MIRA INFORM REPORT
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Report Date : |
29.06.2013 |
IDENTIFICATION DETAILS
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Name : |
G. WILLI-FOOD INTERNATIONAL 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) : |
31.03.2013 |
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Date of Incorporation : |
05.01.1994 |
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Legal Form : |
Private Limited 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.) |
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No. of Employees : |
120 |
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 – March, 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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. Its major
imports include crude oil, grains, raw materials, and military equipment. Cut
diamonds, high-technology equipment, and pharmaceuticals are among 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. Israel's economy also has weathered the
Arab Spring because strong trade ties outside the Middle East have insulated
the economy from spillover effects. 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, and production from the Tama field is expected to
meet all of Israel's natural gas demand beginning mid-2013. 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.
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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 12,974,245 ordinary shares issued and outstanding, amounting to
NIS 1,297,424.50.
1. WILLI-FOOD INVESTMENTS
LTD., 57.2%, a public limited liability company, shares of which are traded on
the Tel Aviv Stock Exchange, controlled by brothers Zwi Williger (39.36%) and
Joseph Williger (21.36%),
2. Shares are also traded
on the Nasdaq Stock Exchange (NASDAQ-CM, symbol WILC).
1. Zwi Williger, Chairman
and General Manager,
2. Joseph Williger,
President,
3. Ms. Ayelet Eliav,
4. Boaz Nissimov
5. 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), mostly under the brand
name "Willi Food".
Imported products (some 600 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 1,500 clients).
Sole local representatives of (among others):
DEL-MONTE, of the USA,
ARLA/ LURPAK, 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 120 employees in WILLI-FOOD Group.
Current market value is US$ 88.9 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.
Subject's Group invested NIS 42.4 million in its logistic center in Yavne
(subject's premises) up to end of 2010.
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)
31.03.2013 31.12.2012
ASSETS
Current assets
Cash and cash
equivalents 59,643 57,563
Financial assets 136,835 158,810
Trade receivables 83,958 71,340
Other assets 2,175 5,988
Inventory 43,792 49,270
326,403 342,971
Non-current assets
Fixed assets (net) 42,295 41,628
Other non-current
assets 788 118
43,083 41,746
369,486 384,717
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LIABILITIES
Current liabilities 26,842 50,375
Non-current liabilities 581 581
Equity 342,063 333,761
369,486 384,717
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Consolidated
Statement of Income Year ended 31.12 NIS (thousands)
2012 2011 2010
Sales 286,509 264,404 271,143
Gross profit 69,041 61,705 76,186
Operating income 23,457 17,088 27,387
Pre-tax income 31,763 18,255 32,264
Net income 24,006 18,522 30,157
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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 2013
first 3 months sales were NIS 90,585,000 (23% increase compared to parallel
period of 2012), making a gross profit of
NIS 21,389,000, an
operating income of NIS 9,179,000, and a net income of
NIS 8,250,000.
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$ 66.7 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., Rehovot Business Branch (No. 412), Rehovot.
In December 2012 the Tel Aviv District Court ruled that subject pays NIS
2.5 million to the constructor who built the new logistics center.
There are 4 legal procedures against subject (one from 2008 by vendors
claiming nonpayment of subsidiary WF for NIS 1.35 million, and 3 from December
2012, as motions for class action
lawsuits for the total of 33 million), none seem significant at this stage
(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 2002 subject received the concession of Danish butter “Lurpak” (by
ARLA 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 NIS 170 million. In September 2008
Gaydamak took a loan from WILLIFOOD INVESTMENTS's former controlling
shareholders, Williger Bros. of NIS 76 million, giving WILLIFOOD INVESTMENTS's
shares as collateral. 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 GOLD FROST LTD., incorporated in
In 2007 subject established WF
Kosher Food Distributors after acquiring all activities of LAISH ISRAEL
FOOD PRODUCTS, of USA, marketers of Kosher food products in the USA, for US$
3.5 million.
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 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.
In February 2013 it was reported that subject
will import dried freeze coffee of INSTANTA of Poland.
After several years of constant growth, the consumer
products market, which includes food, beverages and household and personal care
goods, ended 2012 with fixation and even decrease in sales, according to Nilsen Market
Research. The decrease intensified over the last quarter of 2012, but was
compensated by prices rise. In money terms, the market grew by mere 0.7%, lest
than the population growth rate (2% per annum), reflecting the slow-down trend
in the local economy which started in 2011 2nd half. Sales in the
bar-coded consumer market reached NIS 40.4 billion. Sales of food in 2012 grew
by 1.1%, reaching NIS 29.8 billion, while in the beverage market sales fell by
2% to NIS 5.1 billion. Volume of personal care
goods rose by 3% to NIS 3 billion, while sale of household increased by 1.5% to NIS 2.7 billion.
According to Central Bureau of Statistics (CBS), import of food and beverages to Israel in 2012 summed up to NIS 6,898 million,
rising by 13.8% from 2011 (a 5.5% rise in $ terms), continuing the upward
growth trend from 2011 and 2010.
From the CBS National Accounts for 2012, it turns that expenditure by
local households on private consumption grew by 2.7% from 2011, after rising by
3.8% in 2011. Expenditure on food, beverage
& tobacco increased by 3.4% (after 4% rise in 2011).
Per capita expenditure for private
consumption on non-durable goods rose in 2012 by 1.4% per-capita (1.3%
rise in 2011). This rise reflects increases by 1.3% in expenditure on food, beverage & tobacco and 4.5% expenditure on clothing, footwear and personal effects.
Good for trade engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.59.70 |
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1 |
Rs.91.14 |
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Euro |
1 |
Rs.77.97 |
INFORMATION DETAILS
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Report Prepared
by : |
SDA |
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.