SINGAPORE (Aug 7): Chocolate confectionery company Delfi posts earnings of US$14.9 million ($20.3 million) for the 1H ended June, falling 10.0% from US$16.6 million a year ago.
Earnings in 2Q climbed 14.4% to US$9.3 million, from US$8.1 million a year ago. However, this was including an exceptional gain of US$4.4 million arising from the disposal of the group’s 50% stake in its associate PT Ceres Meiji Indotama.
Revenue fell 7.9% to US$193.3 million for the first half of 2017, from US$209.9 million a year ago.
The decline in sales was largely due to the weak retail environment in Indonesia, as well as Delfi’s ongoing product portfolio rationalisation exercise to eliminate lower performing inventory to focus on its core brands and products.
In a filing to SGX on Monday, Delfi says the product portfolio rationalisation exercise will impact on sales and profitability in the short term, but will provide a stronger base to grow from and drive forward higher margin products.
As at end June, cash and cash equivalents stood at US$52.4 million.
Delfi has declared an interim dividend of 1.22 US cents (1.66 cents) per share, to be paid on Sept 8, 2017.
“Despite the current uncertainties, our focus is to work closely with our trade customers and partners to grow our business by ensuring that our brands are always available, properly displayed and at the right price points,” says Delfi CEO John Chuang.
“To sustain profitable growth over the longer term, Delfi will continue to ensure that its entire organisation is well-aligned with its growth plans and will make ongoing investments in product innovation, improvements in operational efficiency as well as building its capacity and capabilities,” he adds.
Shares of Delfi last closed at $2.12.
