Willi-Food(WILC) - 2021 Q4 - Annual Report

Financial Performance - Revenues for fiscal year 2021 increased to NIS 454.2 million (USD 146.0 million), a slight increase from NIS 454.1 million (USD 146.0 million) in fiscal year 2020[175] - Cost of sales for fiscal year 2021 increased by 2.3% to NIS 315.9 million (USD 101.6 million), representing 69.6% of revenues, up from 68.0% in fiscal year 2020[176] - Gross profit for fiscal year 2021 decreased by 4.9% to NIS 138.3 million (USD 44.5 million), or 30.4% of revenues, down from 32.0% in fiscal year 2020[177] - Operating profit for fiscal year 2021 decreased by 14.3% to NIS 49.4 million (USD 15.9 million), or 10.9% of revenues, compared to 12.7% in fiscal year 2020[181] - Net income for fiscal year 2021 was NIS 45.1 million (USD 14.5 million), or NIS 3.25 (USD 1.05) per share[185] Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2021, were NIS 195.7 million (USD 62.9 million), a decrease from NIS 201.8 million (USD 64.9 million) as of December 31, 2020[187] - Net cash from operating activities for fiscal year 2021 was approximately NIS 45.5 million (USD 10.6 million), down from NIS 64.2 million (USD 20.6 million) in fiscal year 2020[189] Economic Indicators - The annual rate of inflation in Israel for the year ended December 31, 2021, was 2.8%[195] - The GDP of Israel is expected to grow by 7% in 2021 and 5.5% in 2022, driven by increased private consumption and investment[203] - The unemployment rate decreased from 12.7% at the end of 2020 to 7% at the end of 2021[204] - Annual inflation rate rose to 2.5% in the second half of 2021, slightly moderating to 2.4% towards the end of the year[205] - The fiscal deficit declined to 4.6% in the second half of 2021 due to increased tax collection and reduced government spending[206] - The Bank of Israel maintained the interest rate at 0.1%, its lowest level ever, while also intervening in the foreign exchange market[207] - Inflation expectations for the coming year are in the mid-target range, with forecasts indicating a slight moderation[205] Market Conditions and Risks - The company is evaluating the financial stability of its customers through agreements for business data and inquiries[207] - The capital market saw rising stock prices across various sectors in the second half of 2021[206] - The company faces risks including payment defaults by principal clients and increasing competition in the market[20] - The ongoing COVID-19 pandemic continues to pose risks to the company's operations and market conditions[20] Trade and Receivables - The average time period for trade receivables was 90 days in 2021, compared to 91 days in 2020[194] - The total bank guarantee provided by the company as of December 31, 2021, was NIS 6.5 million[199]