G. WILLI-FOOD INTERNATIONAL REPORTS ITS FINANCIAL
RESULTS FOR THE YEAR2021

YAVNE, Israel - March 15, 2022 - G. Willi-Food International Ltd. (NASDAQ: WILC and TASE: WILF) (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, 2021.

Fiscal Year 2021 Highlights

 •
Sales increased to NIS 454.2 million (US$ 146.0 million) from NIS 454.1 million (US$ 146.0 million) in fiscal year 2020.

•
Gross profit decreased by 4.9% from fiscal year 2020 to NIS 138.3 million (US$ 44.5 million).

•
Operating profit decreased by 14.3% from fiscal year 2020 to NIS 49.4 million (US$ 15.9 million).

•
Cash and cash equivalents balance of NIS 349.8 million (US$ 112.5 million) as of December 31, 2021.

•
Earnings per share of NIS 3.25 (US$ 1.05).

Management Comment
Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food, commented: "We are very pleased to present our fiscal year 2021 financial results. As a result of the Covid-19 pandemic and its variants, 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. The Company cannot predict how long this "shipping crisis" will last. Despite this difficult environment, the Company managed to maintain the same level of sales and a strong level of gross margin and other operational parameters. In addition, recently armed conflict opened between Ukraine and Russia which are major producers of wheat and oil in the world. if this war continues it will affect the price of wheat and oil and its related products. Despite this difficulties and uncertainty The Company will work hard to fulfill its strategy for the near future, to improve commercial conditions with its suppliers and customers, develop new products, enter into new categories with potentially high gross profit margins, improve the visibility of its products in the stores, strengthen its brand and supply chain and ensure sufficient inventory. We intend to work hard to achieve the goals we have set for the Company."

Fiscal 2021 Summary
Revenues for fiscal year 2021 increased to NIS 454.2 million (USD 146.0 million) from NIS 454.1 million (USD 146.0 million) recorded in fiscal year 2020.
Gross profit for fiscal year 2021 decreased by 4.9% to NIS 138.3 million (USD 44.5 million), or 30.4% of revenues, from NIS 145.4 million (USD 46.7 million), or 32.0% of revenues, recorded in fiscal year 2020. The decrease in gross profit was mainly due to increased costs of the Company's imported products and significant increases in shipping costs starting second half of 2021.
Selling expenses for fiscal year 2021 amounted to NIS 65.9 million (USD 21.2 million), or 14.5% of revenues, and were substantially the same as in fiscal 2020.
General and administrative expenses for fiscal year 2021 increased by 6.3% to NIS 23.3 million (USD 7.5 million), or 5.1% of revenues, from NIS 21.9 million (USD 7.0 million), or 4.8% of revenues, recorded in fiscal year 2020. The increase in General and administrative expenses was mainly due to changes in the provision for doubtful debts in the amount of NIS 0.7 million (USD 0.3 million) and an increase in stock exchange fees and donations in the amount of 0.5 million (USD 0.16 million).
Operating profit for fiscal year 2021 decreased by NIS 8.2 million (USD 2.6 million), or by 14.3%, to NIS 49.4 million (USD 15.9 million), or 10.9% of revenues, from NIS 57.6 million (USD 18.5 million), or 12.7% of revenues, recorded in fiscal year 2020. The decrease in operating profit was primarily due to a decrease in gross profit.
Financial income, net, for fiscal year 2021 amounted to NIS 8.5 million (USD 2.7 million), compared to NIS 10.1 million (USD 3.2 million) recorded in fiscal year 2020. Financial income, net for fiscal year 2021 comprised mainly of income from revaluation of the Company's portfolio of securities to fair value in an amount of NIS 19.5 million (USD 6.3 million) and interest and dividend income from the Company's portfolio of securities in an amount of NIS 9.5 million (USD 3.1 million), offset by from expenses from changes in fair value of liabilities assets at fair values in an amount of NIS 14.0 (USD 4.5 million), exchange rate differences in an amount of NIS 5.2 million (USD 1.7 million) and other finance expenses in an amount of NIS 1 million (USD 0.3 million).
Willi-Food ended fiscal year 2021 with NIS 349.8 million (USD 112.3 million) in cash and cash equivalents with no short-term debt. Net cash from operating activities in fiscal year 2021 was NIS 45.7 million (USD 14.7 million). Willi-Food's shareholders' equity at the end of December 2021 was NIS 568.9 million (USD 182.9 million).
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 of USD 1.00 to NIS 3.11 as of December 31, 2021. The use of USD is solely for the convenience of the reader.

NOTE B: IFRS
The Company's consolidated financial results for fiscal year ended December 31, 2021 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 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 and 3,000 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 European Dairies, a wholly owned subsidiary that designs, develops and distributes branded kosher, dairy-food products.
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 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, adverse effects from the ongoing COVID-19 pandemic, disruptions to global shipping, 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 27, 2020. 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,
2 0 2 1
2 0 2 0
2 0 2 1
2 0 2 0
NIS
US dollars (*)
(in thousands)
ASSETS
Current assets
Cash and cash equivalents
195,718
201,822
62,932
64,895
Financial assets at fair value through profit or loss
154,090
154,700
49,546
49,742
Loans to others
-
18,707
-
6,015
Trade receivables
134,017
131,301
43,092
42,219
Other receivables and prepaid expenses
4,939
6,667
1,588
2,144
Inventories
59,528
59,514
19,141
19,136
Current tax assets
5,780
3,965
1,859
1,275
Total current assets
554,072
576,676
178,158
185,426
Non-current assets
Property, plant and equipment
87,245
83,105
28,053
26,722
Less -Accumulated depreciation
48,431
46,460
15,573
14,939
38,814
36,645
12,480
11,783
Right of use asset
4,088
2,866
1,314
922
Financial assets at fair value through profit or loss
31,056
13,700
9,986
4,405
Goodwill
36
36
12
12
Total non-current assets
73,994
53,247
23,792
17,122
628,066
629,923
201,950
202,548
EQUITY AND LIABILITIES
Current liabilities
Current maturities of lease liabilities
1,136
1,393
365
448
Trade payables
20,386
23,474
6,555
7,548
Employees Benefits
3,442
3,437
1,107
1,105
Financial liabilities at fair value through profit or loss
13,960
-
4,489
-
Other payables and accrued expenses
11,216
11,611
3,606
3,733
Total current liabilities
50,140
39,915
16,122
12,834
Non-current liabilities
Lease liabilities
3,062
1,592
985
512
Deferred taxes
2,017
768
648
247
Retirement benefit obligation
1,615
1,905
519
613
Total non-current liabilities
6,694
4,265
2,152
1,372
Shareholders' equity
Share capital
1,490
1,490
479
479
Additional paid in capital
170,760
170,760
54,907
54,907
Capital fund
247
247
79
79
Treasury shares
(628
)
(628
)
(202
)
(202
)
Retained earnings
400,322
415,196
128,721
133,504
Remeasurement of the net liability in respect of defined benefit
(959
)
(1,322
)
(308
)
(425
)
Equity attributable to owners of the Company
571,232
585,743
183,676
188,342
628,066
629,923
201,950
202,548

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


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


For the year ended
December 31,
For the year ended
December 31,
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
454,213
454,094
146,049
146,011
Cost of sales
315,920
308,717
101,582
99,266
Gross profit
138,293
145,377
44,467
46,745
Operating costs and expenses:
Selling expenses
65,869
65,990
21,180
21,219
General and administrative expenses
23,299
21,918
7,491
7,048
Other income
(230
)
(108
)
(74
)
( 35
)
Total operating expenses
88,938
87,800
28,597
28,232
Operating profit
49,355
57,577
15,870
18,513
Financial income
28,957
11,348
9,311
3,649
Financial expense
20,492
1,253
6,589
403
Total Finance Income
8,465
10,095
2,722
3,246
Profit before taxes on income
57,820
67,672
18,592
21,759
Taxes on income
12,719
15,463
4,090
4,972
Income after taxes on income
45,101
52,209
14,502
16,787
Earnings per share:
Basic / diluted earnings per share
3.25
3.89
1.05
1.3
Shares used in computation of
basic/diluted EPS
13,867,017
13,433,684
13,867,017
13,433,684
Actual number of shares
13,867,017
13,867,017
13,867,017
13,867,017

(*)
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,
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)
CASH FLOWS - OPERATING ACTIVITIES
Profit from continuing operations
45,101
52,209
14,502
16,787
Adjustments to reconcile net profit to net cash from continuing operating activities (Appendix A)
416
11,967
133
3,848
Net cash from (used to) continuing operating activities
45,517
64,176
14,635
20,635
CASH FLOWS - INVESTING ACTIVITIES
Acquisition of property plant and equipment
(6,209
)
(2,903
)
(1,996
)
(933
)
Proceeds from sale of property plant and equipment
230
108
74
35
Loans granted to others
-
(20,000
)
-
(6,431
)
Proceeds from loans granted to others
18,707
18,943
6,015
6,091
Proceeds from sale (purchase) of marketable securities, net
2,718
(20,739
)
874
(6,668
)
Net cash used to continuing investing activities
15,446
(24,591
)
4,967
(7,906
)
CASH FLOWS - FINANCING ACTIVITIES
Lease liability payments
(2,169
)
(1,819
)
(697
)
(585
)
Shares issue
-
42,471
-
13,656
Dividend distribution
(59,975
)
-
(19,285
)
-
Net cash used to continuing financing activities
(62,144
)
40,652
(19,982
)
13,071
Increase (decrease) in cash and cash equivalents
(1,181
)
80,237
(380
)
25,800
Cash and cash equivalents at the beginning of the year
201,822
121,860
64,895
39,183
Exchange losses on cash and cash equivalents
(4,923
)
(275
)
(1,583
)
(88
)
Cash and cash equivalents at the end of the year
195,718
201,822
62,932
64,895

(*) 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,
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)
CASH FLOWS - OPERATING ACTIVITIES:
A.Adjustments to reconcile net profit to net cash from (used to) continuing operating activities
Decrease (Increase) in deferred income taxes
1,249
1,586
402
510
Unrealized loss (gain) on marketable securities
(19,464
)
(6,115
)
(6,258
)
(1,966
)
Loss of financial liabilities at fair value through profit or loss
13,960
-
4,489
-
Depreciation and amortization
6,200
5,690
1,993
1,830
Capital gain on disposal of property plant and equipment
(230
)
(108
)
(74
)
(35
)
Exchange (losses)/gains on cash and cash equivalents
4,923
275
1,583
88
Changes in assets and liabilities:
Decrease (increase) in trade receivables and other receivables
10,190
22,029
3,277
7,083
Increase (Increase) in inventories
(14
)
12,034
(5
)
3,869
Increase (decrease) in trade and other payables, and other current liabilities
(3,405
)
(1,861
)
(1,096
)
(598
)
Cash generated from operations
13,409
33,530
4,311
10,781
Income tax paid
(12,993
)
(21,563
)
(4,178
)
(6,933
)
Net cash flows from operating activities
416
11,967
133
3,848

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

Company Contact:
G. Willi - Food International Ltd.
Yitschak Barabi, Chief Financial Officer
(+972) 8-932-1000
itsik.b@willi-food.co.il

###

SOURCE: G. Willi-Food International Ltd.


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G. Willi-Food International Ltd. published this content on 15 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2022 11:01:07 UTC.