Q2 2020 G Willi-Food International Ltd Earnings Call

Ladies and gentlemen, thank you for standing by the conference will begin shortly.

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Ladies and gentlemen.

Welcome to the GE Willi food investors 2022nd quarter earnings Conference call. During this presentation, all participants will be in listen only mode. After the presentation. We'll have a question and answer session at that time. If you have a question. Please press star followed by one on your telephone if any.

Any time during the conference you need to reach an operator.

Yes Star followed by zero as a reminder, this conference is being recorded today Tuesday August 4th Twentytwenty.

Joining us today are being willing to our chairman and just talk Bobby CFO.

Before we begin I will remind all listeners that throughout this call the company and its representatives may make statements, which constitute forward looking statements within the meaning of safe Harbor provisions of the private Securities Litigation Reform Act of 1995 investors are cautioned that any such forward looking statements.

Are not guarantees of future performance or the successful execution of companies strategic plan.

And involve risks and uncertainties that could cause actual results to differ materially from such statements important factors that could cause actual results to differ materially from those expressed in the forward looking statements are described in the company's periodic filings.

Securities and Exchange Commission, including the company's annual report on form 20-F, as well as in our recent earnings press release, the will open today's call and provide an overview of the second quarter and recent events. You talk will then review financial and return the call just before.

<unk> remarks.

I'll now turn the presentation over to the Williger. Please go ahead.

Thank you very much.

I'm going door to talk in English and then.

Which people when we ever question. So I apologize for these lately that I'm speaking English and those people.

Thank you very much good morning, good afternoon, welcome to our goal to discuss corporate activity and results of the second quarter of 2020.

Just a present.

The strong second quarter for the year 2020, all financial results show.

Gross and the company sell and significant for all.

All the operational both parliament dose she's always 19, so first in China. The end of 2019 and reach many other countries worldwide, including yourself.

And it did you meant for our company bought the goals was especially strong into first quarter 2000.

Which led to a general decline in cold and composting consumption in the second quarter of 2020. Despite this decline.

Opening managed to deliver great performance.

In the second quarter compared to second quarter, 2019 and increases for free.

Our strong performance in the second quarter was driven by extending says volume of higher margin products doing youre, an existing customer combined with the adding a new unprofitable product.

Portfolio, we generate high gross margin.

We operating in a highly competitive market.

Brent recognition I want to be an exceptional but I was a key element of our success would distinguish ourselves by continually innovating new products, all product lineup, including more than 600 caution product the building the they really.

This product.

The good on the beautiful, Brian or Euro European Devry Brent.

Oh can be specialized and distribute other customer private label or for international level, which all the company.

Since my brother.

The company in July 2017, we've introduced many great testing higher margin products.

Hello, together it was all supply and we increased the awareness of our newly added products by initiating a new.

Sure enough and still activities that we believe are generating a great interest the awareness of our new all products and broadening our customer base all blended just help us.

Well go to further strength. So forward spending position is a market due to the wide range over the quality cost a football Ducted. We also.

We believe in so we believe this foundation of our business saw strong.

We are well positioned to continue our expansion I'll focus on you and high margin for the full juice.

All such Denise.

The new innovative product launching additional product line and then there additional to a foot got to going why is the same time to expanding our presence in the market is international cautious for this at all.

Sometime we believe we will work to maintain sufficient inventory level and further strength over the company supply chain.

Lives that this golf brands. This strategy will provide the company with a competitive edge for all future disposal disclosed this point.

Bobby our CFO will review, the financial and after which I will add some concluding remarks. Thanks.

Good morning, Good afternoon, everyone I will now review the second quarter 2020 financial results in future.

I would like to remind everyone that accompanies important in accordingly.

International financially for standard or I have for it and the numbers have been covered concessions from new Israeli shekel to Euro dollar exchange rate of 3.466, new Israeli shekel to one dollar.

So the second quarter sales increased 4% to $30.1 million compared to sell so $28.9 million into second quarter 2019.

Revenue increased primarily due to do any directional for sources in favor of sales increasing the variety of the company products and improved inventory management.

Gross profit increased 32.4% to $11.4 million into second quarter of 2020 compared to gross profit of 8.6 million in the second quarter 2009.

2080.

21st quarter gross margin was 37.9% compared with 29.8% into second quarter 2009.

The increase in gross profit was primarily due to the increase in sales and increasing gross margin resulted from the company strategy of sending a more favorable mix of products will generate higher gross margin in a credit received from supply during the second quarter 2020.

Selling expenses increased 9.8% to 4.7 million compared to $4.3 million in second quarter 2019, primarily due to an increase of payroll expenses in the logistics Department and an increase of freight discuss some expenses in supply.

<unk> sales growth.

Selling expenses as a percentage of sales decreased to 15.6% into second quarter 2020.

Compared to 14.7% into second quarter 2019.

General and administrative expenses as a percentage of sales increased to 6.2% into second quarter 2020, compared to 5.2% in the second quarter of 2019, primarily due to an increase in payroll expense.

Sorry, So second quarter operating income was 4.9 million compared to 2.8 million in the second quarter 2019.

Net income for the second quarter, 2019 increased 34.1% to $4.4 million or 14.6% affairs compared to $3.3 million or 11.3% of sales recorded in the second quarter 2019.

Earnings per share for the second quarter of 2020 was 33 cents fair share compared to 25 cents per share recall that in second quarter 2019.

Turning to the balance sheet at the end of second quarter of 2020, which would head 81.4 million in cash and securities in 146.5 million in shareholders.

The balance sheet continues to be strong, reflecting the growth of our overall business.

With that I talked to coal.

On the call back to you.

Okay. Thank you very much as our overall I'm very pleased with the progress we made during the last three years the strength of all businesses as you nebulous delivered excellent results for the quarter, we have expand our product line.

Just to deliver improved margin we have developed high margin product. In addition on June 15, 2020, as a company because you are listed on DS eight D.A. E delivery. So could change in addition to not duck and we are very excited to be listed pose a threat of D.A. If he is away for free.

Additionally, revenue for these well invest or looking to take a part of our gross over the company, but listen but listings the company for the trade off deliveries stocks change. We also welcome annual shareholder into the company and all failing and offered an easy will easily accessible gen investment for public institution disease.

Early to protect the company journey to gorse finally, I would like to send to our shallow Bill force for supporting reinforce is if we continue our mission to supply the market was an innovative kosher products. We believe that I'll look forward to accomplish this is now stronger than ever and we remain highly focused on building.

For the two up by me a company was a bright future an excellent opportunity for return effect would be able to show and we continue to look for opportunities to great additional value for our shareholders I would like to know the terms of call. Overall. It was also right. So for question and answer and I will also enable an English as well.

Thank you very much.

Thank you.

Ladies and gentlemen at this time, we will begin the question answer session. If you have a question. Please press star one if you wish to cancel your request. Please press star too. If you are using speaker equipment Connelly with the handset before pressing the numbers questions will be pulled in the order. They are a seat please standby while we pull.

For your questions.

The first question is from Brian gains Springhouse capital.

Please go ahead.

Hi.

I just wanted to ask you what do you think sales could be like in the third quarter and the rest of year and that in addition.

Gross profit margin can sustain this level.

All right as ever since the third quarter Restock universe form games.

He is very strong way, we are increasing we didn't do much better than velocity of 2019.

We almost doubling our EM.

Our revenue in them. They report back into June product and then also in the into other product. We also introducing a lot of we'd want to introduce.

Some new product sales volume in the fourth quarter, we also solving door negotiating with some of.

The supermarket overseas and we are winning in a very very well we still in a very early stage with one of them, we are making of it'd be progress.

If I can conclude second second here the second half of the yield I believes that we are going to.

Door to do very well in 2020, we have believes that the gross margin gross margin. We will be the said as we did into fiscal first half of the here and also we believes that we are going to win.

During the revenue of the company, if I'm not taking into consideration wasn't going to do outside of Israel that we will is all revenue. According to our budget, which is around 15% to 20% of last year. So we believe a strong since we all.

Well done guys way and ma'am.

And we always and we already.

We really feel very confident with the people that you I'm working with.

Ops.

You will be very upbeat season results, if you're going to published in the third quarter as well as a fourth quarter.

Okay. Thanks.

Thank you.

If there any additional questions. Please press star one if you wish to cancel your request. Please press star to please standby, while we pull for more question.

Okay.

There are no further questions at this time.

Before I ask Mr. Williger to go ahead with his concluding statement I would like to remind participants that a replay of this call will be available on the company's website. Mr. Williger would you like to make you concluding statement. Okay. I just want to thank everybody will join us. So is this the comfort to this call and look forward.

I'm showing our progress in the future calls thank you very much and appreciate your thoughts.

Thank you. This concludes the GE Willi food Internet International second quarter Twentytwenty earnings Conference call. Thank you for your participation you May go ahead and disconnect.

Hello.

So.

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