Delfi Limited (P34) Q2 2025 earnings summary

Executive summary

• Net sales for 1H 2025 were US$259.6 million, nearly flat year-over-year, amid record cocoa prices, currency volatility, and economic uncertainty.

• Profit attributable to shareholders was US$12.2 million, a 37.7% decrease year-over-year, impacted by higher promotional spending, lower margins, and a non-recurring expense from streamlining Philippine operations.

• Own Brands sales rose 3.1% (5.9% in constant currency), while Agency Brands declined 5.2%.

• Higher promotional spending in Indonesia and strong performance in the Philippines supported Own Brands growth.

• Gross profit margin declined by 130 basis points to 27.5% due to currency depreciation, increased promotional investments, and lower Agency Brands margins.

Financial highlights

• EBITDA was US$24.3 million, a 26.0% decrease year-over-year; EBITDA margin dropped to 9.4% from 12.6%.

• PATMI (excluding non-recurring item) was US$12.9 million, down 33.9% year-over-year; including non-recurring item, PATMI was US$12.2 million, down 37.7%.

• Net cash generated from operations increased to US$57.6 million, up US$20.0 million from 1H 2024, reflecting improved working capital management and lower inventories.

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

• Interim dividend declared at 1.00 US cent per share (1.28 Singapore cents), representing a 50% payout of 1H 2025 PATMI.

Outlook and guidance

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

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

• Management remains committed to long-term strategic priorities, brand investment, and operational resilience.