G. WILLI-FOOD INTERNATIONAL REPORTS 9.7% INCREASE IN
SALES AND A RECORD HIGH ANNUAL SALES IN 2022.

YAVNE, Israel - March 22, 2023 - 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, 2022.

Fiscal Year 2022 Highlights
•
Sales increased to NIS 498.3 million (US$ 141.6 million) from NIS 454.2 million (USD 1290. million) in fiscal year 2021.
•
Gross profit increased by 3.4% from fiscal year 2021 to NIS 143.1 million (USD 40.7 million) in 2022.
•
Operating profit decreased by 8.6% from fiscal year 2021 to NIS 45.1 million (USD 12.8 million) in 2022.
•
Cash and cash equivalents balance of NIS 267.4 million (USD 76.0 million) as of December 31, 2022.
•
Earnings per share of NIS 3.00 (US$ 0.86).

Management Comment
Joseph Williger CEO, commented: "We are very pleased to present our fiscal year 2022 financial results with record sales and strong operational results. Calendar year 2022 was characterized, among other things, by an increase in the rate of interest, an increase in inflation, and as a result an increased public discourse focusing on the increasing cost of living in Israel. Because we import and market high quality substitute food products for the existing strong brands in the Israeli market. we feel an increase in demand for our products and hope that this trend will continue to support our continued growth. In addition, we recently received a construction permit for a new and sophisticated logistics center, through which we plan to significantly upgrade our logistics capabilities, both at the storage and distribution level. We believe this will enable us to enter in to new and profitable categories in the frozen and chilled market and allow us to provide logistics services to other companies in the food sector. The company set itself a growth strategy for the year 2023 that includes supporting our brands through proper advertising, raising the level of inventory and managing it correctly to support sales, developing new products, entering in to new food categories, strengthening existing categories, improving the visibility of products on store shelves and improving logistics capabilities.


Fiscal 2022 Summary
Revenues for fiscal year 2022 increased by 9.7% to NIS 498.3 million (USD 141.6 million) from NIS 454.2 million (USD 129.0 million) recorded in fiscal year 2021. Sales increased mainly due to (i) increasing the range of the Company's products. (ii) proper inventory management. (iii) improving presence of the Company's line of products in stores and (iv) advertising and promotional campaigns.
Gross profit for fiscal year 2022 increased by 3.4% to NIS 143.1 million (USD 40.7 million), or 28.7% of revenues, from NIS 138.3 million (USD 39.3 million), or 30.4% of revenues, recorded in fiscal year 2021. The increase in gross profit was mainly due to increased sales that offset the increased costs of the Company's imported products.
Selling expenses for fiscal year 2022 increased by 12.5% to NIS 74.1 million (USD 21.0 million), or 14.9% of revenues, from NIS 65.9 million (USD 18.7 million), or 14.5% of revenues, recorded in fiscal year 2021. The increase in selling expenses was mainly due to a growth in advertising and sales promotion.
General and administrative expenses for fiscal year 2022 increased by 3.5% to NIS 24.1 million (USD 6.8 million), or 4.8% of revenues, from NIS 23.3 million (USD 6.6 million), or 5.1% of revenues, recorded in fiscal year 2021. The increase in general and administrative expenses was primarily due to an increase in management compensation as a result of grants made under the Company's option plan.
Operating profit for fiscal year 2022 decreased by NIS 4.3 million (USD 1.2 million), to NIS 45.1 million (USD 12.8 million), or 9.0% of revenues, from NIS 49.4 million (USD 14.0 million), or 10.9% of revenues, recorded in fiscal year 2021. The decrease in operating profit was primarily due to an increase in selling expenses.
Financial income, net, for fiscal year 2022 amounted to NIS 8.9 million (USD 2.5 million), compared to NIS 8.5million (USD 2.4 million) recorded in fiscal year 2021. Financial income, net for fiscal year 2022 comprised mainly of income from interest and dividend income from the Company's portfolio of securities in an amount of NIS 9.0 million (USD 2.6 million) and exchange rate differences in an amount of NIS 4.4 million (USD 1.3 million), offset by expenses from revaluation of the Company's portfolio of securities to fair value in an amount of NIS 3.8 million (USD 1.1 million) and other finance expenses in an amount of NIS 0.7 million (USD 0.2 million).
Willi-Food ended fiscal year 2022 with NIS 267.4 million (USD 76.0 million) in cash and cash equivalents with no debt. Net cash from operating activities in fiscal year 2022 was NIS 14.3 million (USD 4.1 million). Willi-Food's shareholders' equity at the end of December 2022 was NIS 559.4 million (USD 158.9 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 3.52 as of December 31, 2022. 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, 2022 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 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, 2022, filed with the Securities and Exchange Commission on March 22, 2022. 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 2
2 0 2 1
2 0 2 2
2 0 2 1
NIS
US dollars (*)
(in thousands)
ASSETS
Current assets
Cash and cash equivalents
150,607
195,718
42,786
55,602
Financial assets at fair value through profit or loss
116,762
154,090
33,171
43,776
Trade receivables
165,838
134,017
47,113
38,073
Other receivables and prepaid expenses
4,956
4,939
1,407
1,403
Inventories
71,929
59,528
20,434
16,911
Current tax assets
3,117
5,780
886
1,642
Total current assets
513,209
554,072
145,797
157,407
Non-current assets
Property, plant and equipment
99,216
87,245
28,186
24,786
Less -Accumulated depreciation
51,533
48,431
14,640
13,759
47,683
38,814
13,546
11,027
Right of use asset
3,391
4,088
963
1,161
Financial assets at fair value through profit or loss
44,113
31,056
12,532
8,823
Goodwill
36
36
10
10
Total non-current assets
95,223
73,994
27,051
21,021
608,432
628,066
172,848
178,428
EQUITY AND LIABILITIES
Current liabilities
Current maturities of lease liabilities
2,194
1,136
623
323
Trade payables
24,842
20,386
7,056
5,791
Employees Benefits
3,756
3,442
1,067
978
Financial liabilities at fair value through profit or loss
-
13,960
-
3,966
Other payables and accrued expenses
11,836
11,216
3,363
3,186
Total current liabilities
42,628
50,140
12,109
14,244
Non-current liabilities
Lease liabilities
1,284
3,062
365
870
Deferred taxes
4,198
2,017
1,193
573
Retirement benefit obligation
878
1,615
249
459
Total non-current liabilities
6,360
6,694
1,807
1,902
Shareholders' equity
Share capital
1,490
1,490
423
423
Additional paid in capital
171,550
170,760
48,735
48,511
Remeasurement of the net liability in respect of defined benefit
(195
)
(959
)
(55
)
(272
)
Capital fund
247
247
70
70
Retained earnings
386,980
400,322
109,937
113,728
Treasury shares
(628
)
(628
)
(178
)
(178
)
Equity attributable to owners of the Company
559,444
571,232
158,932
162,282
608,432
628,066
172,848
178,428
(*)
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 2
2 0 2 1
2 0 2 2
2 0 2 1
NIS
US dollars (*)
In thousands (except per share and share data)
Sales
498,325
454,213
141,570
129,038
Cost of sales
355,228
315,920
100,917
89,750
Gross profit
143,097
138,293
40,653
39,288
Operating costs and expenses:
Selling expenses
74,106
65,869
21,053
18,713
General and administrative expenses
24,117
23,299
6,851
6,619
Other income
(222
)
(230
)
(63
)
(65
)
Total operating expenses
98,001
88,938
27,841
25,267
Operating profit
45,096
49,355
12,812
14,021
Financial income
25,657
28,957
7,289
8,226
Financial expense
16,779
20,492
4,767
5,822
Total Finance income
8,878
8,465
2,522
2,404
Profit before taxes on income
53,974
57,820
15,334
16,426
Taxes on income
12,410
12,719
3,526
3,613
Income after taxes on income
41,564
45,101
11,808
12,813
Earnings per share:
Basic / diluted earnings per share
3.00
3.25
0.86
0.92
Shares used in computation of basic/diluted EPS
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 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 2
2 0 2 1
2 0 2 2
2 0 2 1
NIS
US dollars (*)
In thousands (except per share and share data)
CASH FLOWS - OPERATING ACTIVITIES
Profit from continuing operations
41,564
45,101
11,808
12,813
Adjustments to reconcile net profit to net cash provided (used in) continuing operating activities (Appendix A)
(27,495
)
416
(7,812
)
118
Net cash from continuing operating activities
14,069
45,517
3,996
12,931
CASH FLOWS - INVESTING ACTIVITIES
Acquisition of property plant and equipment
(13,350
)
(6,209
)
(3,793
)
(1,764
)
Proceeds from sale of property plant and equipment
351
230
100
65
Proceeds from loans granted to others
-
18,707
-
5,315
Proceeds from sale (purchase) of marketable securities, net
21,285
2,718
6,047
772
Net cash provided investing activities
8,286
15,446
2,354
4,388
CASH FLOWS - FINANCING ACTIVITIES
Lease liability payments
(2,180
)
(2,169
)
(619
)
(616
)
Dividend distribution
(54,906
)
(59,975
)
(15,598
)
(17,038
)
Net cash used in financing activities
(57,086
)
(62,144
)
(16,217
)
(17,655
)
Increase (decrease) in cash and cash equivalents
(34,731
)
(1,181
)
(9,867
)
(336
)
Cash and cash equivalents at the beginning of the year
195,718
201,822
55,602
57,336
Exchange losses on cash and cash equivalents
(10,380
)
(4,923
)
(2,949
)
1,399
Cash and cash equivalents at the end of the year
150,607
195,718
42,786
55,602

(*) 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 2
2 0 2 1
2 0 2 2
2 0 2 1
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 in deferred income taxes
2,181
1,249
620
355
Unrealized loss (gain) on marketable securities
2,985
(19,464
)
848
(5,530
)
Loss (gain) of financial liabilities at fair value through profit or loss
(13,960
)
13,960
(3,966
)
3,966
Depreciation and amortization
6,508
6,200
1,849
1,761
Share based payment
790
-
224
-
Capital gain on disposal of property plant and equipment
(222
)
(230
)
(63
)
(65
)
Exchange losses on cash and cash equivalents
10,380
4,923
2,949
1,399
Changes in assets and liabilities:
Decrease (increase) in trade receivables and other receivables
(17,151
)
10,190
(4,872
)
2,895
Increase in inventories
(12,401
)
(14
)
(3,523
)
(4
)
Increase (decrease) in trade and other payables, and other current liabilities
5,418
(3,405
)
1,539
(967
)
Cash generated from operations
(15,472
)
13,409
(4,395
)
3,809
Income tax paid
(12,023
)
(12,993
)
(3,417
)
(3,691
)
Net cash flows from operating activities
(27,495
)
416
(7,812
)
118

(*) 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 22 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2023 12:22:07 UTC.