BSD.L Regulatory News (BSD)

B.S.D Crown Ltd (LSE:BSD) ("BSD" or "the Company") Company Update G. Willi-Food International H1 Reports Tel Aviv, Israel, 12 August, 2014 G. Willi-Food International H1 Reports The Company announces that G. Willi-Food International Ltd. (NASDAQ: WILC)published its H1 results today, 12 August, 2014. These results can be accessedon the NASDAQ website (www.nasdaq.com) through ticker code WILC and are copiedbelow in full. The Company owns shares representing approximately 62.21 per cent. ofWilli-Food Investments Ltd.'s fully diluted issued share capital and Willi-FoodInvestments Ltd. in turn owns 56.31 per cent. of G. Willi-Food InternationalLtd.'s fully diluted issued share capital. Further information about the Company For more information about the Company, visit www.emblaze.com. Enquiries: Eyal Merdler, CFO: eyal.merdler@emblaze.com FOR IMMEDIATE RELEASE G. Willi-Food Reports H1 2014 sales down 0.5% FROM H1 2013 sales Net Cash from operating activities of US$ 6.1 million in Q2 2014 YAVNE, Israel - August 12, 2014 - G. Willi-Food International Ltd. (NASDAQ:WILC) (the "Company" or "Willi-Food"), a global company that specializes in thedevelopment, marketing and international distribution of kosher foods, todayannounced its unaudited financial results for the second quarter and thesix-months ended June 30, 2014. Second Quarter Fiscal 2014 Highlights (income statement highlights compared tosame period last year) * Sales decreased 6.2% to NIS 79.2 million (US$ 23.0 million); * Gross profit decreased 5.8% to NIS 20.6 million (US$ 6.0 million), or 26.0% of sales; * Operating income decreased 32.8% to NIS 5.6 million (US$ 1.6 million), or 7.0% of sales; * Net income decreased 43.9% to NIS 4.4 million (US$ 1.3 million), or 5.5% of sales; * Earning per share of NIS 0.34 (US$ 0.10); * Net cash from operating activities of NIS 20.9 million (US$ 6.1 million); and * Cash and securities balance of NIS 217.2 million (US$ 63.2 million) as of June 30, 2014. Willi-Food's operating divisions include Willi-Food, a distributor of a broadvariety of kosher foods, and its wholly-owned Gold Frost, a designer, developerand distributor of branded kosher innovative dairy food products. Second Quarter Fiscal 2014 Summary Sales for the second quarter of 2014 decreased by 6.2% to NIS 79.2 million (US$23.0 million) from NIS 84.4 million (US$ 24.5 million) recorded in the secondquarter of 2013. Sales decreased in the second quarter of 2014 primarily due toa decline in consumption in food products by the Israeli consumer. Gross profit for the second quarter of 2014 decreased by 5.8% to NIS 20.6million (US$ 6.0 million) compared to NIS 21.8 million (US$ 6.4 million)recorded in the second quarter of 2013. Second quarter gross margin was 26.0%compared to gross margin of 25.9% for the same period in 2013. The decrease ingross margin in the second quarter of 2014 was primarily due to the decreasedsales. Willi-Food's operating income for the second quarter of 2014 decreased by 32.8%to NIS 5.6 million (US$ 1.6 million) compared to NIS 8.3 million (US$ 2.4million) recorded in the second quarter of 2013. Selling expenses increased by15.7% from the comparable quarter of 2013, primarily due to an increase inpromotion expenses as well as vehicle and transport expenses. Selling expensesas a percentage of sales increased in the second quarter of 2014 to 13.1%compared to 10.6% in the second quarter of 2013. General and administrativeexpenses remained the same as in the second quarter of 2013, although anexpense of NIS 0.5 million (US$ 0.14 million) related to options granted to theCompany's Chairman, President and CEO in November 2013, was recorded in thesecond quarter of 2014. General and administrative expenses as a percentage ofsales increased in the second quarter of 2014 to 5.8% from 5.5% in the secondquarter of 2013. Willi-Food's income before taxes for the second quarter of 2014 decreased by44.7% to NIS 5.7 million (US$ 1.7 million) compared to NIS 10.4 million (US$3.0 million) recorded in the second quarter of 2013. Willi-Food's net income in the second quarter of 2014 decreased by 43.9% to NIS4.4 million (US$ 1.3 million), or NIS 0.34 (US$ 0.10) per share, from NIS 7.8million (US$ 2.3 million), or NIS 0.60 (US$ 0.17) per share, recorded in thesecond quarter of 2013. Willi-Food ended the second quarter of 2014 with NIS 217.2 million (US$ 63.2million) in cash and securities net from short-term debt. Net cash fromoperating activities for 2014 second quarter was NIS 20.9 million (US$ 6.1million). Willi-Food's shareholders' equity at the end of June 2014 was NIS377.5 million (US$ 109.8 million). First Half Fiscal 2014 Highlights (compared to same period last year) * Sales decreased 0.5% to NIS 174.20 million (US$ 50.7 million); * Gross profit decreased 2.9% to NIS 42.0 million (US$ 12.2 million), or 24.1% of sales; * Operating income decreased 31.3% to NIS 12.0 million (US$ 3.5 million), or 6.9% of sales; * Net income decreased 28.4% to NIS 11.5 million (US$ 3.3 million), or 6.6% of sales; and * Earning per share of NIS 0.88 (US$ 0.26). Six-Month Results Willi-Food's sales for the six-month period ending June 30, 2014 decreased by0.5% to NIS 174.2 million (US$ 50.7 million) compared to sales of NIS 175.0million (US$ 50.9 million) in the first half of 2013. Gross profit for theperiod decreased by 2.9% to NIS 42.0 million (US$ 12.2 million) compared togross profit of NIS 43.2 million (US$ 12.6 million) for the first half of 2013.First half 2014 gross margins were 24.1% compared to gross margins of 24.7% inthe same period of 2013. Operating income for the first half of 2014 decreased by 31.3% to NIS 12.0million (US$ 3.5 million) from NIS 17.5 million (US$ 5.1 million) reported inthe comparable period of last year. First half 2014 income before taxesdecreased by 27.2% to NIS 15.5 million (US$ 4.5 million) compared to NIS 21.3million (US$ 6.2 million) recorded in the first half of 2013. Net income forthe first half of 2014 decreased by 28.4% to NIS 11.5 million (US$ 3.3million), or NIS 0.88 (US$ 0.26) per share, from NIS 16.0 million (US$ 4.7million), or NIS 1.24 (US$ 0.34) per share, recorded in the first half of 2013. Business Outlook Mr. Zwi Williger, Chairman of Willi-Food, commented, "Although store visitsremained steady, consumption of food products by Israeli consumers continued todecline sharply for the second quarter in a row, causing our second quartersales to decline by 6.2% from the second quarter in 2013. Despite this decline,we were able to maintain gross margins of 26%. The Israeli economy has beennegatively impacted in the third quarter by Operation Protective Edge, amilitary action launched by the State of Israel on July 8, 2014 in theHamas-controlled Gaza Strip. As a result, we expect economic uncertainty tocontinue which, coupled with other changes in the Israeli market and ongoingconsumer pressure for price reductions, will likely negatively affect ourresults in near future. As a result, we do not expect to meet our budget forthe third and fourth quarters of 2014." Mr. Williger concluded, "While this period of consumer belt-tighteningcontinues, our challenge for the forseeable future will be to better manage ourexpenses, in particular the cost of our products and selling expenses, in orderto provide consumers with the lower cost products they desire. In this way, wehope to maintain our customer base both in the retail and wholesale marketsduring these difficult times for the food industry." Conference Call The Company will host a conference call and live webcast on August 21, 2014 todiscuss the financial results beginning at 11:00 AM Eastern Time. Interestedparties may participate on the call by dialing 1-888-455-2296 (US), or1-719-325-2454 (International), approximately 10 minutes prior to the scheduledstart time. Participants may also access a live listen only webcast at: http://public.viavid.com/index.php?id=110538 Following the conclusion of the call, a telephonic replay will be available for14 days beginning at 2:00 PM Eastern Time on August 21, 2014 through 11:59 PMEastern Time on September 4, 2014 and may be accessed by dialing 1-877-870-5176(US), or 1-858-384-5517 (International), using access code 1375115. Inaddition, an archived webcast will be available for one year at: http://public.viavid.com/reports/eventparticipantreporttab.php?id=o5eipJqf NOTE A: Convenience Translation to Dollars The convenience translation of New Israeli Shekels (NIS) into U.S. dollars wasmade at the rate of exchange prevailing on June 30, 2014, U.S. $1.00 equals NIS3.438. The translation was made solely for the convenience of the reader. NOTE B: IFRS The Company's consolidated financial results for the three-month ended June 30,2014 are presented in accordance with International Financial ReportingStandards ("IFRS"). About G. Willi-Food International Ltd. G. Willi-Food International Ltd. (http://www.willi-food.com) is anIsraeli-based company specializing in high-quality, great-tasting kosher foodproducts. Willi-Food is engaged directly and through its subsidiaries in thedesign, import, marketing and distribution of over 600 food products worldwide.As one of Israel's leading food importers, Willi-Food markets and sells itsfood products to over 1,500 customers in Israel and around the world includinglarge retail and private supermarket chains, wholesalers and institutionalconsumers. The company's operating divisions include Willi-Food in Israel andGold Frost, a wholly owned subsidiary who designs, develops and distributesbranded kosher, dairy-food products. FORWARD LOOKING STATEMENT This press release contains forward-looking statements within the meaning ofsafe harbor provisions of the Private Securities Litigation Reform Act of 1995relating to future events or our future performance, such as statementsregarding trends, demand for our products and expected sales, operatingresults, and earnings. Forward-looking statements involve known and unknownrisks, uncertainties and other factors that may cause our actual results,levels of activity, performance or achievements to be materially different fromany future results, levels of activity, performance or achievements expressedor implied in those forward-looking statements. These risks and other factorsinclude but are not limited to: monetary risks including changes in marketablesecurities or changes in currency exchange rates- especially the NIS/U.S.Dollar exchange rate, payment default by any of our major clients, the loss ofone of more of our key personnel, changes in laws and regulations, includingthose relating to the food distribution industry, and inability to meet andmaintain regulatory qualifications and approvals for our products, terminationof arrangements with our suppliers, in particular Arla Foods, loss of one ormore of our principal clients, increase or decrease in global purchase pricesof food products, increasing levels of competition in Israel and other marketsin which we do business, changes in economic conditions in Israel, including inparticular economic conditions in the Company's core markets, our inability toaccurately predict consumption of our products and changes in consumerpreferences, our inability to protect our intellectual property rights, ourinability to successfully integrate our recent acquisitions, insurance coveragenot sufficient enough to cover losses of product liability claims and risksassociated with product liability claims. We cannot guarantee future results,levels of activity, performance or achievements. The matters discussed in thispress 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 endedDecember 31, 2013, filed with the Securities and Exchange Commission on April30, 2014. These factors are updated from time to time through the filing ofreports and registration statements with the Securities and ExchangeCommission. We do not assume any obligation to update the forward-lookinginformation contained in this press release. {FINANCIAL TABLES TO FOLLOW} G. WILLI-FOOD INTERNATIONAL LTD. CONDENSED CONSOLIDATED BALANCE SHEETS June 30, December June 30, December 31, 31, 2 0 1 4 2 0 1 3 2 0 1 3 2 0 1 4 2 0 1 3 2 0 1 3 NIS US dollars (*) (in thousands) ASSETS Current assets Cash and cash equivalents 58,559 76,038 36,197 17,033 22,117 10,529 Financial assets carried at 158,654 133,065 112,864 46,147 38,704 32,828fair value through profitor loss Trade receivables 96,099 82,615 82,932 27,952 24,030 24,122 Other receivables and 6,329 3,459 2,694 1,842 1,006 784prepaid expenses Inventories 38,875 43,841 54,001 11,307 12,752 15,707 Loan carried at fair value - - 65,300 - - 18,994through profit or loss Total current assets 358,516 339,018 353,988 104,281 98,609 102,964 Non-current assets Property, plant and 69,143 65,345 66,663 20,111 19,007 19,390equipment Less -Accumulated 26,726 23,040 25,689 7,774 6,702 7,472depreciation 42,417 42,305 40,974 12,337 12,305 11,918 Other receivables and 51 475 50 15 138 14prepaid expenses Deferred taxes 133 - - 39 - - Goodwill 36 36 36 10 10 10 Total non-current assets 42,637 42,816 41,060 12,401 12,453 11,942 401,153 381,834 395,048 116,682 111,062 114,906 EQUITY AND LIABILITIES Current liabilities Short-term bank debt - - 18 - - 5 Trade payables 14,888 21,715 20,245 4,330 6,316 5,889 Employees Benefits 2,135 1,726 1,880 621 502 547 Current tax liabilities 9 2,364 637 3 688 185 Other payables and accrued 5,992 5,291 5,282 1,743 1,539 1,536expenses Total current liabilities 23,024 31,096 28,062 6,697 9,045 8,162 Non-current liabilities Deferred taxes - 283 499 - 82 145 Retirement benefit 614 570 644 179 166 187obligation Total non-current 614 853 1,143 179 248 332liabilities Shareholders' equity Share capital 1,407 1,444 1,407 409 420 409 Additional paid in capital 120,228 129,903 119,281 34,970 37,784 34,695 Capital fund 247 247 247 72 72 72 Foreign currency - 705 786 - 205 229translation reserve Remeasurement of the net (33) 11 (63) -10 3 (18)liability in respect ofdefined benefit Treasury shares - (10,843) - - (3,154) - Retained earnings 255,666 228,418 244,185 74,365 66,439 71,025 Equity attributable to 377,515 349,885 365,843 109,806 101,769 106,412owners of the Company 401,153 381,834 395,048 116,682 111,062 114,906 (*) Convenience translation into U.S. dollars. G. WILLI-FOOD INTERNATIONAL LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Six months Three months Six months ended June 30, ended June 30, ended June 30, 2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3 NIS U.S. dollars (*) In thousands (except per share and share data) Sales 174,178 174,999 79,209 84,414 50,663 50,901 Cost of sales 132,209 131,770 58,644 62,574 38,455 38,328 Gross profit 41,969 43,229 20,565 21,840 12,208 12,573 Selling expenses 20,420 16,488 10,353 8,946 5,939 4,796 General and 9,684 9,290 4,628 4,622 2,817 2,702administrativeexpenses Other income (147) (34) - (34) (43) (11) Total operating 29,957 25,744 14,981 13,534 8,713 7,487expenses Operating income 12,012 17,485 5,584 8,306 3,495 5,086 Financial income 4,156 4,587 659 1,948 1,209 1,334 Financial expense 684 801 522 (97) 199 233 Total financial income 3,472 3,786 137 2,045 1,010 1,101 Income before taxes on 15,484 21,271 5,721 10,351 4,505 6,187income Taxes on income 4,003 5,230 1,347 2,560 1,164 1,521 Profit for the period 11,481 16,041 4,374 7,791 3,341 4,666 Earnings per share: Earnings per share Basic earnings per 0.88 1.24 0.34 0.60 0.26 0.34share Diluted earnings per 0.88 1.24 0.34 0.60 0.26 0.34share Shares used in 12,974,245 12,974,245 12,974,245 12,974,245 12,974,245 12,974,245 computation of basicEPS (*) Convenience translation into U.S. dollars G. WILLI-FOOD INTERNATIONAL LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Six months Three months Six months ended June 30, ended June 30, ended June 30, 2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3 NIS U.S. dollars (*) In thousands (except per share and share data) Cash flows - operatingactivities Profit from operations 11,481 16,041 4,374 7,791 3,341 4,666 Adjustments to reconcile (8,199) (10,525) 16,503 4,438 (2,387) (3,062)net income to net cashfrom operating activities(Appendix) Net cash from operating 3,282 5,516 20,877 12,229 954 1,604activities Cash flows - investingactivities Acquisition of property (4,004) (5,560) (2,175) (1,165) (1,165) (1,617)plant and equipment Proceeds from sale of 970 29 225 29 282 8property plant andEquipment Additions to long term - (445) - - - (129)other receivables Proceeds from Loan 65,400 - - - 19,023 -carried at fair valuethrough profit or loss Proceeds from purchase (43,268) 28,865 (11,104) 5,321 (12,585) 8,396(sale) of marketablesecurities, net Net cash from (used in) 19,098 22,889 (13,054) 4,185 5,555 6,658investing activities Cash flows - financingactivities Short-term bank credit, (18) (9,930) (2,644) (19) (5) (2,888)net Net cash used in (18) (9,930) (2,644) (19) (5) (2,888)financing activities Increase in cash and cash 22,362 18,475 5,179 16,395 6,504 5,374equivalents Cash and cash equivalents 36,197 57,563 53,380 59,643 10,529 16,743at the beginning of thefinancial year Cash and cash equivalents 58,559 76,038 58,559 76,038 17,033 22,117of the end of thefinancial year (*) Convenience Translation into U.S. Dollars. G. WILLI-FOOD INTERNATIONAL LTD. APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Six months Three months Six months ended june 30, ended june 30, Ended June 30, 2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3 NIS U.S. dollars (*) In thousands (except per share and share data) Cash flows from operatingactivities: A. Adjustments to reconcilenet profit to net cash fromoperating activities Deferred income taxes (632) 303 (432) 528 (184) 88 Unrealized loss (gain) on (2,522) (3,120) 486 (1,551) (734) (908)marketable securities Depreciation and amortization 1,779 2,166 889 1,155 517 630 Capital gain on disposal of (188) (29) - (29) (55) (8)property plant and equipment Stock based compensation 947 6 471 1 275 2reserve Unrealized Gain of loan (100) - - - (29) -carried at fair value throughprofit or loss Net foreign exchange gain (786) - (786) - (229) - Changes in assets andliabilities: Decrease (increase) in trade (16,803) (9,474) 6,810 91 (4,887) (2,756)receivables and otherreceivables Decrease (increase) in 15,126 5,429 14,625 (49) 4,399 1,579inventories Increase (decrease) in trade (5,020) (5,806) (5,560) 4,292 (1,460) (1,689)and other payables, and othercurrent liabilities (8,199) (10,525) 16,503 4,438 (2,387) (3,062) B. Significant non-cashtransactions: Supplemental cash flowinformation: Income tax paid 4,667 4,466 2,220 2,301 1,357 1,299 (*) Convenience Translation into U.S. Dollars. This information is intended to be reviewed in conjunction with the Company'sfilings with the Securities and Exchange Commission. Company Contact: G. Willi Food International Ltd.Raviv Segal, CFO(+972) 8-932-1000raviv@willi-food.co.il ###

SOURCE: G. Willi-Food International Ltd.