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

FOR IMMEDIATE RELEASE

G. WILLI-FOOD INTERNATIONAL REPORTS FIRST QUARTER 2023 RESULTS WITH A RECORD HIGH QUARTERLY SALES

YAVNE, Israel – May 15, 2023 - 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 first quarter ended March 31, 2023.

First Quarter Fiscal Year 2023

•
Sales increased by 28.2% to NIS 151.4 million (US$ 41.9 million) from NIS 118.1 million (US$ 32.7 million) in the first quarter of 2022.
•
Gross profit increased by 17.0% year-over-year to NIS 40.0 million (US$ 11.1 million).
•
Operating income increased by 37.7% year-over-year to NIS 13.0 million (US$ 3.6 million).
•
Cash and securities balance of NIS 236.7 million (US$ 65.5 million) as of March 31, 2023.
•
Basic earnings per share of NIS 0.78 (US$ 0.21).

Management Comment

Zwi Williger & Joseph Williger, Chairmen & CEO of Willi-Food, commented: "We are pleased to present the Company’s first quarter 2023 financial results with record quarterly sales and strong operational results. Although the Company’s gross profit margin was adversly affected by the strengthening of the USD and Euro currencies in which the Company buys its products and the increase of product prices, the Company succeeded in achieving an improvement in its operational profit. This improvement was mainly due to the increase with sales, which resulted from the expansion of our range of products, an increase in inventory levels and availability and increased efforts in advertising and marketing, these actions caused an increase in demand for the Company's products and higher availability of the Company's products in stores. We believe that investing in our logistic capabilities and in sales and marketing capabilitis will help us to further expand our business activity in the future.

First Quarter Fiscal 2023 Summary

Sales for the first quarter of 2023 increased by 28.2% to NIS 151.4 million (US$ 41.9 million) from NIS 118.1 million (US$ 32.7 million) recorded in the first quarter of 2022. Sales increased mainly due to (i) an increase in the range of the Company's products, (ii) increased efforts to increase our inventory levels and its availability for the increasing demand for our products, (iii) increased efforts to improve presence of the Company’s line of products in stores and (iv) advertising and promotional campaigns.

Gross profit for the first quarter of 2023 increased by 17.0% to NIS 40.0 million (US$ 11.1 million) compared to NIS 34.2 million (US$ 9.5 million) recorded in the first quarter of 2022. First quarter gross profit rate decreased by 2.6% to 26.4% compared to gross profit rate of 29.0% for the same period in 2022. The increase in gross profit was mainly due to increased sales that offset the increased costs of the Company’s imported products compared to the cost of products in the first quarter of 2022.

Selling expenses increased by 3.6% to NIS 19.9 million (US$ 5.5 million) compared to NIS 19.2 million (US$ 5.3 million) in the first quarter of 2022. The increase was primarily due to an increase in expenses transportation and maintenance to support the increased sales.

General and administrative expenses increased by 29.1% to NIS 7.1 million (US$ 2.0 million) compared to NIS 5.5 million (US$ 1.5 million) in the first quarter of 2022. The increase in general and administrative expenses was primarily due to an increase in management compensation and options grants made under the Company's option plan.

Operating profit for the first quarter of 2023 increased by 37.7% to NIS 13.0 million (US$ 3.6 million) compared to NIS 9.5 million (US$ 2.6 million) in the first quarter of 2022. The increase was primarily due to the increase in gross profit.

Financial income, net was NIS 0.5 million (US$ 0.1 million) for the first quarter of 2023 compared to NIS 5.8 million (US$ 1.6 million) in the first quarter of 2022. Financial income, net for the first quarter of 2023 comprised mainly from interest and dividend income from the Company’s portfolio of securities in an amount of NIS 3.8 million (USD 1.0 million) and expenses from revaluation of the Company’s portfolio of securities to fair value in an amount of NIS 3.3 million (USD 0.9 million).

Willi-Food’s income before taxes for the first quarter of 2023 was NIS 13.5 million (US$ 3.7 million) compared to income before taxes of NIS 15.3 million (US$ 4.2 million) in the first quarter of 2022.

Willi-Food's net profit in the first quarter of 2023 was NIS 10.8 million (US$ 3.0 million), or NIS 0.78 (US$ 0.21) per share, compared to NIS 13.6 million (US$ 3.8 million), or NIS 0.98 (US$ 0.27) per share, recorded in the first quarter of 2022. Net profit for the first quarter of 2023 decreased by 20.5% year-over-year. The decrease in net profit was mainly due to a decrease from revaluation of the Company’s portfolio of securities to fair value.

Willi-Food ended the first quarter of 2023 with NIS 236.7 million (US$ 65.5 million) in cash and securities. Net cash used for continuing activities for the first quarter of 2023 was NIS 21.0 million (US$ 5.8 million). Willi-Food's shareholders' equity at the end of March 2023 was NIS 540.7 million (US$ 149.6 million).

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 March 31, 2023, with U.S. $1.00 equal to NIS 3.615 The translation was made solely for the convenience of the reader.

NOTE B: IFRS
The Company’s consolidated financial results for the three-month period ended March 31, 2023 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 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 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: war in Ukraine, the COVID-19 pandemic, disruptions to international commercial shipping and disruptions in commodity pricing 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, and risks associated with product liability claims. 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, 2023. 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

 
March 31,
    
December 31
    
March 31,
    
December 31
  
 
2 0 2 3
    
2 0 2 2
    
2022
    
2 0 2 3
    
2 0 2 2
    
2022
  
 
NIS
    
US dollars (*)
  
   
(in thousands)
  
ASSETS
                                    
                                     
Current assets
                                    
Cash and cash equivalents
    
131,472
      
198,339
      
150,607
      
36,368
      
54,866
      
41,662
  
Financial assets carried at fair value through profit or loss
    
105,272
      
147,808
      
116,762
      
29,121
      
40,887
      
32,299
  
Trade receivables
    
177,648
      
139,781
      
165,838
      
49,142
      
38,667
      
45,875
  
Other receivables and prepaid expenses
    
8,113
      
6,723
      
4,956
      
2,245
      
1,860
      
1,371
  
Inventories
    
95,596
      
66,537
      
71,929
      
26,444
      
18,406
      
19,897
  
Current tax assets
    
2,732
      
4,305
      
3,117
      
756
      
1,191
      
862
  
Total current assets
    
520,833
      
563,493
      
513,209
      
144,076
      
155,877
      
141,966
  
                                                 
Non-current assets
                                                
Property, plant and equipment
    
106,052
      
89,563
      
99,216
      
29,337
      
24,775
      
27,446
  
Less -Accumulated depreciation
    
52,593
      
49,735
      
51,533
      
14,549
      
13,758
      
14,255
  
     
53,459
      
39,828
      
47,683
      
14,788
      
11,017
      
13,191
  
                                                 
Right of use asset
    
3,289
      
3,544
      
3,391
      
910
      
980
      
938
  
Financial assets carried at fair value through profit or loss
    
44,084
      
31,282
      
44,113
      
12,195
      
8,653
      
12,203
  
Goodwill
    
36
      
36
      
36
      
10
      
10
      
10
  
Total non-current assets
    
100,868
      
74,690
      
95,223
      
27,903
      
20,660
      
26,342
  
                                                 
     
621,701
      
638,183
      
608,432
      
171,979
      
176,537
      
168,308
  
EQUITY AND LIABILITIES
                                                
                                                 
Current liabilities
                                                
Current maturities of lease liabilities
    
2,243
      
1,025
      
2,194
      
620
      
284
      
607
  
Trade payables
    
27,242
      
22,509
      
24,842
      
7,536
      
6,227
      
6,872
  
Employees Benefits
    
4,590
      
5,051
      
3,756
      
1,270
      
1,397
      
1,039
  
Financial liabilities at fair value through profit or loss
    
-
      
6,519
      
-
      
-
      
1,803
      
-
  
Other payables and accrued expenses
    
41,068
      
30,542
      
11,836
      
11,360
      
8,449
      
3,275
  
Total current liabilities
    
75,143
      
65,646
      
42,628
      
20,786
      
18,160
      
11,793
  
                                                 
Non-current liabilities
                                                
Lease liabilities
    
1,205
      
2,643
      
1,284
      
333
      
730
      
355
  
Deferred taxes
    
3,663
      
3,296
      
4,198
      
1,013
      
912
      
1,161
  
Retirement benefit obligation
    
924
      
1,688
      
878
      
256
      
467
      
243
  
Total non-current liabilities
    
5,792
      
7,627
      
6,360
      
1,602
      
2,109
      
1,759
  
                                                 
Shareholders' equity
                                                
Share capital
    
1,490
      
1,490
      
1,490
      
412
      
412
      
412
  
Additional paid in capital
    
171,976
      
170,760
      
171,550
      
47,573
      
47,237
      
47,455
  
Remeasurement of the net liability in respect of defined benefit
    
(195
)
    
(959
)
    
(195
)
    
(54
)
    
(265
)
    
(54
)
Capital fund
    
247
      
247
      
247
      
68
      
68
      
68
  
Retained earnings
    
367,876
      
394,000
      
386,980
      
101,766
      
108,990
      
107,049
  
Treasury shares
    
(628
)
    
(628
)
    
(628
)
    
(174
)
    
(174
)
    
(174
)
Equity attributable to owners of the Company
    
540,766
      
564,910
      
559,444
      
149,591
      
156,268
      
154,756
  
                                                 
     
621,701
      
638,183
      
608,432
      
171,979
      
176,537
      
168,308
  

(*)          Convenience translation into U.S. dollars.

G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 
Three months
    
Three months
  
 
ended
    
ended
  
 
March 31,
    
March 31,
  
 
2 0 2 3
    
2 0 2 2
    
2 0 2 3
    
2 0 2 2
  
 
NIS
    
US dollars (*)
  
   
In thousands (except per share and share data)
  
                         
Sales
    
151,356
      
118,069
      
41,869
      
32,661
  
Cost of sales
    
111,322
      
83,827
      
30,795
      
23,189
  
                                 
Gross profit
    
40,034
      
34,242
      
11,074
      
9,472
  
                                 
Operating costs and expenses:
                                
                                 
Selling expenses
    
19,919
      
19,238
      
5,510
      
5,322
  
General and administrative expenses
    
7,117
      
5,546
      
1,969
      
1,534
  
Other income
    
25
      
-
      
7
      
-
  
Total operating expenses
    
27,011
      
24,784
      
7,472
      
6,856
  
                                 
Operating income
    
13,023
      
9,458
      
3,602
      
2,616
  
                                 
Financial income  
    
4,606
      
6,030
      
1,274
      
1,668
  
Financial expenses
    
(4,080
)
    
(182
)
    
(1,129
)
    
(50
)
                                 
Total financial income, net
    
526
      
5,848
      
145
      
1,618
  
                                 
Income before taxes on income
    
13,549
      
15,306
      
3,747
      
4,234
  
Taxes on income
    
(2,704
)
    
(1,662
)
    
(748
)
    
(460
)
                                 
Profit for the period
    
10,845
      
13,644
      
2,999
      
3,774
  
                                 
Earnings per share:
                                
Basic / diluted earnings per share
    
0.78
      
0.98
      
0.21
      
0.27
  
                                 
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

   
Three months
ended
    
Three months
ended
  

 
March 31,
    
March 31,
  

  2 0 2 3    
2 0 2 2
    
2 0 2 3
    
2 0 2 2
  

 
NIS
    
US dollars (*)
  

 
In thousands (except per share and share data)
  

   
     
     
     
 
CASH FLOWS - OPERATING ACTIVITIES
                        
Profit from continuing operations
    
10,845
      
13,644
      
2,999
      
3,774
  
Adjustments to reconcile net profit to net cash used in continuing operating activities (Appendix A)
    
(31,858
)
    
(11,347
)
    
(8,812
)
    
(3,139
)
Net cash from (used in) continuing operating activities
    
(21,013
)
    
2,297
      
(5,813
)
    
635
  
                                 
                                 
CASH FLOWS - INVESTING ACTIVITIES
                                
Acquisition of property plant and equipment
    
(6,811
)
    
(2,317
)
    
(1,884
)
    
(641
)
Proceeds from sale of marketable securities, net
    
8,493
      
8,204
      
2,348
      
2,269
  
Net cash provided investing activities
    
1,682
      
5,887
      
464
      
1,628
  
                                 
CASH FLOWS - FINANCING ACTIVITIES
                                
Lease liability payments
    
(493
)
    
(531
)
    
(136
)
    
(147
)
Net cash used in continuing financing activities
    
(493
)
    
(531
)
    
(136
)
    
(147
)
                                 
Increase (decrease) in cash and cash equivalents
    
(19,824
)
    
7,653
      
(5,485
)
    
2,116
  
Cash and cash equivalents at the beginning of the year
    
150,607
      
195,718
      
41,662
      
54,141
  
Exchange gains (losses) on cash and cash equivalents
    
689
      
(5,032
)
    
191
      
(1,392
)
Cash and cash equivalents at the end of the year
    
131,472
      
198,339
      
36,368
      
54,865
  

(*)          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 continuing operating activities:

 
Three months
    
Three months
  
 
ended
    
ended
  
 
March 31,
    
March 31,
  
 
2 0 2 3
    
2 0 2 2
    
2 0 2 3
    
2 0 2 2
  
 
NIS
    
US dollars (*)
  
   
(in thousands)
  
Decrease (increase) in deferred income taxes
    
(535
)
    
1,279
      
(148
)
    
354
  
Unrealized loss (gain) on marketable securities
    
3,024
      
(2,148
)
    
837
      
(594
)
Unrealized gain of financial liabilities at fair value through profit or loss
    
-
      
(7,441
)
    
-
      
(2,058
)
Depreciation and amortization
    
1,625
      
1,848
      
450
      
511
  
Capital gain on disposal of property plant and equipment
    
(25
)
    
-
      
(7
)
    
-
  
Exchange losses (gain) on cash and cash equivalents
    
(689
)
    
5,032
      
(191
)
    
1,392
  
Stock based compenation reserve
    
426
      
-
      
118
      
-
  
                                 
Changes in assets and liabilities:
                                
Increase in trade receivables and other receivables
    
(11,247
)
    
(3,226
)
    
(3,111
)
    
(892
)
Increase in inventories
    
(23,667
)
    
(7,009
)
    
(6,547
)
    
(1,939
)
Increase in trade and other payables, and other current liabilities
    
2,564
      
3,165
      
709
      
876
  
Cash generated from operations
    
(28,524
)
    
(8,500
)
    
(7,890
)
    
(2,350
)
Income tax paid
    
(3,334
)
    
(2,847
)
    
(922
)
    
(789
)
Net cash flows from operating activities
    
(31,858
)
    
(11,347
)
    
(8,812
)
    
(3,139
)


B.
Significant non-cash transactions:

 
Three months
    
Three months
  
 
ended
    
ended
  
 
March 31,
    
March 31,
  
 
2 0 2 3
    
2 0 2 2
    
2 0 2 3
    
2 0 2 2
  
 
NIS
    
US dollars (*)
  
   
(in thousands)
  
Dividend payable
    
29,949
      
19,966
      
8,285
      
5,523
  

(*)          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.