Exhibit 99.1
 |
 |
FOR IMMEDIATE RELEASE
G. WILLI-FOOD INTERNATIONAL REPORTS ITS FINANCIAL
RESULTS FOR THE YEAR 2021
YAVNE, Israel - March 15, 2022 - G. Willi-Food International Ltd. (NASDAQ: WILC and TASE: WILF) (the “Company” or “Willi-Food”), a global company that specializes in the development, marketing and international distribution of kosher foods, today announced its financial results for the fiscal year ended December 31, 2021.
Fiscal Year 2021 Highlights
| • |
Sales increased to NIS 454.2 million (US$ 146.0 million) from NIS 454.1 million (US$ 146.0 million) in fiscal year 2020.
|
| • |
Gross profit decreased by 4.9% from fiscal year 2020 to NIS 138.3 million (US$ 44.5 million).
|
| • |
Operating profit decreased by 14.3% from fiscal year 2020 to NIS 49.4 million (US$ 15.9 million).
|
| • |
Cash and cash equivalents balance of NIS 349.8 million (US$ 112.5 million) as of December 31, 2021.
|
| • |
Earnings per share of NIS 3.25 (US$ 1.05).
|
Management Comment
Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food, commented: "We are very pleased to present our fiscal year 2021 financial results. As a result
of the Covid-19 pandemic and its variants, the world is still experiencing a crisis that is reflecting among other things, in disruptions to international commercial shipping, which has led to an increase in the demand for containers and a
significant increase in sea freight and commodity prices. The Company cannot predict how long this "shipping crisis" will last. Despite this difficult environment, the Company managed to maintain the same level of sales and a strong level of gross
margin and other operational parameters. In addition, recently armed conflict opened between Ukraine and Russia which are major producers of wheat and oil in the world. if this war continues it will affect the price of wheat and oil and its
related products. Despite this difficulties and uncertainty The Company will work hard to fulfill its strategy for the near future, to improve commercial conditions with its suppliers and customers, develop new products, enter into new categories
with potentially high gross profit margins, improve the visibility of its products in the stores, strengthen its brand and supply chain and ensure sufficient inventory. We intend to work hard to achieve the goals we have set for the Company."
Fiscal 2021 Summary
Revenues for fiscal year 2021 increased to NIS 454.2 million (USD 146.0 million) from NIS 454.1 million (USD 146.0 million) recorded in fiscal year 2020.
Gross profit for fiscal year 2021 decreased by 4.9% to NIS 138.3 million (USD 44.5 million), or 30.4% of revenues, from NIS 145.4 million (USD 46.7 million), or 32.0% of revenues, recorded in
fiscal year 2020. The decrease in gross profit was mainly due to increased costs of the Company’s imported products and significant increases in shipping costs starting second half of 2021.
Selling expenses for fiscal year 2021 amounted to NIS 65.9 million (USD 21.2 million), or 14.5% of revenues, and were substantially the same as in fiscal 2020.
General and administrative expenses for fiscal year 2021 increased by 6.3% to NIS 23.3 million (USD 7.5 million), or 5.1% of revenues, from NIS 21.9 million (USD 7.0 million), or 4.8% of revenues,
recorded in fiscal year 2020. The increase in General and administrative expenses was mainly due to changes in the provision for doubtful debts in the amount of NIS 0.7 million (USD 0.3 million) and an increase in stock exchange fees and donations
in the amount of 0.5 million (USD 0.16 million).
Operating profit for fiscal year 2021 decreased by NIS 8.2 million (USD 2.6 million), or by 14.3%, to NIS 49.4 million (USD 15.9 million), or 10.9% of revenues, from NIS 57.6 million (USD 18.5
million), or 12.7% of revenues, recorded in fiscal year 2020. The decrease in operating profit was primarily due to a decrease in gross profit.
Financial income, net, for fiscal year 2021 amounted to NIS 8.5 million (USD 2.7 million), compared to NIS 10.1 million (USD 3.2 million) recorded in fiscal year 2020. Financial income, net for
fiscal year 2021 comprised mainly of income from revaluation of the Company’s portfolio of securities to fair value in an amount of NIS 19.5 million (USD 6.3 million) and interest and dividend income from the Company’s portfolio of securities in an
amount of NIS 9.5 million (USD 3.1 million), offset by from expenses from changes in fair value of liabilities assets at fair values in an amount of NIS 14.0 (USD 4.5 million), exchange rate differences in an amount of NIS 5.2 million (USD 1.7
million) and other finance expenses in an amount of NIS 1 million (USD 0.3 million).
Willi-Food ended fiscal year 2021 with NIS 349.8 million (USD 112.3 million) in cash and cash equivalents with no short-term debt. Net cash from operating activities in fiscal year 2021 was NIS
45.7 million (USD 14.7 million). Willi-Food's shareholders' equity at the end of December 2021 was NIS 568.9 million (USD 182.9 million).
NOTE A: NIS to US$ exchange rate used for convenience only
The conversion from New Israeli Shekels (NIS) into U.S. dollars was made at the exchange rate of USD 1.00 to NIS 3.11 as of December 31, 2021. The use of USD is solely for the convenience of the
reader.
NOTE B: IFRS
The Company’s consolidated financial results for fiscal year ended December 31, 2021 are presented in accordance with International Financial Reporting Standards.
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 and 3,000 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, a wholly owned
subsidiary that designs, develops and distributes branded kosher, dairy-food products.
FORWARD LOOKING STATEMENTS
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, adverse effects from the ongoing COVID-19 pandemic, disruptions to global shipping, 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, 2020, filed with the Securities and Exchange Commission on March 27, 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
|
December 31,
|
December 31,
|
|||||||||||||||
|
2 0 2 1
|
2 0 2 0
|
2 0 2 1
|
2 0 2 0
|
|||||||||||||
|
NIS
|
US dollars (*)
|
|||||||||||||||
|
(in thousands)
|
||||||||||||||||
|
ASSETS
|
||||||||||||||||
|
Current assets
|
||||||||||||||||
|
Cash and cash equivalents
|
195,718
|
201,822
|
62,932
|
64,895
|
||||||||||||
|
Financial assets at fair value through profit or loss
|
154,090
|
154,700
|
49,546
|
49,742
|
||||||||||||
|
Loans to others
|
-
|
18,707
|
-
|
6,015
|
||||||||||||
|
Trade receivables
|
134,017
|
131,301
|
43,092
|
42,219
|
||||||||||||
|
Other receivables and prepaid expenses
|
4,939
|
6,667
|
1,588
|
2,144
|
||||||||||||
|
Inventories
|
59,528
|
59,514
|
19,141
|
19,136
|
||||||||||||
|
Current tax assets
|
5,780
|
3,965
|
1,859
|
1,275
|
||||||||||||
|
Total current assets
|
554,072
|
576,676
|
178,158
|
185,426
|
||||||||||||
|
Non-current assets
|
||||||||||||||||
|
Property, plant and equipment
|
87,245
|
83,105
|
28,053
|
26,722
|
||||||||||||
|
Less -Accumulated depreciation
|
48,431
|
46,460
|
15,573
|
14,939
|
||||||||||||
|
38,814
|
36,645
|
12,480
|
11,783
|
|||||||||||||
|
Right of use asset
|
4,088
|
2,866
|
1,314
|
922
|
||||||||||||
|
Financial assets at fair value through profit or loss
|
31,056
|
13,700
|
9,986
|
4,405
|
||||||||||||
|
Goodwill
|
36
|
36
|
12
|
12
|
||||||||||||
|
Total non-current assets
|
73,994
|
53,247
|
23,792
|
17,122
|
||||||||||||
|
628,066
|
629,923
|
201,950
|
202,548
|
|||||||||||||
|
EQUITY AND LIABILITIES
|
||||||||||||||||
|
Current liabilities
|
||||||||||||||||
|
Current maturities of lease liabilities
|
1,136
|
1,393
|
365
|
448
|
||||||||||||
|
Trade payables
|
20,386
|
23,474
|
6,555
|
7,548
|
||||||||||||
|
Employees Benefits
|
3,442
|
3,437
|
1,107
|
1,105
|
||||||||||||
|
Financial liabilities at fair value through profit or loss
|
13,960
|
-
|
4,489
|
-
|
||||||||||||
|
Other payables and accrued expenses
|
11,216
|
11,611
|
3,606
|
3,733
|
||||||||||||
|
Total current liabilities
|
50,140
|
39,915
|
16,122
|
12,834
|
||||||||||||
|
Non-current liabilities
|
||||||||||||||||
|
Lease liabilities
|
3,062
|
1,592
|
985
|
512
|
||||||||||||
|
Deferred taxes
|
2,017
|
768
|
648
|
247
|
||||||||||||
|
Retirement benefit obligation
|
1,615
|
1,905
|
519
|
613
|
||||||||||||
|
Total non-current liabilities
|
6,694
|
4,265
|
2,152
|
1,372
|
||||||||||||
|
Shareholders' equity
|
||||||||||||||||
|
Share capital
|
1,490
|
1,490
|
479
|
479
|
||||||||||||
|
Additional paid in capital
|
170,760
|
170,760
|
54,907
|
54,907
|
||||||||||||
|
Capital fund
|
247
|
247
|
79
|
79
|
||||||||||||
|
Treasury shares
|
(628
|
)
|
(628
|
)
|
(202
|
)
|
(202
|
)
|
||||||||
|
Retained earnings
|
400,322
|
415,196
|
128,721
|
133,504
|
||||||||||||
|
Remeasurement of the net liability in respect of defined benefit
|
(959
|
)
|
(1,322
|
)
|
(308
|
)
|
(425
|
)
|
||||||||
|
Equity attributable to owners of the Company
|
571,232
|
585,743
|
183,676
|
188,342
|
||||||||||||
|
628,066
|
629,923
|
201,950
|
202,548
|
|||||||||||||
| (*) |
Convenience translation into U.S. dollars.
|
G. WILLI‑FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
For the year ended
December 31,
|
For the year ended
December 31,
|
|||||||||||||||
|
2 0 2 1
|
2 0 2 0
|
2 0 2 1
|
2 0 2 0
|
|||||||||||||
|
NIS
|
US dollars (*)
|
|||||||||||||||
|
In thousands (except per share and share data)
|
||||||||||||||||
|
Sales
|
454,213
|
454,094
|
146,049
|
146,011
|
||||||||||||
|
Cost of sales
|
315,920
|
308,717
|
101,582
|
99,266
|
||||||||||||
|
Gross profit
|
138,293
|
145,377
|
44,467
|
46,745
|
||||||||||||
|
Operating costs and expenses:
|
||||||||||||||||
|
Selling expenses
|
65,869
|
65,990
|
21,180
|
21,219
|
||||||||||||
|
General and administrative expenses
|
23,299
|
21,918
|
7,491
|
7,048
|
||||||||||||
|
Other income
|
(230
|
)
|
(108
|
)
|
(74
|
)
|
( 35
|
)
|
||||||||
|
Total operating expenses
|
88,938
|
87,800
|
28,597
|
28,232
|
||||||||||||
|
Operating profit
|
49,355
|
57,577
|
15,870
|
18,513
|
||||||||||||
|
Financial income
|
28,957
|
11,348
|
9,311
|
3,649
|
||||||||||||
|
Financial expense
|
20,492
|
1,253
|
6,589
|
403
|
||||||||||||
|
Total Finance Income
|
8,465
|
10,095
|
2,722
|
3,246
|
||||||||||||
|
Profit before taxes on income
|
57,820
|
67,672
|
18,592
|
21,759
|
||||||||||||
|
Taxes on income
|
12,719
|
15,463
|
4,090
|
4,972
|
||||||||||||
|
Income after taxes on income
|
45,101
|
52,209
|
14,502
|
16,787
|
||||||||||||
|
Earnings per share:
|
||||||||||||||||
|
Basic / diluted earnings per share
|
3.25
|
3.89
|
1.05
|
1.3
|
||||||||||||
|
Shares used in computation of
basic/diluted EPS |
13,867,017
|
13,433,684
|
13,867,017
|
13,433,684
|
||||||||||||
|
Actual number of shares
|
13,867,017
|
13,867,017
|
13,867,017
|
13,867,017
|
||||||||||||
| (*) |
Convenience translation into U.S. dollars.
|
G. WILLI‑FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
For the year ended
|
For the year ended
|
|||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
2 0 2 1
|
2 0 2 0
|
2 0 2 1
|
2 0 2 0
|
|||||||||||||
|
NIS
|
US dollars (*)
|
|||||||||||||||
|
In thousands (except per share and share data)
|
||||||||||||||||
|
CASH FLOWS - OPERATING ACTIVITIES
|
||||||||||||||||
|
Profit from continuing operations
|
45,101
|
52,209
|
14,502
|
16,787
|
||||||||||||
|
Adjustments to reconcile net profit to net cash from continuing operating activities (Appendix A)
|
416
|
11,967
|
133
|
3,848
|
||||||||||||
|
Net cash from (used to) continuing operating activities
|
45,517
|
64,176
|
14,635
|
20,635
|
||||||||||||
|
CASH FLOWS - INVESTING ACTIVITIES
|
||||||||||||||||
|
Acquisition of property plant and equipment
|
(6,209
|
)
|
(2,903
|
)
|
(1,996
|
)
|
(933
|
)
|
||||||||
|
Proceeds from sale of property plant and equipment
|
230
|
108
|
74
|
35
|
||||||||||||
|
Loans granted to others
|
-
|
(20,000
|
)
|
-
|
(6,431
|
)
|
||||||||||
|
Proceeds from loans granted to others
|
18,707
|
18,943
|
6,015
|
6,091
|
||||||||||||
|
Proceeds from sale (purchase) of marketable securities, net
|
2,718
|
(20,739
|
)
|
874
|
(6,668
|
)
|
||||||||||
|
Net cash used to continuing investing activities
|
15,446
|
(24,591
|
)
|
4,967
|
(7,906
|
)
|
||||||||||
|
CASH FLOWS - FINANCING ACTIVITIES
|
||||||||||||||||
|
Lease liability payments
|
(2,169
|
)
|
(1,819
|
)
|
(697
|
)
|
(585
|
)
|
||||||||
|
Shares issue
|
-
|
42,471
|
-
|
13,656
|
||||||||||||
|
Dividend distribution
|
(59,975
|
)
|
-
|
(19,285
|
)
|
-
|
||||||||||
|
Net cash used to continuing financing activities
|
(62,144
|
)
|
40,652
|
(19,982
|
)
|
13,071
|
||||||||||
|
Increase (decrease) in cash and cash equivalents
|
(1,181
|
)
|
80,237
|
(380
|
)
|
25,800
|
||||||||||
|
Cash and cash equivalents at the beginning of the year
|
201,822
|
121,860
|
64,895
|
39,183
|
||||||||||||
|
Exchange losses on cash and cash equivalents
|
(4,923
|
)
|
(275
|
)
|
(1,583
|
)
|
(88
|
)
|
||||||||
|
Cash and cash equivalents at the end of the year
|
195,718
|
201,822
|
62,932
|
64,895
|
||||||||||||
(*) Convenience Translation into U.S. Dollars.
G. WILLI-FOOD INTERNATIONAL LTD.
APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
For the year ended
|
For the year ended
|
|||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
2 0 2 1
|
2 0 2 0
|
2 0 2 1
|
2 0 2 0
|
|||||||||||||
|
NIS
|
US dollars (*)
|
|||||||||||||||
|
In thousands (except per share and share data)
|
||||||||||||||||
|
CASH FLOWS - OPERATING ACTIVITIES:
|
||||||||||||||||
|
A. Adjustments to reconcile net profit to net cash from (used to) continuing operating
activities
|
||||||||||||||||
|
Decrease (Increase) in deferred income taxes
|
1,249
|
1,586
|
402
|
510
|
||||||||||||
|
Unrealized loss (gain) on marketable securities
|
(19,464
|
)
|
(6,115
|
)
|
(6,258
|
)
|
(1,966
|
)
|
||||||||
|
Loss of financial liabilities at fair value through profit or loss
|
13,960
|
-
|
4,489
|
-
|
||||||||||||
|
Depreciation and amortization
|
6,200
|
5,690
|
1,993
|
1,830
|
||||||||||||
|
Capital gain on disposal of property plant and equipment
|
(230
|
)
|
(108
|
)
|
(74
|
)
|
(35
|
)
|
||||||||
|
Exchange (losses)/gains on cash and cash equivalents
|
4,923
|
275
|
1,583
|
88
|
||||||||||||
|
Changes in assets and liabilities:
|
||||||||||||||||
|
Decrease (increase) in trade receivables and other receivables
|
10,190
|
22,029
|
3,277
|
7,083
|
||||||||||||
|
Increase (Increase) in inventories
|
(14
|
)
|
12,034
|
(5
|
)
|
3,869
|
||||||||||
|
Increase (decrease) in trade and other payables, and other current liabilities
|
(3,405
|
)
|
(1,861
|
)
|
(1,096
|
)
|
(598
|
)
|
||||||||
|
Cash generated from operations
|
13,409
|
33,530
|
4,311
|
10,781
|
||||||||||||
|
Income tax paid
|
(12,993
|
)
|
(21,563
|
)
|
(4,178
|
)
|
(6,933
|
)
|
||||||||
|
Net cash flows from operating activities
|
416
|
11,967
|
133
|
3,848
|
||||||||||||
(*) Convenience Translation into U.S. Dollars.
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.