EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1

Exhibit 99.1
 
 
 
                          
FOR IMMEDIATE RELEASE

G. WILLI-FOOD INTERNATIONAL REPORTS 9.7% INCREASE IN
SALES AND A RECORD HIGH  ANNUAL SALES IN 2022.

YAVNE, Israel - March 22, 2023 - 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, 2022.

Fiscal Year 2022 Highlights
 
•
Sales increased to NIS 498.3 million (US$ 141.6 million) from NIS 454.2 million (USD 1290. million) in fiscal year 2021.
•
Gross profit increased by 3.4% from fiscal year 2021 to NIS 143.1 million (USD 40.7 million) in 2022.
•
Operating profit decreased by 8.6% from fiscal year 2021 to NIS 45.1 million (USD 12.8 million) in 2022.
•
Cash and cash equivalents balance of NIS 267.4 million (USD 76.0 million) as of December 31, 2022.
•
Earnings per share of NIS 3.00 (US$ 0.86).

Management Comment
 
Joseph Williger CEO, commented: "We are very pleased to present our fiscal year 2022 financial results with record sales and strong operational results. Calendar year 2022 was characterized, among other things, by an increase in the rate of interest, an increase in inflation, and as a result an increased public discourse focusing on the increasing cost of living in Israel. Because we import and market high quality substitute food products for the existing strong brands in the Israeli market. we feel an increase in demand for our products and hope that this trend will continue to support our continued growth. In addition, we recently received a construction permit for a new and sophisticated logistics center, through which we plan to significantly upgrade our logistics capabilities, both at the storage and distribution level.  We believe this will enable us to enter  in to new and profitable categories in the frozen and chilled market and allow us to provide logistics services to other companies in the food sector. The company set itself a growth strategy for the year 2023 that includes supporting our brands through proper advertising, raising the level of inventory and managing it correctly to support sales, developing new products, entering in to new food categories, strengthening existing categories, improving the visibility of products on store shelves and improving logistics capabilities.


Fiscal 2022 Summary
 
Revenues for fiscal year 2022 increased by 9.7% to NIS 498.3 million (USD 141.6 million) from NIS 454.2 million (USD 129.0 million) recorded in fiscal year 2021. Sales increased mainly due to (i) increasing the range of the Company's products. (ii) proper inventory management. (iii) improving presence of the Company’s line of products in stores and (iv) advertising and promotional campaigns.
 
Gross profit for fiscal year 2022 increased by 3.4% to NIS 143.1 million (USD 40.7 million), or 28.7% of revenues, from NIS 138.3 million (USD 39.3 million), or 30.4% of revenues, recorded in fiscal year 2021. The increase in gross profit was mainly due to increased sales that offset the increased costs of the Company’s imported products.
 
Selling expenses for fiscal year 2022 increased by 12.5% to NIS 74.1 million (USD 21.0 million), or 14.9% of revenues, from NIS 65.9 million (USD 18.7 million), or 14.5% of revenues, recorded in fiscal year 2021. The increase in selling expenses was mainly due to a growth in advertising and sales promotion.
 
General and administrative expenses for fiscal year 2022 increased by 3.5% to NIS 24.1 million (USD 6.8 million), or 4.8% of revenues, from NIS 23.3 million (USD 6.6 million), or 5.1% of revenues, recorded in fiscal year 2021. The increase in general and administrative expenses was primarily due to an increase in management compensation as a result of grants made under the Company's option plan.
 
Operating profit for fiscal year 2022 decreased by NIS 4.3 million (USD 1.2 million), to NIS 45.1 million (USD 12.8 million), or 9.0% of revenues, from NIS 49.4 million (USD 14.0 million), or 10.9% of revenues, recorded in fiscal year 2021. The decrease in operating profit was primarily due to an increase in selling expenses.
 
Financial income, net, for fiscal year 2022 amounted to NIS 8.9 million (USD 2.5 million), compared to NIS  8.5million (USD 2.4 million) recorded in fiscal year 2021. Financial income, net for fiscal year 2022 comprised mainly of income from interest and dividend income from the Company’s portfolio of securities in an amount of NIS 9.0 million (USD 2.6 million) and exchange rate differences in an amount of NIS 4.4 million (USD 1.3 million), offset by expenses from revaluation of the Company’s portfolio of securities to fair value in an amount of NIS 3.8 million (USD 1.1 million) and other finance expenses in an amount of NIS 0.7 million (USD 0.2 million).
 
Willi-Food ended fiscal year 2022 with NIS 267.4 million (USD 76.0 million) in cash and cash equivalents with no debt. Net cash from operating activities in fiscal year 2022 was NIS 14.3 million (USD 4.1 million). Willi-Food's shareholders' equity at the end of December 2022 was NIS 559.4 million (USD 158.9 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 3.52 as of December 31, 2022. 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, 2022 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 650 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, 2022, filed with the Securities and Exchange Commission on March 22, 2022. 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 2
    
2 0 2 1
    
2 0 2 2
    
2 0 2 1
  
   
NIS
    
US dollars (*)
  
   
(in thousands)
  
ASSETS
                        
Current assets
                        
Cash and cash equivalents
    
150,607
      
195,718
      
42,786
      
55,602
  
Financial assets at fair value through profit or loss
    
116,762
      
154,090
      
33,171
      
43,776
  
Trade receivables
    
165,838
      
134,017
      
47,113
      
38,073
  
Other receivables and prepaid expenses
    
4,956
      
4,939
      
1,407
      
1,403
  
Inventories
    
71,929
      
59,528
      
20,434
      
16,911
  
Current tax assets
    
3,117
      
5,780
      
886
      
1,642
  
Total current assets
    
513,209
      
554,072
      
145,797
      
157,407
  
                                 
Non-current assets
                                
Property, plant and equipment
    
99,216
      
87,245
      
28,186
      
24,786
  
Less -Accumulated depreciation
    
51,533
      
48,431
      
14,640
      
13,759
  
     
47,683
      
38,814
      
13,546
      
11,027
  
                                 
Right of use asset
    
3,391
      
4,088
      
963
      
1,161
  
Financial assets at fair value through profit or loss
    
44,113
      
31,056
      
12,532
      
8,823
  
Goodwill
    
36
      
36
      
10
      
10
  
Total non-current assets
    
95,223
      
73,994
      
27,051
      
21,021
  
                                 
     
608,432
      
628,066
      
172,848
      
178,428
  
EQUITY AND LIABILITIES
                                
Current liabilities
                                
                                 
Current maturities of lease liabilities
    
2,194
      
1,136
      
623
      
323
  
Trade payables
    
24,842
      
20,386
      
7,056
      
5,791
  
Employees Benefits
    
3,756
      
3,442
      
1,067
      
978
  
Financial liabilities at fair value through profit or loss
    
-
      
13,960
      
-
      
3,966
  
Other payables and accrued expenses
    
11,836
      
11,216
      
3,363
      
3,186
  
Total current liabilities
    
42,628
      
50,140
      
12,109
      
14,244
  
                                 
Non-current liabilities
                                
Lease liabilities
    
1,284
      
3,062
      
365
      
870
  
Deferred taxes
    
4,198
      
2,017
      
1,193
      
573
  
Retirement benefit obligation
    
878
      
1,615
      
249
      
459
  
Total non-current liabilities
    
6,360
      
6,694
      
1,807
      
1,902
  
                                 
Shareholders' equity
                                
Share capital
    
1,490
      
1,490
      
423
      
423
  
Additional paid in capital
    
171,550
      
170,760
      
48,735
      
48,511
  
Remeasurement of the net liability in respect of defined benefit
    
(195
)
    
(959
)
    
(55
)
    
(272
)
Capital fund
    
247
      
247
      
70
      
70
  
Retained earnings
    
386,980
      
400,322
      
109,937
      
113,728
  
Treasury shares
    
(628
)
    
(628
)
    
(178
)
    
(178
)
Equity attributable to owners of the Company
    
559,444
      
571,232
      
158,932
      
162,282
  
                                 
     
608,432
      
628,066
      
172,848
      
178,428
  
                                 
(*)
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 2
    
2 0 2 1
    
2 0 2 2
    
2 0 2 1
  
   
NIS
    
US dollars (*)
  
   
In thousands (except per share and share data)
  
                         
Sales
    
498,325
      
454,213
      
141,570
      
129,038
  
Cost of sales
    
355,228
      
315,920
      
100,917
      
89,750
  
                                 
Gross profit
    
143,097
      
138,293
      
40,653
      
39,288
  
                                 
Operating costs and expenses:
                                
 Selling expenses
    
74,106
      
65,869
      
21,053
      
18,713
  
 General and administrative expenses
    
24,117
      
23,299
      
6,851
      
6,619
  
 Other income
    
(222
)
    
(230
)
    
(63
)
    
(65
)
Total operating expenses
    
98,001
      
88,938
      
27,841
      
25,267
  
                                 
Operating profit
    
45,096
      
49,355
      
12,812
      
14,021
  
                                 
Financial income
    
25,657
      
28,957
      
7,289
      
8,226
  
Financial expense
    
16,779
      
20,492
      
4,767
      
5,822
  
Total Finance income
    
8,878
      
8,465
      
2,522
      
2,404
  
                                 
 Profit before taxes on income
    
53,974
      
57,820
      
15,334
      
16,426
  
 Taxes on income
    
12,410
      
12,719
      
3,526
      
3,613
  
                                 
Income after taxes on income
    
41,564
      
45,101
      
11,808
      
12,813
  
                                 
Earnings per share:
                                
Basic / diluted earnings per share
    
3.00
      
3.25
      
0.86
      
0.92
  
                                 
Shares used in computation of basic/diluted EPS
    
13,867,017
      
13,867,017
      
13,867,017
      
13,867,017
  
                                 
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 2
    
2 0 2 1
    
2 0 2 2
    
2 0 2 1
  
                         
   
NIS
    
US dollars (*)
  
   
In thousands (except per share and share data)
  
CASH FLOWS - OPERATING ACTIVITIES
                        
Profit from continuing operations
    
41,564
      
45,101
      
11,808
      
12,813
  
Adjustments to reconcile net profit to net cash provided (used in) continuing operating activities (Appendix A)
    
(27,495
)
    
416
      
(7,812
)
    
118
  
Net cash from continuing operating activities
    
14,069
      
45,517
      
3,996
      
12,931
  
                                 
CASH FLOWS - INVESTING ACTIVITIES
                                
Acquisition of property plant and equipment
    
(13,350
)
    
(6,209
)
    
(3,793
)
    
(1,764
)
Proceeds from sale of property plant and equipment
    
351
      
230
      
100
      
65
  
Proceeds from loans granted to others
    
-
      
18,707
      
-
      
5,315
  
Proceeds from sale (purchase) of marketable securities, net
    
21,285
      
2,718
      
6,047
      
772
  
Net cash provided investing activities
    
8,286
      
15,446
      
2,354
      
4,388
  
                                 
CASH FLOWS - FINANCING ACTIVITIES
                                
Lease liability payments
    
(2,180
)
    
(2,169
)
    
(619
)
    
(616
)
Dividend distribution
    
(54,906
)
    
(59,975
)
    
(15,598
)
    
(17,038
)
Net cash used in financing activities
    
(57,086
)
    
(62,144
)
    
(16,217
)
    
(17,655
)
                                 
Increase (decrease) in cash and cash equivalents
    
(34,731
)
    
(1,181
)
    
(9,867
)
    
(336
)
Cash and cash equivalents at the beginning of the year
    
195,718
      
201,822
      
55,602
      
57,336
  
Exchange losses on cash and cash equivalents
    
(10,380
)
    
(4,923
)
    
(2,949
)
    
1,399
  
Cash and cash equivalents at the end of the year
    
150,607
      
195,718
      
42,786
      
55,602
  

(*)          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 2
    
2 0 2 1
    
2 0 2 2
    
2 0 2 1
  
   
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 in deferred income taxes
    
2,181
      
1,249
      
620
      
355
  
Unrealized loss (gain) on marketable securities
    
2,985
      
(19,464
)
    
848
      
(5,530
)
Loss (gain) of financial liabilities at fair value through profit or loss
    
(13,960
)
    
13,960
      
(3,966
)
    
3,966
  
Depreciation and amortization
    
6,508
      
6,200
      
1,849
      
1,761
  
Share based payment
    
790
      
-
      
224
      
-
  
Capital gain on disposal of property plant and equipment
    
(222
)
    
(230
)
    
(63
)
    
(65
)
Exchange losses on cash and cash equivalents
    
10,380
      
4,923
      
2,949
      
1,399
  
                                 
Changes in assets and liabilities:
                                
Decrease (increase) in trade receivables and other receivables
    
(17,151
)
    
10,190
      
(4,872
)
    
2,895
  
Increase in inventories
    
(12,401
)
    
(14
)
    
(3,523
)
    
(4
)
Increase (decrease) in trade and other payables, and other current liabilities
    
5,418
      
(3,405
)
    
1,539
      
(967
)
Cash generated from operations
    
(15,472
)
    
13,409
      
(4,395
)
    
3,809
  
Income tax paid
    
(12,023
)
    
(12,993
)
    
(3,417
)
    
(3,691
)
Net cash flows from operating activities
    
(27,495
)
    
416
      
(7,812
)
    
118
  

(*)          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.