EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1
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.