This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
August 15, 2011 /PRNewswire/ --
G. Willi-Food International Ltd. (NASDAQ: WILC) (the "
Company" or "
Willi-Food"), a global company specializing in the development, manufacturing, marketing and international distribution of kosher foods, today announced its unaudited financial results for the second quarter and the six months ended
June 30, 2011.
SecondQuarter Fiscal 2011Highlights
Sales increased 10.0% over second quarter of 2010 to NIS 90.8 million ( US$ 26.6 million)
Gross profit increased 19.4% over second quarter of 2010 to NIS 26.9 million ( US$ 7.9 million), or 29.6% of sales
Operating income increased 71.5% over second quarter of 2010 to NIS 11.7 million ( US$ 3.4 million), or 12.9% of sales
Income from continuing operations increased 21.9% over second quarter of 2010 to NIS 7.3 million ( US$ 2.1 million), or 8.0% of sales
Net income attributed to the owners of the Company increased 13.1% over second quarter of 2010 to NIS 7.0 million ( US$ 2.0 million), or 7.7% of sales
Cash and securities balance of NIS 188.9 million ( US$ 55.3 million) as of June 30, 2011
Willi-Food's operating divisions include Willi-Food, a distributor of a broad variety of kosher foods; its wholly owned Gold Frost - a designer, developer and distributor of branded kosher dairy food products, and Shamir Salads - an Israeli distributor and manufacturer of Mediterranean style salads.
SecondQuarter Fiscal 2011Summary
Sales for the second quarter of 2011 increased by 10.0% to
NIS 90.8 million (
US$ 26.6 million) compared to sales of
NIS 82.6 million (
US$ 24.2 million) in the second quarter of 2010. The growth in sales in the second quarter was primarily due to the timing of the
Passover festival that fell during the second quarter this year, while last year it fell during the first quarter and due to increased awareness to the Company's new products following the hard sale activities that the Company initiated during the first quarter of 2011.
Gross profit for the second quarter of 2011 increased by 19.4% to
NIS 26.9 million (
US$ 7.9 million) compared to gross profit of
NIS 22.5 million (
US$ 6.6 million) in the second quarter of 2010. Second quarter gross margin was 29.6% compared to gross margin of 27.3% for the same period in 2010. Willi-Food successfully achieved an increase in gross profit and in gross margins despite the huge pressure coming from the supermarket chains to reduce prices and despite the price reductions by competiting food companies to the supermarket chains as a result of this pressure, Willi-Food was able to sustain or raise its sales prices to the supermarket chains due to its product mix and its broad range of products.
Willi-Food's operating income for the second quarter of 2011 increased 71.5% to
NIS 11.7 million (
US$ 3.4 million) over the second quarter of 2010. Selling expenses decreased by 7.7% from the comparable quarter of 2010. Selling expenses as a percentage of sales decreased in the second quarter of 2011 to 10.8% compared to 12.9% in the second quarter of 2010 primarily due to aggressive expense reduction initiatives. General and administrative expenses as a percentage of sales decreased in the second quarter of 2011 to 6.0% from 6.2% in the second quarter of 2010.
Willi-Food's income before taxes for the second quarter of 2011 increased 19.8% to
NIS 9.3 million (
US$ 2.7 million) over the second quarter of 2010. Income from continuing operations for the second quarter of 2011 increased 21.9% to
NIS 7.3 million (
US$ 2.1 million) over the second quarter of 2010.
Willi-Food's net income in the second quarter of 2011 increased 7.1% to
NIS 7.3 million (
US$ 2.1 million) from
NIS 6.8 million (
US$ 2.0 million) recorded in the second quarter of 2010. Willi-Food's net income attributed to the owners of the Company in the second quarter of 2011 increased 13.1% to NIS 7.0 million (
US$ 2.0 million), or
NIS 0.51(US$ 0.15) per share, compared to
NIS 6.2 million (
US$ 1.8 million), or
NIS 0.45(US$ 0.13) per share, recorded in the second quarter of 2010.
NIS 8.7 million (
US$ 2.6 million), or
NIS 0.64(US$ 0.19) per share from continuing operating activities in the second quarter of 2011.
Willi-Food ended the second quarter of 2011 with
NIS 188.9 million (
US$ 55.3 million) in cash and securities and
NIS 4.1 million (
US$ 1.2 million) in short-term debt (51% of the debt of Shamir Salads). Willi-Food's shareholders' equity at the end of
June 2011 was
NIS 320.4 million (
US$ 93.8 million).
Willi-Food's sales for the six-month period ending
June 30, 2011 increased by 1.0% to
NIS 179.3 million (
US$ 52.5 million) compared to sales of
NIS 177.6 million (
US$ 52.0 million) in the first half of 2010. Gross profit for the period decreased 1.8% to
NIS 49.8 million (
US$ 14.6 million) compared to gross profit of
NIS 50.8 million (
US$ 14.9 million) for the six month period in 2010. First half gross margins in 2011 was 27.8% compared to gross margins of 28.6% in the same period of 2010.
Operating income for the first half of 2011 increased by 6.7% to
NIS 18.5 million (
US$ 5.4 million) from
NIS 17.5 million (
US$ 5.1 million) reported in the comparable period of last year. First half 2011 income before taxes decreased by 2.2% to
NIS 17.4 million (
US$ 5.1 million) compared to
NIS 17.9 million (
US$ 5.2 million) recorded in the first half of 2010. Net income for the first half of 2011 decreased by 5.4% to
NIS 13.5 million (
US$ 3.9 million) from
NIS 14.2 million (US
$4.2 million) in the first half of 2010. Net income attributable to the owners of the Company for the first half of 2011 decreased by 3.5% to
NIS 13.0 million (US
$3.8 million), or
NIS 0.96(US$ 0.28) per share compared to net income attributable to the owners of the Company for the first half of 2010 of
NIS 13.5 million (
US$ 3.9 million), or
NIS 1.11(US$ 0.32) per share.
Zwi Williger, President and COO of Willi-Food commented, "We are very pleased with overall performance and with our second quarter 2011 results, especially in the current challenging environment of increased competition resulting from customers demanding to reduce prices despite of the global food commodity purchase prices inflation. We have grown sales and gross profits while controlling SG&A expense growth. Second quarter gross profits grew nearly 20% and operating income grew nearly 72%, despite the huge pressure coming from the supermarket chains to reduce prices and despite the well-known pressures in commodity costs being felt around the world. Throughout 2010 and 2011 we have introduced great-tasting, higher margin food products which we develop together with our suppliers. We implemented our plan to increase the awareness to our newly added products, by initiating hard sale activities that we believe created broad awareness to our new and old products and broaden our customer base. That has helped us achieve our goals to strengthen our position in the market, due to our broad range of quality food products."
The Company will host a conference call to discuss results on
Monday, August 15, 2011 at
10:00 AM Eastern time. Interested parties may participate in the conference call by dialing 1-877-941-4774 (US), or 1-480-629-9760 (International), approximately 10 minutes prior to the scheduled start time. Interested parties can also listen via a live Internet webcast, which will be available on the day of the call through the following link:
A replay of the conference call will be available for 14 days from
1:00 PM EST on
August 15, 2011 through
11:59 PM EST on
August 29, 2011 by dialing 1-877-870-5176 (US), or 1-858-384-5517 (International), access code 4461479. In addition, a recording of the call will be available via the link shown above for one year.
NOTE A: Convenience Translation to Dollars