SINGAPORE (Feb 23): Delfi, the distributor of chocolate confectionery products, reported 4Q16 earnings surged more than fourfold to US$3.7 million ($5.2 million) from a year ago, lifted by a record profit margins of 38.4%.
For the full FY16, Delfi swung back to profitability with earnings of US$26.2 million on a five percentage point increase in margins despite a 0.6% fall in revenue to US$402.1 million.
4Q16 revenue rose 5.6% to US$105.6 million on the back of a 4.5% rise in revenue from sales in Indonesia to US$76.4 million while sales from regional markets rose 9.5% to US$29.2 million.
Delfi said the earnings growth 4Q and FY16 were mainly driven by higher sales of premium products under its own brands, pricing and portion adjustments implemented in 3Q15 and 2Q16, as well as ongoing cost-containment initiatives.
The group has proposed a final dividend payout of 1.35 cents per share. Together with the interim dividend of 1.83 cents per share, this brings total dividend for the year to 3.18 cents per share or a dividend payout ratio of 50% for the fiscal year.
Shares of Delfi closed 12 cents higher at $2.32 before the results announcement.
