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 2020

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- ________   

INFORMATION CONTAINED IN THIS REPORT ON FORM 6-K

Attached hereto and incorporated by reference herein is a press release, dated March 19, 2020, titled: "G. Willi-Food International Reports the Results of First Quarter 2020 Which Show the Highest Ever Quarterly Sales, Gross Profit and Operating Income".

This Report on Form 6-K is hereby incorporated by reference into the Company's Registration Statement on Form S-8 (File No. 333-199295).

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/ Yitschak Barabi

       Name: Yitschak Barabi

       Title: Chief Financial Officer

Date: May 21, 2020

   

                           FOR IMMEDIATE RELEASE

G. WILLI-FOOD INTERNATIONAL REPORTS THE RESULTS OF FIRST

QUARTER 2020 WHICH SHOW THE HIGHEST EVER QUARTERLY SALES,

GROSS PROFIT AND OPRATING INCOME.

YAVNE, Israel – May 21, 2020 - 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, 2020.

First Quarter Fiscal Year 2020

• Sales increased by 32.0% year-over-year to NIS 129.1 million (US$ 36.2 million).

• Gross profit increased by 37.5% year-over-year to NIS 41.5 million (US$ 11.6 million).

• Operating profit increased by 50.9% year-over-year to NIS 19.0 million (US$ 5.3 million).

• Net profit decreased by 92.5% year-over-year to NIS 1.2 million (US$ 0.3 million).

• Cash and securities balance of NIS 242.6 million (US$ 68.1 million) as of March 31, 2020.

• Earnings per share of NIS 0.09 (US$ 0.03).

Management Comment

Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food, commented: "Since a strain of coronavirus surfaced in China at the end of 2019 and reached many other countries worldwide, including Israel, there has been a substantial increase in demand for the Company's products, especially in the retail market. The Company acted to maintain its operational ability and to ensure that sufficient levels of inventory were available in order to meet demand during the COVID-19 pandemic. As a result, the first quarter 2020 financial results show the Company’s highest ever sales, gross profit and operating profit. We intend to continue to maintain sufficient inventory levels and work to further strengthen the Company's supply chain, and product portpolio to meet its future demand."

According to retail data analytics provided by StoreNext Ltd¹, the Company recorded a higher growth rate in the last quarter for "sale out" sales (in other words, sales to the final consumer) than any other Israeli food and beverage company, growing 45.5% compared to the average of such companies, which increased by 15.4%.

¹ StoreNext Ltd. has a direct connection to the cash register systems of over 2,200 points of sales, providing information regarding 80% of real time sales data in Israel.

First Quarter Fiscal 2020 Summary

Sales for the first quarter of 2020 increased by 32.0% to NIS 129.1 million (US$ 36.2 million) from NIS 97.8 million (US$ 27.4 million) recorded in the first quarter of 2019. Sales increased primarily due to the COVID-19 pandemic, which led to an increase in demand for the Company's products, primarily in the retail chains.

Gross profit for the first quarter of 2020 increased by 37.5% to NIS 41.5 million (US$ 11.6 million) compared to NIS 30.2 million (US$ 8.5 million) recorded in the first quarter of 2019. The increase in gross profit was primarily due to the increase in sales, a gross margin increase resulting from the Company's strategy of selling a favorable mix of products which generate a higher gross margin and depreciation of the Euro and USD exchange rates against the NIS.

Selling expenses increased by 33.3% to NIS 16.6 million (US$ 4.7 million) compared to NIS 12.5 million (US$ million 3.5) in the first quarter of 2019. The increase in selling expenses was primarily due to an increase of payroll expenses in the sales department, an increase of freight to customers' expenses to support sales growth and an increase in advertising expenses of existing and new products.

General and administrative expenses increased by 14.8% to NIS 5.9 million (US$ 1.7 million) compared to NIS 5.1 million (US$ million 1.4) in the first quarter of 2019. The increase in general and administrative expenses was primarily due to increases in payroll expenses.

As a result, operating profit for the first quarter of 2020 increased by 50.9% to NIS 19.0 million (US$ 5.3 million) compared to NIS 12.6 million (US$ 3.5 million) in the first quarter of 2019.

Finance expenses, net totaled NIS 17.4 million (USD$ 4.9 million) compared to Finance income, net of NIS 7.2 million (US$ 2.1 million) in the first quarter of 2019. As a result of the COVID-19 pandemic, capital markets recorded sharp declines and, as a result, the Company suffered a decline in its portfolio of securities which totaled NIS 18.7 million since the beginning of the year. Capital markets have recovered somewhat since March 31, 2020 and as a result the Company’s loss has been reduced to approximately NIS 8.9  million (USD$ 2.5 million) since the beginning of the year.

Willi-Food’s income before taxes for the first quarter of 2020 was NIS 1.6 million (US$ 0.4 million) compared to income before taxes of NIS 19.8 million (US$ 5.6 million) in the first quarter of 2019.

Willi-Food's net profit in the first quarter of 2020 was NIS 1.2 million (US$ 0.3 million), or NIS 0.09 (US$ 0.03) per share, compared to NIS 15.8 million (US$ 4.4 million), or NIS 1.19 (US$ 0.33) per share, recorded in the first quarter of 2019.

Willi-Food ended the first quarter of 2020 with NIS 242.6 million (US$ 68.0 million) in cash and securities. Net cash from operating activities for the first quarter of 2020 was NIS 8.0 million (US$ 2.2 million). Willi-Food's shareholders' equity at the end of March 2020 was NIS 492.5 million (US$ 138.1 million).

NOTE A: NIS to US$ exchange rate used for convenience only

The convenience translation of New Israeli Shekels (NIS) into U.S. dollars was made at the rate of exchange prevailing on March 31, 2020, with U.S. $1.00 equal to NIS 3.565 The translation was made solely for the convenience of the reader.

NOTE B: IFRS

The Company’s consolidated financial results for the three-month period ended March 31, 2020 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 1,250 customers and 2,500 selling points 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 Euro European Dairies Ltd. (Former: "Gold-Frost Ltd."), 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, risks associated with product liability claims and risks associated with the start of credit extension activity. 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, 2019, filed with the Securities and Exchange Commission on March 27, 2019. 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.

G. WILLI-FOOD INTERNATIONAL LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

	March 31,						December 31			March 31,						December 31
	2 0 2 0			2 0 1 9			2 0 1 9			2 0 2 0			2 0 19			2 0 1 9
	NIS									US dollars (*)
	(in thousands)
ASSETS
Current assets
Cash and cash equivalents		121,040			118,641			121,860			33,952			33,279			34,182
Financial assets carried at fair value through profit or loss		121,564			141,894			141,543			34,099			39,802			39,703
Trade receivables		160,396			113,747			133,039			44,992			31,907			37,318
Loans to others		17,650			18,123			17,650			4,951			5,084			4,951
Other receivables and prepaid expenses		6,695			5,840			9,360			1,878			1,638			2,626
Inventories		55,991			51,107			71,548			15,706			14,336			20,070
Total current assets		483,336			449,352			495,000			135,578			126,046			138,850
Non-current assets
Property, plant and equipment		81,765			79,822			81,402			22,935			22,390			22,834
Less -Accumulated depreciation		44,802			41,138			43,881			12,567			11,539			12,309
		36,963			38,684			37,521			10,368			10,851			10,525
Right of use asset		3,710			2,079			3,860			1,041			583			1,083
Financial assets carried at fair value through profit or loss		9,273			-			-			2,601			-			-
Goodwill		36			36			36			10			10			10
Deferred taxes		5,101			1,841			818			1,432			516			229
Total non-current assets		55,083			42,640			42,235			15,452			11,960			11,847
		538,419			491,992			537,235			151,030			138,006			150,697
EQUITY AND LIABILITIES
Current liabilities
Current maturities of lease liabilities		1,708			972			1,675			479			273			470
Curremt tax liabilities		3,410			1,298			3,750			957			364			1,052
Trade payables		20,420			21,938			24,650			5,728			6,153			6,914
Employees Benefits		3,876			3,441			2,911			1,087			965			817
Other payables and accrued expenses		12,862			6,335			9,195			3,608			1,777			2,579
Total current liabilities		42,276			33,984			42,181			11,859			9,532			11,832
Non-current liabilities
Lease liabilities		2,035			1,112			2,212			571			312			620
retirement benefit obligation		1,568			877			1,486			440			246			417
Total non-current liabilities		3,603			1,989			3,698			1,011			558			1,037
Shareholders' equity
Share capital NIS 0.1 par value (authorized - 50,000,000 shares, issued and outstanding - 13,217,017 shares at March 31, 2020; and December 31, 2019)		1,425			1,425			1,425			400			400			400
Additional paid in capital		128,354			128,354			128,354			36,004			36,004			36,004
Capital fund		247			247			247			69			69			69
Treasury shares		(628	)		(625	)		(628	)		(176	)		(175	)		(176	)
Retained earnings		364,171			327,241			362,987			102,152			91,793			101,820
Remeasurement of the net liability in respect of defined benefit		(1,029	)		(623	)		(1,029	)		(289	)		(175	)		(289	)
Equity attributable to owners of the Company		492,540			456,019			491,356			138,160			127,916			137,828
		538,419			491,992			537,235			151,030			138,006			150,697

 (*)          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 2 0			2 0 1 9			2 0 2 0			2 0 19
	NIS						US dollars (*)
	In thousands (except per share and share data)
Sales		129,103			97,835			36,214			27,443
Cost of sales		87,581			67,638			24,567			18,973
Gross profit		41,522			30,197			11,647			8,470
Operating costs and expenses:
Selling expenses		16,617			12,466			4,661			3,497
General and administrative expenses		5,876			5,118			1,648			1,436
Total operating expenses		22,493			17,584			6,309			4,933
Operating income		19,029			12,613			5,338			3,537
Finance income		1,460			8,146			410			2,285
Finance cost		(18,896	)		934			(5,300	)		262
Total financial income (expenses), net		(17,436	)		7,212			(4,891	)		2,023
Income before taxes on income		1,593			19,825			447			5,560
Taxes on income		(412	)		(4,060	)		(116	)		(1,139	)
Profit for the period		1,181			15,765			331			4,421
Earnings per share:
Basic/diluted earnings per share		0.09			1.19			0.03			0.33
Shares used in computation of basic EPS		13,217,014			13,217,014			13,217,014			13,217,014

(*)          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 2 0			2 0 1 9			2 0 2 0			2 0 19
	NIS						US dollars (*)
	(in thousands)
CASH FLOWS - OPERATING ACTIVITIES
Profit from operations		1,181			15,765			331			4,421
Adjustments to reconcile net profit to net cash used in (used to) continuing operating activities (Appendix)		6,786			(15,229	)		1,903			(4,272	)
Net cash used in continuing operating activities		7,967			536			2,234			149
CASH FLOWS - INVESTING ACTIVITIES
Acquisition of property plant and equipment		(362	)		(211	)		(102	)		(59	)
Proceeds from purchase of marketable securities, net		(8,000	)		2,994			(2,244	)		840
Loans granted to others		-			(18,123	)		-			(5,084	)
Net cash used to continuing investing activities		(8,362	)		(15,340	)		(2,346	)		(4,303	)
CASH FLOWS - FINANCING ACTIVITIES
Lease liability payments		(425	)		(217	)		(118	)		(61	)
Aquisition of treasury shares		-			(625	)		-			(175	)
Net cash used to continuing financing activities		(425	)		(842	)		(118	)		(236	)
decrease in cash and cash equivalents		(820	)		(15,646	)		(230	)		(4,390	)
Cash and cash equivalents  at the beginning of the financial year		121,860			134,287			34,182			37,669
Cash and cash equivalents of the end of the financial year		121,040			118,641			33,952			33,279

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

G. WILLI-FOOD INTERNATIONAL LTD.

APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

CASH FLOWS – OPERATING ACTIVITIES:

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

	Three months						Three months
	ended						ended
	March 31,						March 31,
	2 0 2 0			2 0 1 9			2 0 2 0			2 0 19
	NIS						US dollars (*)
	(in thousands)
Decrease (increase) in deferred income taxes		(4,283	)		1,041			(1,202	)		292
Unrealized loss (gain) on marketable securities		18,707			(6,984	)		5,247			(1,959	)
Depreciation and amortization		1,353			1,141			380			320
Changes in assets and liabilities:
Increase in trade receivables and other receivables		(24,692	)		(15,665	)		(6,926	)		(4,394	)
Decrease (increase) in inventories		15,556			(1,818	)		4,364			(510	)
Increase in trade and other payables, and other current liabilities		145			7,056			40			1,979
		6,786			(15,229	)		1,903			(4,272	)

B.          Significant non-cash transactions:

	Three months				Three months
	ended				ended
	March 31,				March 31,
	2 0 2 0		2 0 1 9		2 0 2 0		2 0 19
	NIS				US dollars (*)
	(in thousands)
Supplemental cash flow information:
Income tax paid		6,480		-		1,818		-

             (*)          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.

Yitschak Barabi, Chief Financial Officer

(+972) 8-932-1000

itsik.b@willi-food.co.il

###

SOURCE: G. Willi-Food International Ltd.