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 March 2018
 
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 the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒          Form 40-F £
 
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 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 ☐          No S
 
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, dated March 14, 2018, entitled "G. Willi-Food International Reports Improvements in Sales & Net Profit in Fiscal Year 2017 compared to 2016".

This 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 
 
Pursuant to 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.
 
By: /s/Amir Kaplan
Name: Amir Kaplan
Title: CFO
 
Date: March 14, 2018
 

 
 
 
FOR IMMEDIATE RELEASE

G. WILLI-FOOD INTERNATIONAL REPORTS IMPROVEMENTS IN
SALES, NET PROFIT & EARNING PER SHARE IN FISCAL YEAR 2017
COMPARED TO 2016

Sales growth in fiscal year 2017: 6% over fiscal year 2016 to NIS 312 million;
Net profit increase in fiscal year 2017: 94% over fiscal year 2016 to NIS 21 million;
Earning per share increase in fiscal year 2017: 94% over fiscal year 2016  to NIS 1.58

YAVNE, Israel - March 14, 2018 - 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 financial results for the fiscal year ended December 31, 2017.

Fiscal Year 2017 Highlights

·
Sales increased by 6.0% from fiscal year 2016 to NIS 312 million (US$ 90 million)
·
Net profit increased by 94% from fiscal year 2016 to NIS 21.1 million (US$ 6.1 million), or 6.7% of sales
·
Gross profit decreased by 3% from fiscal year 2016 to NIS 74.3 million (US$ 21.4 million)
·
Operating profit decreased by 26.3% from fiscal year 2016 to NIS 16.8 million (US$ 4.8 million), or 5.4% of sales
·
Net cash from operating activities decreased by 24.8% from fiscal year 2016 to NIS 13.0 million (US$ 3.8 million)
·
Cash and securities balance of NIS 256.6 million (US$ 74 million) as of December 31, 2017
·
Earning per share increased by 94% to NIS 1.58 (US$ 0.46) in fiscal year 2017

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.
 
Management Comment

Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food, commented: "We are pleased to present fiscal year 2017 financial report which shows improvements in sales and net profit. Sales increased by 6% versus fiscal year 2016, and net profit increased by 94%. During the second half of 2017, we began integrating a new senior management team which initiated the introduction of management systems, routines and procedures. These management changes and new management's initiatives allow for organizational stability and provide a solid basis for enhanced future growth. The result for the second half of 2017, since the ownership of the company has been changed, the new management appointed, and the new management's initiatives were introduced, shows improvements in sales, gross profit, operation profit and net profit. Sales in the second half of 2017 increased 12.8% versus sales in the second half of 2016, gross profit in the second half of 2017 increased 13.2% versus second half of 2016, operating profit in the second half of 2017 increased 70.3% versus the second half of 2016 and net profit in the second half of 2017 was NIS 15.2 million as opposed to a  loss of NIS1.6 million in second half of 2016."


Fiscal 2017 Summary

Sales for fiscal year 2017 increased by 6.0% to NIS 311.9 million (US$ 89.9 million) from NIS 294.2 million (US$ 84.9 million) in fiscal year 2016. The increase in sales was primarily due to an increase in  personnel in the sales and trade department and due to a strike at the Ministry of Health in the third quarter of 2016 which limited release of goods from the port and caused a decrease of NIS 6 million in sales in 2016.
 
Gross profit for fiscal year 2017 decreased by 3.0% to NIS 74.3 million (US$ 21.4 million) compared to NIS 76.6 million (US$ 22.1 million) recorded in fiscal year 2016. Gross margins for fiscal year 2017 decreased by 8.5% to 23.8% compared to gross margins of 26% for fiscal year 2016. The decrease in gross margin was primarily due to reductions in the prices of certain of our products as a result of an inventory with a short expiration date that the Company had to sell with lower prices and due to an increase of inventory-storage expenses.

Selling expenses in fiscal year 2017 increased by 6.8% compared to fiscal year 2016 primarily due to an increase in salary expenses resulting from to the increase in personnel in the sales and trade department and due to an increase in distribution expenses related to the increase in sales. Selling expenses as a percentage of sales were 13.5%, equal to the selling expenses percentage in fiscal year 2016.
 
General and administrative expenses increased by 8.7% from fiscal year 2016 to NIS 15.8 million (US$ 4.6 million) compared to NIS 14.6 million (US$ 4.2 million). This was mainly due to a NIS 1.3 million (US$ 0.3 million) write-off in 2016 which was canceled in 2017, with respect to the Company’s estimated exposure to Mega Retail Ltd. debts.
 
As a result, operating profit for fiscal year 2017 decreased by 26.3% to NIS 16.8 million (US$ 4.8 million) compared to NIS 22.7 million (US$ 6.6 million) recorded in fiscal year 2016.
 
Income before taxes for fiscal year 2017 increased by 66.7% to NIS 27 million (US$ 7.8 million) compared to NIS 16.2 million (US$ 4.7 million) in fiscal year 2016.
 
Net profit for fiscal year 2017 increased by 94% to NIS 21 million (US$ 6.0 million), or NIS 1.58 (US$ 0.46) per share, from NIS 10.8 million (US$ 3.1 million), or NIS 0.82 (US$ 0.23) per share, in fiscal year 2016.
 
Willi-Food ended fiscal year 2017 with NIS 256.6 million (US$ 74 million) in cash and securities with no short-term debt. Net cash from operating activities in fiscal year 2017 was NIS 13.0 million (US$ 3.8 million). Willi-Food's shareholders' equity at the end of December 2017 was NIS 411.6 million (US$ 118.4 million).
 
Note regarding a notice of the end of Exclusive Distribution Agreement

On October 19, 2017, the Company's wholly owned subsidiary, Gold Frost Ltd. ("Goldfrost"), received a notice from its Danish producer of dairy products, Arla Foods amba ("Arla"), to end their Exclusive Distribution Agreement effective as of December 31, 2017.

As announced by the Company on October 19, 2017, the termination of the Exclusive Distribution Agreement with Arla may have a significant negative impact on the Company's operating results although the Company believes that it will be able to enter into agreements in the near future with alternative suppliers for a portion of the products currently purchased from Arla.

Representatives of Goldfrost and representatives of Arla have met several times and have agreed that Goldfrost may place new orders for additional dairy products produced by Arla to be sold by Goldfrost during the first half of 2018.


NOTE A: NIS to US$ exchange rate used for convenience only
The conversion from New Israeli Shekels (NIS) into U.S. dollars was made at the exchange rate as of December 31, 2017, on which U.S. $1.00 equaled NIS 3.467. The use of US$ is solely for the convenience of the reader.

NOTE B: IFRS
The Company’s consolidated financial results for fiscal year ended December 31, 2017 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, 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, 2016, filed with the Securities and Exchange Commission on April 27, 2017. 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.
 
 

G. WILLI‑FOOD INTERNATIONAL LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
 
   
December 31,
   
December 31,
 
   
2 0 1 7
   
2 0 1 6
   
2 0 1 7
   
2 0 1 6
 
   
NIS
   
US dollars (*)
 
   
(in thousands)
 
ASSETS
                       
Current assets
                       
Cash and cash equivalents
   
113,062
     
129,577
     
32,611
     
37,374
 
Financial assets carried at fair value through profit or loss
   
143,514
     
104,921
     
41,394
     
30,263
 
Trade receivables
   
85,943
     
80,227
     
24,789
     
23,140
 
Other receivables and prepaid expenses
   
2,026
     
4,795
     
310
     
1,383
 
Inventories
   
39,899
     
41,877
     
11,508
     
12,079
 
Current tax assets
   
6,760
     
5,443
     
1,950
     
1,570
 
Total current assets
   
391,204
     
366,840
     
112,562
     
105,809
 
                                 
Non-current assets
                               
Property, plant and equipment
   
78,598
     
77,204
     
22,670
     
22,268
 
Less -Accumulated depreciation
   
37,389
     
34,963
     
10,784
     
10,085
 
     
41,209
     
42,241
     
11,886
     
12,183
 
                                 
Goodwill
   
36
     
36
     
10
     
10
 
Deferred taxes
   
503
     
2,354
     
145
     
679
 
Total non-current assets
   
41,748
     
44,631
     
12,041
     
12,872
 
                                 
     
432,952
     
411,471
     
124,603
     
118,681
 
EQUITY AND LIABILITIES
                               
Current liabilities
                               
Trade payables
   
12,800
     
14,832
     
3,692
     
4,278
 
Employees Benefits
   
2,147
     
2,253
     
619
     
650
 
Other payables and accrued expenses
   
5,247
     
2,533
     
1,514
     
729
 
Total current liabilities
   
20,194
     
19,618
     
5,825
     
5,657
 
                                 
Non-current liabilities
                               
Retirement benefit obligation
   
1,148
     
849
     
331
     
245
 
Total non-current liabilities
   
1,148
     
849
     
331
     
245
 
                                 
Shareholders' equity
                               
Share capital NIS 0.1 par value (authorized - 50,000,000 shares, issued and outstanding –
   13,240,913 shares at December 31, 2017 and December 31, 2016)
   
1,424
     
1,424
     
411
     
411
 
Additional paid in capital
   
128,354
     
128,354
     
37,022
     
37,022
 
Capital fund
   
247
     
247
     
71
     
71
 
Retained earnings
   
282,539
     
261,487
     
80,810
     
75,422
 
respect of defined benefit
   
(954
)
   
(508
)
   
(275
)
   
(147
)
     
411,610
     
391,004
     
118,447
     
112,779
 
                                 
     
432,952
     
411,471
     
124,603
     
118,681
 
                                 
(*)
Convenience translation into U.S. dollars.


G. WILLI‑FOOD INTERNATIONAL LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
   
For the year ended
 December 31,
   
For the year ended
 December 31,
 
   
2 0 1 7
   
2 0 1 6
   
2 0 1 7
   
2 0 1 6
 
   
NIS
   
US dollars (*)
 
   
In thousands (except per share and share data)
 
                         
Sales
   
311,978
     
294,202
     
89,985
     
84,858
 
Cost of sales
   
237,645
     
217,585
     
68,545
     
62,759
 
                                 
Gross profit
   
74,333
     
76,617
     
21,440
     
22,099
 
                                 
Selling expenses
   
42,090
     
39,405
     
12,140
     
11,366
 
General and administrative expenses
   
15,839
     
14,577
     
4,569
     
4,204
 
Other income
   
361
     
112
     
104
     
32
 
                                 
Total operating expenses
   
57,568
     
53,870
     
16,605
     
15,538
 
                                 
                                 
Operating profit
   
16,765
     
22,747
     
4,835
     
6,561
 
                                 
Financial income
   
13,967
     
(3,425
)
   
4,028
     
(988
)
Financial expense
   
3,769
     
3,143
     
1,087
     
907
 
Total financial income (expense)
   
10,198
     
(6,568
)
   
2,941
     
(1,895
)
                                 
Income before taxes on income
   
26,963
     
16,179
     
7,776
     
4,666
 
Taxes on income
   
5,910
     
5,327
     
1,705
     
1,536
 
                                 
Net profit
   
21,053
     
10,852
     
6,071
     
3,130
 
                                 
Earnings per share:
                               
Basic earnings per share
   
1.58
     
0.82
     
0.46
     
0.23
 
                                 
Diluted earnings per share
   
1.58
     
0.82
     
0.46
     
0.23
 
                                 
Shares used in computation of basic EPS
   
13,240,913
     
13,240,913
     
13,240,913
     
13,240,913
 

(*)
Convenience translation into U.S. dollars.


G. WILLI‑FOOD INTERNATIONAL LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
   
For the year ended
   
For the year ended
 
   
December 31,
   
December 31,
 
   
2 0 1 7
   
2 0 1 6
   
2 0 1 7
   
2 0 1 6
 
   
NIS
   
US dollars (*)
 
   
In thousands (except per share and share data)
 
CASH FLOWS - OPERATING ACTIVITIES
                       
Profit from continuing operations
   
21,053
     
10,852
     
6,071
     
3,130
 
Adjustments to reconcile net income to net cash from operating activities (Appendix)
   
(8,012
)
   
6,500
     
(2,309
)
   
1,874
 
Net cash from continuing operating activities
   
13,041
     
17,352
     
3,762
     
5,004
 
                                 
CASH FLOWS - INVESTING ACTIVITIES
                               
Acquisition of property plant and equipment
   
(2,650
)
   
(1,915
)
   
(764
)
   
(552
)
Proceeds from sale of property plant and Equipment
   
361
     
190
     
104
     
55
 
Proceeds from realization (purchase) of marketable securities, net
   
(29,435
)
   
42,010
     
(8,490
)
   
12,117
 
Proceeds from  short term deposit
   
-
     
20,288
       -      
5,852
 
Redemption (acquisition) of non current financial assets
   
2,168
     
(8,504
)
   
625
     
(2,453
)
Net cash from (used in) continuing investing activities
   
(29,556
)
   
52,069
     
(8,525
)
   
15,019
 
                                 
CASH FLOWS - FINANCING ACTIVITIES
                               
Short-term bank debt, net
   
-
     
(16
)
   
-
     
(5
)
Dividend
   
-
     
(19,249
)
   
-
     
(5,552
)
Net cash from used in continuing financing activities
   
-
     
(19,265
)
   
-
     
(5,557
)
                                 
Increase (decrease) in cash and cash equivalents
   
(16,515
)
   
50,156
     
(4,763
)
   
14,466
 
Cash and cash equivalents  at the beginning of the year
   
129,577
     
79,421
     
37,374
     
22,908
 
Cash and cash equivalents of the end of the year
   
113,062
     
129,577
     
32,611
     
37,374
 
 
(*)  Convenience Translation into U.S. Dollars.
 

G. WILLI-FOOD INTERNATIONAL LTD.
APPENDIX TO UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
   
For the year ended
   
For the year ended
 
   
December 31,
   
December 31,
 
   
2 0 1 7
   
2 0 1 6
   
2 0 1 7
   
2 0 1 6
 
   
NIS
   
US dollars (*)
 
   
In thousands (except per share and share data)
 
CASH FLOWS - OPERATING ACTIVITIES:
                       
                         
Adjustments to reconcile net profit  to net cash from operating activities
                       
                         
Depreciation and amortization
   
3,682
     
3,762
     
1,062
     
1,085
 
Loss (gain) from non current financial assets
   
(1,398
)
   
7,734
     
(403
)
   
2,231
 
Decrease (Increase) in deferred income taxes
   
1,851
     
1,260
     
534
     
363
 
Capital Gain  on disposal of property plant and equipment
   
(361
)
   
(112
)
   
(104
)
   
(32
)
Unrealized Loss (Gain) on marketable securities
   
(9,158
)
   
(1,924
)
   
(2,641
)
   
(555
)
                                 
Changes in assets and liabilities:
                               
Increase (decrease) in trade receivables and other receivables
   
(5,034
)
   
2,120
     
(1,452
)
   
611
 
Increase in inventories
   
1,978
     
(7,360
)
   
570
     
(2,123
)
Decrease in payables and other current liabilities
   
428
     
1,020
     
125
     
294
 
     
(8,012
)
   
6,500
     
(2,309
)
   
1,874
 

(*)   Convenience Translation into U.S. Dollars.
 
Company Contact:
G. Willi - Food International Ltd.
Amir Kaplan, Chief Financial Officer
 (+972) 8-932-1000
amir.k@willi-food.co.il
 
###

SOURCE: G. Willi-Food International Ltd.