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 2020

Commission File Number 000-29256

G. Willi-Food International Ltd.

(Translation of registrant’s name into English)

4 Nahal Harif St., Yavne, Israel 81106

 (Address of principal executive office)

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): ____

INFORMATION CONTAINED IN THIS REPORT ON FORM 6-K

Attached hereto and incorporated by reference herein is a press release, dated August 3, 2020, titled: "G. Willi-Food International Reports 71.3% Increase in Operating Profit, 41.0% Increase in Profit Before Taxes on Income and 34.1% Increase in Net Profit in Second Quarter 2020 Compared to Same Period 2019".

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: August 3, 2020

   

FOR IMMEDIATE RELEASE

G. WILLI-FOOD INTERNATIONAL REPORTS 71.3% INCREASE IN

OPERATING PROFIT, 41.0% INCREASE IN PROFIT BEFORE TAXES ON

INCOME AND 34.1% INCREASE IN NET PROFIT IN SECOND QUARTER 2020

COMPARED TO SAME PERIOD 2019

YAVNE, Israel – August 3, 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 second quarter ended June 30, 2020.

Second Quarter Fiscal Year 2020 Highlights

• Sales increased by 4% year-over-year to NIS 104.2 million (US$ 30.1 million).

• Gross profit increased by 32.4% year-over-year to NIS 39.5 million (US$ 11.4 million).

• Operating profit of NIS 16.9 million (US$ 4.9 million), or 16.2% of sales, which represents a 71.3% increase from NIS 9.9 million (US$ 2.9 million) in the comparable quarter of 2019.

• Net profit increased by 34.1% year-over-year to NIS 15.2 million (US$ 4.4 million), or 14.6% of sales.

• Net cash from operating activities of NIS 23.8 million (US$ 6.9 million).

• Cash and securities balance of NIS 282.2 million (US$ 81.4 million) as of June 30, 2020.

• Earnings per share of NIS 1.15 (US$ 0.33).

Management Comment

Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food, commented: “We are pleased to present strong second quarter 2020 financial results, which show stable growth in Company sales and a significant improvement with all operational profit parameters. Since COVID-19 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. This demand was especially strong in the first quarter of 2020, which led to a general decline in consumption in the second quarter of 2020. Despite this decline, the Company managed to deliver a great performance with higher sales in the second quarter compared to the second quarter in 2019. In parallel with this development, the Company added new and profitable products to its product portfolio to generate higher gross profit margin. As a result, the Company reported a 71.3% increase in operating profit, 41% increase in profit before taxes on income and 34.1% increase in net profit in the second quarter of 2020 compared to the second quarter of 2019.  We intend to maintain sufficient inventory levels and work to further strengthen the Company's supply chain and product portpolio in the future in order to continue to improve our results."

According to retail data analytics provided by StoreNext Ltd¹, the Company recorded growth of 30.7% in the first half of 2020 for "sale out" sales (in other words, sales to the final consumer) compared to an 8.7% average increase for the food and beverage industry as a whole.

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.

Second Quarter Fiscal 2020 Summary

Sales for the second quarter of 2020 increased by 4% to NIS 104.2 million (US$ 30.1 million) from NIS 100.1 million (US$ 28.9 million) recorded in the second quarter of 2019. Revenues increased primarily due to a redirection of resources in favor of sales, increasing the variety of the Company's products and improved inventory management.

Gross profit for the second quarter of 2020 increased by 32.4% to NIS 39.5 million (US$ 11.4 million) compared to NIS 29.8 million (US$ 8.6 million) recorded in the second quarter of 2019. Second quarter gross margin increased by 27.2% to 37.9% compared to gross margin of 29.8% for the same period in 2019, The increase in gross profit was primarily due to the increase in sales and the increase in gross margin resulted from the Company's strategy of selling a more favorable mix of products which generate a higher gross margin and credits received from suppliers during the second quarter of 2020.

Selling expenses increased by 9.8% to NIS 16.2 million (US$ 4.7 million) compared to NIS 14.8 million (US$ 4.3 million) in the second quarter of 2019 primarily due to an increase in payroll expenses in the logistics department as a result of working in two shifts to comply with government workplace restrictions due to the COVID-19 pandemic, and an increase of freight to customers' expenses to support sales growth.

General and administrative expenses increased by 24% to NIS 6.5 million (US$ 1.9 million) compared to NIS 5.2 million (US$ 1.5 million) in the second quarter of 2019. The increase in general and administrative expenses was primarily due to an increase in payroll expenses.

As a result of the foregoing, operating profit for the second quarter of 2020 increased by 71.3% to NIS 16.9 million (US$ 4.9 million) compared to NIS 9.9 million (US$ 2.8 million) in the second quarter of 2019.

Finance income, net totaled NIS 3.3 million (USD$ 1.0 million) compared to Finance income, net of NIS 4.5 million (US$ 1.3 million) in the second quarter of 2019. The decrease in Finance income, net was primarily due to a decrease in interest income and dividends received from the Company's securities portfolio and from revaluation of the Company's securities portfolio to its fair value.

At the beginning of the year as a result of the COVID-19 pandemic, capital markets recorded sharp declines and, as a result, the Company suffered a decline in the value of its portfolio of securities in the first quarter of 2020. Since that time, capital markets have recovered somewhat and as a result the Company recorded gains from revaluation of its portfolio of securities of approximately NIS 2.5 million (USD$ 0.7 million) in the second quarter of 2020.

Income before taxes on income for the second quarter of 2020 was NIS 20.2 million (US$ 5.8 million) compared to income before taxes on income of NIS 14.3 million (US$ 4.1 million) in the second quarter of 2019.

Net profit in the second quarter of 2020 was NIS 15.2 million (US$ 4.4 million), or NIS 1.15 (US$ 0.33) per share, compared to NIS 11.3 million (US$ 3.3 million), or NIS 0.86 (US$ 0.25) per share, recorded in the second quarter of 2019.

Willi-Food ended the second quarter of 2020 with NIS 282.2 million (US$ 81.4 million) in cash and securities. Net cash from operating activities for the second quarter of 2020 was NIS 23.8 million (US$ 6.9 million). Willi-Food's shareholders' equity at the end of June 2020 was NIS 507.8 million (US$ 146.5 million).

First Half Fiscal 2020 Highlights

• Sales increased by 17.8% year-over-year to NIS 233.3 million (US$ 67.3 million).

• Gross profit increased by 35.0% year-over-year to NIS 81.0 million (US$ 23.4 million).

• Operating profit increased by 59.8% year-over-year to NIS 35.9 million (US$ 10.4 million), or 15.4% of sales.

• Net profit decreased by 39.5% to NIS 16.4 million (US$ 4.7 million), or 7% of sales.

• Net cash from operating activities of NIS 31.8 million (US$ 9.2 million).

• Earnings per share of NIS 1.24 (US$ 0.36).

First Half Fiscal 2020 Summary

Willi-Food’s sales for the six-month period ending June 30, 2020 increased by 17.8% to NIS 233.3 million (US$ 67.3 million) compared to sales of NIS 198.0 million (US$ 57.1 million) in the first half of 2019. Sales increased in the first half of 2020 primarily due to the COVID-19 pandemic, which led to an increase in demand for the Company's products, primarily in retail chains, and due to a redirection of resources in favor of sales, increasing the variety of the Company's products and improved inventory management.

Gross profit for the period increased by 35.0% to NIS 81.0 million (US$ 23.4 million) compared to gross profit of NIS 60.0 million (US$ 17.3 million) for the first half of 2019. First half 2020 gross margin was 34.7% compared to a gross margin of 30.3% for the same period in 2019. The increase in gross profit was primarily due to the increase in sales and an increase in gross margin increase resulting from the Company's strategy of selling a more favorable mix of products which generate a higher gross margin and credits received from suppliers.

Operating profit  for the first half of 2020 increased by 59.8% to NIS 35.9 million (US$ 10.4 million) from NIS 22.5 million (US$ 6.5 million) reported in the comparable period of last year primarily due to the increase of gross profit.

Income before taxes for the first half 2020 decreased by 36.1% to NIS 21.8 million (US$ 6.3 million) compared to NIS 34.2 million (US$ 9.9 million) recorded in the first half of 2019.

Net profit  for the first half of 2020 decreased by 39.5% to NIS 16.4 million (US$ 4.7 million), or NIS 1.24 (US$ 0.36) per share, from NIS 27.1 million (US$ 7.8 million), or NIS 2.05 (US$ 0.59) per share, recorded in the first half of 2019.

Note regarding conference call

As previously announced , the Company will host a conference call on Thusday, August 4, 2020 at 8:30 am Eastern Time to discuss the Company’s financial results for the second quarter of 2020.

To participate in the conference call, please call one of the following teleconferencing numbers. Please begin placing your calls at least 10 minutes before the conference call commences.

Israel:	03-9180644
USA:	1-888-281-1167
International:	+972-3-9180644

When: 8:30 a.m. Eastern Time (3:30 p.m. Israel Time).

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 June 30, 2020, U.S. $1.00 equals NIS 3.466. The translation was made solely for the convenience of the reader.

NOTE B: IFRS

The Company’s consolidated financial results for the three-month and six-month period ended June 30, 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 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, 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 19, 2020. 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

	June 30,						December 31			June 30,						December 31
	2 0 2 0			2 0 1 9			2 0 1 9			2 0 20			2 0 1 9			2 0 1 9
	NIS									US dollars (*)
	(in thousands)
ASSETS
Current assets
Cash and cash equivalents		168,689			129,889			121,860			48,670			37,475			35,159
Financial assets carried at fair value through profit or loss		113,468			137,980			141,543			32,737			39,810			40,838
Trade receivables		140,581			120,456			133,039			40,560			34,753			38,384
Loans to others		3,650			15,831			17,650			1,053			4,568			5,092
Other receivables and prepaid expenses		6,516			5,359			9,360			1,880			1,546			2,700
Inventories		61,262			55,871			71,548			17,675			16,120			20,643
Total current assets		494,166			465,386			495,000			142,575			134,272			142,816
Non-current assets
Property, plant and equipment		82,138			80,198			81,402			23,698			23,138			23,486
Less -Accumulated depreciation		45,723			42,042			43,881			13,192			12,130			12,660
		36,415			38,156			37,521			10,506			11,008			10,826
Right of use asset		3,382			1,961			3,860			976			566			1,114
Financial assets carried at fair value through profit or loss		9,273			-			-			2,675			-			-
Goodwill		36			36			36			10			10			10
Deferred taxes		4,200			1,337			818			1,212			386			236
Total non-current assets		53,306			41,490			42,235			15,379			11,970			12,186
		547,472			506,876			537,235			157,954			146,242			155,001
EQUITY AND LIABILITIES
Current liabilities
Current maturities of lease liabilities		1,593			1,027			1,675			460			296			483
Current tax liabilities		1,448			3,755			3,750			417			1,083			1,082
Trade payables		20,049			24,168			24,650			5,784			6,973			7,112
Employees Benefits		3,410			2,952			2,911			984			852			840
Other payables and accrued expenses		9,728			5,738			9,195			2,808			1,656			2,653
Total current liabilities		36,228			37,640			42,181			10,453			10,860			12,170
Non-current liabilities
Lease liabilities		1,896			946			2,212			547			273			638
Retirement benefit obligation		1,596			924			1,486			460			267			429
Total non-current liabilities		3,492			1,870			3,698			1,007			540			1,067
Shareholders' equity
Share capital NIS 0.1 par value (authorized - 50,000,000 shares, issued and outstanding - 13,217,017 shares at June 30, 2020; and December 31, 2019)		1,425			1,425			1,425			411			411			411
Additional paid in capital		128,354			128,354			128,354			37,032			37,032			37,032
Capital fund		247			247			247			71			71			71
Treasury shares		(628	)		(625	)		(628	)		(181	)		(180	)		(181	)
Remeasurement of the net liability in respect of defined benefit		(1,029	)		(623	)		(1,029	)		(297	)		(180	)		(297	)
Retained earnings		379,383			338,588			362,987			109,458			97,688			104,728
Equity attributable to owners of the Company		507,752			467,366			491,356			146,494			134,842			141,764
		547,472			506,876			537,235			157,954			146,242			155,001

(*)          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 20			2 0 1 9			2 0 20			2 0 1 9			2 0 20			2 0 1 9
	NIS												US dollars (*)
	In thousands (except per share and share data)
Sales		233,255			197,934			104,152			100,099			67,298			57,107
Cost of sales		152,232			137,908			64,651			70,270			43,922			39,789
Gross profit		81,023			60,026			39,501			29,829			23,376			17,319
Operating costs and expenses:
Selling expenses		32,822			27,224			16,205			14,758			9,470			7,855
General and administrative expenses		12,340			10,331			6,464			5,213			3,560			2,981
Other income		58			-			58			-			17			-
Total operating expenses		45,104			37,555			22,611			19,971			13,013			10,835
Operating profit		35,919			22,471			16,890			9,858			10,363			6,483
Financial income		2,580			12,993			3,743			4,847			744			3,749
Financial expense		16,677			1,290			404			356			4,811			372
Total financial income (expense)		(14,097	)		11,703			3,339			4,491			(4,067	)		3,377
Income before taxes on income		21,822			34,174			20,229			14,349			6,296			9,860
Taxes on income		(5,425	)		(7,062	)		(5,015	)		(3,002	)		(1,565	)		(2,038	)
Profit for the period		16,397			27,112			15,214			11,347			4,731			7,822
Earnings per share:
Basic/diluted earnings per share		1.24			2.05			1.15			0.86			0.36			0.59
Shares used in computation of basic EPS		13,217,017			13,217,017			13,217,017			13,217,017			13,217,017			13,217,017

(*)          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 20			2 0 1 9			2 0 20			2 0 1 9			2 0 20			2 0 1 9
	NIS												US dollars (*)
	(in thousands)
CASH FLOWS - OPERATING ACTIVITIES
Profit from continuing operations		16,397			27,112			15,214			11,347			4,731			7,822
Adjustments to reconcile net profit to net cash used to (used in) continuing operating activities (Appendix A)		15,410			(24,185	)		8,627			(8,953	)		4,446			(6,978	)
Net cash used in continuing operating activities		31,807			2,927			23,841			2,394			9,177			844
CASH FLOWS - INVESTING ACTIVITIES
Acquisition of property plant and equipment		(736	)		(586	)		(374	)		(375	)		(212	)		(169	)
Proceeds from sale of marketable securities, net		2,528			10,190			10,528			7,196			729			2,940
Proceeds from sale of property plant and equipment		58			-			58			-			17			-
Loans granted to others		-			(21,650	)		-			(3,650	)		-			(6,246	)
Proceeds from loans granted to others		14,000			5,819			14,000			5,942			4,039			1,679
Net cash used in (used to) continuing investing activities		15,850			(6,227	)		24,212			9,113			4,573			(1,796	)
CASH FLOWS - FINANCING ACTIVITIES
Lease liability payments		(828	)		(473	)		(404	)		(259	)		(239	)		(137	)
Acquisition of treasury shares		-			(625	)		-			-			-			(180	)
Net cash used in continuing financing activities		(828	)		(1,098	)		(404	)		(259	)		(239	)		(317	)
Increase (decrease) in cash and cash equivalents		46,829			(4,398	)		47,649			11,248			13,511			(1,269	)
Cash and cash equivalents at the beginning of the financial period		121,860			134,287			121,040			118,641			35,159			38,744
Cash and cash equivalents of the end of the financial year		168,689			129,889			168,689			129,889			48,670			37,475

(*)          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 20			2 0 1 9			2 0 20			2 0 1 9			2 0 20			2 0 1 9
	NIS												US dollars (*)
	(in thousands)
Decrease (increase) in deferred income taxes		(3,382	)		1,546			901			505			(976	)		446
Unrealized loss (gain) on marketable securities		16,272			(10,266	)		(2,433	)		(3,282	)		4,695			(2,962	)
Depreciation and amortization		2,751			2,308			1,398			1,167			794			666
Capital gain on disposal of property plant and equipment		(58	)		-			(58	)		-			(17	)		-
Changes in assets and liabilities:
Increase (decrease) in trade receivables and other receivables		(4,700	)		(23,194	)		19,991			(7,526	)		(1,356	)		(6,692	)
Decrease (increase) in inventories		10,286			(6,582	)		(5,271	)		(4,764	)		2,968			(1,899	)
Increase (decrease) in trade and other payables, and other current liabilities		(5,759	)		12,003			(5,901	)		4,947			(1,662	)		3,463
		15,410			(24,185	)		8,627			(8,953	)		4,446			(6,978	)

B.          Significant non-cash transactions:

	Six months				Three months				Six months
	ended				ended				ended
	June 30,				June 30,				June 30,
	2 0 20		2 0 1 9		2 0 20		2 0 1 9		2 0 20		2 0 1 9
	NIS								US dollars (*)
	(in thousands)
Supplemental cash flow information:
Income tax paid		11,060		4,545		4,580		4,545		3,191		1,311

(*)          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.