Delfi Limited (P34) Q3 2024 TU earnings summary

Executive summary

• Net sales for 3Q 2024 were US$117.6 million, down 5.5% year-over-year, with 9M 2024 net sales at US$378.5 million, a 7.1% decrease year-over-year.

• Declines were mainly due to weaker regional currencies, especially the Indonesian Rupiah, and the termination of an agency brand in 3Q 2023.

• On a constant currency basis, declines were less pronounced: 1.8% for 3Q and 2.8% for 9M.

Financial highlights

• 3Q 2024 EBITDA was US$8.8 million, down from US$12.9 million in 3Q 2023; 9M 2024 EBITDA was US$41.6 million, a 21.2% year-over-year decrease.

• Gross profit margin for 9M 2024 was 28.1%, down 90 basis points year-over-year due to lower net sales and higher raw material costs.

• Net cash from operations in 9M 2024 was US$46.9 million, up US$9.2 million year-over-year.

• Free cash flow for 9M 2024 was US$19.8 million, up from US$18.0 million in the prior year.

Outlook and guidance

• Management anticipates continued inflationary pressures, currency fluctuations, high commodity prices (notably cocoa), and supply chain disruptions into 2025.

• The group remains cautiously positive, citing strong brands, innovation, distribution, and a healthy balance sheet as key strengths.