (US$ 5.8 million) recorded in the third quarter of 2017. Third quarter gross margin increased by 18.7% to 31.0% compared to gross margin of 26.1% 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 third quarter of 2018 increased by 26.7% to NIS 10.5 million (US$ 2.9 million) compared to operating profit of NIS 8.3 million (US$ 2.3 million) in the third quarter of 2017.

Selling expenses increased by 20.3% from the comparable quarter of 2017 primarily due to an increase in advertising campaign and promotional expenses. Selling expenses as a percentage of sales were 13.5%, compared to 11.6% in the third quarter of 2017.

General and administrative expenses were NIS 4.0 million (US$ 1.1 million) in the third quarter of 2018, an increase of 19.0% compared to NIS 3.4 million (US$ 0.9 million) in the third quarter of 2017. This increase was primarily due to an increase payroll expenses.

Willi-Food’s income before taxes for the third quarter of 2018 was NIS 13.1 million (US$ 3.6 million) compared to income before taxes of NIS 10.9 million (US$ 3.0 million) in the third quarter of 2017.

Willi-Food's net profit in the third quarter of 2018 was NIS 10.3 million (US$ 2.8 million), or NIS 0.78 (US$ 0.21) per share, compared to NIS 8.2 million (US$ 2.3 million), or NIS 0.62 (US$ 0.17) per share, recorded in the third quarter of 2017.

Willi-Food ended the third quarter of 2018 with NIS 274.4 million (US$ 75.6 million) in cash and securities. Net cash from operating activities for the third quarter of 2018 was NIS 6.3 million (US$ 1.7 million). Willi-Food's shareholders' equity at the end of September 2018 was NIS 439.6 million (US$ 121.2 million).
 
Nine months Fiscal 2018 Highlights

·
Sales increased by 6.0% year-over-year to NIS 254.2 million (US$ 70.1 million)
·
Gross profit increased by 26.1% year-over-year to NIS 72.5 million (US$ 20.0 million), or 28.5% of sales
·
Operating profit increased by 107.8% year-over-year to NIS 27.6 million (US$ 7.6 million), or 10.9% of sales
·
Net profit increased 70.6% year-over-year to NIS 24.0 million (US$ 6.7 million), or 9.4% of sales.
·
Net cash from operating activities of NIS 17.5 million (US$ 4.8 million)
·
Earning per share of NIS 1.81 (US$ 0.50)


 
Nine months Fiscal 2018 Summary

Willi-Food’s sales for the nine-month period ending September 30, 2018 increased by 6.0% to NIS 254.2 million (US$ 70.1 million) compared to sales of NIS 239.8 million (US$ 66.1 million) in the nine months of 2017. Sales increased in the nine months of 2018 primarily to due redirection of resources in favor of sales, increasing the Company's range of products and proper inventory management.

Gross profit for the period increased by 26.1% to NIS 72.5 million (US$ 20.0 million) compared to gross profit of NIS 57.5 million (US$ 15.9 million) for the nine months of 2017.Gross margin for the first nine months of 2018 was 28.5% compared to a gross margin of 24.0% 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 profit for the first nine months of 2018 increased by 107.8% to NIS 27.6 million (US$ 7.6 million) from NIS 13.3 million (US$ 3.7 million) reported in the comparable period of last year primarily due to the increase of gross profit.
 
Income before taxes for the first nine months of 2018 increased by 73.4% to NIS 30.7 million (US$ 8.5 million) compared to NIS 17.7 million (US$ 4.9 million) recorded in the first nine months of 2017.
 
Net income for the nine months of 2018 increased by 70.6% to NIS 24.0 million (US$ 6.7 million), or NIS 1.81 (US$ 0.50) per share, from NIS 14.1 million (US$ 3.9 million), or NIS 1.06 (US$ 0.29) per share, recorded in the first nine months 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 September 30, 2018, U.S. $1.00 equals NIS 3.627 The translation was made solely for the convenience of the reader.

IFRS

The Company’s consolidated financial results for the nine-month period ended September 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

   
September 30,
   
December 31
   
September 30,
   
December 31
 
   
2018
   
2017
   
2017
   
2018
   
2017
   
2017
 
   
NIS
   
US dollars (*)
 
   
(in thousands)
 
ASSETS
                                   
                                     
Current assets
                                   
Cash and cash equivalents
   
126,185
     
111,350
     
113,062
     
34,790
     
30,700
     
31,172
 
Financial assets carried at fair value through profit or loss
   
148,174
     
122,981
     
143,514
     
40,853
     
33,908
     
39,568
 
Trade receivables
   
96,099
     
95,993
     
85,943
     
26,495
     
26,466
     
23,695
 
Other receivables and prepaid expenses
   
1,270
     
2,621
     
5,996
     
350
     
723
     
1,653
 
Inventories
   
49,244
     
41,646
     
39,899
     
13,577
     
11,482
     
11,001
 
Current tax assets
   
2,154
     
6,308
     
6,760
     
595
     
1,739
     
1,864
 
Total current assets
   
423,126
     
380,899
     
395,174
     
116,660
     
105,018
     
108,953
 
                                                 
Non-current assets
                                               
Property, plant and equipment
   
78,858
     
78,315
     
78,598
     
21,742
     
21,592
     
21,670
 
Less -Accumulated depreciation
   
39,296
     
36,530
     
37,389
     
10,834
     
10,072
     
10,309
 
     
39,562
     
41,785
     
41,209
     
10,908
     
11,520
     
11,361
 
                                                 
Goodwill
   
36
     
36
     
36
     
10
     
10
     
10
 
Deferred taxes
   
882
     
1,619
     
503
     
243
     
446
     
139
 
Total non-current assets
   
40,480
     
43,440
     
41,748
     
11,161
     
11,976
     
11,510
 
                                                 
     
463,606
     
424,339
     
436,922
     
127,821
     
116,994
     
120,463
 
                                                 
EQUITY AND LIABILITIES
                                               
                                                 
Current liabilities
                                               
Trade payables
   
15,252
     
10,463
     
12,800
     
4,205
     
2,885
     
3,529
 
Employees Benefits
   
2,269
     
2,117
     
2,147
     
625
     
584
     
592
 
Other payables and accrued expenses
   
5,461
     
5,789
     
5,246
     
1,506
     
1,595
     
1,446
 
Total current liabilities
   
22,982
     
18,369
     
20,193
     
6,336
     
5,064
     
5,567
 
                                                 
Non-current liabilities
                                               
retirement benefit obligation
   
1,065
     
1,212
     
1,148
     
294
     
334
     
317
 
Total non-current liabilities
   
1,065
     
1,212
     
1,148
     
294
     
334
     
317
 
                                                 
Shareholders' equity
                                               
Share capital NIS 0.1 par value (authorized - 50,000,000 shares, issued and outstanding - 13,240,913 shares at September 30, 2018; and  December 31, 2017)
   
1,424
     
1,424
     
1,424
     
393
     
393
     
393
 
Additional paid in capital
   
128,354
     
128,354
     
128,354
     
35,388
     
35,388
     
35,388
 
Capital fund
   
247
     
247
     
247
     
68
     
68
     
68
 
Remeasurement of the net liability in respect of defined benefit
   
(954
)
   
(809
)
   
(954
)
   
(263
)
   
(223
)
   
(263
)
Retained earnings
   
310,488
     
275,542
     
286,510
     
85,605
     
75,970
     
78,993
 
Equity attributable to owners of the Company
   
439,559
     
404,758
     
415,581
     
121,191
     
111,596
     
114,579
 
                                                 
     
463,606
     
424,339
     
436,922
     
127,821
     
116,994
     
120,463
 
                                                 
(*)          Convenience translation into U.S. dollars.
 

G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

   
Nine months
   
Three months
   
Nine months
 
   
ended
   
ended
   
ended
 
   
September 30,
   
September 30,
   
September 30,
 
   
2018
   
2017
   
2018
   
2017
   
2018
   
2017
 
   
NIS
   
US dollars (*)
 
   
In thousands (except per share and share data)
 
                                     
Sales
   
254,221
     
239,771
     
82,440
     
80,041
     
70,091
     
66,107
 
Cost of sales
   
181,735
     
182,270
     
56,908
     
59,166
     
50,106
     
50,254
 
                                                 
Gross profit
   
72,486
     
57,501
     
25,532
     
20,875
     
19,985
     
15,853
 
                                                 
Operating costs and expenses:
                                               
                                                 
Selling expenses
   
32,040
     
32,296
     
11,145
     
9,260
     
8,834
     
8,904
 
General and administrative expenses
   
12,921
     
12,229
     
3,989
     
3,352
     
3,562
     
3,372
 
Other income
   
69
     
301
     
69
     
-
     
19
     
83
 
                                                 
Total operating expenses
   
44,892
     
44,224
     
15,065
     
12,612
     
12,377
     
12,193
 
                                                 
Operating income
   
27,594
     
13,277
     
10,467
     
8,263
     
7,608
     
3,660
 
                                                 
Financial income
   
1,741
     
7,853
     
2,396
     
2,352
     
480
     
2,165
 
Financial expense
   
(1,372
)
   
3,423
     
(261
)
   
(264
)
   
(378
)
   
944
 
                                                 
Total financial income
   
3,113
     
4,430
     
2,657
     
2,616
     
858
     
1,221
 
                                                 
Income before taxes on income
   
30,707
     
17,707
     
13,124
     
10,879
     
8,466
     
4,881
 
                                                 
Taxes on income
   
6,730
     
3,653
     
2,842
     
2,691
     
1,856
     
1,007
 
                                                 
Profit for the period
   
23,977
     
14,054
     
10,282
     
8,188
     
6,610
     
3,874
 
                                                 
Earnings per share:
                                               
Basic earnings per share
   
1.81
     
1.06
     
0.78
     
0.62
     
0.50
     
0.29
 
                                                 
Diluted earnings per share
   
1.81
     
1.06
     
0.78
     
0.62
     
0.50
     
0.29
 
                                                 
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

   
Nine months
   
Three months
   
Nine months
 
   
ended
   
ended
   
ended
 
   
September 30,
   
September 30,
   
September 30,
 
   
2018
   
2017
   
2018
   
2017
   
2018
   
2017
 
   
NIS
   
US dollars (*)
 
   
(in thousands)
 
                                     
CASH FLOWS - OPERATING ACTIVITIES
                                   
Profit from continuing operations
   
23,977
     
14,054
     
10,282
     
8,188
     
6,611
     
3,875
 
Adjustments to reconcile net profit to net cash used in continuing operating activities (Appendix)
   
(6,520
)
   
(19,320
)
   
(3,945
)
   
22,817
     
(1,798
)
   
(5,327
)
                                                 
Net cash used in (used to) continuing operating activities
   
17,457
     
(5,266
)
   
6,337
     
31,005
     
4,813
     
(1,452
)
                                                 
CASH FLOWS - INVESTING ACTIVITIES
                                               
Acquisition of property plant and equipment
   
(1,392
)
   
(2,202
)
   
(815
)
   
(609
)
   
(384
)
   
(607
)
Proceeds from sale of property plant and Equipment
   
415
     
301
     
415
     
-
     
114
     
83
 
Acquisition of marketable securities, net
   
(7,327
)
   
(13,228
)
   
(10,634
)
   
(9,632
)
   
(2,020
)
   
(3,647
)
Proceeds of non current financial assets
   
3,970
     
2,168
     
-
     
1,398
     
1,095
     
598
 
Net cash from continuing investing activities
   
(4,334
)
   
(12,961
)
   
(11,034
)
   
(8,843
)
   
(1,195
)
   
(3,573
)
                                                 
Increase (decrease) in cash and cash equivalents
   
13,123
     
(18,227
)
   
(4,697
)
   
22,162
     
3,618
     
(5,025
)
                                                 
Cash and cash equivalents  at the beginning of the financial period
   
113,062
     
129,577
     
130,882
     
89,188
     
31,172
     
35,726
 
                                                 
Cash and cash equivalents of the end of the financial year
   
126,185
     
111,350
     
126,185
     
111,350
     
34,790
     
30,700
 
 
(*)          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:

   
Nine months
   
Three months
   
Nine months
 
   
ended
   
ended
   
ended
 
   
September 30,
   
September 30,
   
September 30,
 
   
2018
   
2017
   
2018
   
2017
   
2018
   
2017
 
   
NIS
   
US dollars (*)
 
   
(in thousands)
 
                                     
Decrease (increase) in deferred income taxes
   
(379
)
   
735
     
426
     
1,509
     
(104
)
   
203
 
Unrealized gain on marketable securities
   
2,670
     
(4,832
)
   
2,421
     
(2,804
)
   
736
     
(1,332
)
Depreciation and amortization
   
2,691
     
2,658
     
857
     
868
     
742
     
731
 
Capital gain on disposal of  property plant and equipment
   
(69
)
   
(301
)
   
(69
)
   
-
     
(19
)
   
(83
)
                                                 
Changes in assets and liabilities:
                                               
Increase in trade receivables and other receivables
   
(4,794
)
   
(16,624
)
   
(1,153
)
   
(2,124
)
   
(2,266
)
   
(4,583
)
Decrease (increase) in inventories
   
(9,345
)
   
231
     
(4,550
)
   
29,281
     
(2,577
)
   
64
 
Increase (decrease) in trade and other payables, and other current liabilities
   
2,706
     
(1,187
)
   
(1,877
)
   
(3,913
)
   
1,690
     
(327
)
                                                 
     
(6,520
)
   
(19,320
)
   
(3,945
)
   
22,817
     
(1,798
)
   
(5,327
)
 
B.          Significant non-cash transactions:
 
   
Nine months
   
Three months
   
Nine months
 
   
ended
   
ended
   
ended
 
   
September 30,
   
September 30,
   
September 30,
 
   
2018
   
2017
   
2018
   
2017
   
2018
   
2017
 
   
NIS
   
US dollars (*)
 
   
(in thousands)
 
                                     
Supplemental cash flow information:
                                   
Income tax paid
   
5,761
     
4,377
     
1,812
     
658
     
1,588
     
1,207
 
 
(*)          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

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SOURCE: G. Willi-Food International Ltd.