Delfi Limited (P34) Q2 2024 earnings summary

Executive summary

• 1H 2024 revenue was US$260.8 million, down 7.8% year-over-year, mainly due to weaker regional currencies and lower Own Brands sales.

• PATMI was US$19.6 million, down 22.3% year-over-year, with EBITDA at US$32.8 million, down 17.8%.

• Gross profit margin declined by 0.4 percentage points to 28.8%, impacted by currency weakness and higher raw material costs.

• Net cash from operations increased to US$37.6 million, up US$14.1 million year-over-year, reflecting tight working capital management.

• Focus remains on investing in growth and core brands, strengthening retail partnerships, and launching new products.

Financial highlights

• Revenue: US$260.8 million (down 7.8% year-over-year); in constant currency, down 3.3%.

• EBITDA: US$32.8 million (down 17.8% year-over-year); EBITDA margin 12.6%.

• PATMI: US$19.6 million (down 22.3% year-over-year); EPS 3.20 US cents.

• Gross profit margin: 28.8% (down 0.4 percentage points year-over-year).

• Cash and bank deposits: US$54.8 million as of 30 June 2024.

Outlook and guidance

• Global uncertainties, geopolitical tensions, high interest rates, supply chain pressures, and elevated cocoa prices may moderate profit growth.

• Management will focus on cost containment, investing in core brands, launching new products, and managing trade promotion spend.

• Higher working capital requirements are anticipated to support future growth, with vigilant management of receivables, inventories, and payables.

• Strong balance sheet, healthy cash, and prudent cost management position the group to tackle future uncertainties.