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

 
FOR IMMEDIATE RELEASE

G. WILLI-FOOD INTERNATIONAL REPORTS 9.0% INCREASE IN
SALES AND A RECORD HIGH ANNUAL SALES IN 2023.

YAVNE, Israel - March 21, 2024 - 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, 2023.

Fiscal Year 2023 Highlights
 
•
Sales increased by 9.0% to NIS 543.3 million (US$ 149.8 million) from NIS 498.3 million (USD 1374. million) in fiscal year 2022.
•
Gross profit decreased by 15.9% from fiscal year 2022 to NIS 120.6 million (USD 33.3 million) in 2023.
•
Operating profit decreased by 54.9% from fiscal year 2022 to NIS 20.4 million (USD 5.6 million) in 2023.
•
Cash and cash equivalents balance of NIS 239.6 million (USD 66.1 million) as of December 31, 2023.
•
Basic earnings per share of NIS 2.28 (US$ 0.63).

Management Comment
 
Zwi Williger Chairmen & Joseph Williger CEO, commented: "We are very pleased to present our fiscal year 2023 financial results with record annual sales. Calendar year 2023 was characterized by an appreciation of the value of the Israeli shekel and worldwide increase of prices of goods worldwide compared to 2022. As a result, the Company experienced a decrease in gross profit. Also in October 7, 2024, the "Iron swords" war broke out between the State of Israel and the terror organization of Hamas in Gaza, which led to additional military conflicts on other fronts, including repeated attacks on ships in the Red Sea by the Houthis from Yemen, which caused restrictions of sailing on this route. One of the results has been an increase in transport costs of goods from the Far East, as well as significant delays in the arrival of goods from those destinations. Despite these negative effects, the Company increased its sales by expanding the range of its product portfolio and improving the visibility of its products in the stores. In parallel, the Company is working to improve the commercial terms with its customers and suppliers in order to improve its gross profit and operating profit results. The Company is also continuing the construction of the new logistics center which, in our estimation, after its completion will contribute significantly to the company's logistics capabilities and support continued growth both in terms of sales and in improving profit. Our main goals for 2024 are increasing sales by increasing the variety of products offered and by increasing the visibility and presence of our products on the shelves, improving our commercial terms with our customers and suppliers as well as continuing the construction of the new logistics center which is expected to be completed in 2025.

Fiscal 2023 Summary
 
Revenues for fiscal year 2023 increased by 9.0% to NIS 543.3 million (USD 149.8 million) from NIS 498.3 million (USD 137.4 million) recorded in fiscal year 2022. Sales increased mainly due to increases (i) in the range of the Company's products, (ii) in our inventory levels and its availability for the demand of our products, (iii) in the Company’s efforts to improve visibility of the Company’s line of products in stores and (iv) in advertising and promotional campaigns.
 
Gross profit for fiscal year 2023 decreased by 15.7% to NIS 120.6 million (USD 33.3 million), or 22.2% of revenues, from NIS 143.1 million (USD 39.4 million), or 28.7% of revenues, recorded in fiscal year 2022. The decrease in gross profit and gross margins was mainly due to increased costs of the Company’s imported products.
 
Selling expenses for fiscal year 2023 were NIS 74.2 million (USD 20.5 million), or 13.6% of revenues, remaining at the same level compared to NIS 74.1 million (USD 20.4 million), or 14.9% of revenues recorded in fiscal year 2022. The decrease of selling expenses as a percentage of revenues was mainly due to a decrease in advertising costs.
 
General and administrative expenses for fiscal year 2023 increased by 8.3% to NIS 26.1 million (USD 7.2 million), or 4.8% of revenues, from NIS 24.1 million (USD 6.6 million), or 4.8% of revenues, recorded in fiscal year 2022. The increase in general and administrative expenses was primarily due to an increase in management compensation, including grants made under the Company's option plan.
 
Operating profit for fiscal year 2023 decreased by 54.9% to NIS 20.4 million (USD 5.6 million), or 3.7% of revenues, from NIS 45.1 million (USD 12.4 million), or 9.0% of revenues, recorded in fiscal year 2022. The decrease in operating profit was primarily due to an increase in cost of sales.
 
Financial income, net, for fiscal year 2023 amounted to NIS 18.8 million (USD 5.2 million), compared to NIS  8.9million (USD 2.5 million) recorded in fiscal year 2022. Financial income, net for fiscal year 2023 comprised mainly of income from interest and dividend income from the Company’s portfolio of securities in an amount of NIS 14.3 million (USD 3.9 million) and income from revaluation of the Company’s portfolio of securities to fair value in the amount of NIS 5.3 million (USD 1.5 million), offset by expenses from other finance expenses in an amount of NIS 1.5 million (USD 0.4 million). 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 2.5 million) and exchange rate differences in an amount of NIS 4.4 million (USD 1.2 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 1.0 million).
 
Willi-Food ended fiscal year 2023 with NIS 239.6 million (USD 66.1 million) in cash and cash equivalents with no debt. Net cash from operating activities in fiscal year 2023 was NIS 33.3 million (USD 9.2 million). Willi-Food's shareholders' equity at the end of December 2023 was NIS 552.2 million (USD 152.2 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 3.627 as of December 31, 2023. 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, 2023 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 include statements regarding the timing of construction of the Company’s new logistics center and its expected benefits. 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: delays in the construction of the Company’s new logistics center and the risk that its expected benefits will not be materialized, 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 political, economic and military conditions in Israel, particularly the recent war in Israel, and economic conditions in the Company's core markets, delays and price increases due to the attacks on global shipping routes in the Red Sea, , 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, 2023, filed with the Securities and Exchange Commission on March 21, 2024. 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 3
    
2 0 2 2
    
2 0 2 3
    
2 0 2 2
  
 
NIS
    
US dollars (*)
  
   
(in thousands)
  
ASSETS
                        
Current assets
                        
Cash and cash equivalents
    
137,466
      
150,607
      
37,901
      
41,524
  
Financial assets at fair value through profit or loss
    
102,163
      
116,762
      
28,167
      
32,192
  
Trade receivables, Net
    
160,379
      
165,838
      
44,218
      
45,723
  
Other receivables and prepaid expenses
    
10,164
      
4,956
      
2,802
      
1,366
  
Inventories, Net
    
62,475
      
71,929
      
17,225
      
19,832
  
Current tax assets
    
9,497
      
3,117
      
2,618
      
859
  
Total current assets
    
482,144
      
513,209
      
132,931
      
141,496
  
                                 
Non-current assets
                                
Property, plant and equipment
    
122,222
      
99,216
      
33,698
      
27,355
  
Less -Accumulated depreciation
    
55,636
      
51,533
      
15,339
      
14,208
  
     
66,586
      
47,683
      
18,359
      
13,147
  
                                 
Right of use asset
    
2,124
      
3,391
      
586
      
935
  
Financial assets at fair value through profit or loss
    
46,143
      
44,113
      
12,722
      
12,162
  
Goodwill
    
36
      
36
      
10
      
10
  
Total non-current assets
    
114,889
      
95,223
      
31,677
      
26,254
  
                                 
     
597,033
      
608,432
      
164,608
      
167,750
  
EQUITY AND LIABILITIES
                                
Current liabilities
                                
                                 
Current maturities of lease liabilities
    
1,512
      
2,194
      
417
      
605
  
Trade payables
    
21,622
      
24,842
      
5,961
      
6,849
  
Employees Benefits
    
4,193
      
3,756
      
1,156
      
1,036
  
Other payables and accrued expenses
    
10,854
      
11,836
      
2,993
      
3,264
  
Total current liabilities
    
38,181
      
42,628
      
10,527
      
11,754
  
                                 
Non-current liabilities
                                
Lease liabilities
    
694
      
1,284
      
191
      
354
  
Deferred taxes
    
4,868
      
4,198
      
1,342
      
1,156
  
Retirement benefit obligation
    
1,055
      
878
      
291
      
242
  
Total non-current liabilities
    
6,617
      
6,360
      
1,824
      
1,752
  
                                 
Shareholders' equity
                                
Share capital
    
1,490
      
1,490
      
411
      
411
  
Additional paid in capital
    
172,589
      
171,550
      
47,585
      
47,298
  
Remeasurement of the net liability in respect of defined benefit
    
(154
)
    
(195
)
    
(42
)
    
(54
)
Capital fund
    
247
      
247
      
68
      
68
  
Retained earnings
    
378,691
      
386,980
      
104,408
      
106,694
  
Treasury shares
    
(628
)
    
(628
)
    
(173
)
    
(173
)
Equity attributable to owners of the Company
    
552,235
      
559,444
      
152,257
      
154,244
  
                                 
     
597,033
      
608,432
      
164,608
      
167,750
  

(*)
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 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
    
543,262
      
498,325
      
149,783
      
137,393
  
Cost of sales
    
422,695
      
355,228
      
116,541
      
97,940
  
                                 
Gross profit
    
120,567
      
143,097
      
33,242
      
39,453
  
                                 
Operating costs and expenses:
                                
Selling expenses
    
74,216
      
74,106
      
20,462
      
20,432
  
General and administrative expenses
    
26,110
      
24,117
      
7,199
      
6,649
  
Other income
    
(109
)
    
(222
)
    
(30
)
    
(61
)
Total operating expenses
    
100,217
      
98,001
      
27,631
      
27,020
  
                                 
Operating profit
    
20,350
      
45,096
      
5,611
      
12,433
  
                                 
Financial income
    
20,363
      
13,417
      
5,614
      
3,699
  
Financial expense
    
1,521
      
4,539
      
419
      
1,251
  
Total Finance income
    
18,842
      
8,878
      
5,195
      
2,448
  
                                 
Income before taxes on income
    
39,192
      
53,974
      
10,806
      
14,881
  
Taxes on income
    
7,536
      
12,410
      
2,078
      
3,422
  
                                 
Income after taxes on income
    
31,656
      
41,564
      
8,728
      
11,459
  
                                 
Earnings per share:
                                
Basic / diluted earnings per share
    
2.28
      
3.00
      
0.63
      
0.83
  
                                 
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 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
    
31,656
      
41,564
      
8,728
      
11,460
  
Adjustments to reconcile net profit to net cash from continuing operating activities (Appendix A)
    
2,052
      
(27,495
)
    
566
      
(7,581
)
Net cash from continuing operating activities
    
33,708
      
14,069
      
9,294
      
3,879
  
                                 
CASH FLOWS - INVESTING ACTIVITIES
                                
Acquisition of property plant and equipment
    
(4,605
)
  

(**) (6,006)

   
(1,270
)
    
(1,656
)
Acquisition of property plant and equipment under construction
    
(18,941
)
  

(**) (7,344)

   
(5,222
)
    
(2,025
)
Proceeds from sale of property plant and Equipment
    
208
      
351
      
57
      
97
  
Proceeds from sale of marketable securities, net
    
18,166
      
21,285
      
5,009
      
5,868
  
Net cash used in (from) continuing investing activities
    
(5,172
)
    
8,286
      
(1,426
)
    
2,284
  
                                 
CASH FLOWS - FINANCING ACTIVITIES
                                
Lease liability payments
    
(2,408
)
    
(2,180
)
    
(664
)
    
(601
)
Dividend distribution
    
(39,945
)
    
(54,906
)
    
(11,012
)
    
(15,138
)
Net cash used to continuing financing activities
    
(42,353
)
    
(57,086
)
    
(11,676
)
    
(15,739
)
                                 
Decrease in cash and cash equivalents
    
(13,817
)
    
(34,731
)
    
(3,808
)
    
(9,576
)
Cash and cash equivalents at the beginning of the year
    
150,607
      
195,718
      
41,523
      
53,961
  
Exchange gains (losses) on cash and cash equivalents
    
676
      
(10,380
)
    
186
      
(2,862
)
Cash and cash equivalents at the end of the year
    
137,466
      
150,607
      
37,901
      
41,523
  

(*)          Convenience Translation into U.S. Dollars.
(**)        Reclassified

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 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:                        
A.          Adjustments to reconcile net profit to net cash from continuing operating activities
                        
Decrease in deferred income taxes
    
670
      
2,181
      
185
      
601
  
Unrealized loss (gain) on marketable securities
    
(5,597
)
    
2,985
      
(1,543
)
    
823
  
Loss (gain) of financial liabilities at fair value through profit or loss
    
-
      
(13,960
)
    
-
      
(3,849
)
Depreciation and amortization
    
6,950
      
6,508
      
1,916
      
1,794
  
Stock based compensation reserve
    
1,039
      
790
      
286
      
218
  
Capital gain on disposal of property plant and equipment
    
(109
)
    
(222
)
    
(30
)
    
(61
)
Exchange (losses) gains on cash and cash equivalents
    
(676
)
    
10,380
      
(186
)
    
2,862
  
                                 
Changes in assets and liabilities:
                                
Decrease (Increase) in trade receivables and other receivables
    
7,527
      
(17,151
)
    
2,075
      
(4,729
)
Decrease (increase) in inventories
    
9,454
      
(12,401
)
    
2,607
      
(3,419
)
Increase (decrease) in trade payables, other payables and other current liabilities
    
(3,547
)
    
5,418
      
(978
)
    
1,494
  
Cash generated from operations
    
15,711
      
(15,472
)
    
4,332
      
(4,266
)
Income tax paid
    
(13,659
)
    
(12,023
)
    
(3,766
)
    
(3,315
)
Net cash flows from (used in) operating activities
    
2,052
      
(27,495
)
    
566
      
(7,581
)

(*)          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.