G. Willi-Food International Ltd disclosed its unaudited financial outcomes for the third quarter 2023
Source: The DairyNews
G. Willi-Food International Ltd. (NASDAQ: WILC), a prominent player in the global market specializing in the development, marketing, and international distribution of kosher foods, disclosed its unaudited financial outcomes for the third quarter concluded on September 30, 2023.
Third Quarter Fiscal Year 2023
In the third quarter of 2023, the Company reported sales of NIS 123.9 million (US$ 32.4 million), maintaining parity with the same period in 2022. However, there was a notable 30.9% year-over-year decline in gross profit to NIS 23.5 million (US$ 6.1 million). Operating profit also witnessed a substantial dip of 94.7%, settling at NIS 0.5 million (US$ 0.13 million), and net profit experienced a 35.6% decrease, reaching NIS 4.9 million (US$ 1.3 million). The cash and securities balance stood at NIS 221.1 million (US$ 57.9 million) as of September 30, 2023, with basic earnings per share recorded at NIS 0.35 (US$ 0.1).
Management Comment
Zwi Williger & Joseph Williger, Chairmen & CEO of Willi-Food, remarked on the stagnant sales in the third quarter of 2023, attributing it to the timing of holidays, specifically Rosh Hashana, when compared to the previous year. The Company's gross margin continued to be impacted adversely by currency exchange rate fluctuations. Efforts are underway to enhance financial results by renegotiating commercial terms with suppliers and customers, with optimism that improvements will materialize in the fourth quarter of the fiscal year.
Third Quarter Fiscal 2023 Summary
Sales, remaining consistent with the previous year, were affected by the timing of the Rosh Hashana Holiday. Gross profit saw a decline of 30.9%, primarily attributed to increased costs of imported products and the weakening of the Israeli shekel against the euro and US dollar. Selling expenses decreased by 7.5%, amounting to NIS 17.3 million (US$ 4.5 million), while general and administrative expenses remained stable at NIS 5.9 million (US$ 1.5 million). Operating profit plummeted by 94.7% to NIS 0.5 million (US$ 0.13 million).
Financial income, net for the third quarter of 2023, totaled NIS 5.7 million (US$ 1.5 million), a notable increase from the same period in 2022, primarily attributed to income from the revaluation of the Company's portfolio of securities and interest and dividend income.
Willi-Food's income before taxes in the third quarter of 2023 was NIS 6.2 million (US$ 1.6 million), compared to NIS 9.6 million (US$ 2.5 million) in the third quarter of 2022. Net profit for the third quarter of 2023 amounted to NIS 4.9 million (US$ 1.3 million), resulting in earnings per share of NIS 0.35 (US$ 0.09), compared to NIS 7.6 million (US$ 2.0 million) and earnings per share of NIS 0.55 (US$ 0.14) in the third quarter of 2022. The quarter concluded with a cash and securities balance of NIS 221.1 million (US$ 57.9 million), and net cash used in operating activities amounted to NIS 8.4 million (US$ 2.1 million).
First Nine Months of Fiscal 2023 Highlights
Sales for the first nine months of 2023 saw a robust increase of 10.8% to NIS 404.5 million (US$ 105.9 million) compared to NIS 365.1 million (US$ 95.6 million) in the corresponding period of 2022. Despite the sales growth, gross profit witnessed a year-over-year decrease of 16.3% to NIS 89.6 million (US$ 23.5 million). Operating income also experienced a significant decline of 56.7% to NIS 14.5 million (US$ 3.8 million), and net profit showed a 27.6% decrease year-over-year, amounting to NIS 20.6 million (US$ 5.4 million), representing 5.1% of sales. Basic earnings per share for the first nine months were recorded at NIS 1.49 (US$ 0.39).
First Nine Months Fiscal 2023 Summary
The increase in sales for the first nine months of 2023 was attributed to various factors, including an expanded range of the Company's products, increased inventory levels, improved product availability, and intensified efforts to enhance the presence of the Company's product line in stores through advertising and promotional campaigns.
Despite the growth in sales, gross profit for the first nine months of 2023 decreased by 16.3%, primarily influenced by increased costs of imported products and the weakening of the Israeli shekel against the euro and dollar. Selling expenses remained consistent at NIS 56.0 million (US$ 14.7 million), while general and administrative expenses increased to NIS 19.3 million (US$ 5.1 million), compared to NIS 17.3 million (US$ 4.5 million) in the first nine months of 2022. The rise in general and administrative expenses was attributed to an increase in management compensation and options grants.
Operating profit for the first nine months of 2023 decreased by 56.7% to NIS 14.5 million (US$ 3.8 million) compared to NIS 33.4 million (US$ 8.7 million) in the same period in 2022. The decline was primarily a result of increased cost of sales and operating costs. The first nine months of 2023 concluded with the Company holding a cash and securities balance of NIS 221.1 million (US$ 57.9 million).
In the third quarter of 2023, the Company reported sales of NIS 123.9 million (US$ 32.4 million), maintaining parity with the same period in 2022. However, there was a notable 30.9% year-over-year decline in gross profit to NIS 23.5 million (US$ 6.1 million). Operating profit also witnessed a substantial dip of 94.7%, settling at NIS 0.5 million (US$ 0.13 million), and net profit experienced a 35.6% decrease, reaching NIS 4.9 million (US$ 1.3 million). The cash and securities balance stood at NIS 221.1 million (US$ 57.9 million) as of September 30, 2023, with basic earnings per share recorded at NIS 0.35 (US$ 0.1).
Management Comment
Zwi Williger & Joseph Williger, Chairmen & CEO of Willi-Food, remarked on the stagnant sales in the third quarter of 2023, attributing it to the timing of holidays, specifically Rosh Hashana, when compared to the previous year. The Company's gross margin continued to be impacted adversely by currency exchange rate fluctuations. Efforts are underway to enhance financial results by renegotiating commercial terms with suppliers and customers, with optimism that improvements will materialize in the fourth quarter of the fiscal year.
Third Quarter Fiscal 2023 Summary
Sales, remaining consistent with the previous year, were affected by the timing of the Rosh Hashana Holiday. Gross profit saw a decline of 30.9%, primarily attributed to increased costs of imported products and the weakening of the Israeli shekel against the euro and US dollar. Selling expenses decreased by 7.5%, amounting to NIS 17.3 million (US$ 4.5 million), while general and administrative expenses remained stable at NIS 5.9 million (US$ 1.5 million). Operating profit plummeted by 94.7% to NIS 0.5 million (US$ 0.13 million).
Financial income, net for the third quarter of 2023, totaled NIS 5.7 million (US$ 1.5 million), a notable increase from the same period in 2022, primarily attributed to income from the revaluation of the Company's portfolio of securities and interest and dividend income.
Willi-Food's income before taxes in the third quarter of 2023 was NIS 6.2 million (US$ 1.6 million), compared to NIS 9.6 million (US$ 2.5 million) in the third quarter of 2022. Net profit for the third quarter of 2023 amounted to NIS 4.9 million (US$ 1.3 million), resulting in earnings per share of NIS 0.35 (US$ 0.09), compared to NIS 7.6 million (US$ 2.0 million) and earnings per share of NIS 0.55 (US$ 0.14) in the third quarter of 2022. The quarter concluded with a cash and securities balance of NIS 221.1 million (US$ 57.9 million), and net cash used in operating activities amounted to NIS 8.4 million (US$ 2.1 million).
First Nine Months of Fiscal 2023 Highlights
Sales for the first nine months of 2023 saw a robust increase of 10.8% to NIS 404.5 million (US$ 105.9 million) compared to NIS 365.1 million (US$ 95.6 million) in the corresponding period of 2022. Despite the sales growth, gross profit witnessed a year-over-year decrease of 16.3% to NIS 89.6 million (US$ 23.5 million). Operating income also experienced a significant decline of 56.7% to NIS 14.5 million (US$ 3.8 million), and net profit showed a 27.6% decrease year-over-year, amounting to NIS 20.6 million (US$ 5.4 million), representing 5.1% of sales. Basic earnings per share for the first nine months were recorded at NIS 1.49 (US$ 0.39).
First Nine Months Fiscal 2023 Summary
The increase in sales for the first nine months of 2023 was attributed to various factors, including an expanded range of the Company's products, increased inventory levels, improved product availability, and intensified efforts to enhance the presence of the Company's product line in stores through advertising and promotional campaigns.
Despite the growth in sales, gross profit for the first nine months of 2023 decreased by 16.3%, primarily influenced by increased costs of imported products and the weakening of the Israeli shekel against the euro and dollar. Selling expenses remained consistent at NIS 56.0 million (US$ 14.7 million), while general and administrative expenses increased to NIS 19.3 million (US$ 5.1 million), compared to NIS 17.3 million (US$ 4.5 million) in the first nine months of 2022. The rise in general and administrative expenses was attributed to an increase in management compensation and options grants.
Operating profit for the first nine months of 2023 decreased by 56.7% to NIS 14.5 million (US$ 3.8 million) compared to NIS 33.4 million (US$ 8.7 million) in the same period in 2022. The decline was primarily a result of increased cost of sales and operating costs. The first nine months of 2023 concluded with the Company holding a cash and securities balance of NIS 221.1 million (US$ 57.9 million).
