G WILLI FOOD INTERNATIONAL : REPORTS 9.8% INCREASE IN SALES, AND 9.0% INCREASE IN NET PROFIT IN SECOND QUARTER 2021 COMPARED TO SAME PERIOD 2020 (Form 6-K)

G. WILLI-FOOD INTERNATIONAL REPORTS 9.8% INCREASE IN SALES,

AND 9.0% INCREASE IN NET PROFIT IN SECOND QUARTER 2021

COMPARED TO SAME PERIOD 2020

NET PROFIT UP 126.1% IN FIRST HALF 2021 COMPARED TO SAME PERIOD 2020

YAVNE, Israel - August 16, 2021 - 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 second quarter ended June 30, 2021.

Second Quarter Fiscal Year 2021 Highlights

•	Sales increased by 9.8% year-over-year to NIS 114.3 million (US$ 35.1 million).

•	Gross profit decreased by 6.5% year-over-year to NIS 36.9 million (US$ 11.3 million).

•	Operating profit decreased by 18.8% year-over-year to NIS 13.7 million (US$ 4.2 million).

•	Total financial income increased by 129.0% year-over-year to NIS 7.6 million (US$ 2.3 million).

•	Income before taxes increased by 5.6% year-over-year to NIS 21.4 million (US$ 6.6 million).

•	Net profit increased by 9.0% year-over-year to NIS 16.6 million (US$ 5.1 million), or 14.5% of sales.

•	Cash and securities balance of NIS 403.0 million (US$ 123.6 million) as of June 30, 2021.

•	Earnings per share of NIS 1.2 (US$ 0.37).

Management Comment

Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food, commented: 'We are pleased to present strong second quarter 2021 financial results, which show stable growth in the Company's sales and an increase in net profit compared to the same period in 2020. As a result of the Covid-19 pandemic, the world is still experiencing a crisis that is reflecting among other things, in disruptions to international commercial shipping, which has led to an increase in the demand for containers and a significant increase in sea freight and commodity prices.

Despite the challenging environment, the Company has succeeded to maintain a high level of sales and operational parametres for the second quarter of 2021. The Company's strategy for the near future is to develop new products, enter into new categories with potential of high gross profit margins, improve the visibility of its products in the stores and strengthen its brand, supply chain and sufficient inventory. We believe that our strong performance in the second quarter was driven from our pursuit of these goals. We intend to continue to work to further strengthen the Company's supply chain and product portfolio and maintain sufficient inventory levels in the future to continue to improve our results.

Non-bank credit business activity

After three years in the field of the 'non-bank credit business', in light of lack of the company activity in this field the board of directors has decided to terminate this activity and focus only on the Company's core business of developing, marketing and distributing kosher foods.

Second Quarter Fiscal 2021 Summary

Sales for the second quarter of 2021 increased by 9.8% to NIS 114.3 million (US$ 35.1 million) from NIS 104.2 million (US$ 31.9 million) recorded in the second quarter of 2020. Revenues increased primarily due to a redirection of resources in favor of sales, increasing the variety of the Company's products, improved inventory management and improving the presence of the Company's line of products on its customers shelves.

Gross profit for the second quarter of 2021 decreased by 6.5% to NIS 36.9 million (US$ 11.3 million) compared to NIS 39.5 million (US$ 12.1 million) recorded in the second quarter of 2020. Second quarter gross margin decreased by 14.8% to 32.3% compared to gross margin of 37.9% for the same period in 2020, The decrease in gross profit was mainly due to increase costs of the Company's imported products, increased shipping costs and one-time credits received from suppliers in the second quarter of 2020.

Selling expenses increased by 7.5% to NIS 17.4 million (US$ 5.3 million) compared to NIS 16.2 million (US$ 5.0 million) in the second quarter of 2020 primarily due to an increase in payroll expenses in the logistics and sales departments and an increase of transportation of products to the Company's customers to support sales growth.

General and administrative expenses decreased by 9.0% to NIS 5.9 million (US$ 1.8 million) compared to NIS 6.5 million (US$ 2.0 million) in the second quarter of 2020.

As a result of the foregoing, operating profit for the second quarter of 2021 decreased by 18.8% to NIS 13.7 million (US$ 4.2 million) compared to NIS 16.9 million (US$ 5.2 million) in the second quarter of 2020.

Financial income, net totaled NIS 7.6 million (USD$ 2.3 million) compared to Financial income, net of NIS 3.3 million (US$ 1.0 million) in the second quarter of 2020. Financial income, net for the second quarter of 2021 comprised mainly of interest and dividend income from the Company's portfolio of securities in the amount of NIS 4.7 million (US$ 1.4 million), income from revaluation of the Company's portfolio of securities to fair value in the amount of NIS 3.3 million (US$ 1.0 million) and management fee of the Company's portfolio of securities expenses in the amount of NIS 0.4 million (US$ 0.1 million).

Income before taxes on income for the second quarter of 2021 was NIS 21.4 million (US$ 6.6 million) compared to income before taxes on income of NIS 20.2 million (US$ 6.2 million) in the second quarter of 2020.

Net profit in the second quarter of 2021 was NIS 16.6 million (US$ 5.1 million), or NIS 1.2 (US$ 0.37) per share, compared to NIS 15.2 million (US$ 4.7 million), or NIS 1.15 (US$ 0.35) per share, recorded in the second quarter of 2020.

Willi-Food ended the second quarter of 2021 with NIS 403.0 million (US$ 123.6 million) in cash and securities. Net cash from operating activities for the second quarter of 2021 was NIS 19.0 million (US$ 5.8 million). Willi-Food's shareholders' equity at the end of June 2021 was NIS 622.8 million (US$ 191.0 million).

First Half Fiscal 2021 Highlights

•

Sales decreased by 0.9% year-over-year to NIS 231.1 million (US$ 70.9 million).

•

Gross profit decreased by 9.7% year-over-year to NIS 73.2 million (US$ 22.4 million).

•

Operating profit decreased by 19.9% year-over-year to NIS 28.8 million (US$ 8.8 million).

•

Total financial income increased by 235.9% year-over-year to NIS 19.2 million (US$ 5.9 million).

•

Income before taxes increased by 119.6% year-over-year to NIS 47.9 million (US$ 14.7 million).

•

Net profit increased by 126.1% to NIS 37.1 million (US$ 11.4 million), or 16% of sales.

•

Basic earnings per share of NIS 2.67 (US$ 0.82).

First Half Fiscal 2021 Summary

Sales for the six-month period ending June 30, 2021 decreased by 0.9% to NIS 231.1 million (US$ 70.9 million) compared to sales of NIS 233.3 million (US$ 71.6 million) in the first half of 2020. The decrease in the Company's sales are primarily due to the outbreak of Covid 19 in the first quarter of 2020 which led to significant increase demand for the Company's line of products, especially in the retail chains.

Gross profit for the period decreased by 9.7% to NIS 73.2 million (US$ 22.4 million) compared to gross profit of NIS 81.0 million (US$ 24.9 million) for the first half of 2020. First half 2021 gross margin was 31.7% compared to a gross margin of 34.7% for the same period in 2020. The decrease in gross profit was mainly due to increase costs of the Company's imported products, increase in shipping costs and one time credits received from suppliers.

Operating profit for the first half of 2021 decreased by 19.9% to NIS 28.8 million (US$ 8.8 million) from NIS 35.9 million (US$ 11.0 million) reported in the comparable period of last year primarily due to the decrease of gross profit.

Financial income, net totaled NIS 19.2 million (USD$ 5.9 million) compared to Financial expense, net of NIS 14.1 million (US$ 4.3 million) in the first half of 2020. Financial income, net for the first half of 2021 comprised mainly from interest and dividend income from the Company's portfolio of securities in the amount of NIS 6.3 million (US$ 1.9 million), income from revaluation of the Company's portfolio of securities to fair value in the amount of NIS 11.9 million (US$ 3.6 million) and management fee of the Company's portfolio of securities expenses in the amount of NIS 0.5 million (US$ 0.1 million).

Financial expenses in the first half of 2021 resulted mainly from the outbreak of COVID-19 pandemic which led to capital markets sharp declines and, as a result, the Company suffered a decline in its portfolio of securities.

Income before taxes for the first half 2021 increased by 119.6% to NIS 47.9 million (US$ 14.7 million) compared to NIS 21.8 million (US$ 6.7 million) recorded in the first half of 2020.

Net profit for the first half of 2021 increased by 126.1% to NIS 37.1 million (US$ 11.4 million), or NIS 2.67 (US$ 0.82) per share, from NIS 16.4 million (US$ 5.0 million), or NIS 1.24 (US$ 0.38) per share, recorded in the first half of 2020.

NOTE A: NIS to US$ exchange rate used for convenience only

The convenience translation of New Israeli Shekels (NIS) into U.S. dollars was made at the rate of exchange prevailing on June 30, 2021, U.S. $1.00 equals NIS 3.26. 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 six-month period ended June 30, 2021 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 1,250 customers and 2,500 selling points 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 Euro Europian Dairies (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, risks associated with product liability claims and risks associated with the start of credit extension activity. 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, 2020, filed with the Securities and Exchange Commission on March 25, 2021. 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

		June 30,			December 31			June 30,			December 31
		2 0 2 1			2 0 2 0			2 0 2 0			2 0 2 1			2 0 2 0			2 0 2 0
		NIS			US dollars (*)
		(in thousands)
ASSETS
Current assets
Cash and cash equivalents			255,510				168,689				201,822				78,377				51,745				61,909
Financial assets carried at fair value through profit or loss			147,442				113,468				154,700				45,228				34,806				47,454
Trade receivables			133,369				140,581				131,301				40,911				43,123				40,276
Loans to others			-				3,650				18,707				-				1,120				5,738
Other receivables and prepaid expenses			6,268				6,516				6,667				1,923				1,999				2,045
Inventories			58,463				61,262				59,514				17,933				18,792				18,257
Current tax assets			5,334				-				3,965				1,636				-				1,216
Total current assets			606,386				494,166				576,676				186,008				151,585				176,895
Non-current assets
Property, plant and equipment			86,737				82,138				83,105				26,606				25,196				25,492
Less -Accumulated depreciation			48,538				45,723				46,460				14,889				14,026				14,251
			38,199				36,415				36,645				11,717				11,170				11,241
Right of use asset			5,155				3,382				2,866				1,581				1,037				879
Financial assets carried at fair value through profit or loss			17,916				9,273				13,700				5,496				2,845				4,202
Goodwill			36				36				36				11				11				11
Deferred taxes			-				4,200				-				-				1,288				-
Total non-current assets			61,306				53,306				53,247				18,805				16,351				16,333
			667,692				547,472				629,923				204,813				167,936				193,228
EQUITY AND LIABILITIES
Current liabilities
Current maturities of lease liabilities			1,516				1,593				1,393				465				489				427
Trade payables			21,256				20,049				23,474				6,520				6,150				7,201
Employees Benefits			3,816				3,410				3,437				1,171				1,046				1,054
Current tax liabilities			-				1,448				-				-				444				-
Other payables and accrued expenses			9,480				9,728				11,611				2,908				2,984				3,562
Total current liabilities			36,068				36,228				39,915				11,064				11,113				12,244
Non-current liabilities
Lease liabilities			3,776				1,896				1,592				1,158				581				488
Deferred taxes			3,163				-				768				970				-				236
Retirement benefit obligation			1,872				1,596				1,905				574				490				584
Total non-current liabilities			8,811				3,492				4,265				2,702				1,071				1,308
Shareholders' equity
Share capital			1,490				1,425				1,490				457				437				457
Additional paid in capital			170,760				128,354				170,760				52,380				39,372				52,380
Capital fund			247				247				247				76				76				76
Treasury shares			(628	)			(628	)			(628	)			(193	)			(193	)			(193	)
Remeasurement of the net liability in respect of defined benefit			(1,322	)			(1,029	)			(1,322	)			(406	)			(316	)			(406	)
Retained earnings			452,266				379,383				415,196				138,733				116,376				127,362
Equity attributable to owners of the Company			622,813				507,752				585,743				191,047				155,752				179,676
			667,692				547,472				629,923				204,813				167,936				193,228

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

G. WILLI-FOOD INTERNATIONAL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

		Six months			Three months			Six months
		ended			ended			ended
		June 30,			June 30,			June 30,
		2 0 2 1			2 0 2 0			2 0 2 1			2 0 2 0			2 0 2 1			2 0 2 0
		NIS			US dollars (*)
		In thousands (except per share and share data)
Sales			231,057				233,255				114,347				104,152				70,876				71,551
Cost of sales			157,897				152,232				77,422				64,651				48,435				46,697
Gross profit			73,160				81,023				36,925				39,501				22,441				24,854
Operating costs and expenses:
Selling expenses			32,771				32,822				17,428				16,205				10,052				10,068
General and administrative expenses			11,764				12,340				5,880				6,464				3,609				3,785
Other income			137				58				100				58				42				18
Total operating expenses			44,398				45,104				23,208				22,611				13,619				13,835
Operating profit			28,762				35,919				13,717				16,890				8,822				11,019
Financial income			19,910				2,580				8,183				3,743				6,107				791
Financial expense			(758	)			(16,677	)			(537	)			(404	)			(232	)			(5,116	)
Total financial income (expense)			19,152				(14,097	)			7,646				3,339				5,875				(4,325	)
Income before taxes on income			47,914				21,822				21,363				20,229				14,697				6,694
Taxes on income			(10,844	)			(5,425	)			(4,774	)			(5,015	)			(3,326	)			(1,664	)
Profit for the period			37,070				16,397				16,589				15,214				11,371				5,030
Earnings per share:
Basic earnings per share			2.67				1.24				1.2				1.15				0.82				0.38
Diluted earnings per share			2.55				1.24				1.14				1.15				0.78				0.38
Shares used in computation of basic EPS			13,867,017				13,217,017				13,867,017				13,217,017				13,867,017				13,217,017
Shares used in computation of diluted EPS			14,517,017				13,217,017				14,517,017				13,217,017				14,517,017				13,217,017
Actual number of shares			13,867,017				13,217,017				13,867,017				13,217,017				13,867,017				13,217,017

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

G. WILLI-FOOD INTERNATIONAL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

		Six months			Three months			Six months
		ended			ended			ended
		June 30,			June 30,			June 30,
		2 0 2 1			2 0 2 0			2 0 2 1			2 0 2 0			2 0 2 1			2 0 2 0
		NIS			US dollars (*)
		(in thousands)
CASH FLOWS - OPERATING ACTIVITIES
Profit from continuing operations			37,070				16,397				16,589				15,214				11,371				5,030
Adjustments to reconcile net profit to net cash used to (used in) continuing operating activities (Appendix A)			(13,848	)			(**) 15,151				2,402				(**) 8,800				(4,248	)			4,647
Net cash used in continuing operating activities			23,222				31,548				18,991				24,014				7,123				9,677
CASH FLOWS - INVESTING ACTIVITIES
Acquisition of property plant and equipment			(3,633	)			(736	)			(2,289	)			(374	)			(1,114	)			(225	)
Proceeds from sale (purchase) of marketable securities, net			15,161				2,528				8,365				10,528				4,651				775
Proceeds from sale of property plant and equipment			137				58				100				58				42				18
Proceeds from loans granted to others			18,707				14,000				11,215				14,000				5,738				4,295
Net cash used in (used to) continuing investing activities			30,372				15,850				17,391				24,212				9,317				4,863
CASH FLOWS - FINANCING ACTIVITIES
Lease liability payments			(1,004	)			(828	)			(532	)			(404	)			(308	)			(254	)
Net cash used in continuing financing activities			(1,004	)			(828	)			(532	)			(404	)			(308	)			(254	)
Increase (decrease) in cash and cash equivalents			52,590				(**) 46,570				35,850				(**) 47,822				16,132				14,286
Cash and cash equivalents at the beginning of the financial period			201,822				121,860				218,808				121,040				61,909				37,380
Exchange losses on cash and cash equivalents			1,098				(**) 259				852				(**) (173	)			336				79
Cash and cash equivalents of the end of the financial year			255,510				168,689				255,510				168,689				78,377				51,745

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

(**) Reclassified

G. WILLI-FOOD INTERNATIONAL LTD.

APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

CASH FLOWS - OPERATING ACTIVITIES:

A.Adjustments to reconcile net profit to net cash from operating activities:

		Six months			Three months			Six months
		ended			ended			ended
		June 30,			June 30,			June 30,
		2 0 2 1			2 0 2 0			2 0 2 1			2 0 2 0			2 0 2 1			2 0 2 0
		NIS			US dollars (*)
		(in thousands)
Decrease (increase) in deferred income taxes			2,395				(3,382	)			1,073				901				735				(1,037	)
Unrealized loss (gain) on marketable securities			(12,119	)			16,272				(3,276	)			(2,433	)			(3,717	)			4,991
Depreciation and amortization			3,101				2,751				1,622				1,398				950				844
Capital gain on disposal of property plant and equipment			(137	)			(58	)			(100	)			(58	)			(42	)			(18	)
Exchange losses on cash and cash equivalents			(1,098	)			(**) (259	)			(852	)			(**) (173	)			(336	)			(79	)
Changes in assets and liabilities:
Increase (decrease) in trade receivables and other receivables			(3,038	)			(4,700	)			8,276				19,991				(932	)			(1,443	)
Decrease (increase) in inventories			1,051				10,286				3,888				(5,271	)			322				3,155
Increase (decrease) in trade and other payables, and other current liabilities			(4,003	)			(5,759	)			(8,229	)			(5,901	)			(1,228	)			(1,766	)
Net cash flows from operating activities			(13,848	)			15,151				2,402				8,800				(4,248	)			4,647

B.Significant non-cash transactions:

		Six months			Three months			Six months
		ended			ended			ended
		June 30,			June 30,			June 30,
		2 0 2 1			2 0 2 0			2 0 2 1			2 0 2 0			2 0 2 1			2 0 2 0
		NIS			US dollars (*)
		(in thousands)
Supplemental cash flow information:
Income tax paid			9,758				11,060				4,866				4,580				2,993				3,393

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

(**) Reclassified

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.

Yitschak Barabi, Chief Financial Officer

([phone]

[e-mail]

###

SOURCE: G. Willi-Food International Ltd.