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B.S.D. CROWN LTD - G. Willi-Food International Ltd 2014 Results
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PR Newswire
London, March 26
B.S.D Crown Ltd (LSE:BSD)
("BSD" or "the Company")
G. Willi-Food International Ltd 2014 Results
Tel Aviv, Israel, 26 March, 2015
The Company refers to an announcement made earlier today by Willi-Food
Investments Ltd (TASE:WLFD)("WFI"), an Israeli company in which the Company
holds a 62% interest.
As announced by WFI, G. Willi-Food International Ltd (NASDAQ:WILC), an Israeli
company in which WFI holds a 59% interest ("WFINT"), announced today its
financial results for the year ending on 31 December, 2014.
Attached is WFINT's announcement.
Further information about the Company
For more information about the Company, visit www.bsd-c.com.
Enquiries:
Eyal Merdler, CFO: eyal.merdler@bsd-c.com
FOR IMMEDIATE RELEASE
G. Willi-Food Reports fiscal 2014 year end financial results
Sales down 2.2% from fiscal 2013 sales and Net Cash from operating
activities of NIS 19.7 million (US$ 5.1 million) in fiscal 2014
YAVNE, Israel - March 26, 2015 - 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, 2014.
Fiscal 2014 Highlights
- Sales decreased by 2.2% from fiscal 2013 to NIS 328.7 million
(US$ 84.5 million)
- Gross profit decreased 4.9% from fiscal 2013 to NIS 79.6 million
(US$ 20.5 million), or 24.2% of sales
- Operating income decreased 19.1% from fiscal 2013 to NIS 23.6
million (US$ 6.1 million), or 7.2% of sales
- Net income decreased 40.7% from fiscal 2013 to NIS 18.9 million
(US$ 4.8 million), or 5.7% of sales
- Earning per share of NIS 1.45 (US$ 0.37)
- Net cash from operating activities increased by 426.9% from
fiscal 2013 to NIS 19.7 million (US$ 5.1 million
- Cash and securities balance of NIS 225.1 million (US$ 57.9
million) as of December 31, 2014
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.
Fiscal 2014 Summary
Sales for fiscal 2014 decreased by 2.2% to NIS 328.7 million (US$
84.5 million) from NIS 336.0 million (US$ 86.4 million) in fiscal 2013.
Willi-Food achieved these sales figures in the fiscal year of 2014 despite
Operation Protective Edge, an almost two month military operation launched by
the State of Israel on July 8, 2014 in the Hamas-controlled Gaza Strip, which
adversely affected Willi-Food sales in July-August 2014, as well as the
overall market decline in food product consumption by the Israeli consumer.
Gross profit for fiscal 2014 decreased by 4.9% to NIS 79.6 million
(US$ 20.5 million) compared to NIS 83.7 million (US$ 21.5 million) recorded in
fiscal 2013. Fiscal 2014 gross margin was 24.2% compared to gross margin of
24.9% for fiscal 2013. The decrease in gross margin in fiscal 2014 was
primarily due to reductions in the prices of certain of our products as a
result of continued expectations from our customers for us to reduce prices.
The decrease in gross margin was also less significantly caused by the
strengthening of the U.S. dollar versus the NIS commencing from the third
quarter of 2014.
Willi-Food's operating income for fiscal 2014 decreased by 19.1% to
NIS 23.6 million (US$ 6.1 million) compared to NIS 29.2 million (US$ 7.5
million) recorded in fiscal 2013. Selling expenses increased by 13.0% from
2013, primarily due to an increase in promotional expenses as well as vehicles
and transport expenses. Selling expenses as a percentage of sales increased to
13.0% compared to 12.1% in fiscal 2013. General and administrative expenses
decreased by 0.9% from fiscal 2013, primarily due to decrease of NIS 1.7
million (US$ 0.4 million) in management profit-related bonuses compared to
2013 offset by an expense of NIS 2.1 million (US$ 0.5 million) related to
options granted to the Company's Chairman, President and CEO in November 2013,
which was recorded in fiscal 2014. General and administrative expenses as a
percentage of sales in fiscal 2014 were 5.8%, approximately the same
percentage as in fiscal 2013.
Willi-Food's income before taxes for fiscal 2014 decreased by 37.0%
to NIS 26.0 million (US$ 6.7 million) compared to NIS 41.3 million (US$ 10.6
million) recorded in fiscal 2013.
Willi-Food's net income for fiscal 2014 decreased by 40.7% to NIS
18.9 million (US$ 4.8 million), or NIS 1.45 (US$ 0.37) per share, from NIS
31.8 million (US$ 8.2 million), or NIS 2.45 (US$ 0.63) per share, recorded in
fiscal 2013.
Willi-Food ended 2014 with NIS 225.1 million (US$ 57.9 million) in
cash and securities with no short-term debt. Net cash from operating
activities fiscal 2014 was NIS 19.7 million (US$ 5.1 million).Willi-Food's
shareholders' equity at the end of December 2014 was NIS 386.1 million (US$
99.3 million).
Business Outlook
Mr. Zwi Williger, Chairman of Willi-Food, commented, "Our results
in fiscal 2014 were negatively affected by the noticeable decline in
consumption by the Israeli consumer in 2014, which, although didn't reduce the
number of visits to supermarkets per consumer, decreased the basket of
consumer goods. Our results were also impacted by Operation Protective Edge
that lasted almost two thirds of the third quarter. Despite this, we were able
to sustain our level of sales and maintain gross margins of over 24%. In light
of the anticipated continued downward pressure on prices and decreasing
private consumption, our foreseeable challenges ahead will be in managing our
expenses in order to offer our products at the low prices our customers
expect. This expense management will be needed in order to maintain our
customer base both in the retail and wholesale markets during these difficult
times for the food industry".
"We believe we are well positioned to continue our expansion,"
concluded Mr. Williger. "We are constantly focused on looking to meet the
demands of consumers for new kosher products, and we have the infrastructure
in place and development expertise to develop and deliver these products. At
the same time, we remain focused on maximizing long-term profitability and
creating additional value for our shareholders."
Conference Call
The Company will host a conference call and live webcast on
Thursday, March 26, 2015 to discuss the financial results beginning at 11:00
AM Eastern Time. Interested parties may participate on the call by dialing
1-888-505-4368 (US), or 1-719-325-2452 (International), approximately 10
minutes prior to the scheduled start time. Participants may also access a live
listen only webcast at:
http://public.viavid.com/index.php?id=113674
Following the conclusion of the call, a telephonic replay will be
available for 14 days beginning at 2:00 PM Eastern Time on March 26, 2015
through 11:59 PM Eastern Time on April 9, 2015 and may be accessed by dialing
1-877-870-5176 (US), or 1-858-384-5517 (International), using Pin Number:
7375168. In addition, an archived webcast will be available for one year at:
http://public.viavid.com/reports/eventparticipantreporttab.php?id=o5elpZ6b
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 December 31, 2014, U.S.
$1.00 equals NIS 3.889. The translation was made solely for the convenience of
the reader.
NOTE B: IFRS
The Company's consolidated financial results for fiscal year ended
December 31, 2014 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, 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 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, 2013, filed with
the Securities and Exchange Commission on April 30, 2014. 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.
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2014 2013 2014 2013
NIS US dollars (*)
(in thousands)
ASSETS
Current assets
Cash and cash equivalents 82,902 36,197 21,317 9,308
Financial assets carried at fair value through
profit or loss 122,733 112,864 31,559 29,021
Short term deposit 19,445 - 5,000 -
Trade receivables 86,690 82,932 22,291 21,325
Other receivables and prepaid expenses 3,763 2,694 968 692
Inventories 48,586 54,001 12,493 13,886
Current tax assets 1,372 - 353 -
Loan carried at fair value through profit or
loss - 65,300 - 16,791
Total current assets 365,491 353,988 93,981 91,023
Non-current assets
Property, plant and equipment 73,826 66,663 18,984 17,142
Less -Accumulated depreciation 28,579 25,689 7,349 6,606
45,247 40,974 11,635 10,536
Prepaid expenses 133 50 34 13
Goodwill 36 36 9 9
Deferred taxes 505 - 130 -
Total non-current assets 45,921 41,060 11,808 10,558
411,412 395,048 105,789 101,581
EQUITY AND LIABILITIES
Current liabilities
Short-term bank debt - 18 - 5
Trade payables 15,518 20,245 3,990 5,206
Employees Benefits 2,120 1,880 545 483
Current tax liabilities - 637 - 164
Other payables and accrued expenses 7,010 5,282 1,803 1,358
Total current liabilities 24,648 28,062 6,338 7,216
Non-current liabilities
Retirement benefit obligation 635 644 162 166
Deferred taxes - 499 - 128
Total non-current liabilities 635 1,143 162 294
Shareholders' equity
Share capital 1,407 1,407 362 362
Additional paid in capital 121,430 119,281 31,223 30,670
Capital fund 247 247 64 64
Foreign currency translation reserve - 786 - 202
Retained earnings 263,039 244,185 67,637 62,789
Remeasurement of the net liability in respect
of defined benefit 6 (63) 2 (16)
386,129 365,843 99,288 94,071
411,412 395,048 105,788 101,581
(*) Convenience translation into U.S. dollars.
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the year ended For the year ended
December 31, December 31,
2014 2013 2014 2013
NIS US dollars (*)
In thousands (except per share and share data)
Sales 328,741 336,032 84,531 86,406
Cost of sales 249,136 252,355 64,062 64,890
Gross profit 79,605 83,677 20,469 21,516
Selling expenses 39,696 35,130 10,207 9,033
General and administrative expenses 19,231 19,408 4,945 4,991
Other income (2,943) (54) (757) (14)
Total operating expenses 55,984 54,484 14,395 14,010
Operating income 23,621 29,193 6,074 7,506
Financial income 2,794 13,008 718 3,345
Financial expense 375 876 96 225
Total financial income 2,419 12,132 622 3,120
Income before taxes on income 26,040 41,325 6,696 10,626
Taxes on income (7,186) (9,517) (1,848) (2,447)
Net income 18,854 31,808 4,848 8,179
Earnings per share:
Basic earnings per share 1.45 2.45 0.37 0.63
Diluted earnings per share 1.45 2.45 0.37 0.63
Shares used in computation of basic EPS 12,974,245 12,974,245 12,974,245 12,974,245
(*) Convenience translation into U.S. dollars.
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended For the year ended
December 31, December 31,
2014 2013 2014 2013
NIS US dollars (*)
In thousands (except per share and
share data)
CASH FLOWS - OPERATING ACTIVITIES
Profit from continuing operations 18,854 31,808 4,848 8,179
Adjustments to reconcile net income to net cash from operating
activities (Appendix) 799 (28,078) 205 (7,219)
Net cash from continuing operating activities 19,653 3,730 5,053 960
CASH FLOWS - INVESTING ACTIVITIES
Acquisition of property plant and equipment (8,077) (6,077) (2,077) (1,563)
Proceeds from sale of property plant and Equipment 969 29 249 7
Additions to long term other receivables - (445) - (114)
Proceeds from (used in) purchase of marketable securities, net (11,777) 56,309 (3,028) 14,479
Proceeds from (used in) purchase of loan carried at fair value
through profit or loss 65,400 (65,000) 16,817 (16,714)
Proceeds used in purchase of Short term deposit (19,445) - (5,000) -
Net cash from (used in) continuing investing activities 27,070 (15,184) 6,961 (3,905)
CASH FLOWS - FINANCING ACTIVITIES
Short-term bank debt, net (18) (9,912) (5) (2,549)
Net cash from used in continuing financing activities (18) (9,912) (5) (2,549)
Increase (decrease) in cash and cash equivalents 46,705 (21,366) 12,009 (5,494)
Cash and cash equivalents at the beginning of the year 36,197 57,563 9,308 14,802
Cash and cash equivalents of the end of the year 82,902 36,197 21,317 9,308
(*) Convenience Translation into U.S. Dollars.
G. WILLI-FOOD INTERNATIONAL LTD.
APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended For the year ended
December 31, December 31,
2014 2013 2014 2013
NIS US dollars (*)
In thousands (except per share and share
data)
CASH FLOWS - OPERATING ACTIVITIES:
A. Adjustments to reconcile net profit to net
cash from operating activities
Depreciation and amortization 3,634 4,459 934 1,147
Unrealized Gain of loan carried at fair value
through profit or loss (100) (300) (26) (77)
Decrease in deferred income taxes (1,004) 519 (258) 133
Capital Gain on disposal of property plant and
equipment (188) (29) (48) (7)
Unrealized Loss (Gain) on marketable
securities 1,908 (10,363) 491 (2,665)
Stock based compensation reserve 2,126 190 547 50
Net foreign exchange gain (786) - (202) -
Changes in assets and liabilities:
Increase in trade receivables and other
receivables (6,282) (9,046) (1,616) (2,326)
Increase in inventories 5,415 (4,731) 1,392 (1,217)
Increase (decrease) in payables and other
current liabilities (3,924) (8,777) (1,009) (2,257)
799 (28,078) 205 (7,219)
B. Significant non-cash transactions:
(*) 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.
Itai Loewenstein, CFO
(+972) 8-932-1000
itai@willi-food.co.il
###
SOURCE: G. Willi-Food International Ltd.
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