Delfi Limited (P34) H1 2025 earnings summary

Executive summary

• Net sales for 1H 2025 were US$259.6 million, down 0.5% year-over-year, with flat performance in constant currency amid record cocoa prices, currency volatility, and economic uncertainty.

• Recurring PATMI was US$12.9 million, excluding a one-off expense from streamlining Philippine operations; including non-recurring items, PATMI was US$12.2 million, down 37.7% year-over-year.

• Own Brands sales rose 3.1% (5.9% in constant currency), while Agency Brands declined 5.2%; growth was supported by higher promotional spending in Indonesia and strong performance in the Philippines.

• EBITDA was US$24.3 million, a 26.0% decrease year-over-year, reflecting currency weakness, higher promotional spending, and lower Agency Brands margin.

• Net cash from operations increased to US$57.6 million, up US$20.0 million year-over-year, reflecting improved working capital management and lower inventories.

Financial highlights

• Gross profit margin declined to 27.5%, down 130 basis points year-over-year.

• EBITDA margin dropped to 9.4% from 12.6% a year ago.

• Earnings per share (basic and diluted) were 2.00 US cents, down from 3.20 US cents.

• Interim dividend of 1.00 US cent per share declared, representing a 50% payout of 1H 2025 PATMI.

• Cash and cash equivalents stood at US$81.6 million as of 30 June 2025, up from US$43.8 million at end-2024.

Outlook and guidance

• The operating environment is expected to remain challenging through 2025 and into 2026 due to geopolitical tensions, macroeconomic headwinds, and persistent inflation.

• High cocoa prices and currency volatility are anticipated to continue impacting profitability; mitigation initiatives are underway.

• Focus remains on long-term strategic priorities, brand investment, and operational resilience.