Delfi's FY2021 net profit grows 67.5% to US$29.3m

CHOCOLATE confectionery company Delfi posted a 67.5 per cent increase in net profit to US$29.3 million, from US$17.5 million the previous year, the mainboard-listed company said in its results released on Tuesday (Feb 22).

Excluding the US$3.3 million of non-recurring items, the group's net profit was up 48.9 per cent to US$26 million on the back of improved revenue and profit margins amid easing lockdown measures.

Revenue rose 5.2 per cent to US$405.1 million from US$385.1 million the previous financial year with its own brands and agency brands generating higher sales over the course of the year.

Other key drivers of profit growth were the higher gross profit margin from increased sales contributions from its premium products, the group's continued tight control of operating expenses and lower finance costs on its reduced debt level, said Delfi.

As at Dec 31, 2021, the group's cash and cash equivalents stood at US$86.2 million.

Earnings per share in FY2021 was 4.79 US cents, compared with 2.86 US cents in FY2020.

Net asset value per share came in at 39.2 US cents as at Dec 31, 2021 versus 36.9 US cents per share as at end-2020.

Delfi's board declared a final dividend of 1.08 US cents per share and a special dividend of 0.48 US cent per share. Together with the interim dividend of 1.27 US cents per share, it brings the total dividend for FY2021 to 2.83 US cents per share.

Delfi's chief executive John Chuang said in a press statement that the company will focus on executing growth initiatives for its core strategic products.

"With our strong balance sheet and clear strategy in place, we can, barring unforeseen circumstances, look forward to a better business performance in 2022," he added.