G. Willi-Food earnings rise

G. Willi-Food earnings rise

Kosher food specialist G. Willi-Food has booked a surge in nine-month profits, boosted by higher sales and margins.

The company said today (6 November) that net income increased by 61.9% to NIS24.6m (US$7m) in the nine-months to 30 September, up from NIS15.2m last year. Operating income for the first nine months of 2013 increased by 54.5% to NIS24.7m, the group added.

Gains were driven by an increase in sales, which rose 20.9% to NIS253.9m, and an improved profit margin. Gross margins increased from 25.2% of sales compared to 23.1% last year.

"Our financial results have significantly improved over the last five quarters as a direct result of our strategy to organically grow our customer base and product line, while at the same time expanding our margins. We intend to reinvest in the development of the company in order to maximize profitability and increase long-term value for our shareholders," chairman Zwi Williger commented.

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G. Willi-Food Reports Q3 2013 Net Income Up 36.6% From Q3 2012

YAVNE, IsraelNov. 6, 2013 /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 and the nine months ended September 30, 2013.

Third Quarter Fiscal 2013 Highlights (income statement highlights compared to same period last year)

  • Sales increased 12.6% to NIS 78.9 million (US$ 22.3 million);
  • Gross profit increased 27.4% to NIS 20.7 million (US$ 5.9 million), or 26.2% of sales;
  • Operating income increased 26.2% to NIS 7.2 million (US$ 2.0 million), or 9.1% of sales;
  • Net income increased 36.6% to NIS 8.6 million (US$ 2.4 million), or 10.9% of sales;
  • Earning per share increased to NIS 0.66 (US$ 0.19);
  • Net cash from operating activities of NIS 5.2 million (US$ 1.5 million); and
  • Cash and securities balance of NIS 218.0 million (US$ 61.6 million) as of September 30, 2013.

Willi-Food's operating divisions include Willi-Food, a distributor of a broad variety of kosher foods, and its wholly-owned subsidiary Gold Frost, a designer, developer and distributor of branded kosher innovative dairy food products.

Third Quarter Fiscal 2013 Summary
Sales for the third quarter of 2013 increased by 12.6% to NIS 78.9 million (US$ 22.3 million) compared to NIS 70.1 million (US$ 19.8 million) recorded in the third quarter of 2012. Sales have increased in recent quarters as a result of growing demand from domestic and international customers for quality kosher products. In addition, we continued to benefit from a shift in behavior inIsrael as cost-conscious consumers recognize our products as a viable alternative to higher cost leading brands.

Gross profit for the third quarter of 2013 increased by 27.4% to NIS 20.7 million (US$ 5.9 million) compared to NIS 16.3 million(US$ 4.6 million) recorded in the third quarter of 2012. Third quarter gross margin was 26.2% compared to gross margin of 23.2% for the same period in 2012. The improvement in gross margin was the result of a favorable mix of product revenue during the quarter as sales of higher gross margin products increased faster than sales of lower gross margin products.

Willi-Food's operating income for the third quarter of 2013 increased by 26.2% to NIS 7.2 million (US$ 2.0 million) compared toNIS 5.7 million (US$ 1.6 million) recorded in the third quarter of 2012. Selling expenses increased by 30.9% from the comparable quarter of 2012, primarily due to an increase in promotional expenses as well as vehicles and transport expenses, each of which increased due to the growth in sales. Selling expenses as a percentage of sales increased in the third quarter of 2013 to 11.3% compared to 9.7% in the third quarter of 2012. General and administrative expenses increased by 19.4% from the third quarter of 2012, primarily due to an increase in management profit-related bonuses. General and administrative expenses as a percentage of sales increased in the third quarter of 2013 to 5.9% from 5.5% in the third quarter of 2012.

Willi-Food's income before taxes for the third quarter of 2013 increased by 40.9% to NIS 11.5 million (US$ 3.2 million) compared to NIS 8.1 million (US$ 2.3 million) recorded in the third quarter of 2012.

Willi-Food's net income in the third quarter of 2013 increased by 36.6% to NIS 8.6 million (US$ 2.4 million), or NIS 0.66 (US$ 0.19) per share, from NIS 6.3 million (US$ 1.8 million), or NIS 0.49 (US$ 0.14) per share, recorded in the third quarter of 2012.

Willi-Food ended the third quarter of 2013 with NIS 218.0 million (US$ 61.6 million) in cash and securities net from short-term debt. Net cash from operating activities for 2013 third quarter was NIS 5.2 million (US$ 1.5 million). Willi-Food's shareholders' equity at the end of September 2013 was NIS 358.5 million (US$ 101.4 million).

Nine-Month Fiscal 2013 Highlights (compared to same period last year)

  • Sales increased 20.9% to NIS 253.9 million (US$ 71.8 million);
  • Gross profit increased 31.9% to NIS 63.9 million (US$ 18.1 million), or 25.2% of sales;
  • Operating income increased 54.5% to NIS 24.7 million (US$ 7.0 million), or 9.7% of sales;
  • Net income increased 61.9% to NIS 24.6 million (US$ 7.0 million), or 9.7% of sales; and
  • Earning per share increased to NIS 1.90 (US$ 0.54).

Nine-Month Results
Willi-Food's sales for the nine-month period ending September 30, 2013 increased by 20.9% to NIS 253.9 million (US$ 71.8 million) compared to sales of NIS 210.1 million (US$ 59.4 million) in the first nine months of 2012. Gross profit for the period increased by 31.9% to NIS 63.9 million (US$ 18.1 million) compared to gross profit of NIS 48.5 million (US$ 13.7 million) for the first nine months of 2012. First nine-month gross margins in 2013 were 25.2% compared to gross margins of 23.1% in the same period of 2012.

Operating income for the first nine months of 2013 increased by 54.5% to NIS 24.7 million (US$ 7.0 million) from NIS 15.9 million (US$ 4.5 million) reported in the comparable period of last year.  First nine months 2013 income before taxes increased by 62.9% to NIS 32.7 million (US$ 9.3 million) compared to NIS 20.1 million (US$ 5.7 million) recorded in the first nine months of 2012. Net income for the first nine months of 2013 increased by 61.9% to NIS 24.6 million (US$ 7.0 million), or NIS 1.90(US$ 0.54) per share, from NIS 15.2 million (US$ 4.3 million), or NIS 1.17 (US$ 0.33) per share, recorded in the first nine months of 2012.

Business Outlook
Mr. Zwi Williger, Chairman of Willi-Food, commented, "We are very pleased to report another strong quarter with organic sales growth of 12.6 percent, gross profit growth of 27.4 percent and net income growth of 36.6 percent as our customer base continues to expand and market demand for our products continues to increase. Although the holiday calendar reduced the number of working days in Israel during September of this year to only 13, we continued to gain traction with new customers while product sales to existing customers also continued to grow. Following the national protests in 2011 against the rising prices of food products, customers realized that they can obtain food products from us of comparable or better quality than those of the leading brands but at more affordable prices, causing our customer base and the demand for our products to increase. Our financial results have significantly improved over the last five quarters as a direct result of our strategy to organically grow our customer base and product line, while at the same time expanding our margins. We intend to reinvest in the development of the company in order to maximize profitability and increase long-term value for our shareholders."

Dismissal of Claims by Mr. Arcadi Gaydamak against Messrs. Zwi and Joseph Williger 
Messrs. Zwi and Joseph Williger have informed the Company that in the context of mediation they have agreed with Mr. Arcadi Gaydamak to the dismissal of Mr. Gaydamak's claims against them.  As previously reported by the Company, in 2009 Mr. Arcadi Gaydamak filed a lawsuit against Messrs. Zwi and Joseph Williger claiming, among other things, that they did not rightfully exercise their call option under loan agreements following which Messrs. Zwi and Joseph Williger each increased his holdings by 21.65% of the outstanding shares of the Company's parent company, Willi-Food Investments Ltd. (based on its outstanding shares at the time).   As a result of their agreement, all claims between the parties have been dismissed.   

Original source: G. Willi-Food