Kosher Food (WILC)

[midastouch017]

G. Willi-Food Reports Results for Q3 2005 and Declares a Cash Dividend of US$ 0.12 Per Share
Monday November 21, 5:01 am ET
Net Profit Up 52% With 26.5% Gross Margins


YAVNE, Israel, November 21 /PRNewswire-FirstCall/ -- G. Willi-Food International Ltd. (NASDAQ: WILCF - News; the "Company") today announced financial results for the third quarter and nine months ended September 30, 2005, and declares a cash dividend of US$ 0.12 per share.

Financial Results

Revenues for the quarter ended September 30, 2005 increased by 2% to NIS 41.2 million (US$ 9.0 million) from NIS 40.5 million in the third quarter of 2004. Gross margins for the quarter ended September 30, 2005 were 26.5% compared to 21.8% in the third quarter of 2004. Net income for the quarter ended September 30, 2005 was NIS 3.6 million (US$ 0.8 million), or NIS 0.41($ 0.09) per share, an increase of 52% compared to NIS 2.3 million in the third quarter of 2004.

Revenues for the first nine months of 2005 were NIS 120.7 million (US$ 26.2 million) compared to NIS 130.8 million in the parallel period of 2004. Gross margins for the nine months ended September 30, 2005 were 25.0% compared to 22.8% in the first nine months of 2004. Net income for the first nine months of 2005 was NIS 6.6 million (US$ 1.4 million), or NIS 0.77 (US$ 0.17) per share, reflecting a one-time reserve of NIS 4.0 million taken during the second quarter of 2005. This reserve was taken with respect to the Company's estimated exposure to the collapse of Clubmarket Marketing Chains, Ltd. ("Clubmarket"), Israel's third largest supermarket chain. Net income for the first nine months of 2004 was NIS 8.1 million.

Cash dividend

On November 21, 2005, the Board of Director of the Company declared a cash dividend of US$ 0.12 per share payable to its shareholders of record as of January 11, 2006. The cash dividend will be paid at January 25, 2006.

Comments of Management

Mr. Zvi Williger, President and COO of the Company, commented, "We are pleased to deliver a moderate increase in sales for the third quarter with a significant increase in gross margins, operating margins and net margins, translating into a 52% rise in our profit for the quarter. This reflects the market's strong response to the new, higher-margin products that we have been introducing into the Israeli market, together with the contribution of our ongoing efficiency efforts. To drive our future growth, we are expanding our institutional sales effort and continue adding new items to our unique selection of food products. In parallel, we continue to seek out the right channels for our launch into the high-potential U.S. and European food markets.

The Board of Directors of the Company has elected to declare the Company's first-ever cash dividend, of approximately 4% of its share price, in light of the strong financial results for the Company for the three months and nine months ended September 30, 2005."

G. Willi-Food International 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 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 at September 30, 2005: U.S. $1.00 equals NIS 4.598. The translation was made solely for the convenience of the reader.


G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS

September 30 December 31, September 30 December 31,
2005 2004 2005(*) 2004(*)
NIS US dollars
In thousands
ASSETS

Current assets
Cash and cash equivalents 41,065 55,831 8,931 12,142
Marketable securities 2,708 1,694 589 368
Trade receivables 41,056 40,887 8,930 8,893
Receivables and other 8,384 1,211 263
current assets 1,823
Inventories 22,144 27,139 4,816 5,902
Total current assets 115,357 126,762 25,089 27,568

Property and equipment, net 15,644 3,036 3,402 660

Other assets, net 86 63 19 14

131,087 129,861 28,510 28,242

LIABILITIES AND
SHAREHOLDERS'
EQUITY

Current liabilities
Payables:
Short term bank credit and 2 2,489 542
other -
Trade payables 14,000 19,066 3,045 4,147
Related parties 1,844 2,557 401 556
Other and accrued expenses 9,419 6,664 2,048 1,449
Total current liabilities 25,265 30,776 5,494 6,694

Long term liabilities
Accrued severance pay 286 185 63 40

Shareholders' equity
Ordinary shares NIS 0.10 par
value
(authorized - 50,000,000
shares,
Issued and outstanding -
8,615,000
shares 1,503 1,502 327 326
Additional paid-in capital 19,704 19,704 4,285 4,285
Retained earnings 84,329 77,694 18,342 16,897
105,536 98,900 22,954 21,508

131,087 129,861 28,511 28,242


(*) Convenience translation into U.S. dollars.

G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Nine months Three months Nine months Three months
ended September 30 ended September 30
2005 2004 2005 2004 2005(*) 2005(*)
NIS US dollars
In thousands (except per share and share data)

Sales 120,654 130,789 41,184 40,476 26,241 8,957

Cost of sales 90,577 101,006 30,283 31,654 19,699 6,586

Gross profit 30,077 29,783 10,901 8,822 6,542 2,371

Selling
expenses 10,899 11,532 3,800 2,946 2,370 826

General and
administrative
expenses 7,431 6,997 2,564 2,350 1,616 558

Bad 4,000 -
debts-Clubmarket - - 870 -

Total operating
expenses 22,330 18,529 6,364 5,296 4,856 1,384

Operating income 7,747 11,254 4,537 3,526 1,686 987

Financial 2,137 902 741 208
income, net 465 161

Other income 35 34 - - 8 -

Income before
taxes
on income 9,919 12,190 5,278 3,734 2,159 1,148

Taxes on income 3,283 4,124 1,715 1,390 714 373

Net income 6,636 8,066 3,563 2,344 1,445 775

Earnings per
share data:

Earnings per
share:

Basic 0.77 0.94 0.41 0.27 0.17 0.09

Diluted 0.77 0.94 0.41 0.27 0.17 0.09

Shares used in
computing
basic and
diluted earnings
per ordinary 8,615,000 8,595,000 8,615,000 8,615,000 8,615,000 8,615,000
share:


(*) Convenience translation into U.S. dollars .

Contact:

Gil Hochboim, CFO
[phone]
[e-mail]





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Source: G. Willi-Food International Ltd

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