Singapore's Delfi H1 revenue rises on Own Brands growth in key markets
Singapore's Delfi H1 revenue rises on Own Brands growth in key markets
Overview
Singapore chocolate confectioner reported H1 net sales up 2.7% yr/yr to $266.6 mln
PATMI for H1 rose 5.4% yr/yr to $12.9 mln
Gross profit margin fell to 25.7% due to higher raw material costs and currency impact
Outlook
Company expects volatile cocoa market due to supply concerns and El Niño impact
Delfi anticipates Middle East conflict to raise energy and currency costs in key markets
Company says it is proactively managing purchases of materials to mitigate cost risks
Result Drivers
OWN BRANDS GROWTH - Co said steady growth in Own Brands sales in Indonesia, Philippines and Malaysia supported net sales
RAW MATERIAL COSTS - Co said gross profit margin fell mainly due to higher raw material costs
CURRENCY DEPRECIATION - Co said margin was also impacted by depreciation of Indonesian Rupiah and Philippine Peso
Company press release: ID:nSN6106Z7
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| $266.60 mln |
|
H1 Gross Margin |
| 25.70% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for Delfi Ltd is S$1.00, about 15.6% above its August 11 closing price of S$0.87
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)