Delfi H2 earnings up 44% to US$24.5 million; proposes special dividend
Uma Devi
CHOCOLATE company Delfi on Monday (Feb 27) posted earnings of US$24.5 million for the second half of 2022, up 44.4 per cent from earnings of US$17 million for the same period in 2021.
Revenue for H2 was up 21.6 per cent to US$236.7 million from US$194.6 million. Revenue contributions from the Indonesia market were up 19.1 per cent to US$150.3 million, while contributions from its regional markets were up 26.3 per cent to US$86.4 million.
Among regional markets, Delfi’s revenue from Malaysia and the Philippines were up year on year, while contributions from Singapore and other countries were down.
For H2, the company’s cost of sales rose 18.3 per cent to US$160.9 million from US$135.9 million.
The board of directors has proposed a final dividend of US$0.02 per share and a special dividend of US$0.0072 per share. If approved by the company’s shareholders at the annual general meeting on Apr 25, the final and special dividends will be paid out on May 15.
For FY2022, the company’s earnings were up 49.9 per cent to US$43.9 million. Revenue rose 19.2 per cent to US$483 million.
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Delfi attributed the stronger FY2022 performance to high growth in its premium format segment, strong performance of both its own brands and agency brands, higher gross profit margins and continued tight control of operating costs.
Looking ahead, the company said it is unclear how the continued global economic uncertainties from political tensions, rising interest rates, currency volatility and lingering inflationary pressures will weigh on economic growth. These macroeconomic uncertainties could also weigh on consumer confidence going forward, the company said.
Delfi said it can mitigate many of these potential risks by focusing on growing its core strategic products and driving further growth in its premium format category, bringing new premium products to market, and tightly managing its operating costs, collections and working capital.
Although the group expects to have higher working capital requirements to support future business growth, it said it will remain vigilant and tightly manage appropriate levels of receivables, inventories, and payables.
Shares of Delfi rose 1.1 per cent or S$0.01 to end at S$0.93 on Monday.
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