Company Update
B.S.D Crown Ltd (LSE:BSD)
("BSD" or "the Company")
Company Update
G. Willi-Food International H1 Reports
Tel Aviv, Israel, 12 August, 2014
G. Willi-Food International H1 Reports
The Company announces that G. Willi-Food International Ltd. (NASDAQ: WILC)
published its H1 results today, 12 August, 2014. These results can be accessed
on the NASDAQ website (www.nasdaq.com) through ticker code WILC and are copied
below in full.
The Company owns shares representing approximately 62.21 per cent. of
Willi-Food Investments Ltd.'s fully diluted issued share capital and Willi-Food
Investments Ltd. in turn owns 56.31 per cent. of G. Willi-Food International
Ltd.'s fully diluted issued share capital.
Further information about the Company
For more information about the Company, visit www.emblaze.com.
Enquiries:
Eyal Merdler, CFO:
This email address is being protected from spambots. You need JavaScript enabled to view it.
FOR IMMEDIATE RELEASE
G. Willi-Food Reports H1 2014 sales down 0.5% FROM H1 2013 sales
Net Cash from operating activities of US$ 6.1 million in Q2 2014
YAVNE, Israel - August 12, 2014 - 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 second quarter and the
six-months ended June 30, 2014.
Second Quarter Fiscal 2014 Highlights (income statement highlights compared to
same period last year)
* Sales decreased 6.2% to NIS 79.2 million (US$ 23.0 million);
* Gross profit decreased 5.8% to NIS 20.6 million (US$ 6.0 million), or 26.0%
of sales;
* Operating income decreased 32.8% to NIS 5.6 million (US$ 1.6 million), or
7.0% of sales;
* Net income decreased 43.9% to NIS 4.4 million (US$ 1.3 million), or 5.5% of
sales;
* Earning per share of NIS 0.34 (US$ 0.10);
* Net cash from operating activities of NIS 20.9 million (US$ 6.1 million);
and
* Cash and securities balance of NIS 217.2 million (US$ 63.2 million) as of
June 30, 2014.
Willi-Food's operating divisions include Willi-Food, a distributor of a broad
variety of kosher foods, and its wholly-owned Gold Frost, a designer, developer
and distributor of branded kosher innovative dairy food products.
Second Quarter Fiscal 2014 Summary
Sales for the second quarter of 2014 decreased by 6.2% to NIS 79.2 million (US$
23.0 million) from NIS 84.4 million (US$ 24.5 million) recorded in the second
quarter of 2013. Sales decreased in the second quarter of 2014 primarily due to
a decline in consumption in food products by the Israeli consumer.
Gross profit for the second quarter of 2014 decreased by 5.8% to NIS 20.6
million (US$ 6.0 million) compared to NIS 21.8 million (US$ 6.4 million)
recorded in the second quarter of 2013. Second quarter gross margin was 26.0%
compared to gross margin of 25.9% for the same period in 2013. The decrease in
gross margin in the second quarter of 2014 was primarily due to the decreased
sales.
Willi-Food's operating income for the second quarter of 2014 decreased by 32.8%
to NIS 5.6 million (US$ 1.6 million) compared to NIS 8.3 million (US$ 2.4
million) recorded in the second quarter of 2013. Selling expenses increased by
15.7% from the comparable quarter of 2013, primarily due to an increase in
promotion expenses as well as vehicle and transport expenses. Selling expenses
as a percentage of sales increased in the second quarter of 2014 to 13.1%
compared to 10.6% in the second quarter of 2013. General and administrative
expenses remained the same as in the second quarter of 2013, although an
expense of NIS 0.5 million (US$ 0.14 million) related to options granted to the
Company's Chairman, President and CEO in November 2013, was recorded in the
second quarter of 2014. General and administrative expenses as a percentage of
sales increased in the second quarter of 2014 to 5.8% from 5.5% in the second
quarter of 2013.
Willi-Food's income before taxes for the second quarter of 2014 decreased by
44.7% to NIS 5.7 million (US$ 1.7 million) compared to NIS 10.4 million (US$
3.0 million) recorded in the second quarter of 2013.
Willi-Food's net income in the second quarter of 2014 decreased by 43.9% to NIS
4.4 million (US$ 1.3 million), or NIS 0.34 (US$ 0.10) per share, from NIS 7.8
million (US$ 2.3 million), or NIS 0.60 (US$ 0.17) per share, recorded in the
second quarter of 2013.
Willi-Food ended the second quarter of 2014 with NIS 217.2 million (US$ 63.2
million) in cash and securities net from short-term debt. Net cash from
operating activities for 2014 second quarter was NIS 20.9 million (US$ 6.1
million). Willi-Food's shareholders' equity at the end of June 2014 was NIS
377.5 million (US$ 109.8 million).
First Half Fiscal 2014 Highlights (compared to same period last year)
* Sales decreased 0.5% to NIS 174.20 million (US$ 50.7 million);
* Gross profit decreased 2.9% to NIS 42.0 million (US$ 12.2 million), or
24.1% of sales;
* Operating income decreased 31.3% to NIS 12.0 million (US$ 3.5 million), or
6.9% of sales;
* Net income decreased 28.4% to NIS 11.5 million (US$ 3.3 million), or 6.6%
of sales; and
* Earning per share of NIS 0.88 (US$ 0.26).
Six-Month Results
Willi-Food's sales for the six-month period ending June 30, 2014 decreased by
0.5% to NIS 174.2 million (US$ 50.7 million) compared to sales of NIS 175.0
million (US$ 50.9 million) in the first half of 2013. Gross profit for the
period decreased by 2.9% to NIS 42.0 million (US$ 12.2 million) compared to
gross profit of NIS 43.2 million (US$ 12.6 million) for the first half of 2013.
First half 2014 gross margins were 24.1% compared to gross margins of 24.7% in
the same period of 2013.
Operating income for the first half of 2014 decreased by 31.3% to NIS 12.0
million (US$ 3.5 million) from NIS 17.5 million (US$ 5.1 million) reported in
the comparable period of last year. First half 2014 income before taxes
decreased by 27.2% to NIS 15.5 million (US$ 4.5 million) compared to NIS 21.3
million (US$ 6.2 million) recorded in the first half of 2013. Net income for
the first half of 2014 decreased by 28.4% to NIS 11.5 million (US$ 3.3
million), or NIS 0.88 (US$ 0.26) per share, from NIS 16.0 million (US$ 4.7
million), or NIS 1.24 (US$ 0.34) per share, recorded in the first half of 2013.
Business Outlook
Mr. Zwi Williger, Chairman of Willi-Food, commented, "Although store visits
remained steady, consumption of food products by Israeli consumers continued to
decline sharply for the second quarter in a row, causing our second quarter
sales to decline by 6.2% from the second quarter in 2013. Despite this decline,
we were able to maintain gross margins of 26%. The Israeli economy has been
negatively impacted in the third quarter by Operation Protective Edge, a
military action launched by the State of Israel on July 8, 2014 in the
Hamas-controlled Gaza Strip. As a result, we expect economic uncertainty to
continue which, coupled with other changes in the Israeli market and ongoing
consumer pressure for price reductions, will likely negatively affect our
results in near future. As a result, we do not expect to meet our budget for
the third and fourth quarters of 2014."
Mr. Williger concluded, "While this period of consumer belt-tightening
continues, our challenge for the forseeable future will be to better manage our
expenses, in particular the cost of our products and selling expenses, in order
to provide consumers with the lower cost products they desire. In this way, we
hope to maintain our customer base both in the retail and wholesale markets
during these difficult times for the food industry."
Conference Call
The Company will host a conference call and live webcast on August 21, 2014 to
discuss the financial results beginning at 11:00 AM Eastern Time. Interested
parties may participate on the call by dialing 1-888-455-2296 (US), or
1-719-325-2454 (International), approximately 10 minutes prior to the scheduled
start time. Participants may also access a live listen only webcast at:
http://public.viavid.com/index.php?id=110538
Following the conclusion of the call, a telephonic replay will be available for
14 days beginning at 2:00 PM Eastern Time on August 21, 2014 through 11:59 PM
Eastern Time on September 4, 2014 and may be accessed by dialing 1-877-870-5176
(US), or 1-858-384-5517 (International), using access code 1375115. In
addition, an archived webcast will be available for one year at:
http://public.viavid.com/reports/eventparticipantreporttab.php?id=o5eipJqf
NOTE A: Convenience Translation to Dollars
The convenience translation of New Israeli Shekels (NIS) into U.S. dollars was
made at the rate of exchange prevailing on June 30, 2014, U.S. $1.00 equals NIS
3.438. The translation was made solely for the convenience of the reader.
NOTE B: IFRS
The Company's consolidated financial results for the three-month ended June 30,
2014 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 1,500 customers 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, and inability to meet and
maintain regulatory qualifications and approvals for our products, termination
of arrangements with our suppliers, in particular Arla Foods, 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, 2013, filed with the Securities and Exchange Commission on April
30, 2014. 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.
{FINANCIAL TABLES TO FOLLOW}
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December June 30, December
31, 31,
2 0 1 4 2 0 1 3 2 0 1 3 2 0 1 4 2 0 1 3 2 0 1 3
NIS US dollars (*)
(in thousands)
ASSETS
Current assets
Cash and cash equivalents 58,559 76,038 36,197 17,033 22,117 10,529
Financial assets carried at 158,654 133,065 112,864 46,147 38,704 32,828
fair value through profit
or loss
Trade receivables 96,099 82,615 82,932 27,952 24,030 24,122
Other receivables and 6,329 3,459 2,694 1,842 1,006 784
prepaid expenses
Inventories 38,875 43,841 54,001 11,307 12,752 15,707
Loan carried at fair value - - 65,300 - - 18,994
through profit or loss
Total current assets 358,516 339,018 353,988 104,281 98,609 102,964
Non-current assets
Property, plant and 69,143 65,345 66,663 20,111 19,007 19,390
equipment
Less -Accumulated 26,726 23,040 25,689 7,774 6,702 7,472
depreciation
42,417 42,305 40,974 12,337 12,305 11,918
Other receivables and 51 475 50 15 138 14
prepaid expenses
Deferred taxes 133 - - 39 - -
Goodwill 36 36 36 10 10 10
Total non-current assets 42,637 42,816 41,060 12,401 12,453 11,942
401,153 381,834 395,048 116,682 111,062 114,906
EQUITY AND LIABILITIES
Current liabilities
Short-term bank debt - - 18 - - 5
Trade payables 14,888 21,715 20,245 4,330 6,316 5,889
Employees Benefits 2,135 1,726 1,880 621 502 547
Current tax liabilities 9 2,364 637 3 688 185
Other payables and accrued 5,992 5,291 5,282 1,743 1,539 1,536
expenses
Total current liabilities 23,024 31,096 28,062 6,697 9,045 8,162
Non-current liabilities
Deferred taxes - 283 499 - 82 145
Retirement benefit 614 570 644 179 166 187
obligation
Total non-current 614 853 1,143 179 248 332
liabilities
Shareholders' equity
Share capital 1,407 1,444 1,407 409 420 409
Additional paid in capital 120,228 129,903 119,281 34,970 37,784 34,695
Capital fund 247 247 247 72 72 72
Foreign currency - 705 786 - 205 229
translation reserve
Remeasurement of the net (33) 11 (63) -10 3 (18)
liability in respect of
defined benefit
Treasury shares - (10,843) - - (3,154) -
Retained earnings 255,666 228,418 244,185 74,365 66,439 71,025
Equity attributable to 377,515 349,885 365,843 109,806 101,769 106,412
owners of the Company
401,153 381,834 395,048 116,682 111,062 114,906
(*) Convenience translation into U.S. dollars.
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Six months Three months Six months
ended June 30, ended June 30, ended June 30,
2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3
NIS U.S. dollars (*)
In thousands (except per share and share data)
Sales 174,178 174,999 79,209 84,414 50,663 50,901
Cost of sales 132,209 131,770 58,644 62,574 38,455 38,328
Gross profit 41,969 43,229 20,565 21,840 12,208 12,573
Selling expenses 20,420 16,488 10,353 8,946 5,939 4,796
General and 9,684 9,290 4,628 4,622 2,817 2,702
administrative
expenses
Other income (147) (34) - (34) (43) (11)
Total operating 29,957 25,744 14,981 13,534 8,713 7,487
expenses
Operating income 12,012 17,485 5,584 8,306 3,495 5,086
Financial income 4,156 4,587 659 1,948 1,209 1,334
Financial expense 684 801 522 (97) 199 233
Total financial income 3,472 3,786 137 2,045 1,010 1,101
Income before taxes on 15,484 21,271 5,721 10,351 4,505 6,187
income
Taxes on income 4,003 5,230 1,347 2,560 1,164 1,521
Profit for the period 11,481 16,041 4,374 7,791 3,341 4,666
Earnings per share:
Earnings per share
Basic earnings per 0.88 1.24 0.34 0.60 0.26 0.34
share
Diluted earnings per 0.88 1.24 0.34 0.60 0.26 0.34
share
Shares used in 12,974,245 12,974,245 12,974,245 12,974,245 12,974,245 12,974,245
computation of basic
EPS
(*) Convenience translation into U.S. dollars
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Six months Three months Six months
ended June 30, ended June 30, ended June 30,
2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3
NIS U.S. dollars (*)
In thousands (except per share and share data)
Cash flows - operating
activities
Profit from operations 11,481 16,041 4,374 7,791 3,341 4,666
Adjustments to reconcile (8,199) (10,525) 16,503 4,438 (2,387) (3,062)
net income to net cash
from operating activities
(Appendix)
Net cash from operating 3,282 5,516 20,877 12,229 954 1,604
activities
Cash flows - investing
activities
Acquisition of property (4,004) (5,560) (2,175) (1,165) (1,165) (1,617)
plant and equipment
Proceeds from sale of 970 29 225 29 282 8
property plant and
Equipment
Additions to long term - (445) - - - (129)
other receivables
Proceeds from Loan 65,400 - - - 19,023 -
carried at fair value
through profit or loss
Proceeds from purchase (43,268) 28,865 (11,104) 5,321 (12,585) 8,396
(sale) of marketable
securities, net
Net cash from (used in) 19,098 22,889 (13,054) 4,185 5,555 6,658
investing activities
Cash flows - financing
activities
Short-term bank credit, (18) (9,930) (2,644) (19) (5) (2,888)
net
Net cash used in (18) (9,930) (2,644) (19) (5) (2,888)
financing activities
Increase in cash and cash 22,362 18,475 5,179 16,395 6,504 5,374
equivalents
Cash and cash equivalents 36,197 57,563 53,380 59,643 10,529 16,743
at the beginning of the
financial year
Cash and cash equivalents 58,559 76,038 58,559 76,038 17,033 22,117
of the end of the
financial year
(*) Convenience Translation into U.S. Dollars.
G. WILLI-FOOD INTERNATIONAL LTD.
APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months Three months Six months
ended june 30, ended june 30, Ended June 30,
2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3
NIS U.S. dollars
(*)
In thousands (except per share and share data)
Cash flows from operating
activities:
A. Adjustments to reconcile
net profit to net cash from
operating activities
Deferred income taxes (632) 303 (432) 528 (184) 88
Unrealized loss (gain) on (2,522) (3,120) 486 (1,551) (734) (908)
marketable securities
Depreciation and amortization 1,779 2,166 889 1,155 517 630
Capital gain on disposal of (188) (29) - (29) (55) (8)
property plant and equipment
Stock based compensation 947 6 471 1 275 2
reserve
Unrealized Gain of loan (100) - - - (29) -
carried at fair value through
profit or loss
Net foreign exchange gain (786) - (786) - (229) -
Changes in assets and
liabilities:
Decrease (increase) in trade (16,803) (9,474) 6,810 91 (4,887) (2,756)
receivables and other
receivables
Decrease (increase) in 15,126 5,429 14,625 (49) 4,399 1,579
inventories
Increase (decrease) in trade (5,020) (5,806) (5,560) 4,292 (1,460) (1,689)
and other payables, and other
current liabilities
(8,199) (10,525) 16,503 4,438 (2,387) (3,062)
B. Significant non-cash
transactions:
Supplemental cash flow
information:
Income tax paid 4,667 4,466 2,220 2,301 1,357 1,299
(*) 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.
Raviv Segal, CFO
(+972) 8-932-1000
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###
SOURCE: G. Willi-Food International Ltd.
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