zk1212331.htm


SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549
 
FORM 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of September 2012

 
G. WILLI-FOOD INTERNATIONAL LTD.
(Translation of registrant's name into English)
 
4 Nahal Harif St., Yavne, Israel 81106
(Address of principal executive offices)

 
Indicate by check mark whether registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
 
FORM 20-F x   FORM 40-F o
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):..........
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):............
 
Indicate by check mark whether registrant by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
 
YES o   NO x
 
If "YES" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):  82-________.
 
 
 

 

Attached hereto and incorporated by reference herein is a press release issued by G. Willi-Food International Ltd. on November 28, 2012.
 
This report on Form 6-K is hereby incorporated by reference in the Registration Statements on Form F-3 (File No. 333-11848 and 333-138200) of the Registrant.
 
 
 

 

SIGNATURES
 
In accordance with the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
G. WILLI-FOOD INTERNATIONAL LTD.
 
       
Dated:  November 28, 2012
By:
/s/ Raviv Segal  
   
Name:  Raviv Segal
 
   
Title:  Chief Financial Officer
 
 
 
 

 
 
 
 
 

 
FOR IMMEDIATE RELEASE

G. WILLI-FOOD REPORTS Q3 2012 NET INCOME UP 179% FROM Q3 2011

YAVNE, Israel – November 28, 2012 -- G. Willi-Food International Ltd. (NASDAQ: WILC) (the “Company” or “Willi-Food”), a global company specializing 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, 2012.

Third Quarter Fiscal 2012 Highlights
 
 
·
Sales increased 8.0% from third quarter of 2011 to NIS 70.1 million (US$ 17.9 million)
 
·
Gross profit increased 5.4% from third quarter of 2011 to NIS 16.3 million (US$ 4.2 million), or 23.2% of sales
 
·
Operating income increased 34.7% from third quarter of 2011 to NIS 5.7 million (US$ 1.5 million), or 8.1% of sales
 
·
Net income increased 179.1% from third quarter of 2011 to NIS 6.3 million (US$ 1.6 million), or 9.0% of sales
 
·
Cash and securities balance of NIS 216.1 million (US$ 55.2 million) as of September 30, 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 dairy food products.
 
Third Quarter Fiscal 2012 Summary
 
Sales for the third quarter of 2012 increased by 8.0% to NIS 70.1 million (US$ 17.9 million) from NIS 64.9 million (US$ 16.6 million) recorded in the third quarter of 2011. The increase in sales in the third quarter of 2012 was mostly driven by the introduction of new products in the third quarter and the increased awareness of the Company's new products following increased sales activities initiated during the past year.
 
Gross profit for the third quarter of 2012 increased by 5.4% to NIS 16.3 million (US$ 4.2 million) compared to NIS 15.4 million (US$ 3.9 million) recorded in the third quarter of 2011. Third quarter gross margin was 23.2% compared to gross margin of 23.8% for the same period in 2011. The decrease in gross margins was primarily due to the continued pressure from our customers to reduce prices as a result of the ongoing national protest against the cost of food products.
 
Willi-Food’s operating income for the third quarter of 2012 increased by 34.7% to NIS 5.7 million (US$ 1.5 million) compared to NIS 4.2 million (US$ 1.1 million) recorded in the third quarter of 2011. Selling expenses decreased by 7.3% from the comparable quarter of 2011, primarily due to a decrease in vehicles and transport expenses. Selling expenses as a percentage of sales decreased in the third quarter of 2012 to 9.7% compared to 11.3% in the third quarter of 2011. General and administrative expenses increased by 1.3% from the comparable 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 third quarter of 2012 to 5.5% from 5.9% in the third quarter of 2011.
 
Willi-Food’s income before taxes for the third quarter of 2012 increased by 125.4% to NIS 8.1 million (US$ 2.1 million) compared to NIS 3.6 million (US$ 0.9 million) recorded in the third quarter of 2011. Willi-Food’s profit from continuing operations for the third quarter of 2012 increased by 157.5% to NIS 6.3 million (US$ 1.6 million) from NIS 2.4 million (US$ 0.6 million) recorded in the third quarter of 2011.
 
 
 

 
 
Willi-Food's net income in the third quarter of 2012 increased by 179.1% to NIS 6.3 million (US$ 1.6 million) from NIS 2.3 million (US$ 0.6 million) recorded in the third quarter of 2011. Willi-Food's net income attributed to the owners of the Company in the third quarter of 2012 increased by 168.2% to NIS 6.3 million (US$ 1.6 million), or NIS 0.49 (US$ 0.13) per share, compared to NIS 2.3 million (US$ 0.6 million), or NIS 0.17 (US$ 0.04) per share, recorded in the third quarter of 2011.
 
Willi-Food generated NIS 12.6 million (US$ 3.2 million), or NIS 0.97 (US$ 0.25) per share from continuing operating activities in the third quarter of 2012.

Willi-Food ended the third quarter of 2012 with NIS 216.1 million (US$ 55.2 million) in cash and securities and with no short-term debt. Willi-Food's shareholders' equity at the end of September 2012 was NIS 324.9 million (US$ 83.0 million).
 
Nine-Month Results

Willi-Food’s sales for the nine-month period ending September 30, 2012 increased by 2.3% to NIS 210.1 million (US$ 53.7 million) compared to sales of NIS 205.4 million (US$ 52.5 million) in the first nine-month of 2011. Gross profit for the period decreased by 10.9% to NIS 48.5 million (US$ 12.4 million) compared to gross profit of NIS 54.4 million (US$ 13.9 million) for the nine-month period in 2011. First nine-month gross margins in 2012 were 23.1% compared to gross margins of 26.5% in the same period of 2011.

Operating income for the first nine months of 2012 decreased by 24.8% to NIS 16.0 million (US$ 4.1 million) from NIS 21.2 million (US$ 5.4 million) reported in the comparable period of last year.  Income before taxes for the first nine months of 2012 increased by 0.9% to NIS 20.1 million (US$ 5.1 million) compared to NIS 19.9 million (US$ 5.1 million) recorded in the first nine months of 2011. Net income for the first nine months of 2012 decreased by 3.2% to NIS 15.2 million (US$ 3.9 million) from NIS 15.7 million (US$ 4.0 million) in the first nine months of 2011. Net income attributable to the owners of the Company for the first nine months of 2012 decreased by 0.9% to NIS 15.2 million (US$ 3.9 million), or NIS 1.17 (US$ 0.30) per share compared to net income attributable to the owners of the Company for the first nine months of 2011 of NIS 15.4 million (US$ 3.9 million), or NIS 1.13 (US$ 0.29) per share.

Business Outlook

Mr. Zwi Williger, Chairman of Willi-Food commented, “We are pleased with our overall performance and our third quarter 2012 results, especially in the current challenging environment of increased competition resulting from customer demand to reduce prices despite the global inflation in the purchase prices of food commodities . We grew sales and gross profits while controlling SG&A expense growth. Third quarter operating income increased by nearly 35% and net income increased by nearly 180%, despite pressure imposed on the Company by the supermarket chains to reduce prices and despite the well-known pressures in commodity costs inflicted worldwide. Throughout 2011 and 2012 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."
 
Mr. Williger concluded, “Looking forward, we are confident that we can deliver sales and profit growth in the fourth quarter of 2012 and in 2013 compared to the comparable periods.  The fourth quarter of 2012 is off to a good start, and we believe that the positive momentum will continue in recently introduced products, and that several new product line introductions can further boost sales. We are understandably cautious regarding ongoing global commodity price inflationand the impact of the ongoing national protest against the cost of food products, but we believe we are well-positioned to limit any impacts. We will sustain our flexible purchasing strategyand are highly focused on reducing production costs and SG&A expenses. We continue to look for opportunities to create additional value for our shareholders.”
 
 
 

 

Conference Call

The Company will host a conference call to discuss results on Wednesday, November 28, 2012 at 10:00 AM Eastern time. Interested parties may participate in the conference call by dialing 1-877-941-2068 (US), or 1-480-629-9712 (International), approximately 10 minutes prior to the scheduled start time. Interested parties can also listen via a live Internet webcast, which will be available on the day of the call through the following link:
 
 http://public.viavid.com/index.php?id=102717

A replay of the conference call will be available for 14 days from 1:00 PM EST on November 28, 2012 through 11:59 PM EST on December 12, 2012 by dialing 1-877-870-5176 (US), or 1-858-384-5517 (International), access code 4577670.  In addition, a recording of the call will be available via the following link for one year:
 
http://public.viavid.com/reports/eventparticipantreporttab.php?id=o5akppie

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 September 30, 2012, U.S. $1.00 equals NIS 3.912. The translation was made solely for the convenience of the reader.

NOTE B: IFRS
The Company’s consolidated financial results for the three-month and nine-month ended September 30, 2012 are presented in accordance with International Financial Reporting Standards (“IFRS”).

NOTE C: Discontinued Operations
Discontinued operations are measured and presented in accordance with the provisions of IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations". The results of discontinued operations are presented in the income statement in a separate item below income from continuing operations.
 
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.
 
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, 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, 2011, filed with the Securities and Exchange Commission on April 30, 2012 and its amendment, filed with the Securities and Exchange Commission on August 30, 2012. 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

   
September 30,
   
December 31,
   
September 30,
   
December 31,
 
   
2 0 1 2
   
2 0 1 1
   
2 0 1 2
   
2 0 1 1
 
   
NIS
   
US dollars (*)
 
   
(in thousands)
 
          ASSETS
                       
Current assets
                       
Cash and cash equivalents
    65,558       34,661       16,758       8,860  
Financial assets carried at fair value through profit or loss
    150,546       163,430       38,483       41,777  
Trade receivables
    63,767       57,628       16,300       14,731  
Other receivables and prepaid expenses
    6,175       15,720       1,578       4,018  
Inventories
    28,265       32,613       7,225       8,337  
Total current assets
    314,311       304,052       80,344       77,723  
                                 
Non-current assets
                               
Property, plant and equipment
    62,056       61,401       15,863       15,696  
Less -Accumulated depreciation
    20,756       18,856       5,306       4,820  
      41,300       42,545       10,557       10,876  
                                 
Prepaid expenses
    117       117       31       31  
Goodwill
    36       36       9       9  
Deferred taxes
    1,130       933       289       238  
Total non-current assets
    42,583       43,631       10,886       11,154  
      356,894       347,683       91,230       88,877  
EQUITY AND LIABILITIES
                               
Current liabilities
                               
Trade payables
    24,527       25,683       6,270       6,565  
Employees Benefits
    1,602       1,613       410       412  
Accruals
    833       1,164       213       298  
Current tax liabilities
    95       3,837       24       981  
Other payables and accrued expenses
    4,535       4,551       1,159       1,163  
Total current liabilities
    31,592       36,848       8,076       9,419  
                                 
Non-current liabilities
                               
Retirement benefit obligation
    447       518       114       132  
Total non-current liabilities
    447       518       114       132  
                                 
Shareholders' equity
                               
Share capital NIS 0.10 par value
                               
(authorized - 50,000,000 shares, issued
                               
and outstanding – 12,974,245 shares at September
30, 2012; 13,020,360 shares at December 31, 2011)
    1,444       1,444       369       369  
Additional paid in capital
    129,875       129,809       33,199       33,182  
Capital fund
    247       247       63       63  
Foreign currency translation reserve
    541       587       138       152  
Retained earnings
    203,591       188,371       52,043       48,152  
Treasury shares
    (10,843 )     (10,141 )     (2,772 )     (2,592 )
      324,855       310,317       83,040       79,326  
                                 
      356,894       347,683       91,230       88,877  

(*)           Convenience translation into U.S. dollars
 
 
 

 

G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

   
Nine-months
   
Three months
   
Nine-months
 
   
ended September 30,
   
ended September 30,
 
   
2 0 1 2
   
2 0 1 1
   
2 0 1 2
   
2 0 1 1
   
2 0 1 2
   
2 0 1 1
 
   
NIS
   
US dollars (*)
 
   
In thousands (except per share and share data)
 
                                     
Sales
    210,111       205,433       70,127       64,905       53,709       52,514  
Cost of sales
    161,640       51,0291       53,876       49,486       41,319       38,607  
                                                 
Gross profit
    48,471       54,404       16,251       15,419       12,390       13,907  
                                                 
 Selling expenses
    20,684       20,331       6,801       7,338       5,287       5,197  
 General and administrative expenses
    11,991       13,053       3,882       3,834       3,065       3,337  
 Other income
    (160 )     (186 )     (113 )     29       (41 )     (48 )
                                                 
Total operating expenses
    32,515       33,198       10,570       11,201       8,311       8,486  
                                                 
Operating income
    15,956       21,206       5,681       4,218       4,079       5,421  
                                                 
Financial income
    4,432       (940 )     2,698       (580 )     1,133       (240 )
Financial expense
    293       350       238       26       75       90  
Total financial income (expenses)
    4,139       (1,290 )     2,460       (606 )     1,058       (330 )
                                                 
 Income before taxes on income
    20,095       19,916       8,141       3,612       5,137       5,091  
 Taxes on income
    4,875       4,931       1,848       1,168       1,246       1,260  
                                                 
Income from continuing operations
    15,220       14,985       6,293       2,444       3,891       3,831  
Income from discontinued operations
    -       743       -       (189 )     -       190  
                                                 
Net income
    15,220       15,728       6,293       2,255       3,891       4,021  
                                                 
Owners of the Company
    15,220       15,363       6,293       2,346       3,891       3,928  
Non-controlling interest
    -       365       -       (91 )     -       93  
Net income
    15,220       15,728       6,293       2,255       3,891       4,021  
                                                 
Earnings per share data:
                                               
Earnings per share:
                                               
Basic from continuing operations
    1.17       1.10       0.49       0.18       0.30       0.28  
Basic from discontinued operations
    -       0.03       -       (0.01 )     -       0.01  
Basic
    1.17       1.13       0.49       0.17       0.30       0.29  
Diluted from continuing operations
    1.17       1.10       0.49       0.18       0.30       0.28  
Diluted from discontinued operations
    -       0.03       -       (0.01 )     -       0.01  
Diluted
    1.17       1.13       0.49       0.17       0.30       0.29  
                                                 
Shares used in computing basic and diluted earnings per ordinary share:
    12,978,723       13,573,679       12,974,245       13,573,679       12,978,723       13,573,679  

(*)
Convenience translation into U.S. dollars
 
 
 

 
 
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

   
Nine-months
   
Three months
   
Nine-months
   
ended September 30,
   
ended September 30,
   
2 0 1 2
   
2 0 1 1
   
2 0 1 2
   
2 0 1 1
   
2 0 1 2
   
2 0 1 1
   
NIS
   
US dollars (*)
   
(in thousands)
CASH FLOWS - OPERATING ACTIVITIES
                                 
Profit from continuing operations
    15,220       14,985       6,293       2,444       3,891       3,831  
Adjustments to reconcile net income to net cash provided by operating activities:
    (8,889 )     2,469       6,303       5,054       (2,272 )     631  
Net cash from continuing operating activities
    6,331       17,454       12,596       7,498       1,619       4,462  
Net cash from discontinued operating activities
    -       2,345       -       2,093       -       599  
CASH FLOWS - INVESTING ACTIVITIES
                                               
Long term deposit, net
    -       (47 )     -       3       -       (12 )
Acquisition of property plant and equipment
    (1,247 )     (456 )     (1,048 )     (101 )     (319 )     (117 )
Proceeds from sale of property plant and Equipment
    698       216       656       2       178       55  
Proceeds from disposal of subsidiary
    13,500       -       -       -       3,451       -  
Proceeds from (used in) purchase of marketable securities, net
    12,317       (106,949 )     (19,450 )     (48,347 )     3,149       (27,339 )
Net cash from (used in) continuing investing activities
    25,268       (107,236 )     (19,842 )     (48,443 )     6,459       (27,413 )
Net cash used in discontinued investing activities
    -       (1,787 )     -       (518 )     -       (457 )
                                                 
CASH FLOWS - FINANCING ACTIVITIES
                                               
Investment used in treasury stocks
    (702 )     -       -       -       (180 )     -  
Net cash used in continuing financing activities
    (702 )     -       -       -       (180 )     -  
Net cash from (used in) discontinued financing activities
    -       459       -       (1,445 )     -       118  
Increase (decrease) in cash and cash equivalents
    30,897       (88,765 )     (7,246 )     (40,815 )     7,898       (22,691 )
Cash and cash equivalents  at the beginning of the financial period
    34,661       113,631       72,804       65,681       8,860       29,047  
                                                 
Cash and cash equivalents of the end of the financial period
    65,558       24,866       65,558       24,866       16,758       6,356  

 (*)           Convenience Translation into U.S. Dollars.
 
 
 

 
 
G. WILLI-FOOD INTERNATIONAL LTD.
APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

   
Nine-months
   
Three months
   
Nine-months
 
   
Ended September 30,
   
Ended September 30,
 
   
2 0 1 2
   
2 0 1 1
   
2 0 1 2
   
2 0 1 1
   
2 0 1 2
   
2 0 1 1
 
   
NIS
   
US dollars (*)
 
   
(in thousands)
 
                                     
Adjustments to reconcile net income to net cash from operating activities
                                 
                                                 
Depreciation and amortization
    1,894       2,376       (77 )     789       484       607  
Deferred income taxes
    (197 )     (1,259 )     55       (140 )     (49 )     (322 )
Capital Gain (Loss) on disposal of property plant and equipment
    (100 )     (187 )     (40 )     27       (26 )     (48 )
Unrealized  Gain (loss) on marketable securities
    567       5,482       (161 )     2,188       145       1,401  
Stock based compensation reserve
    66       -       19       -       17       -  
Employees benefit, net
    (71 )     (5 )     18       (5 )     (18 )     (1 )
                                                 
Changes in assets and liabilities:
                                               
Decrease (Increase) in trade receivables and other receivables
    (10,140 )     1,326       1,058       4,242       (2,592 )     339  
Decrease (Increase) in inventories
    4,348       (5,957 )     4,716       (1,651 )     1,111       (1,523 )
Increase (Decrease) in payables and other current liabilities
    (5,256 )     693       715       (396 )     (1,344 )     178  
      (8,889 )     2,469       6,303       5,054       (2,272 )     631  

(*)           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
raviv@willi-food.co.il

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SOURCE: G. Willi-Food International Ltd.