Tay points out that Delfi saw a negative impact from translation to its reporting currency in US dollar of its key operating currencies in which it conducts sales — such as Indonesian rupiah, Philippines pesos and Malaysian ringgit.
CGS International (CGSI) analyst Tay Wee Kuang has maintained “add” on Delfi with a lower target price of 93 cents from $1.10 previously following the chocolate manufacturer’s 1HFY2024 ended June results release.
For its 1HFY2024, Delfi’s patmi declined 22.3% y-o-y to US$19.6 million ($25.7 million), below expectations at 42.1% of CGSI’s full year estimates. Revenue declined 7.8% y-o-y due to weaker operating currencies, reduced trade promotion and termination of an agency brand in Indonesia.
