G. Willi-Food International announced its unaudited financial results for the first quarter ended March 31, 2022.
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Sales for the first quarter of 2022 increased by 1.2% to NIS 118.1 million ($37.2 million) from NIS 116.7 million (US$ 36.7 million) recorded in the first quarter of 2021.
Sales increased mainly due to (i) effective marketing activities carried out in the first quarter of 2022 that increased the range of the Company's products and (ii) proper inventory management.
Gross profit for the first quarter of 2022 decreased by 5.5% to NIS 34.2 million (US$ 10.8 million) compared to NIS 36.2 million (US$ 11.4 million) recorded in the first quarter of 2021. First quarter gross margin decreased by 5.5% to 29.0% compared to gross margin of 31.0% for the same period in 2021. The decrease in gross profit was mainly due to increased costs of the Company's imported products and increased shipping costs.
Selling expenses increased by 25.4% to NIS 19.2 million (US$ 6.1 million) compared to NIS 15.3 million (US$ 4.8 million) in the first quarter of 2021. The increase was primarily due to an increase in expenses for advertising and promotion.
General and administrative expenses decreased by 5.8% to NIS 5.5 million (US$ 1.7 million) compared to NIS 5.9 million (US$ 1.9 million) in the first quarter of 2021.
Operating profit for the first quarter of 2022 decreased by 37.1% to NIS 9.5 million (US$ 3.0 million) compared to NIS 15.0 million (US$ 4.7 million) in the first quarter of 2021. The decrease was primarily due to the decrease in gross profit and the increase in selling expenses.
Financial income, net was NIS 5.8 million (US$ 1.8 million) for the first quarter of 2022 compared to NIS 11.5 million (US$ 3.6 million) in the first quarter of 2021. Financial income, net for fiscal year 2022 comprised mainly income from changes in exchange rate change an amount of NIS 2.6 (USD 0.7 million), income from revaluation of the Company's portfolio of securities to fair value in an amount of NIS 1.9 million (USD 0.6 million) and interest and dividend income from the Company's portfolio of securities in an amount of NIS 1.3 million (USD 0.4 million).
Willi-Food's income before taxes for the first quarter of 2022 was NIS 15.3 million (US$ 4.8 million) compared to income before taxes of NIS 26.6 million (US$ 8.4 million) in the first quarter of 2021.
Willi-Food's net profit in the first quarter of 2022 was NIS 13.6 million (US$ 4.3 million), or NIS 0.98 (US$ 0.31) per share, compared to NIS 20.5 million (US$ 6.5 million), or NIS 1.48 (US$ 0.44) per share, recorded in the first quarter of 2021. Net profit for the first quarter of 2022 decreased by 33.4% year-over-year. The decrease in net profit was mainly due to an increase in advertising, promotion and in shipping costs of the Company's products.
Willi-Food ended the first quarter of 2022 with NIS 346.2 million (US$ 109.0 million) in cash and securities. Net cash from continuing activities for the first quarter of 2022 was NIS 2.3 million (US$ 0.7 million). Willi-Food's shareholders' equity at the end of March 2022 was NIS 564.9 million (US$ 177.9 million). ■