G. WILLI-FOOD INTERNATIONAL REPORTS 9.0% INCREASE IN SALES AND A RECORD HIGH ANNUAL SALES IN 2023
- Sales increased by 9.0% to NIS 543.3 million in fiscal year 2023.
- Gross profit decreased by 15.9% to NIS 120.6 million in 2023.
- Operating profit decreased by 54.9% to NIS 20.4 million in 2023.
- Cash and cash equivalents balance stood at NIS 239.6 million as of December 31, 2023.
- Basic earnings per share were NIS 2.28 for fiscal year 2023.
- Net cash from operating activities was NIS 33.3 million in 2023.
- Shareholders' equity at the end of December 2023 was NIS 552.2 million.
- Gross profit margins decreased from 28.7% to 22.2% due to increased costs of imported products.
- General and administrative expenses increased by 8.3% in fiscal year 2023.
- Operating profit declined primarily due to an increase in cost of sales.
Insights
The financial results of G. Willi-Food International Ltd. demonstrate a mixed performance. While the increase in sales by 9.0% indicates a growing demand for the company's products, the decrease in gross profit by 15.9% and operating profit by 54.9% reflect significant pressure on the company's margins. This dichotomy suggests that while the company has been successful in expanding its market presence, it has done so at the cost of profitability.
One key factor contributing to the decrease in profitability is the increased cost of sales, which could be attributed to the global increase in the prices of goods and the specific regional challenges mentioned, such as the 'Iron swords' war and the Houthi attacks. These geopolitical events have likely led to higher transportation costs, which have eroded gross margins.
The company's cash and cash equivalents balance remains robust, with no debt, which is a strong indicator of financial stability. However, the net cash from operating activities, which stands at NIS 33.3 million (USD 9.2 million), seems relatively low in comparison to the overall sales figures, suggesting that cash conversion may be an area for improvement.
From a market perspective, G. Willi-Food's strategy to expand its product portfolio and improve product visibility has proven effective in driving top-line growth. The company's focus on increasing the variety of products and enhancing shelf presence is a response to consumer demand for diversified kosher food options.
However, the company's ability to improve commercial terms with customers and suppliers will be important in recovering its profit margins. The construction of the new logistics center, expected to complete in 2025, is anticipated to enhance logistics capabilities significantly, which could lead to cost savings and improved operational efficiency.
The company's performance must be analyzed in context with broader industry trends, such as the impact of global supply chain disruptions and increased competition in the kosher food market. The company's resilience in the face of these challenges will be a key determinant of its long-term success.
The impact of geopolitical tensions on G. Willi-Food's supply chain is evident in the financial results. The conflict with Hamas and subsequent regional instability have led to increased transportation costs and delays, which have directly affected the company's cost of goods sold.
Looking ahead, the company's investment in a new logistics center is a strategic move to mitigate these risks. By enhancing its logistics infrastructure, Willi-Food aims to reduce its reliance on volatile shipping routes and improve its supply chain resilience. This investment could also lead to a reduction in lead times and improved inventory management, which are essential for maintaining customer satisfaction and competitive advantage.
It is important to monitor how Willi-Food navigates these supply chain challenges in the coming year, especially as they continue to expand their product offerings and strive for improved profitability.
YAVNE,
Fiscal Year 2023 Highlights
- Sales increased by
9.0% to NIS 543.3 million (US ) from$ 149.8 million NIS 498.3 million (USD 1374 . million) in fiscal year 2022. - Gross profit decreased by
15.9% from fiscal year 2022 toNIS 120.6 million (USD 33.3 million ) in 2023. - Operating profit decreased by
54.9% from fiscal year 2022 to NIS 20.4 million (USD 5.6 million ) in 2023. - Cash and cash equivalents balance of NIS 239.6 million (
USD 66.1 million ) as of December 31, 2023. - Basic earnings per share of NIS 2.28 (
US ).$ 0.63
Management Comment
Zwi Williger Chairmen & Joseph Williger CEO, commented: "We are very pleased to present our fiscal year 2023 financial results with record annual sales. Calendar year 2023 was characterized by an appreciation of the value of the Israeli shekel and worldwide increase of prices of goods worldwide compared to 2022. As a result, the Company experienced a decrease in gross profit. Also in October 7, 2024, the 'Iron swords' war broke out between the
Fiscal 2023 Summary
Revenues for fiscal year 2023 increased by
Gross profit for fiscal year 2023 decreased by
Selling expenses for fiscal year 2023 were
General and administrative expenses for fiscal year 2023 increased by
Operating profit for fiscal year 2023 decreased by
Financial income, net, for fiscal year 2023 amounted to
Willi-Food ended fiscal year 2023 with
NOTE A: NIS to US$ exchange rate used for convenience only
The conversion from New Israeli Shekels (NIS) into
NOTE B: IFRS
The Company's consolidated financial results for fiscal year ended December 31, 2023 are presented in accordance with International Financial Reporting Standards.
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 650 food products worldwide. As one of
FORWARD LOOKING STATEMENTS
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 include statements regarding the timing of construction of the Company's new logistics center and its expected benefits. 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: delays in the construction of the Company's new logistics center and the risk that its expected benefits will not be materialized, monetary risks including changes in marketable securities or changes in currency exchange rates- especially the NIS/
G. WILLI–FOOD INTERNATIONAL LTD. | ||||
December 31, | December 31, | |||
2 0 2 3 | 2 0 2 2 | 2 0 2 3 | 2 0 2 2 | |
NIS | US dollars (*) | |||
(in thousands) | ||||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | 137,466 | 150,607 | 37,901 | 41,524 |
Financial assets at fair value through profit or loss | 102,163 | 116,762 | 28,167 | 32,192 |
Trade receivables, Net | 160,379 | 165,838 | 44,218 | 45,723 |
Other receivables and prepaid expenses | 10,164 | 4,956 | 2,802 | 1,366 |
Inventories, Net | 62,475 | 71,929 | 17,225 | 19,832 |
Current tax assets | 9,497 | 3,117 | 2,618 | 859 |
Total current assets | 482,144 | 513,209 | 132,931 | 141,496 |
Non-current assets | ||||
Property, plant and equipment | 122,222 | 99,216 | 33,698 | 27,355 |
Less -Accumulated depreciation | 55,636 | 51,533 | 15,339 | 14,208 |
66,586 | 47,683 | 18,359 | 13,147 | |
Right of use asset | 2,124 | 3,391 | 586 | 935 |
Financial assets at fair value through profit or loss | 46,143 | 44,113 | 12,722 | 12,162 |
Goodwill | 36 | 36 | 10 | 10 |
Total non-current assets | 114,889 | 95,223 | 31,677 | 26,254 |
597,033 | 608,432 | 164,608 | 167,750 | |
EQUITY AND LIABILITIES | ||||
Current liabilities | ||||
Current maturities of lease liabilities | 1,512 | 2,194 | 417 | 605 |
Trade payables | 21,622 | 24,842 | 5,961 | 6,849 |
Employees Benefits | 4,193 | 3,756 | 1,156 | 1,036 |
Other payables and accrued expenses | 10,854 | 11,836 | 2,993 | 3,264 |
Total current liabilities | 38,181 | 42,628 | 10,527 | 11,754 |
Non-current liabilities | ||||
Lease liabilities | 694 | 1,284 | 191 | 354 |
Deferred taxes | 4,868 | 4,198 | 1,342 | 1,156 |
Retirement benefit obligation | 1,055 | 878 | 291 | 242 |
Total non-current liabilities | 6,617 | 6,360 | 1,824 | 1,752 |
Shareholders' equity | ||||
Share capital | 1,490 | 1,490 | 411 | 411 |
Additional paid in capital | 172,589 | 171,550 | 47,585 | 47,298 |
Remeasurement of the net liability in respect of defined benefit | (154) | (195) | (42) | (54) |
Capital fund | 247 | 247 | 68 | 68 |
Retained earnings | 378,691 | 386,980 | 104,408 | 106,694 |
Treasury shares | (628) | (628) | (173) | (173) |
Equity attributable to owners of the Company | 552,235 | 559,444 | 152,257 | 154,244 |
597,033 | 608,432 | 164,608 | 167,750 | |
(*) Convenience translation into |
G. WILLI–FOOD INTERNATIONAL LTD. | ||||||
For the year ended December 31, | For the year ended December 31, | |||||
2 0 2 3 | 2 0 2 2 | 2 0 2 3 | 2 0 2 2 | |||
NIS | US dollars (*) | |||||
In thousands (except per share and share data) | ||||||
Sales | 543,262 | 498,325 | 149,783 | 137,393 | ||
Cost of sales | 422,695 | 355,228 | 116,541 | 97,940 | ||
Gross profit | 120,567 | 143,097 | 33,242 | 39,453 | ||
Operating costs and expenses: | ||||||
Selling expenses | 74,216 | 74,106 | 20,462 | 20,432 | ||
General and administrative expenses | 26,110 | 24,117 | 7,199 | 6,649 | ||
Other income | (109) | (222) | (30) | (61) | ||
Total operating expenses | 100,217 | 98,001 | 27,631 | 27,020 | ||
Operating profit | 20,350 | 45,096 | 5,611 | 12,433 | ||
Financial income | 20,363 | 13,417 | 5,614 | 3,699 | ||
Financial expense | 1,521 | 4,539 | 419 | 1,251 | ||
Total Finance income | 18,842 | 8,878 | 5,195 | 2,448 | ||
Income before taxes on income | 39,192 | 53,974 | 10,806 | 14,881 | ||
Taxes on income | 7,536 | 12,410 | 2,078 | 3,422 | ||
Income after taxes on income | 31,656 | 41,564 | 8,728 | 11,459 | ||
Earnings per share: | ||||||
Basic / diluted earnings per share | 2.28 | 3.00 | 0.63 | 0.83 | ||
Shares used in computation of | 13,867,017 | 13,867,017 | 13,867,017 | 13,867,017 | ||
Actual number of shares | 13,867,017 | 13,867,017 | 13,867,017 | 13,867,017 | ||
(*) Convenience translation into |
G. WILLI–FOOD INTERNATIONAL LTD. | |||||||||
For the year ended | For the year ended | ||||||||
December 31, | December 31, | ||||||||
2 0 2 3 | 2 0 2 2 | 2 0 2 3 | 2 0 2 2 | ||||||
NIS | US dollars (*) | ||||||||
In thousands (except per share and share data) | |||||||||
CASH FLOWS - OPERATING ACTIVITIES | |||||||||
Profit from continuing operations | 31,656 | 41,564 | 8,728 | 11,460 | |||||
Adjustments to reconcile net profit to net cash from continuing | 2,052 | (27,495) | 566 | (7,581) | |||||
Net cash from continuing operating activities | 33,708 | 14,069 | 9,294 | 3,879 | |||||
CASH FLOWS - INVESTING ACTIVITIES | |||||||||
Acquisition of property plant and equipment | (4,605) | (**)(6,006) | (1,270) | (1,656) | |||||
Acquisition of property plant and equipment under construction | (18,941) | (**)(7,344) | (5,222) | (2,025) | |||||
Proceeds from sale of property plant and Equipment | 208 | 351 | 57 | 97 | |||||
Proceeds from sale of marketable securities, net | 18,166 | 21,285 | 5,009 | 5,868 | |||||
Net cash used in (from) continuing investing activities | (5,172) | 8,286 | (1,426) | 2,284 | |||||
CASH FLOWS - FINANCING ACTIVITIES | |||||||||
Lease liability payments | (2,408) | (2,180) | (664) | (601) | |||||
Dividend distribution | (39,945) | (54,906) | (11,012) | (15,138) | |||||
Net cash used to continuing financing activities | (42,353) | (57,086) | (11,676) | (15,739) | |||||
Decrease in cash and cash equivalents | (13,817) | (34,731) | (3,808) | (9,576) | |||||
Cash and cash equivalents at the beginning of the year | 150,607 | 195,718 | 41,523 | 53,961 | |||||
Exchange gains (losses) on cash and cash equivalents | 676 | (10,380) | 186 | (2,862) | |||||
Cash and cash equivalents at the end of the year | 137,466 | 150,607 | 37,901 | 41,523 | |||||
(*) Convenience Translation into | |||||||||
(**) Reclassified |
G. WILLI-FOOD INTERNATIONAL LTD. | ||||
For the year ended | For the year ended | |||
December 31, | December 31, | |||
2 0 2 3 | 2 0 2 2 | 2 0 2 3 | 2 0 2 2 | |
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 | ||||
Decrease in deferred income taxes | 670 | 2,181 | 185 | 601 |
Unrealized loss (gain) on marketable securities | (5,597) | 2,985 | (1,543) | 823 |
Loss (gain) of financial liabilities at fair value through profit or loss | - | (13,960) | - | (3,849) |
Depreciation and amortization | 6,950 | 6,508 | 1,916 | 1,794 |
Stock based compensation reserve | 1,039 | 790 | 286 | 218 |
Capital gain on disposal of property plant and equipment | (109) | (222) | (30) | (61) |
Exchange (losses) gains on cash and cash equivalents | (676) | 10,380 | (186) | 2,862 |
Changes in assets and liabilities: | ||||
Decrease (Increase) in trade receivables and other receivables | 7,527 | (17,151) | 2,075 | (4,729) |
Decrease (increase) in inventories | 9,454 | (12,401) | 2,607 | (3,419) |
Increase (decrease) in trade payables, other payables and other | (3,547) | 5,418 | (978) | 1,494 |
Cash generated from operations | 15,711 | (15,472) | 4,332 | (4,266) |
Income tax paid | (13,659) | (12,023) | (3,766) | (3,315) |
Net cash flows from (used in) operating activities | 2,052 | (27,495) | 566 | (7,581) |
(*) Convenience Translation into |
Logo: https://mma.prnewswire.com/media/959267/G_Willi_Food_International_Logo.jpg
Company Contact:
G. Willi - Food International Ltd.
Yitschak Barabi, Chief Financial Officer
(+972) 8-932-1000
itsik.b@willi-food.co.il
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SOURCE G. Willi-Food International Ltd.
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