YAVNE, Israel, March 18, 2013 /PRNewswire/ --
G. Willi-Food International Ltd. (WILC) (the "Company" or "Willi-Food"), a global company specializing in the development, marketing and international distribution of kosher foods, today announced its financial results for the fourth quarter and the fiscal year ended December 31, 2012.
Fourth Quarter Fiscal 2012 Highlights
- Sales increased 29.6% from fourth quarter of 2011 to NIS 76.4 million (US$ 20.5 million)
- Gross profit increased 181.7% from fourth quarter of 2011 to NIS 20.6 million (US$ 5.5 million), or 26.9% of sales
- Operating income of NIS 7.5 million (US$ 2.0 million), or 9.8% of sales, compared to operating loss of NIS 4.1 million (US$ 1.1 million) , or (7.0%) of sales in the fourth quarter of 2011
- Income from continuing operations of NIS 8.8 million (US$ 2.4 million) compared to loss from continuing operations of NIS 0.6 million (US$ 0.2 million) in the fourth quarter of 2011
- Net income increased 214.6% from fourth quarter of 2011 to NIS 8.8 million (US$ 2.4 million), or 11.5% of sales
- Earning per share of NIS 0.68 (US$ 0.18) compared to earning per share of NIS 0.22 (US$ 0.06) in the fourth quarter of 2011
- Cash and securities balance (net of short-term bank debt) of NIS 206.4 million (US$ 55.3 million) as of December 31, 2012
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.
Fourth Quarter Fiscal 2012 Summary
Sales for the fourth quarter of 2012 increased by 29.6% to NIS 76.4 million (US$ 20.5 million) from NIS 59.0 million (US$ 15.8 million) recorded in the fourth quarter of 2011. The increase in sales in the fourth quarter of 2012 was mostly driven by the introduction of new products in the third and fourth quarters and the increased awareness of the Company's products following increased sales and promotion activities initiated during the past year.
Gross profit for the fourth quarter of 2012 increased by 181.7% to NIS 20.6 million (US$ 5.5 million) compared to NIS 7.3 million (US$ 2.0 million) recorded in the fourth quarter of 2011. Fourth quarter gross margin was 26.9% compared to gross margin of 12.4% for the same period in 2011. The increase in gross margin in the fourth quarter of 2012 was primarily due to the introduction of new higher-margin products into the product lineup and increased sales of existing higher-margin products, while 2011 fourth quarter gross margins were affected by the national protest against the cost of food products that resulted in price reductions of certain products.
Mr. Zwi Williger, Chairman of Willi-Food commented, "We are very pleased to report a robust fourth quarter with strong organic sales growth of 30 percent and gross profit up 182 percent, despite pressure imposed on the Company by the supermarket chains to reduce prices and despite the well-known pressures in commodity costs inflicted worldwide. Our strong performance in the quarter was driven by expanded sales volume of our higher-margin products to new and existing customers. With sales increases in all of our business segments, we were able to achieve one of the highest quarterly sales and gross profit in the Company's history. As we see consumer demand for kosher foods continuing to increase, we are confident that our focused marketing strategy and the introduction of higher-margin products targeted to health-conscious and kosher consumers will continue to support our growth in 2013. We are pleased to consistently deliver significantly higher margins than those generated by most of the other companies in our industry."
Willi-Food's operating income for the fourth quarter of 2012 increased to NIS 7.5 million (US$ 2.0 million) compared to operating loss of NIS 4.1 million (US$ 1.1 million) recorded in the fourth quarter of 2011. Selling expenses increased by 15.1% from the comparable quarter of 2011, primarily due to an increase in vehicles and transport expenses resulted from the incremental increase in sales. Selling expenses as a percentage of sales decreased in the fourth quarter of 2012 to 10.8% compared to 12.1% in the fourth quarter of 2011. General and administrative expenses increased by 9.3% from the fourth quarter of 2011, primarily due to an increase in management profit-related bonuses. General and administrative expenses as a percentage of sales decreased in the fourth quarter of 2012 to 6.2% from 7.3% in the fourth quarter of 2011.
Willi-Food's income before taxes for the fourth quarter of 2012 increased to NIS 11.7 million (US$ 3.1 million) compared to loss before taxes of NIS 1.7 million (US$ 0.4 million) recorded in the fourth quarter of 2011. Willi-Food's income from continuing operations for the fourth quarter of 2012 increased to NIS 8.8 million (US$ 2.4 million) compared to loss from continuing operations of NIS 0.6 million (US$ 0.2 million) recorded in the fourth quarter of 2011.
Willi-Food's net income in the fourth quarter of 2012 increased by 214.6% to NIS 8.8 million (US$ 2.4 million) from NIS 2.8 million (US$ 0.7 million) recorded in the fourth quarter of 2011. Willi-Food's net income attributed to the owners of the Company in the fourth quarter of 2012 increased by 198.0% to NIS 8.8 million (US$ 2.4 million), or NIS 0.68 (US$ 0.18) per share, compared to NIS 2.9 million (US$ 0.8 million), or NIS 0.22 (US$ 0.06) per share, recorded in the fourth quarter of 2011.
Willi-Food ended the fourth quarter of 2012 with NIS 206.4 million (US$ 55.3 million) in cash and securities net from short-term debt. Willi-Food's shareholders' equity at the end of December 2012 was NIS 333.8 million (US$ 89.4 million).
Fiscal 2012 Highlights
- Sales increased 8.4% from fiscal 2011 to NIS 286.5 million (US$ 76.8 million)
- Gross profit increased 11.9% from fiscal 2011 to NIS 69.0 million (US$ 18.5 million), or 24.1% of sales
- Operating income increased 37.3% from fiscal 2011 to NIS 23.5 million (US$ 6.3 million), or 8.2% of sales
- Income from continuing operations increased 67.3% from fiscal 2011 to NIS 24.0 million (US$ 6.4 million), or 8.4% of sales
- Net income increased 29.6% from fiscal 2011 to NIS 24.0 million (US$ 6.4 million)
- Net income attributed to the owners of the Company increased 31.1% from fiscal 2011 to NIS 24.0 million (US$ 6.4 million), or NIS 1.85 (US$ 0.50) per share
Fiscal 2012 Results
Willi-Food's sales for fiscal 2012 increased by 8.4% to NIS 286.5 million (US$ 76.8 million) compared to sales of NIS 264.4 million (US$ 70.8 million) recorded in fiscal 2011. Gross profit for the year increased by 11.9% to NIS 69.0 million (US$ 18.5 million) compared to gross profit of NIS 61.7 million (US$ 16.5 million) recorded in fiscal 2011. Fiscal 2012 gross margins were 24.1% compared to gross margins of 23.3% recorded in Fiscal 2011.
Operating income for fiscal 2012 increased by 37.3% to NIS 23.5 million (US$ 6.3 million) from NIS 17.1 million (US$ 4.6 million) recorded in fiscal 2011. Income before taxes for fiscal 2012 increased by 74.0% to NIS 31.8 million (US$ 8.5 million) compared to NIS 18.3 million (US$ 4.9 million) recorded fiscal 2011. Willi-Food's income from continuing operations for the fiscal 2012 increased to NIS 24.0 million (US$ 6.4 million) compared to NIS 14.3 million (US$ 3.8 million) recorded in fiscal 2011.
Net income for fiscal 2012 increased by 29.6% to NIS 24.0 million (US$ 6.4 million) from NIS 18.5 million (US$ 5.0 million) recorded in fiscal 2011. Net income attributable to the owners of the Company for fiscal 2012 increased by 31.1% to NIS 24.0 million (US$ 6.4 million), or NIS 1.85 (US$ 0.50) per share compared to net income attributable to the owners of the Company for fiscal 2011 of NIS 18.3 million (US$ 4.9 million), or NIS 1.35 (US$ 0.36) per share.
Business Outlook
Mr. Williger continued, "The broad-based strength of our business enabled us to deliver record results, both on the top and bottom lines. We have significantly expanded our product lines and continue to deliver improved margins. Moreover, we are able to differentiate our company through our success by becoming a high margin business in a low margin industry."
Furthermore, Mr. Williger added, "We were able to achieve sales growth through successfully launching new items into our product line, as well as increasing sales of existing products to new and existing customers, while controlling SG&A expense growth. During the past years we have introduced great-tasting, higher margin food products developed together with our suppliers. We implemented our plan to increase the awareness to our newly added products, by initiating promotion and hard sale activities that we believe created broad awareness to our new and old products and broaden our customer base. This plan has helped us achieve our goals to strengthen our position in the market due to our broad range of quality food products. We expect to launch additional new product lines in 2013."
"Our innovative approach to the rapidly expanding kosher food market continues to drive sales and margin growth. 2013 is off to a strong start and to date we have seen double-digit sales growth in the first quarter of 2013," noted Mr. Williger. "We laid the foundation for the future and are focused on driving long-term, profitable growth by capitalizing on our expertise in product innovation and expanding distribution channels. Given our strong organic growth, we are estimating double-digit 2013 sales growth over the US$ 76.8 million reported sales in 2012."
"We believe the foundations of our business are strong and that we are well positioned to continue our expansion," concluded Mr. Williger. "The dynamics of the industry are driving demand for innovative kosher products and Willi-Food has the infrastructure and development expertise to deliver while remaining focused on maximizing long-term profitability. Our strong financial results demonstrate Willi-Food's ability to capitalize on the growing interest of consumers in the kosher market. Our strategy is to cross-market our innovative products to both kosher and health-conscious consumers. We continue to look for opportunities to create additional value for our shareholders."
18 Mar 2013 -
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