Delfi Q2 net profit up 19% on stronger product sales

CONFECTIONERY maker Delfi on Tuesday posted a 19.4 per cent jump in net profit to US$6.1 million for the second quarter, in line with higher sales.

The company has proposed an interim dividend of 1.73 Singapore cents per share, up from 1.47 cents in the previous year.

Revenue for the quarter ended June 30 rose 3 per cent to US$112.3 million as Delfi sold more products from its own brands - the segment forms over 65 per cent of the group's revenue - and sales in Indonesia, its main market, grew.

Delfi's portfolio of own brands includes the Van Houten brand of consumer chocolate and cocoa products, the exclusive and perpetual licence and associated rights to which Delfi acquired for key markets in Asia-Pacific from Hershey Singapore last April.

The higher revenue also reflects the group's strategic initiative to phase out unprofitable value products and focus on building higher-priced products in the general trade segment in Indonesia, Delfi said.

Second-quarter earnings per share (including exceptional items) were one US cent, up from 0.84 cent a year ago.

For the half-year, Delfi's net profit rose 20.7 per cent to US$15.4 million, as revenue gained 11.2 per cent to US$240.6 million. Earnings per share for the period (including exceptional items) were 2.51 US cents, up from 2.08 cents a year ago.

Looking ahead, Delfi said it is "cautiously optimistic" about this year's growth prospects and would continue to focus on growing its core premium brands and extending into the snacking category, among other efforts.

"In addition to growing our sales, we will also focus on driving cost efficiencies throughout our organisation and especially our supply chain," it added.

Delfi shares closed down 1.59 per cent or S$0.02 at S$1.24 on Tuesday before the results were announced.