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Report Date : |
31.01.2013 |
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 : |
P.O. Box 678 (8110602) 4 Nahal Harif Street Northern Industrial Zone Yavne 8122216 |
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Country : |
Israel |
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Financials (as on) : |
30.06.2012 |
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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 (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.) |
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No. of Employees : |
111 |
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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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically advanced
market economy. It depends on imports of crude oil, grains, raw materials, and
military equipment. Cut diamonds, high-technology equipment, and agricultural
products (fruits and vegetables) are the leading exports. Israel usually posts
sizable trade deficits, which are covered by tourism and other service exports,
as well as significant foreign investment inflows. The global financial crisis
of 2008-09 spurred a brief recession in Israel, but the country entered the
crisis with solid fundamentals - following years of prudent fiscal policy and a
resilient banking sector. The economy has recovered better than most advanced,
comparably sized economies. In 2010, Israel formally acceded to the OECD.
Natural gasfields discovered off Israel's coast during the past two years have
brightened Israel's energy security outlook. The Leviathan field was one of the
world's largest offshore natural gas finds this past decade. In mid-2011,
public protests arose around income inequality and rising housing and commodity
prices. The government formed committees to address some of the grievances but
has maintained that it will not engage in deficit spending to satisfy populist
demands.
Source
: CIA
G. WILLI-FOOD INTERNATIONAL LTD.
Telephone 972 8 932 10 00
Fax 972 8 932 10
01/3
P.O. Box 678 (8110602)
4 Nahal Harif Street
Northern Industrial Zone
YAVNE 8122216 ISRAEL
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.
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.
1. WILLI-FOOD INVESTMENTS LTD.,
57%, a public limited liability company, shares of which are traded on the Tel
Aviv Stock Exchange, controlled by brothers Zwi Williger (37.71%) and Joseph
Williger (21.33%),
2. Shares are also traded on
the Nasdaq Stock Exchange (NASDAQ-CM, symbol WILC).
1. Joseph Williger, Chairman,
2. Zwi Williger, CEO,
3. Ariel Herzfeld,
4. Chaim Gertal,
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.
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):
DEL-MONTE, of the
USA,
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 111
employees in the WILLI-FOOD Group.
Current market
value is US$ 53.2 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.
Subject's 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)
30.06.2012 31.12.2011
ASSETS
Current assets
Cash and cash equivalents 72,804 34,661
Financial assets 130,935 163,430
Trade receivables 65,968 57,628
Other assets 5,024 15,720
Inventory 32,981 32,613
307,712 304,052
Non-current assets
Fixed assets (net) 40,808 42,545
Other non-current assets 1,322 1,086
42,130 43,631
349,842 347,683
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LIABILITIES
Current
liabilities 30,878 36,848
Non-current
liabilities 429 518
Equity 318,535 310,317
349,842 347,683
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REVENUES
Consolidated
Statement of Income
Year
ended 31.12
NIS
(thousands)
2011 2010 2009
Sales 264,404 271,143 230,134
Gross profit 61,705 76,186 65,000
Operating income 17,088 27,387 31,801
Pre-tax income 18,255 32,264 34,125
Net income 18,522 30,157 31,528
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Note: Subject's
financial results were revised since 2012 following the sale of its share in
SHAMIR SALADS (see more CHARACTER).
Consolidated first 6 months of 2012 sales were
NIS 139,984,000 (a slight decrease compared to the parallel period in 2011),
making a gross profit of
NIS 32,220,000, an operating income of NIS
10,275,000 and a net income of
NIS 8,927,000.
Subject's
subsidiaries (all 100%):
GOLD-FROST LTD., importers, distributors,
exporters and marketers of frozen and chilled food products. Holds (100%):
WILLI-FOOD QUALITY CHEESES LTD., GOLD CHEESES LTD., CHEESES FARM LTD.,
WILLI-FROST LTD., GOLD FROST CHEESES WORLD LTD..
W.D.F. (IMPORT, MARKETING & TRADING)
LTD.
WILLIFOOD
INVESTMENTS LTD., parent company, incorporated in
US$ 38.7 million,
fully owns:
TZUKTAL INVESTMENTS
LTD., a financial investment company (mainly in WILLI FOOD's bonds).
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.
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.
Subject is one of
the largest foodstuffs importers in the market. WILLI FOOD Group is veteran,
whose activities in the food branch started by Williger family in the late
1960s.
In January 2002
subject received the concession of Danish butter “Lurpak” (by the ARKA FOODS
concern).
In December 2011,
subject sold its 51% holdings in SHAMIR SALADS (2006) LTD., manufactures and
marketers of chilled/ cold salads after a legal dispute that started in late
2007 between the Group and their partners in SHAMIR SALADS. The former partners
acquired the 51% for NIS 12 million.
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 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 February 2008,
GOLDFROST purchased a 51% interest from the owners of a dairy distributor in
Denmark KIRKEBY INTERNATIONAL FOODS A/S. In July 2009 GOLDFROST sold its
holding in KIRKEBY 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.
In August 2011 it
was reported that subject was nominated as the local distributor of DEL-MONTE,
the preserved food giant, publicly traded on NYSE.
In September 2011 GOLDFROST established 5
companies (a/m fully owned subsidiaries) for the purpose of products importing.
The local market for food & beverages grew by 11.4% from 2008 to
2011, summing up to NIS 35.15 billion, around 4.5% increase (in money terms) in
2011 from 2010.
In 2011 sales for exports by the food & beverages industries rose by 16.6%,
reaching US$ 929.8 million (rose by 9.8% in 2010 after export rate fell in 2009
by 11% from 2008).
Import of food and beverages to Israel in 2011 summed up to US$ 2,358.2
million, rising by 18.7% from 2010, which comes after a by 15.5% increase in 2010
from 2009 (when import decreased by 9.4% comparing to 2008 due to the slow-down
in local economy).
The
Central Bureau of Statistics data shows that import of raw food
products to Israel in 2011 summed up to US$ 2,062.6 million, 23% increase from
2010 (a similar growth trend to 2010 from 2009, a year which witnessed a 20%
decrease from 2008). Over 50% of import is from the EU.
According
to the CBS, the total household expenditure for private consumption in 2011 on
food, beverage and tobacco rose 3.7% from 2010, after 4% rise in 2010 from
2009, reflecting an improvement trend in the loacl market after the general
slow-down in economy in 2009.
Good for trade engagements.
Note: Since the beginning of 2012 Israel Post
started using a new area code method of 7 digits (the old method of 5 digits
will still be valid till end of 2012).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.53.57 |
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1 |
Rs.84.37 |
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Euro |
1 |
Rs.72.23 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
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NB |
New Business |
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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.