Delfi Limited (P34) H2 2024 earnings summary

Executive summary

• FY2024 net sales reached US$502.7 million, down 6.6% year-over-year, reflecting a challenging environment and higher cocoa prices.

• PATMI for FY2024 was US$33.9 million, a 26.6% decrease year-over-year; 2H 2024 PATMI was US$14.4 million, down 31.7% year-over-year.

• Increased promotional spending in 2H 2024 led to market share gains in Indonesia, especially for key brands.

• Own Brands and Agency Brands net sales declined by 9.0% and 3.4% respectively; excluding a terminated agency brand, Agency Brands in Indonesia would have grown 5.5%.

Financial highlights

• Gross profit margin for FY2024 was 27.4%, down 1.1 percentage points year-over-year.

• EBITDA for FY2024 was US$60.3 million, a 19.0% decrease year-over-year; EBITDA margin dropped to 12.0% from 13.8%.

• Net cash generated from operations was US$52.6 million, up US$27.4 million from FY2023.

• Final dividend declared at 1.18 US cents/share, total FY2024 dividend payout of 3.24 US cents/share (59% payout ratio).

Outlook and guidance

• Global environment expected to remain challenging due to geopolitical tensions, trade wars, currency volatility, and inflation.

• High cocoa prices anticipated to continue pressuring earnings into 2025.

• Initiatives to mitigate input cost increases include price adjustments and operational efficiency improvements.

• Positive momentum in Own Brands in Indonesia and sales momentum from 2H 2024 expected to continue into early 2025, supported by strong brands and retail partnerships.