YAVNE, Israel, Nov. 19, 2019 /PRNewswire/ -- 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 third quarter ended September 30, 2019.
Third Quarter Fiscal Year 2019 Highlights
- Sales increased by 15.7% year-over-year to NIS 95.4 million (US$ 27.4 million).
- Gross profit increased by 16.8% year-over-year to NIS 29.8 million (US$ 8.6 million).
- Operating profit of NIS 12.6 million (US$ 3.6 million), or 13.2% of sales, compared to operating profit of NIS 10.5 million (US$ 3.0 million) in the comparable quarter of 2018.
- Net profit increased by 0.5% year-over-year to NIS 10.3 million (US$ 3.0 million), or 10.8% of sales.
- Net cash from operating activities of NIS 19.0 million (US$ 5.5 million).
- Cash and securities balance of NIS 284.1 million (US$ 81.6 million) as of September 30, 2019.
- Earnings per share of NIS 0.78 (US$ 0.22).
Management Comment
Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food, commented: "We are pleased to present the third quarter 2019 financial results, which show continued improvements in sales, gross profit and operating profit year-over-year for nine quarters in a row. According to retail data analytics provided by StoreNext Ltd[1], the Company recorded a higher growth rate in the first nine months of 2019 for "sale out" sales (in other words, sales to the final consumer) than any other Israeli food and beverage company, growing 31.2% compared to the average of such companies, which grew by 2.5%.
We are focusing on increasing the Company's market share in the food sector in Israel by entering new and emerging categories in the Israeli food market and by examining company acquisition opportunities. We believe that our growing business and other Company plans for the coming years will further improve Company results."
Third Quarter Fiscal 2019 Summary
Sales for the third quarter of 2019 increased by 15.7% to NIS 95.4 million (US$ 27.4 million) from NIS 82.4 million (US$ 23.7 million) recorded in the third quarter of 2018. Sales increased primarily due to a redirection of resources to increase support for sales activity and an increase in the variety of Company products.
Gross profit for the third quarter of 2019 increased by 16.8% to NIS 29.8 million (US$ 8.6 million) compared to NIS 25.5 million (US$ 7.3 million) recorded in the third quarter of 2018. Third quarter gross margin increased by 0.3% to 31.3% compared to gross margin of 31.0% for the same period in 2018.
Selling expenses increased by 10.5% to NIS 12.3 million (US$ 3.5 million) compared to NIS 11.1 million (US$ million 3.2) in the third quarter of 2018 primarily due to an increase in manpower and payroll expenses. Selling expenses as a percentage of sales were 12.9%, compared to 13.5% in the third quarter of 2018.
General and administrative expenses increased by 24.4% to NIS 5.0 million (US$ 1.4 million) compared to NIS 4.0 million (US$ million 1.1) in the third quarter of 2018. The increase in general and administrative expenses was primarily due to an increase in management payroll expenses and legal and consulting expenses.
As a result, operating profit for the third quarter of 2019 increased by 19.9% to NIS 12.6 million (US$ 3.6 million) compared to NIS 10.5 million (US$ 3.0 million) in the third quarter of 2018.
Willi-Food's income before taxes for the third quarter of 2019 was NIS 13.3 million (US$ 3.8 million) compared to income before taxes of NIS 13.1 million (US$ 3.8 million) in the third quarter of 2018.
Willi-Food's net profit in the third quarter of 2019 was NIS 10.3 million (US$ 3.0 million), or NIS 0.78 (US$ 0.22) per share, compared to NIS 10.3 million (US$ 3.0 million), or NIS 0.78 (US$ 0.2) per share recorded in the third quarter of 2018.
Willi-Food ended the third quarter of 2019 with NIS 284.1 million (US$ 81.6 million) in cash and securities. Net cash from operating activities for the third quarter of 2019 was NIS 19.0 million (US$ 5.5 million). Willi-Food's shareholders' equity at the end of September 2019 was NIS 478.7 million (US$ 137.5 million).
First Nine Months of Fiscal 2019 Highlights
- Sales increased by 15.4% year-over-year to NIS 293.3 million (US$ 84.2 million).
- Gross profit increased by 24.0% year-over-year to NIS 89.9 million (US$ 25.8 million).
- Operating profit increased by 26.9% year-over-year to NIS 35.0 million (US$ 10.0 million), or 11.9% of sales.
- Net profit increased by 56.2% to NIS 37.4 million (US$ 10.8 million), or 12.8% of sales.
- Net cash from operating activities of NIS 21.9 million (US$ 6.3 million).
- Earning per share of NIS 2.83 (US$ 0.81).
First Nine Months of Fiscal 2019 Summary
Willi-Food's sales for the nine-month period ending September 30, 2019 increased by 15.4% to NIS 293.3 million (US$ 84.2 million) compared to sales of NIS 254.2 million (US$ 73.0 million) in the first nine months of 2018. Sales increased in the first nine months of 2019 primarily due to a redirection of resources to increase support for sales activity and an increase in the variety of Company products.
Gross profit for the period increased by 24.0% to NIS 89.9 million (US$ 25.8 million) compared to gross profit of NIS 72.5 million (US$ 20.8 million) for the first nine months of 2018. Gross margin for the first nine months of 2019 was 30.6% compared to a gross margin of 28.5% for the same period in 2018. The increase in gross margin was the result of the increased sales and the Company's continued strategic focus on selling a favorable mix of products which generate a higher gross margin.
Operating profit for the first nine months of 2019 increased by 26.9% to NIS 35.0 million (US$ 10.0 million) from NIS 27.6 million (US$ 7.9 million) reported in the comparable period of last year primarily due to the increase of gross profit.
Income before taxes for the first nine months of 2019 increased by 54.6% to NIS 47.5 million (US$ 13.6 million) compared to NIS 30.7 million (US$ 8.8 million) recorded in the first nine months of 2018.
Net income for the first nine months of 2019 increased by 56.2% to NIS 37.4 million (US$ 10.8 million), or NIS 2.83 (US$ 0.81) per share, from NIS 24.0 million (US$ 6.9 million), or NIS 1.82 (US$ 0.52) per share, recorded in the first nine months of 2018.
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 September 30, 2019, U.S. $1.00 equals NIS 3.482. The translation was made solely for the convenience of the reader.
NOTE B: IFRS
The Company's consolidated financial results for the three and nine-month period ended September 30, 2019 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 600 food products worldwide. As one of Israel's leading food importers, Willi-Food markets and sells its food products to over 1,250 customers and 2,500 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 Gold Frost, a wholly owned subsidiary who 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: 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; 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, 2018, filed with the Securities and Exchange Commission on March 27, 2019. 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.
(*) Convenience translation into U.S. dollars.
(*) Convenience translation into U.S. dollars.
(*) Convenience Translation into U.S. Dollars.
(*) 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.
[1] StoreNext Ltd. has a direct connection to the cash register systems of over 2,200 points of sales, providing information regarding 80% of real time sales data in Israel.
Company Contact:
G. Willi - Food International Ltd.Yitschak Barabi, Financial Manager (+972) 8-932-1000itsik.b@willi-food.co.il
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SOURCE G. Willi-Food International Ltd.