G. Willi-Food Reports Q1 2012 Sales up 4.6% From Q1 2011
G. Willi-Food International Ltd. (NASDAQ: WILC) (the "Company" or "Willi-Food"), a global company specializing in the development, marketing and international distribution of kosher foods, today announced its unaudited financial results for the first quarter ended March 31, 2012.
First Quarter Fiscal 2012 Highlights
Sales increased 4.6% from first quarter of 2011 to NIS 73.7 million (US$ 19.8 million)
Gross profit decreased 12.8% from first quarter of 2011 to NIS 15.7 million (US$ 4.2 million), or 21.3% of sales
Operating income decreased 25.4% from first quarter of 2011 to NIS 4.7 million (US$ 1.3 million), or 6.4% of sales
Net income decreased 21.8% from first quarter of 2011 to NIS 4.8 million (US$ 1.3 million), or 6.6% of sales
Cash and securities balance of NIS 196.5 million (US$ 52.9 million) as of March 31, 2012
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 dairy food products.
First Quarter Fiscal 2012 Summary
Sales for the first quarter of 2012 increased by 4.6% to NIS 73.7 million (US$ 19.8 million) from NIS 70.4 million (US$ 18.9 million) recorded in the first quarter of 2011. The growth in sales in the first quarter of 2012 was driven by the introduction of new products and by the timing of the Passover festival that it sells fell during the first quarter this year, while last year it sales fell during the second quarter.
Gross profit for the first quarter of 2012 decreased by 12.8% to NIS 15.7 million (US$ 4.2 million) compared to NIS 18.0 million (US$ 4.8 million) recorded in the first quarter of 2011. First quarter gross margin was 21.3% compared to gross margin of 25.6% for the same period in 2011. The decrease in gross profit and gross margins was primarily due to reductions in the prices of certain of our products as a result of the ongoing national protest against the cost of food products and continued pressure from our customers to reduce prices and due to an increase in global prices of food products compounded by the continued global economic recession. The Company expects the decline in its gross margins to continue in the second quarter of 2012 compared to 2011 second quarter's gross margins.
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