YAVNE, Israel, March 26 /PRNewswire-FirstCall/ -- G. Willi-Food International Ltd. (the "Company" or "Willi Food") today announced its financial results for the year ended December 31, 2005.
The Company's 2005 gross revenues were NIS 166.3 million (US$36.1 million) compared to gross revenues of NIS 171.0 million (US$37.1 million) in 2004. The Company's 2005 gross margins were 22.9% compared to gross margins of 23.8% in 2004. Net income of the Company for 2005 was NIS 7.7 million (US$1.7 million), or NIS 0.9 (US $0.19) per share, reflecting a one-time reserve of NIS 3.5 million taken during the second quarter of 2005. This reserve was related to the Company's estimated exposure to the collapse of Clubmarket Marketing Chains, Ltd., Israel's third largest supermarket chain, which filed for bankruptcy in late 2005. Net income of the Company for 2004 was NIS 11.2 million.
Mr. Zvi Williger, and COO of Willi-Food commented, "2005 was a challenging year for Willi-Food. Despite the write off attributed to Clubmarket's bankruptcy in our second quarter of 2005, Willi Food managed to increase its revenues by 2% and 14% for the third and fourth quarters of 2005, respectively, as compared with the Company's performance in the corresponding quarters of 2004. Willi Food is debt free and cash positive and is positioned to grow our market share both domestically and internationally."
"Our strategy is to capitalize on the recovery of the Israeli food market, while pursuing international expansion," continued Mr. Williger. "We will continue to pursue the best opportunities to launch Willi-Food into the lucrative U.S. and European food markets."
On March 9, 2006, shares of the Company's majority-owned subsidiary, Gold Frost Ltd., began trading on London's AIM market. As a result of this transaction, Willi Food has an unrealized capital gain of approximately $4.2 million. Mr. Williger stated, "We believe Gold Frost's listing demonstrates the value we have created for our shareholders. We are executing our strategy of international expansion and remain committed to increasing shareholder value."
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.
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.
Note: 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 December 31, 2005: U.S. $1.00 equals NIS 4.603. The translation was made solely for the convenience of the reader.
G. WILLI-FOOD INTERNATIONAL LTD.
CONSOLIDATED BALANCE SHEETS
December 31,
2 0 0 5 2 0 0 4 2 0 0 5 (*)
NIS US dollars
(in thousands)
ASSETS
Current assets
Cash and cash equivalents 30,431 55,831 6,611
Marketable securities 3,229 1,694 701
Trade accounts receivable 48,396 40,887 10,514
Receivables and other 7,673 1,211 1,667
current assets
Inventories 30,798 27,139 6,691
Total current assets 120,527 126,762 26,184
Fixed assets
Cost 23,343 8,590 4,929
Less: accumulated 6,686 5,554 1,310
depreciation and
amortization
16,657 3,036 3,619
Other assets, net 90 63 20
137,274 129,861 29,823
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term bank borrowings - 2,489 -
Trade accounts payable 19,937 19,066 4,331
Due to related parties 2,193 2,557 477
Payables and other current 12,973 6,664 2,818
liabilities
Total current liabilities 35,103 30,776 7,626
Long-term liabilities
Accrued severance pay, net 299 185 65
Commitments and contingent
liabilities
Shareholders' equity
Share capital:
Ordinary shares NIS 0.10 par
value
(authorized - 50,000,000
shares, issued
and outstanding - 8,615,000 1,503 1,502 327
shares
Additional paid-in capital 19,704 19,704 4,281
Declared Dividend (4,754) - (1,033)
Retained earnings 85,419 77,694 18,557
101,872 98,900 22,132
137,274 129,861 29,823
(*) Convenience translation into U.S. dollars
G. WILLI-FOOD INTERNATIONAL LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
Year ended December 31,
2 0 0 5 2 0 0 4 2 0 0 3 2 0 0 5 (*)
NIS US dollars
(in thousands, except for share data)
Sales 166,282 170,982 137,385 36,125
Cost of sales 128,215 130,292 110,160 27,855
Gross profit 38,067 40,690 27,225 8,270
Operating expenses:
Sales and marketing 15,771 15,632 11,662 3,426
General and administrative 10,044 9,134 8,335 2,182
Bad debts-Clubmarket 3,500 - - 761
Total operating expenses 29,315 24,766 19,997 6,369
Operating income 8,752 15,924 7,228 1,901
Financing income (expenses), 2,501 1,121 4,336 543
net
Other income , net 35 34 101 8
Pre-tax income 11,288 17,079 11,665 2,452
Income taxes 3,563 5,886 2,889 774
Net income 7,725 11,193 8,776 1,678
Earnings per share (EPS)
Basic 0.9 1.3 1.05 0.19
Fully diluted 0.9 1.3 1.05 0.19
Shares used in computation
of basic EPS 8,615,000 8,600,000 8,555,000 8,615,000
Shares used in computing
fully diluted EPS 8,615,000 8,600,000 8,555,000 8,615,000
(*) Convenience translation into U.S. dollars
Contact:
G. Willi Food International Ltd.
Gil Hochboim, CFO
+972-8-932-2233
