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 August 2007
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G. WILLI-FOOD INTERNATIONAL LTD.
(Translation of registrant's name into English)
4 Nahal Harif St., Yavne, Israel 81106
(Address of principal executive offices)
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Indicate by check mark whether registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
FORM 20-F [X] 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 registrant 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 [X]
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 issued
by G. Willi-Food International Ltd. ("Registrant") on August 27, 2007.
This report on Form 6-K shall be deemed to be incorporated by reference in the
Registration Statements on Form F-3 (File No. 333-11848 and 333-138200) of the
Registrant.
SIGNATURES
In accordance with 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.
Dated: August 27, 2007
By: /s/ Joseph Williger
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Joseph Williger
Chief Executive Officer
 |
News |
FOR IMMEDIATE RELEASE
G. WILLI-FOOD REPORTS FINANCIAL RESULTS FOR THE SECOND
QUARTER AND FIRST SIX MONTHS OF 2007
CONTINUED FOCUS ON PROFITABLE GROWTH
YAVNE, Israel - August 27, 2007 - G. Willi-Food International Ltd. (NASDAQ:
WILC) (the "Company" or "Willi-Food"), one of Israel's largest food importers
and a single-source supplier of one of the world's most extensive range of
quality kosher food products, today announced its unaudited financial results
for the second quarter and first six months ended June 30, 2007.
SECOND QUARTER 2007 FINANCIAL HIGHLIGHTS
o 29.1% increase in sales over second quarter 2006
o 17.6% increase in gross profit over second quarter 2006
o 9.6% increase in net income over second quarter 2006, including one-time
expenses related to the move to the new logistics center
Second quarter 2007 results include consolidated results of Laish Israeli, a
U.S. importer and distributor of kosher food products acquired by the Company
and the Company's global kosher trade and export joint venture with the Baron
family.
Revenues for the second quarter of 2007 increased 29.1% to NIS 55.8 million (US
$13.1 million) compared to revenues of NIS 43.2 million (US $10.2 million) in
the second quarter of 2006. The increase in revenues continues to be driven by
the Company's international expansion and addition of new business units.
Gross profit for the second quarter of 2007 increased by 17.6% to NIS 13.4
million (US $3.2 million) compared to gross profit of NIS 11.4 million (US $2.7
million) in the second quarter of 2006. Second quarter gross margin was 24.1%
compared to 26.4% for the same period in 2006. The global increase in the prices
of raw food materials overall, and in particular goods related to milk and dairy
products, had a negative impact on gross profit for the period.
Mr. Zwi Williger, President and COO of Willi-Food commented, "Second quarter
results remained strong. We experienced some margin pressure in the quarter due
to the global increases in raw material prices, but are pleased to consistently
deliver significantly higher margins than those generated by most other
companies in our industry."
Willi-Food's operating income for the second quarter of 2007 declined to NIS 2.7
million (US $0.6 million) from NIS 3.8 million (US $0.9 million) reported in the
comparable quarter of last year. Second quarter selling expenses as a percentage
of revenues increased slightly to 13.1% compared to10.9% in the prior year's
period, reflecting increased one-time expenses related to the transition to the
new logistics center.
The Company completed its transition to the new state-of-the-art logistics center situated in Yavne. Storage and distribution operations are now integrated in the same facility, and the Company expects to realize future cost savings from the consolidation of warehouse operations and implementation of new inventory management systems. Willi-Food's second quarter 2007 net income was NIS 2.9 million (US$0.7 million), or NIS 0.28 (US$0.07) per share compared to a net income of NIS 2.6 million (US$0.6 million), or NIS 0.31 (US$0.07) per share, recorded in the second quarter of 2006. Willi-Food ended the quarter with $21.6 million in cash and securities and approximately $1.5 million in short-term debt. The Company's Gold Frost subsidiary, which develops chilled and dairy products, reported a 37.1% increase in second quarter 2007 revenues to $3.5 million from $2.5 million in the same quarter of 2006. The subsidiary's gross profit for the quarter was $1.4 million or 41% of revenues compared to $1.3 million or 53% of revenue in the same 2006 period. Second quarter operating income for Gold Frost was $787,000 or 23% of revenues, compared to $816,000 or 32% of revenues in the same 2006 period. Gold Frost's income before taxes was $904,000 compared to $914,000 in the second quarter of 2006. Second quarter net income for Gold Frost increased 15% to $769,000 from $670,000 in second quarter 2006. SIX-MONTH RESULTS Willi-Food's revenues for the six-month period increased 30% to NIS 127.2 million (US $29.9 million) compared to revenues of NIS 97.7 million (US $23.0 million) in the first half of 2006. Gross profit for the period increased 33% to NIS 34.2 million (US $8.1 million) compared to gross profit of NIS 25.8 million (US $6.1 million) for the six month period in 2006. First half gross margins remained level at 26.9% compared to gross margins of 26.4% in the same period in 2006. Operating income for the first half of 2007 increased 55% to NIS 12.8 million (US $3.0 million) from NIS 8.3 million (US $1.9 million) reported in the comparable period of last year. First half 2007 income before taxes was NIS 15.1 million (US $3.6 million) compared to NIS 28.8 million (US $6.8 million) recorded in the first half of 2006. Net income for the first half of 2007 was NIS 9.4 million (US $2.2 million), or NIS 0.92 (US $0.22) per share compared to NIS 25.3 million (US $6.0 million), or NIS 2.94 (US $0.69) per share, recorded in the first half of 2006.
OUTLOOK "Our business is growing rapidly and we remain focused on maximizing long-term profitability and expanding the Willi-Food brand globally," stated Mr. Williger. "We have integrated our new business units and are making necessary adjustments to improve our overall blended margin both domestically and internationally. "The evaluation of our traditional dry-goods import business in Israel and Laish's extensive product line was initiated last quarter, as part of our strategy to improve margins in these business segments. We have been analyzing revenue and profit contributions across various products and categories and identifying opportunities to eliminate or replace certain items with those generating higher returns. As we move forward with this process, we are finding more opportunities for product elimination or replacement than we had originally planned, which will likely result in further short-term revenue reductions in these businesses in 2007; however we are confident that this strategy will deliver better profit returns in the future. "We are also reviewing the optimal timing for penetration of the U.S. kosher dairy market, in light of worldwide cost increases in dairy production. We are working closely with our global suppliers to manage rising costs and develop additional resources and have decided to temporarily delay the sale of dairy imports into the U.S. until we have more control over this issue. We are still pursuing our own dairy import license for our Gold Frost subsidiary with the U.S. authorities, and Gold Frost is still working on new product labeling in compliance with USDA and kosher regulations, so we will be ready to execute when this cost challenge is resolved. "Our strategy of building a distribution network in the U.S. through acquisition of channels with local and national retailer relationships is moving ahead. The goal is to expand Willi-Food's brand presence through distribution of existing high-margin innovative products and then leverage this foundation to penetrate the kosher dairy market once we are able to achieve more favorable margins in this segment. "Including all of these factors, we are reducing our 2007 estimates for revenue growth to a range of 30-40% over the NIS 191.5 million (US $45.1 million) in reported revenues for 2006, adjusted for currency fluctuation. We believe that this estimate represents very significant revenue growth with the ramp-up of our newly added business lines, but more importantly, enables us to deliver the highest margins possible. Demand for innovative kosher products remains strong and we are confident in our ability to leverage our enhanced international platform to become a highly profitable leader in the global marketplace." The Company will host a conference call to discuss results on August 27, at 10:00 AM EDT. Interested parties may participate in the conference call by dialing (877) 407-0778 (US), or (201) 689-8565 (International) 5-10 minutes prior to the start of the call. A replay of the conference call will be available from 1:00 PM EDT on August 27 through 12:00 PM EDT on September 2, by dialing (877) 660-6853 (US), or (201) 612-7415 (International), and entering replay account 286 and then replay ID# 251859. A live and archived webcast of the conference call will be available by following this link: http://investor.shareholder.com/media/eventdetail.cfm?mediaid=27111&c=wilc& mediakey=c011e8791d3a2b0bd74d3c63b78a23fe&e=0 and alternatively on the Willi-Food website at http://www.willi-food.co.il.
ABOUT G. WILLI-FOOD INTERNATIONAL, LTD. G. Willi-Food International Ltd. is one of Israel's largest food importers and a single-source supplier of one of the world's most extensive ranges of quality kosher food products. It currently imports, markets and distributes more than 400 food products manufactured by some 100 top-tier suppliers throughout the world to more than 1,000 customers. The Company excels in identifying changing tastes in its markets and sourcing high-quality kosher products to address them. For more information, please visit the Company's website at www.willi-food.co.il. Except for historical information contained herein, the matters set forth in this press release are forward-looking statements that are dependent on certain risks and uncertainties, including such factors, among others, as market acceptance, market demand, pricing, competition, changing economic conditions and other risk factors detailed in the Company's SEC filings. Financial reporting from recent acquisitions and joint ventures are consolidated into Willi-Food's financial results and will not be itemized. 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 June 30, 2007: U.S. $1.00 equals NIS 4.249. The translation was made solely for the convenience of the reader. CONTACT: G. Willi Food International Ltd. Gil Hochboim, Vice President (+972) 8-932-1000 gil@willi-food.co.il IR CONTACT: The Global Consulting Group Christopher Chu (646) 284-9426 cchu@hfgcg.com
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
------- ------- ------- -------
2 0 0 7 2 0 0 6 2 0 0 7 (*) 2 0 0 6 (*)
------- ------- ------- -------
NIS US DOLLARS
--------------------- ---------------------
I N T H O U S A N D S
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ASSETS
CURRENT ASSETS
Cash and cash equivalents 59,441 91,398 13,989 21,511
Marketable securities 32,515 13,945 7,652 3,282
Trade receivables 67,094 48,163 15,790 11,335
Other receivables and prepaid expenses 4,206 4,499 990 1,059
Inventories 31,377 19,101 7,385 4,495
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TOTAL CURRENT ASSETS 194,633 177,106 45,806 41,682
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FIXED ASSETS
Cost 53,513 49,213 12,594 11,582
Less: accumulated depreciation and
amortization 7,191 6,442 1,692 1,516
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46,322 42,771 10,902 10,066
------- ------- ------- -------
OTHER ASSETS, NET 3,399 94 800 22
======= ======= ======= =======
244,354 219,971 57,508 51,770
======= ======= ======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term loan 6,374 - 1,500 -
Trade payables 29,124 20,137 6,854 4,739
Related parties 3,707 5,677 872 1,336
Other payables and accrued expenses 6,563 6,969 1,545 1,640
------- ------- ------- -------
TOTAL CURRENT LIABILITIES 45,768 32,783 10,771 7,715
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LONG TERM LIABILITIES
Accrued severance pay 400 347 94 82
------- ------- ------- -------
WARRANTS TO ISSUE SHARES OF SUBSIDIARY - 348 - 82
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MINORITY INTEREST 16,976 14,754 3,995 3,472
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SHAREHOLDERS' EQUITY
Ordinary shares NIS 0.10 par value
(authorized - 50,000,000 shares, issued
and outstanding - 10,267,893 shares) 1,113 1,113 262 262
Additional paid-in capital 61,350 61,350 14,439 14,439
Foreign currency translation reserve 70 - 16 -
Retained earnings 118,677 109,276 27,931 25,718
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181,210 171,739 42,648 40,419
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244,354 219,971 57,508 51,770
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(*) Convenience translation into U.S. dollars.
G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
SIX MONTHS THREE MONTHS SIX MONTHS
-------------------------- -------------------------- --------------------------
ENDED JUNE 30, ENDED JUNE 30,
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2 0 0 7 2 0 0 6 2 0 0 7 2 0 0 6 2 0 0 7 (*) 2 0 0 6 (*)
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NIS US DOLLARS
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I N T H O U S A N D S (EXCEPT PER SHARE AND SHARE DATA)
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Sales 127,216 97,745 55,771 43,200 29,940 23,004
Cost of sales 92,996 71,910 42,342 31,783 21,886 16,924
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GROSS PROFIT 34,220 25,835 13,429 11,417 8,054 6,080
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Selling expenses 13,930 9,866 7,315 4,711 3,278 2,322
General and
administrative expenses 7,523 7,709 3,446 2,885 1,771 1,814
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Total operating expenses 21,453 17,575 10,761 7,596 5,049 4,136
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OPERATING INCOME 12,767 8,260 2,668 3,821 3,005 1,944
Financial income, net 2,354 1,380 1,478 767 554 325
Other income 9 19,113 9 - 2 4,498
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Income before taxes
on income 15,130 28,753 4,155 4,588 3,561 6,767
Taxes on income 3,529 2,687 372 1,218 831 632
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Income after taxes
on income 11,601 26,066 3,783 3,370 2,730 6,135
Minority interest 2,199 735 894 735 517 173
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NET INCOME 9,402 25,331 2,889 2,635 2,213 5,962
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Earnings per share data:
Earnings per share:
Basic 0.92 2.94 0.28 0.31 0.22 0.69
========== ========== ========== ========== ========== ==========
Diluted 0.92 2.90 0.28 0.30 0.22 0.68
========== ========== ========== ========== ========== ==========
Shares used in computing
basic and diluted earnings
per ordinary share: 10,267,893 8,615,000 10,267,893 8,615,000 10,267,893 8,615,000
========== ========== ========== ========== ========== ==========
(*) Convenience translation into U.S. dollars.