Delfi Q3 Ebitda more than doubles to US$13.7m

CHOCOLATE maker Delfi on Tuesday (Nov 15) posted earnings before interest, taxes, depreciation and amortisation (Ebitda) of US$13.7 million for the third quarter ended Sep 30, more than doubling from its Ebitda of US$6.4 million in the corresponding year-ago period.

Revenue for the quarter rose 28.7 per cent to US$112 million, up from US$87 million the year before, on the back of improvements in Indonesia and regional markets. Revenue from Indonesia grew 31.9 per cent to US$70 million for the quarter, while revenue from regional markets climbed 23.9 per cent to US$42 million.

Gross profit margin rose 270 basis points to 29.7 per cent in the third quarter, from 27 per cent a year ago. This was due to higher sales growth of the company’s premium format category, combined with “disciplined cost control, improved operational efficiencies, and tighter control of costs”, the group said in a bourse filing.

For the first nine months of FY2022, Ebitda was 47.1 per cent higher at US$48.3 million, while revenue increased 20.4 per cent to US$358.3 million. Gross profit margin rose by 110 basis points to 29.5 per cent.

With the release of these results, the company has “surpassed” the performance for the same pre-Covid periods in 2019 when revenue was US$105 million and US$332 million for the third quarter and nine months, respectively, Delfi said.

The group expects the “positive growth momentum” to continue for the rest of the year, barring any unforeseen circumstances. “To leverage improved consumer sentiment and capture the uptrend in consumption patterns, the group intends to continue its focus on its core strategic products as well as to leverage its distribution capabilities to drive higher sales,” it said.

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However, it noted that it is mindful of challenges in the macro environment, including heightened geopolitical tensions, currency volatility, supply chain bottlenecks and inflationary pressures in Indonesia and elsewhere, which are “expected to add to the rising cost of materials and prices later in 2022”. The group added that it will continue to closely manage its operating costs and collections.

Shares of Delfi closed flat at S$0.755 on Tuesday, before the quarterly update.