Delfi (SGX:P34) reported its 1Q24 business update with revenue and EBITDA at US$151mil and US$23mil, a decline of 5.3% and 8.5% y-o-y, respectively. 1Q24 EBITDA saw a larger decline as the EBITDA margin contracted from 16.0% in 1Q23 to 15.5% in 1Q24 on lower operating leverage.
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While Delfi reports in US$, its core business primarily reports in Indonesian rupiah, which significantly depreciated against the US$ in the past year. Year-to-date, the Indonesian rupiah has depreciated 4.5% against the US$ (as of 28 May 24).
Sales decline largely coming from own brands.
Delfi own brands’ sales in both Indonesia and Philippines declined, and were partially offset by growth in agency brands in Indonesia and regional markets.
Strategy focuses on margin over growth.
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Write-off unlikely to be a concern.
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Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
