EX-99.1 3 kl05056_ex99-1.txt PRESS RELEASE G. WILLI-FOOD INTERNATIONAL LTD ANNOUNCES RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2003 SALES DECREASE OF 6%, NET INCOME DECREASE OF 30% ------------------------------------------------ Yavne, Israel, May 25, 2003. G. Willi-Food International Ltd. (NASDAQ: WILCF) today reported its unaudited financial results for the first quarter ended March 31, 2003. Total sales for the three months ended March 31, 2003, decreased by 6% to NIS 38,716,000 (US$ 8,260,000) from NIS 40,992,000 (US$ 8,746,000) for the same period in 2002. The decrease in total sales for the three months ended March 31, 2003 compared to the same period in 2002, is accounted for by a fall in the price of food products due to the deepening of the recession in the Israeli market, the growth in unemployment, which is causing a decrease in the purchasing power in the Israeli market, and an increase in local competition. Gross profit for the three months ended March 31, 2003, decreased by 31% to NIS 8,467,000 (US$ 1,806,000) from NIS 12,271,000 (US$ 2,618,000) for the same period in 2002. The gross profit represents 22% of the total sales for the three months ended March 31, 2003 compared to 30% for the same period in 2002. The decrease in gross profit for the three months ended March 31, 2003 compared to the same period in 2002, is accounted for, among other reasons, by a decrease in the sales prices to customers due to increased competition and other market factors, mainly because supermarket chains enjoy large purchasing power and cause a decrease in the prices at which they purchase. Operating income for the three months ended March 31, 2003 decreased by 44% to NIS 3,874,000 (US$ 825,000) from NIS 6,966,000 (US$ 1,486,000) for the same period in 2002. Net income for the three months ended March 31, 2003 decreased by 30% to NIS 3,105,000 (US$ 663,000) from NIS 4,457,000 (US$ 951,000) for the same period in 2002. The basic earnings per share for the three months ended March 31, 2003 is NIS 0.73 (US$ 0.15) from NIS 1.04 (US$ 0.22) for the same period in 2002. G. Willi-Food International Ltd. is engaged in the import, marketing and distribution of over 400 food products, including canned vegetables, pickled olives and other pickled vegetables, packaged fruit, canned and frozen fish, edible oil, dried fruit and nuts, coffee creamers, jams, halva, pasta, tahini, butter cookies and pastries, certain dairy products and certain frozen or chilled products. The company believes that it is one of the leading importers in Israel of such a broad range of imported food products. The company sells products with widespread demand in the Israeli marketplace, as well as products that cater to more select groups. G. WILLI-FOOD INTERNATIONAL LTD. CONDENSED CONSOLIDATED BALANCE SHEETS (Adjusted to NIS of March 2003) Convenience translation into Adjusted New Israeli Shekels U.S. Dollars ------------------------------ ------------- March 31, December 31, March 31, 2003 2002 2003 -------------- -------------- ------------- In thousands In thousands In thousands Unaudited Audited Unaudited --------- ------- --------- ASSETS Current assets Cash and cash equivalents 29,390 27,893 6,271 Marketable securities 17,994 21,718 3,839 Trade receivables 36,034 24,767 7,689 Other receivables and prepaid expenses 3,766 3,252 803 Related parties 166 -- 35 Inventories 14,649 16,748 3,125 ------- ------- ------- Total current assets 101,999 94,378 21,762 ------- ------- ------- Property and equipment Cost 7,255 7,073 1,548 Less-accumualted depreciation 4,434 4,197 946 ------- ------- ------- 2,821 2,876 602 ------- ------- ------- Other assets, net 59 60 13 104,879 97,314 22,377 ======= ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short term bank credit 4,124 1,080 880 Trade payables 13,321 11,456 2,843 Related parties 905 1,221 193 Other and accrued expenses 2,728 2,833 582 ------- ------- ------- Total current liabilities 21,078 16,590 4,498 ------- ------- ------- Long-term liabilities Accrued severance pay 164 167 35 Other long-term liabilities 30 55 6 ------- ------- ------- Total long-term liabilities 194 222 41 Shareholders' equity 83,607 80,502 17,838 ------- ------- ------- 104,879 97,314 22,377 ======= ======= =======
G. WILLI-FOOD INTERNATIONAL LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Adjusted to NIS of March 2002) Convenience Adjusted Translation New Israeli Shekels into U.S. Dollars ------------------------------------------------- ----------------- Three months Year ended Three months Ended March 31, December 31, Ended March 31, 2 0 0 3 2 0 0 2 2 0 0 2 2 0 0 3 -------------- ------------ --------------- ----------------- In thousands In thousands In thousands Unaudited Audited Unaudited ----------------------------- --------------- ----------------- Sales 38,716 40,992 132,370 8,260 Cost of sales 30,249 28,721 103,873 6,454 ---------- ---------- ---------- ---------- Gross profit 8,467 12,271 28,497 1,806 ---------- ---------- ---------- ---------- Selling expenses 2,351 2,781 10,297 502 General and administrative expenses 2,242 2,524 8,422 479 ---------- ---------- ---------- ---------- Total operating expenses 4,593 5,305 18,719 981 ---------- ---------- ---------- ---------- Operating income 3,874 6,966 9,778 825 Financial income (expenses) , net 557 (507) (246) 121 Other income (expenses), net -- (4) 30 -- ---------- ---------- ---------- ---------- Income before taxes on income 4,431 6,455 9,562 946 Taxes on income 1,326 1,998 2,315 283 ---------- ---------- ---------- ---------- Net income 3,105 4,457 7,247 663 ========== ========== ========== ========== Earnings per share data: Earnings per share: Basic 0.73 1.04 1.69 0.15 ========== ========== ========== ========== Diluted 0.73 1.04 1.69 0.15 ========== ========== ========== ========== Shares used in computing earnings per ordinary share: Basic 4,277,500 4,277,500 4,277,500 4,277,500 ========== ========== ========== ========== Diluted 4,277,500 4,277,500 4,277,500 4,277,500 ========== ========== ========== ==========