MIRA INFORM REPORT
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Report Date : |
22.04.2011 |
IDENTIFICATION DETAILS
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Name : |
G. WILLI-FOOD INTERNATIONAL LTD. |
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Formerly Known As : |
G. WILLI - FOOD LTD |
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Registered Office : |
4 Nahal Harif Street, Northern Industrial Zone |
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Country : |
Israel |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
05.01.1994 |
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Legal Form : |
Public Limited Liability Company |
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Line of Business : |
Importers, Distributors, Marketers and Exporters of food products |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
US$ 2,000,000. |
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Status : |
Satisfactory |
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Payment
Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2010
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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Israel |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company
name & address
G. WILLI-FOOD INTERNATIONAL LTD.
Telephone 972 8 932 10 00
Fax 972 8 932 10
01/3
P.O. Box 678 (81106)
4 Nahal Harif Street
Northern Industrial Zone
YAVNE-81222 ISRAEL
HISTORY
& LEGAL FORMATION
Originally
established as a private limited company, incorporated as per file No.
51-191441-8 on the 05.01.1994.
Originally
registered under the name G. WILLI - FOOD LTD., which changed to the present
one on 09.07.1996.
Converted into a
public limited liability company and registered as such as per file No.
52-004320-9 on the 19.05.1997. In parallel published a prospectus offering
shares to the public on the NASDAQ Stock Exchange, raising US$ 4.1 million for
33% of issued shares.
SHARE
CAPITAL
Authorized share
capital NIS 5,000,000.00, divided into: -
49,893,520 ordinary shares,
106,480 preferred shares, all
of NIS 0.10 each
of which 13,573,679 ordinary shares issued and outstanding, amounting
to
NIS 1,357,367.90.
SHAREHOLDERS
1. WILLI-FOOD INVESTMENTS
LTD., 52.8%, a public limited liability company, shares of which are traded on
the Tel Aviv Stock Exchange, controlled by brothers Zwi Williger (37.3%) and
Joseph Williger (21.1%),
2. Shares are also traded on
the Nasdaq Stock Exchange (NASDAQ-CM, symbol WILC).
DIRECTORS
1. Zwi Williger, Chairman,
2. Joseph Williger, CEO,
3. Ariel Herzfeld,
4. Ms. Etti Cohen,
BUSINESS
Importers,
distributors, marketers and exporters of food products (canned vegetables and
pickles, canned fish & tuna, canned fruits, snacks, soups, pasta, edible
oils, bakeries, dried fruits & nuts, coffee, sauces, salads, dairy and
dairy substitute products, ice cream, etc.), mostly under the brand name
"Willi Food".
Imported products
(some 700 products) acquired from some 150 suppliers worldwide. Part of goods
is imported via subsidiaries GOLD FROST and WDF.
Also
manufacturers and marketers of fresh salads via 51% subsidiary SHAMIR SALADS.
Sales are to
large supermarket chains and to private supermarket chains, mini-markets,
wholesalers, manufacturers, institutional consumers and customers in the
Palestinian Authority (in all some 2,000 clients).
Sole local
representatives of (among others):
· ARLA, LURPAK, both of Denmark.
· ZANETTI, GELATO, both of Italy,
· BREDA, COMPLETA, both of Holland,
·
NOBLEZA GA
Operating from
owned premises (headquarters, logistic center), on an area of 19,000 sq.
meters, of which 8,600 sq. meters built, in 4 Nahal Harif Street, Northern
Industrial Zone, Yavne.
Having 91
employees in subject, and 227 employees serving the WILLI-FOOD Group, as of
31.12.2010 (had 89 and 242 employees respectively in 31.12.2009).
MEANS
Current market
value is US$ 99.9 million.
In October 2006
subject closed US$10 million through private placement of shares of its ordinary
shares and warrants to institutional investors.
In March 2010
subject completed a public offering of shares in the NASDAQ, for the sum of US$
20 million.
Up to December
2010 Group invested NIS 42.4 million in its logistic center in Yavne (subject's
premises).
There are 6
charges registered for unlimited amounts registered on the company's assets, in
favor Bank Hapoalim Ltd., Mizrahi Tefahot Bank Ltd. and Bank Leumi Le’Israel
Ltd.
Consolidated B/S
shows:
NIS
(thousands)
30.12.2009 31.12.2010
ASSETS
Current assets
Cash and cash equivalents 87,104 113,631
Financial assets 11,356 67,890
Trade receivables 77,752 85,902
Other assets 1,990 2,307
Inventory 44,810 37,614
223,012 307,344
Non-current
assets
Fixed assets (net) 49,578 50,838
Goodwill and intangible asset (net) 6,610 6,003
Other non-current assets 3,519 3,099
59,707 59,940
282,719 367,284
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LIABILITIES
Current
liabilities 74,653 58,300
Non-current
liabilities 1,586 2,112
Equity 206,480 306,872
282,719 367,284
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ANNUAL
SALES
Consolidated
Statement of Income
Year
ended 31.12
NIS
(thousands)
2008 2009 2010
Sales 289,068 303,460 348,358
Gross profit 60,229 83,981 100,786
Operating income 9,720 33,172 33,568
Pre-tax income 4,880 34,643 37,810
Net income 267 31,528 30,157
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OTHER
COMPANIES
W.D.F. (IMPORT,
MARKETING & TRADING) LTD., 100%,
GOLD FROST LTD.,
100%, distributors of branded kosher dairy food products,
SHAMIR SALADS
2006 LTD., 51%, manufactures and marketers of cold salads.
WILLIFOOD
INVESTMENTS LTD., parent company, incorporated in
TZUKTAL INVESTMENTS
LTD., a financial investment company (mainly in WILLI FOOD's bonds).
BANKERS
· Bank Leumi Le’Israel Ltd., Allenby Business Branch (No. 802), Tel Aviv.
Also working
with:
· Bank Hapoalim Ltd., Business Central Branch (No. 600), Tel Aviv.
· Mizrahi Tefahot Bank Ltd., Givatayim Branch (No. 455), Givatayim.
· Israel Discount Bank Ltd., Yavne Branch (No. 175), Yavne.
CHARACTER
AND REPUTATION
There are 3 legal
procedures against subject (one by a contractor who built the new logistics
center, and 2 motions for class action lawsuits), none seem significant at this
stage and relative small sums (class action motions still have to be approved
by Court).
Apart from that,
nothing unfavorable learned.
Another legal
matter: In November 2007 subject intended to purchase 51% of SHAMIR SALADS
(2006) LTD., and deal was to be finalized after authority approval in the 1st
quarter of
Subject is one of
the largest foodstuffs importers in the market. WILLI FOOD Group is veteran,
whose activities in the food branch started by the Williger family in the late
1960s.
In June 2007
businessman Arkadi Gaydamak gained control of WILLIFOOD INVESTMENTS LTD. after
acquiring 44.3% for the sum of NIS 170 million. In September 2008 Mr. Gaydamak
took a loan from WILLIFOOD INVESTMENTS's former controlling shareholders, the
Williger Bros. of NIS 76 million, giving WILLIFOOD INVESTMENTS's shares as
collateral. In September 2008, failing to meet certain obligations for the
loan, Williger Bros. re-gained possession of these shares and the control of
WILLIFOOD INVESTMENTS LTD.
In 2001, subject
acquired all the shares of GOLD FROST LTD. for US$ 80,000.
GOLD FROST,
incorporated in
In March 2006,
GOLD FROST completed an initial issuance to the public on the London AIM market
which yielded gross proceeds of US$ 9.6 million. Following this issuance,
subject held some 76% of GOLD FROST's share capital. During November 2007-
January 2008, subject purchased 14.3% of GOLD FROST's share, reaching 90%. In
May 2008 GOLD FROST shares were de-listed from trade. By June 2009 completed
tender offer for the shares held by the public.
In January 2002
subject received the concession of Danish butter “Lurpak” (by the ARKA FOODS
concern).
In January 2007
subject established WF Kosher Food
Distributors after acquiring all activities of LAISH ISRAEL FOOD PRODUCTS,
of USA for US$ 3.5 million. LAISH marketed Kosher food products in the USA.
In July 2008
subject ceased all WF's activities.
In February 2007
subject established with the Baron Family Y.l.W. BARON ITERNATIONAL TRADING
LTD. to distribute Israeli Kosher products. A dispute arose between the 2 sides
and in September 2009 subject sold all its holdings in BARON to the Baron
Family.
In July 2009
subject's subsidiary GOLDFROST sold its holding in the Danish company for US$
400,000.
In March 2010 it
was reported that the Group offered to acquire 35% of AROMA ISRAEL, an Israeli
café chain, for NIS 87 million.
In September 2010
it was reported Group is intending to acquire a manufacturing facility in New
Jersey, USA, to increase shelve period of products in the USA.
Group is aiming
for the Kosher food market in the USA, which is estimated at US$ 13 billion.
The local market for current consumption of consumer products grew in
According to the Industrialists' Association, 2008 sales by the local food
industries reached NIS 56 billion, of which NIS 53 billion were to the local
market, the rest for export. In real terms, sales fell by 1.5% from 2007. Some
NIS 43 billion of sales came from sales of food products. Local food industries
marked a decrease in 2009 due to the slow-down in local economy and global
economic crisis, although decrease was relatively mild, mainly as the economic
climate ameliorated in the 2nd half of 2009.
In 2010, sales for exports by the food & beverages industries rose by 9.8% (reaching US$ 791.7 million). This marks a recovery
trend after the export rate fell in 2009 by 11% from 2008.
Import of food and beverages to Israel in 2009 decreased by 9.4% comparing
to 2008, but recovered and rose by 11.8% in 2010, reaching US$ 1,921.7 million.
Imports of raw food products to Israel in 2010 summed up to US$ 1,666
million, 22.5% increase from 2009, after in that year there was a 20% decrease
from 2008, reflecting the slow-down trend in the local economy. Over 50% of
import is from the EU.
According
to the CBS, the total household expenditure for private consumption in 2010 on
food, beverage and cigarettes rose 4.5% from 2009, reflecting an improvement
comparing to 2009, part of the recovery trend in the loacl market after the
general slow-down in economy earlier last year.
SUMMARY
Good
for trade
engagements.
Maximum unsecured
credit recommended US$ 2,000,000.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.33 |
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UK Pound |
1 |
Rs.72.92 |
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Euro |
1 |
Rs.64.69 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.