- Delfi (SGX:P34)’s 1H24 revenue came in at US$261mil, down 8% y-o-y; earnings at US$20mil, down 22% y-o-y. Top-line growth was adversely impacted by a combination of weak IDR:US$, soft Own Brands sales, and Agency Brand’s termination in Indonesia.
- - Read this at SGinvestors.io -
Reduced promotions proved a drag on revenue.
- Own Brands struggled with a 12% y-o-y revenue decline as the company reduced trade promotions. The decline was more apparent in Indonesia (-12% y-o-y) than regional (-10% y-o-y).
Loss of an Agency Brand in Indonesia.
- Agency Brands declined by 2% y-o-y largely due to the loss of one in Indonesia. Excluding the loss, Agency Brands would have seen an 8.6% y-o-y growth.
Margin compression led to a disproportionate decline in earnings.
- - Read this at SGinvestors.io -
Interim dividend maintained at 2.06UScts despite significantly lower earnings.
- Delfi's dividend paying capacity continues to be supported by strong free cash flow generation of US$12mil (1H23: 10mil) despite capex spend doubling as the company optimises its working capital structure through effective inventory management. Balance sheet continues to remain healthy with a net cash position of US$23mil.
Analyst briefing: Key takeaways
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Zheng Feng CHEE DBS Group Research | Andy SIM CFA DBS Research | https://www.dbs.com/insightsdirect/ 2024-08-16
Read also DBS's most recent report:
2024-11-13 Delfi - The Bitterness That Precedes The Sweetness.
Price targets by other brokers at Delfi Target Prices.
Listing of research reports at Delfi Analyst Reports.
Relevant links:
Delfi Share Price History,
Delfi Announcements,
Delfi Dividends & Corporate Actions,
Delfi News Articles
