Chee Zheng Feng and Andy Sim note that cocoa price pressures and weak consumer sentiment were more severe than expected, driving higher-than-anticipated promotional spending in 1HFY2025.
DBS Group Research is downgrading its call on Delfi to "fully valued" from "hold" previously, while decreasing its target price to 70 cents from 80 cents.
This comes on the back of the group announcing its 1HFY2025 ended June 30, which saw earnings decline by 37.7% y-o-y to US$12.2 million, while revenue dipped 0.5% y-o-y to US$259.6 million. This was due to softer performance in Indonesia, but largely offset by growth in regional markets. The topline also reflected the impact of a weaker IDR against the USD during the period. On a constant currency basis, overall revenue would have remained broadly unchanged.
