Delfi H1 earnings up 30% on stronger sales performance

CHOCOLATE confectionery company Delfi posted a net profit of US$25.2 million in the first half of its 2023 financial year ended Jun 30, up 30.1 per cent from the corresponding period last year. 

Delfi said in a bourse filing on Monday (Aug 7) that the strong performance was on the back of a 16.2 per cent year-on-year increase in revenue to US$286.2 million and a 60 basis point rise in gross profit margin to 30 per cent, fuelled by strong sales of premium products. 

The group also attributed its bottom-line performance to revenue growth in its own brands and complementary agency brands, with the former climbing 11.4 per cent year on year to US$168.1 million and the latter by 23.8 per cent to US$118.1 million. 

“Both segments were supported by significant efforts over the last three years to strengthen our distribution in both the modern trade and traditional trade channels, and the continuing focus on Generation Z and millennials,” it said.

Revenue growth also continues to be driven by the Indonesian segment, which pulled in US$190.1 million in sales, up 13.7 per cent from US$167.2 million in the year-ago period. The regional markets accounted for the remaining US$96.1 million, a 21.5 per cent year-on-year increase from the US$79.1 million recorded a year ago.  

Earnings per share stood at 4.12 US cents for the half year, surging 30.1 per cent from 3.17 US cents in H1 2022.

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The group’s board has declared an interim dividend of 2.06 US cents per share for the first half of this year, from 1.58 US cents last year. This represents a payout ratio of 50 per cent of its net profit in H1 2023, it said. 

Despite the current macroeconomic headwinds and high interest rate environment, Delfi said that, barring any “unexpected severe economic circumstances, it will be able to deliver a stronger performance for the rest of 2023.

“The group intends to continue enlarging its core strategic products and drive further growth from its premium brand categories, while putting in efforts to strengthen its distribution capabilities,” it said. 

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“At the same time, it will prudently manage its costs and maintain a healthy financial position to support business growth.” 

Shares of Delfi closed 2.4 per cent or S$0.03 higher at S$1.29 on Monday, prior to the announcement.