Delfi Limited has reported earnings of US$19.4 million ($26.6 million) for the 1HFY2022 ended June, 57.6% higher y-o-y.
During the period, revenue increased by 17.0% y-o-y to US$246.3 million, surpassing the company’s pre-Covid-19 levels. The improved topline was driven by double-digit revenue growth in Indonesia and regional markets as restrictions eased and consumer sentiment improved.
Revenue for both Delfi’s own brands and agency brands grew.
“Both segments were supported by significant efforts put in place over the last two years to strengthen distribution in both the modern and general trades, and to develop products that appeal to Gen-Zs and millennials,” says Delfi via its results statement on Aug 10.
Gross profit increased by 18.8% y-o-y to US$72.5 million as gross profit margin (GPM) increased by 0.4 percentage points y-o-y to 29.4%.
1HFY2022 EBITDA increased by 30.5% y-o-y to US$34.6 million. EBITDA margin grew by 1.4 percentage points y-o-y to 14.0% in the 1HFY2022.
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As at June 30, cash and cash equivalents stood at US$94.6 million, which is sufficient to support the company’s projected near-term business and investment needs.
On the back of its performance, Delfi has declared an interim cash dividend of 1.58 US cents for the 1HFY2022.
The dividend, which is the highest paid since 2014, represents a pay-out ratio of 50% of the PATMI achieved in the 1HFY2022.
The dividend will be paid out on Sept 7.
“Since last year, our markets have gradually come out of tight Covid-19 restrictions, and this has resulted in higher social and economic activities and improved consumer sentiment across the region. We continue to capitalise on this uptrend in consumption patterns that enabled us to deliver two consecutive quarters of strong revenue growth during 1HFY2022 surpassing the pre-Covid-19 levels achieved in 1HFY2019,” says John Chuang, Delfi’s CEO.
Looking ahead, the company expects the positive growth momentum to continue for the rest of the year. Barring any unforeseen circumstances, it expects its performance for the year ending Dec 31 to be better than the performance in 2021.
It adds that it intends to continue its focus on its core strategic products as well as to leverage its distribution capabilities to drive higher sales.
At the same time, it is mindful of challenges in the macro environment including heightened geopolitical tensions, currency volatility, supply chain bottlenecks and inflationary pressures in Indonesia which are expected to add to the rising cost of materials and overall prices later in 2022. To cushion these challenges, Delfi says it will continue to manage its operating costs, collections and capital spending.
Shares in Delfi closed at 74 cents on Aug 10.
