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 March 2019
 
G. Willi-Food International Ltd.
(Translation of registrant’s name into English)
  
4 Nahal Harif St., Yavne, Israel 81106
 (Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F S 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 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 S
 
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, dated March 27, 2019, titled:
 
"G. Willi-Food International reports improvements in major operational parameters in fiscal year 2018 compared to 2017".


 
Signatures
 
Pursuant to 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.  
       
Date: March 27, 2019
By:
/s/ Amir Kaplan  
    Name: Amir Kaplan  
    Title: Chief Financial Officer  
 

 
 

 
FOR IMMEDIATE RELEASE

G. WILLI-FOOD INTERNATIONAL REPORTS IMPROVEMENTS IN MAJOR
OPERATIONAL PARAMETERS IN FISCAL YEAR 2018 COMPARED TO 2017

THE RESULTS OF OPERATION SHOW A RECORD YEAR FOR THE COMPANY IN 2018:
RECORD YEAR IN SALES, RECORD YEAR IN GROSS PROFIT AND RECORD YEAR IN
OPERATING PROFIT

Sales growth in fiscal year 2018: 8.4% over fiscal year 2017 to NIS 338.2 million
Gross profit growth in fiscal year 2018: 32.1% over fiscal year 2017 to NIS 98.2 million
Operating profit growth in fiscal year 2018: 125.3% over fiscal year 2017 to NIS 37.8 million
 
YAVNE, Israel - March 27, 2019 - G. Willi-Food International Ltd. (NASDAQ: WILC) (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, 2018.

Fiscal Year 2018 Highlights

·
Sales increased by 8.4% from fiscal year 2017 to NIS 338.2 million (US$ 90.2 million)
·
Gross profit increased by 32.1% from fiscal year 2017 to NIS 98.2 million (US$ 26.2 million)
·
Operating profit increased by 125.3% from fiscal year 2017 to NIS 37.8 million (US$ 10.1 million), or 11.2% of sales
·
Net cash from operating activities increased by 87.3% from fiscal year 2017 to NIS 27.0 million (US$ 7.2 million)
·
Cash and securities balance of NIS 272.2 million (US$ 72.6 million) as of December 31, 2018

Willi-Food’s operating divisions include Willi-Food, a distributor of a broad variety of kosher foods, and its wholly owned Gold Frost, a designer, developer and distributor of branded kosher innovative dairy food products.
 
Management Comment

Zwi Williger & Joseph Williger, Co-Chairmen of Willi-Food, commented: "We are pleased to present the Company's fiscal year 2018 financial report. Since we have been appointed as Co-Chairmen and appointed the new senior management team which initiated the introduction of management systems, routines and procedures, the Company improved all its major operational parameters each quarter in 2018 compared to the respective quarter in 2017.

The results of operation show a record year for the company in 2018:
Record year in sales, record year in gross profit and record year in operating profit.
 
We are focusing on increasing the Company market share in the food sector in Israel and believe that these management changes and new management's initiatives allow for organizational stability and provide a solid basis for enhanced future growth.
 

 
Fiscal 2018 Summary
 
Sales for fiscal year 2018 increased by 8.4% to NIS 338.2 million (US$ 90.2 million) from NIS 312.0 million (US$ 83.2 million) in fiscal year 2017. Sales increased primarily due to a redirection of resources in favor of sales, increasing the range of the Company's products and proper inventory management.
 
Gross profit for fiscal year 2018 increased by 32.1% to NIS 98.2 million (US$ 26.2 million) compared to NIS 74.3 million (US$ 19.8 million) recorded in fiscal year 2017. Gross margins for fiscal year 2018 increased by 21.9% to 29.0% compared to gross margins of 23.8% for fiscal year 2017. The increase in gross profit in fiscal year 2018 compared to fiscal year 2017 was primary due to the sales and the gross margin increase resulting from the Company's strategy of selling a favorable mix of products which generate a higher gross margin.
 
Selling expenses in fiscal year 2018 increased by 4.1% compared to fiscal year 2017 primarily due to an increase of salary resulting from an increase in personnel in the sales department and increase of freight to customers' expenses. Selling expenses as a percentage of sales were 13.0%, compared to the selling expenses of 13.5% in fiscal year 2017.
 
General and administrative expenses increased by 5.3% from fiscal year 2017 to NIS 16.7 million (US$ 4.4 million) compared to NIS 15.8 million (US$ 4.2 million). The increase in general and administrative expenses was primarily due to an increase in the personnel and in the management's salaries.
 
As a result, operating profit for fiscal year 2018 increased by 125.3% to NIS 37.7 million (US$ 10.1 million) compared to NIS 16.8 million (US$ 4.5 million) recorded in fiscal year 2017.
 
Income before taxes for fiscal year 2018 increased by 6.1% to NIS 32.8 million (US$ 8.8 million) compared to NIS 30.9 million (US$ 8.3 million) in fiscal year 2017.
 
Net profit for fiscal year 2018 remains unchanged at NIS 25.0 million (US$ 6.7 million), or NIS 1.89 (US$ 0.50) per share..
 
Willi-Food ended fiscal year 2018 with NIS 272.2 million (US$ 72.6 million) in cash and securities with no short-term debt. Net cash from operating activities in fiscal year 2018 was NIS 27.0 million (US$ 7.2 million). Willi-Food's shareholders' equity at the end of December 2018 was NIS 440.9 million (US$ 117.6 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 as of December 31, 2018, on which U.S. $1.00 equaled NIS 3.748. The use of US$ is solely for the convenience of the reader.

NOTE B: IFRS
 
The Company’s consolidated financial results for fiscal year ended December 31, 2018 are presented in accordance with International Financial Reporting Standards (“IFRS”).
 
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 1,250 customers and 2,500 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 Gold Frost, a wholly owned subsidiary who designs, develops and distributes branded kosher, dairy-food products.

The Company recently entered the non-bank credit field (“credit extension activity”), and provided its first loan of NIS 18 million in February 2019. The activity is carried out and managed through W.F.D (Import, Marketing and Trading) Ltd., a wholly-owned and controlled subsidiary of the Company. The activity is funded from the Group’s own resources and is carried out in parallel to the existing activity of importing, marketing and distributing food products.
 

 
FORWARD LOOKING STATEMENT
 
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, 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, 2018, filed with the Securities and Exchange Commission on March 27, 2019. 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,
 
   
2018
   
2017
   
2018
   
2017
 
   
NIS
   
US dollars (*)
 
   
(in thousands)
 
ASSETS
                       
Current assets
                       
Cash and cash equivalents
   
134,287
     
113,062
     
35,829
     
30,166
 
Financial assets at fair value through profit or loss
   
137,904
     
143,514
     
36,794
     
38,291
 
Trade receivables
   
98,017
     
85,943
     
26,152
     
22,930
 
Other receivables and prepaid expenses
   
3,744
     
5,996
     
999
     
1,600
 
Inventories
   
49,289
     
39,899
     
13,151
     
10,645
 
Current tax assets
   
862
     
6,760
     
230
     
1,804
 
Total current assets
   
424,103
     
395,174
     
113,155
     
105,436
 
                                 
Non-current assets
                               
Property, plant and equipment
   
79,611
     
78,598
     
21,241
     
20,971
 
Less -Accumulated depreciation
   
40,219
     
37,389
     
10,731
     
9,976
 
     
39,392
     
41,209
     
10,510
     
10,995
 
                                 
Goodwill
   
36
     
36
     
10
     
10
 
Deferred taxes
   
2,882
     
503
     
769
     
134
 
Total non-current assets
   
42,310
     
41,748
     
11,289
     
11,139
 
     
466,413
     
436,922
     
124,444
     
116,575
 
EQUITY AND LIABILITIES
                               
Current liabilities
                               
Trade payables
   
16,239
     
12,800
     
4,333
     
3,415
 
Employees Benefits
   
2,577
     
2,147
     
688
     
573
 
Other payables and accrued expenses
   
5,882
     
5,246
     
1,569
     
1,400
 
Total current liabilities
   
24,698
     
20,193
     
6,590
     
5,388
 
                                 
Non-current liabilities
                               
Retirement benefit obligation
   
836
     
1,148
     
223
     
307
 
Total non-current liabilities
   
836
     
1,148
     
223
     
307
 
                                 
Shareholders' equity
                               
Share capital NIS 0.1 par value (authorized - 50,000,000 shares, issued and outstanding – 13,240,913 shares at
December 31, 2018 and December 31, 2017)
   
1,425
     
1,425
     
380
     
380
 
Additional paid in capital
   
128,354
     
128,354
     
34,246
     
34,246
 
Capital fund
   
247
     
247
     
66
     
66
 
Retained earnings
   
311,476
     
286,509
     
83,105
     
76,443
 
Capital Fund measurement of the net liability in respect of defined benefit
   
(623
)
   
(954
)
   
(166
)
   
(255
)
     
440,879
     
415,581
     
117,631
     
110,880
 
                                 
     
466,413
     
436,922
     
124,444
     
116,575
 
(*)
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,
 
   
2018
   
2017
   
2018
   
2017
 
   
NIS
   
US dollars (*)
 
   
In thousands (except per share and share data)
 
                         
Sales
   
338,245
     
311,978
     
90,247
     
83,239
 
Cost of sales
   
240,032
     
237,645
     
64,043
     
63,406
 
                                 
Gross profit
   
98,213
     
74,333
     
26,204
     
19,833
 
                                 
 Selling expenses
   
43,823
     
42,090
     
11,692
     
11,230
 
 General and administrative expenses
   
16,686
     
15,839
     
4,452
     
4,226
 
 Other income
   
(69
)
   
(361
)
   
(18
)
   
(96
)
     
60,440
     
57,568
     
16,126
     
15,360
 
                                 
Operating profit
   
37,773
     
16,765
     
10,078
     
4,473
 
                                 
Financial income
   
(7,212
)
   
17,937
     
(1,924
)
   
4,786
 
Financial expense
   
(2,256
)
   
3,769
     
(602
)
   
1,006
 
Finance Income (expense), net
   
(4,956
)
   
14,168
     
(1,322
)
   
3,780
 
                                 
 Profit before taxes on income
   
32,817
     
30,933
     
8,756
     
8,253
 
 Taxes on income
   
(7,850
)
   
(5,910
)
   
(2,094
)
   
(1,577
)
                                 
Net Income
   
24,967
     
25,023
     
6,662
     
6,676
 
                                 
Earnings per share:
                               
Basic earnings per share
   
1.89
     
1.89
     
0.50
     
0.50
 
                                 
Diluted earnings per share
   
1.89
     
1.89
     
0.50
     
0.50
 
                                 
Shares used in computation of basic EPS
   
13,240,913
     
13,240,913
     
13,240,913
     
13,240,913
 

(*)
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,
 
   
2018
   
2017
   
2018
   
2017
 
   
NIS
   
US dollars (*)
 
   
In thousands (except per share and share data)
 
CASH FLOWS - OPERATING ACTIVITIES
                       
Profit from continuing operations
   
24,967
     
25,023
     
6,662
     
6,676
 
Adjustments to reconcile net income to net cash from operating activities (Appendix A)
   
2,074
     
(10,584
)
   
552
     
(2,824
)
Net cash from continuing operating activities
                               
     
27,041
     
14,439
     
7,214
     
3,852
 
                                 
CASH FLOWS - INVESTING ACTIVITIES
                               
Acquisition of property plant and equipment
   
(2,143
)
   
(2,650
)
   
(572
)
   
(707
)
Proceeds from sale of property plant and Equipment
   
415
     
361
     
111
     
96
 
Redemption of non-current financial assets
   
3,970
     
2,168
     
1,060
     
578
 
Proceeds used in purchase of marketable securities, net
   
(8,058
)
   
(30,833
)
   
(2,150
)
   
(8,227
)
Net cash from (used in) continuing investing activities
   
(5,816
)
   
(30,954
)
   
(1,551
)
   
(8,260
)
                                 
Increase (decrease) in cash and cash equivalents
   
21,225
     
(16,515
)
   
5,663
     
(4,408
)
Cash and cash equivalents  at the beginning of the year
   
113,062
     
129,577
     
30,166
     
34,574
 
Cash and cash equivalents of the end of the year
   
134,287
     
113,062
     
35,829
     
30,166
 
 
(*)          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,
 
   
2018
   
2017
   
2018
   
2017
 
   
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 operating activities
 
                       
Decrease (Increase) in deferred income taxes
   
(2,379
)
   
1,851
     
(635
)
   
494
 
Unrealized loss (gain) on marketable securities
   
13,673
     
(7,760
)
   
3,647
     
(2,070
)
Depreciation and amortization
   
3,614
     
3,682
     
964
     
982
 
Capital gain on disposal of property plant and equipment
   
(69
)
   
(361
)
   
(18
)
   
(96
)
gain from non - tradable financial assets
   
-
     
(5,368
)
   
-
     
(1,432
)
                                 
Changes in assets and liabilities:
                               
Decrease in trade receivables and other receivables
   
(7,898
)
   
(5,034
)
   
(2,107
)
   
(1,343
)
Decrease (Increase) in inventories
   
(9,390
)
   
1,978
     
(2,505
)
   
528
 
Decrease in trade and other payables, and other current and non-current liabilities
   
4,523
     
428
     
1,206
     
113
 
     
2,074
     
(10,584
)
   
552
     
(2,824
)
 
B.          Significant non-cash transaction:
 
                               
Supplemental cash flow information:
                               
                                 
Income tax paid
   
7,711
     
5,926
     
1,906
     
1,581
 

(*)          Convenience Translation into U.S. Dollars.
 
Company Contact:
G. Willi - Food International Ltd.
Amir Kaplan, Chief Financial Officer
 (+972) 8-932-1000
amir.k@willi-food.co.il
 
SOURCE: G. Willi-Food International Ltd.