YAVNE, Israel, May 28 /PRNewswire-FirstCall/ --
First Quarter 2008 Financial Highlights
- 49% increase in sales over first quarter 2007
- 47% increase in gross profit over first quarter 2007
- 46% increase in operating income over first quarter 2007
- 68% increase in net income related to the Company Shareholders
over first quarter 2007
- 52% increase in net income over first quarter 2007
G. Willi-Food International Ltd. (NASDAQ: WILC) (the "Company" or
"Willi-Food"), one of Israel's largest food importers and a single-source
supplier of one of the world's most extensive range of quality kosher food
products, today announced its unaudited financial results for the first
quarter ended March 31, 2008.
First quarter 2008 results include, for the first time, consolidated
results of Shamir Salads, an Israeli distributor and manufacturer of
Mediterranean style salads, as well as the results of a newly acquired
dairy distributor and manufacturer based in Denmark. Willi-Food's operating
divisions include Willi-Food in Israel, majority owned Gold Frost, Laish
Israeli, and the Company's global kosher trade and export joint venture
with the Baron family.
Revenues for the first quarter of 2008 increased 49.0% to NIS 106.4
million (US$30.0 million) compared to revenues of NIS 71.4 million (US$20.1
million) in the first quarter of 2007. This increase was driven by the
consolidation of the results of Shamir Salads and the dairy distributor
based in Denmark, referred to above, as well as by growth in the Company's
business.
Gross profit for the first quarter of 2008 increased by 47.3% to NIS
30.4 million (US$8.5 million) compared to gross profit of NIS 20.6 million
(US$5.8 million) in the first quarter of 2007. First quarter gross margins
were 28.5%, in line with gross margins of 28.8% for the same period in
2007.
Mr. Zwi Williger, President and COO of Willi-Food commented, "We
returned record figures for the first quarter of 2008 and have further
expanded our footprint, product lines and distribution capabilities
organically and through mergers and acquisitions. 2007 was a very
challenging year for Willi-Food, and the measures that we have taken to
ensure that we were not overly hedged in any one operating business are
beginning to show results. Furthermore first quarter's results demonstrate
that we are beginning to regain the momentum that had been building over
the past few years as we have been able to successfully pass on some of our
costs to our customers. At the same time, we are successfully deploying
other strategic operating initiatives, such as increasing our inventories
to protect against future price increases."
"We are very pleased with the performance of the new acquisitions which
are the obvious drivers of our growth in the quarter," continued Mr.
Williger. "The companies fit strategically with our goal to provide our
customers a wide assortment of innovative kosher products that tap into
popular consumer trends and demand in kosher and healthy eating. Shamir
Salads' range of Mediterranean dips and spreads is widely popular in
Israel, and our Danish dairy business continues to establish a solid base
of customers for its kosher branded products globally. The quarter's
consolidated results, however, were not solely driven by our acquisitions
in the period. In addition, our numbers reflect blended margins that were
only made possible through additional growth along our core organic
businesses as well as strong results coming from activities with the Baron
family joint venture."
The Company also recently reported that the proposal for delisting Gold
Frost's shares from the London AIM exchange was approved by Gold Frost
shareholders; such delisting was effective on May 28, 2008. Gold Frost's
financial results will no longer be reported separately and will be
consolidated under Willi Food's financial statements. The Company is
contemplating making an offer to purchase the remaining shares that it does
not already own.
In addition, the Company announced that Yaron Levy, CFO, will be
leaving the Company on amenable terms, as of May 29 2008. The Company
thanks Yaron for all his diligent efforts. He will be replaced by Ety
Sabach, age 35. Ms. Sabach has extensive experience in the food retail
market. Prior to joining Willi Food she was the CFO of Burger Ranch, one of
the largest fast food chains in Israel, where she began working in May
2002. Between January 1998 and April 2002, Ety served as a Senior Manager
at PriceWaterhouseCoopers Israel. Ety is a certified public accountant
(Israel), and she received her BA in Accounting and Business Management and
MBA in Business Management from the College of Management, Tel-Aviv,
Israel.
Willi-Food's operating income for the first quarter of 2008 increased
by 46.2% to NIS 14.8 million (US$4.2 million) from NIS 10.1 million (US$2.8
million) reported in the comparable quarter of last year.
The Company's first quarter 2008 net income was NIS 9.7 million (US$2.7
million), or NIS 0.84 (US$0.24) per share compared to a net income of NIS
6.4 million (US$1.8 million), or NIS 0.50 (US$0.14) per share, recorded in
the first quarter of 2007.
Willi-Food ended the quarter with $15.9 million in cash and securities
and approximately $4.2 million in short-term debt.
Mr. Williger concluded, "We continue to work to expand the footprint
and brand recognition of Willi-Food globally while diversifying our product
base in order to hedge against any singular event impacting our results.
The cost of commodities and other food materials is still very volatile,
and we cannot gauge where prices will be at the end of the year. Therefore,
we are foregoing guidance until a later date for when we have a better
vision of the outlook ahead. For now, though, we comfortably expect to
surpass the $100 million revenue mark in fiscal 2008."
The Company will host a conference call to discuss results on May 29,
at 11:00 EDT. Interested parties may participate in the conference call by
dialing +1-877-407-8035 (US), or +1-201-689-8035 (International) 5-10
minutes prior to the start of the call. A replay of the conference call
will be available from 5:00 PM EDT on May 29 through 11:59 PM EDT on June
29, by dialing +1-877-660-6853 (US), or +1-201-612-7415 (International),
and entering passcode #286 and conference ID# 286247 thereafter. A webcast
link of the live and archived conference call will be available on the day
of the call by following this link:
http://investor.shareholder.com/media/eventdetail.cfm?mediaid=31681&c=
WILC&mediakey=F6962455698D70EAA18674F8306B44ED&e=0
(Note, that you have to copy and paste the link in its entirety to a
new webpage on your browser for it to work.)
About G. Willi-Food International, Ltd.
G. Willi-Food International Ltd. is one of Israel's largest food
importers and a single-source supplier of one of the world's most extensive
ranges of quality kosher food products. It currently imports, markets and
distributes more than 600 food products manufactured by some 120 top-tier
suppliers throughout the world to more than 2,000 customers. Willi Food
excels in identifying changing tastes in its markets and sourcing
high-quality kosher products to address them. The Company also operated
several subsidiaries: Gold Frost Ltd. subsidiary develops and distributes
kosher chilled and frozen dairy food products internationally; Laish
Israeli subsidiary and joint venture with the Baron Family engage in the
global import, export and distribution of kosher products worldwide; Shamir
Salads is a leading international manufacture and distributor of
pre-packaged Mediterranean foods. For more information, please visit the
Company's website at http://www.willi-food.co.il.
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
revenues, 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:
changes affecting currency exchange rates, including 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, 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 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, 2006,
filed with the Securities and Exchange Commission. 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.
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 March 31, 2008: U.S.
$1.00 equals NIS 3.553. The translation was made solely for the convenience
of the reader.
Note B: IFRS
The Company's consolidated financial results are presented in
accordance with International Financial Reporting Standards ("IFRS"). In
prior years the Company prepared its financial reports in accordance with
generally accepted accounting principles in Israel ("IL GAAP"). The Company
recasted the comparative amounts included in this financial results to
IFRS.
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31, March 31, December 31,
2 0 0 8 2 0 0 7 2 0 0 8 2 0 0 7
NIS US dollars (*)
(in thousands)
ASSETS
Current assets
Cash and cash equivalents 26,189 61,649 7,371 17,351
Marketable securities 30,385 31,267 8,552 8,800
Trade receivables 99,871 63,728 28,109 17,936
Other receivables and
prepaid expenses 8,737 4,374 2,459 1,231
Inventories 51,642 29,166 14,534 8,210
Total current assets 216,824 190,184 61,025 53,528
Fixed assets
Cost 53,919 44,569 15,175 12,544
Less: accumulated 10,621 8,355 2,989 2,351
depreciation and
amortization 43,298 36,214 12,186 10,193
Other assets, net 19,210 13,069 5,407 3,678
279,332 239,467 78,618 67,399
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term loan 14,823 5,978 4,172 1,683
Trade payables 52,277 33,961 14,713 9,558
Related parties 2,490 3,945 701 1,110
Other payables and accrued
expenses 13,814 3,655 3,888 1,029
Total current liabilities 83,404 47,539 23,474 13,380
Long term liabilities
Long term loan 1,322 - 372 -
Deferred tax 305 118 85 33
Accrued severance pay 532 163 150 46
Total long term liabilities 2,159 281 607 79
Warrants to issue shares of
subsidiary 727 1,040 204 292
Shareholders' equity
Ordinary shares NIS 0.10 par
value
(authorized - 50,000,000
shares, issued and
outstanding
- 10,267,893 shares 1,113 1,113 313 313
Additional paid-in capital 59,056 59,056 16,622 16,622
Capital fund relating to
Goodwill 247 - 70 -
Foreign currency translation
reserve (669) (414) (188) (116)
Retained earnings 120,828 112,233 34,007 31,589
Minority Interest 12,467 18,619 3,509 5,240
193,042 190,607 54,333 53,648
279,332 239,467 78,618 67,399
(*)Convenience translation into U.S. dollars
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended Three months ended
March 31 March 31
2 0 0 8 2 0 0 7 2 0 0 8 2 0 0 7
NIS US dollars (*)
(in thousands, except per share and
share data)
Sales 106,445 71,445 29,959 20,108
Cost of sales 76,094 50,838 21,417 14,308
Gross profit 30,351 20,607 8,542 5,800
Selling expenses 9,396 6,004 2,645 1,690
General and administrative
expenses 6,149 4,478 1,731 1,260
Total operating expenses 15,545 10,482 4,376 2,950
Operating income 14,806 10,125 4,166 2,850
Financial income 819 791 231 222
Financial expense 2,529 1,882 711 530
Income before taxes
on income 13,096 9,034 3,686 2,542
Taxes on income 3,438 2,668 968 751
Income after taxes
on income 9,658 6,366 2,718 1,791
Related to:
Company Shareholders' 8,595 5,123 2,419 1,441
Minority interest 1,063 1,243 299 350
Net income 9,658 6,366 2,718 1,791
Earnings per share data:
Earnings per share:
Basic 0.84 0.50 0.24 0.14
Diluted 0.84 0.50 0.24 0.14
Shares used in computing
basic and diluted earnings
per ordinary share: 10,267,893 10,267,893 10,267,893 10,267,893
(*) Convenience translation into U.S. dollars
Company Contact:
G. Willi-Food International Ltd.
Gil Hochboim, Vice President
+972-8-932-1000
gil@willi-food.co.il
IR Contact:
The Global Consulting Group
Christopher Chu
+1-646-284-9426
cchu@hfgcg.com
SOURCE G. Willi-Food International Ltd
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CONTACT:
Company contact: G. Willi Food International
Ltd., Gil Hochboim, Vice President, +972-8-932-1000,
gil@willi-food.co.il. IR Contact: The Global Consulting Group,
Christopher Chu, +1-646-284-9426, cchu@hfgcg.com
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