Delta Galil Q2 sales jump 36 percent
Delta Galil Industries reported sales of 340.5 million dollars for the second quarter of 2017, a 36 percent increase from 249.5 million dollars for the same quarter of 2016. Excluding Delta Galil Premium Brands (DGPB), sales increased by 9 percent. The company’s sales for the first six months of 2017 were 656.1 million dollars, up 30 percent from 506.2 million dollars in the same six-month period of 2016. Excluding DGPB, sales increased by 3 percent.
Commenting on the positive trading, Isaac Dabah, CEO of Delta Galil, stated in a company statement: “Delta Galil delivered an exceptionally strong performance in the second quarter, reflecting double-digit growth on the top- and bottom-line. During the quarter, we saw significant growth in Delta Galil USA, mainly kids and activewear categories and in the global upper market. Looking ahead, we are focused on growing our international and e-commerce businesses, while continuing to pursue strategic acquisition opportunities.”
Q2 operating profit increased 31 percent at Delta Galil
Operating profit for the second quarter was 17.7 million dollars, a 31percent increase from 13.5 million dollars in the second quarter last year. For the first six months, operating profit before one-time items was 30.6 million dollars, an 8 percent increase from 28.4 million dollars a year earlier. Operating profit in the first six months was 27.9 million dollars, down 2 percent driven by restructuring expenses included in the first quarter for the DGPB segment.
Net income attributable to shareholders was 8.9 million dollars in the second quarter, representing a 14 percent increase and 14.5 million dollars compared to 15.7 million dollars in the first half, representing an 8 percent decrease. Net income excluding one-time items attributable to shareholders for the first six months increased 3 percent to 16.1 million dollars.
Diluted earnings per share increased 15 percent and amounted to 0.35 dollar for the second quarter, compared to 0.30 for the same quarter last year. For the first six months, diluted earnings were 0.57 dollars, compared to 0.61 dollar for the same period of 2016, representing a 7 percent decrease. Diluted earnings per share excluding one-time items in the first six months increased by 4percent to 0.63 dollar.
EBITDA for the quarter was 25.5 million dollars or 7.5 percent and 44.6 million dollars in the first six months period. The company declared a dividend of 4.25 million dollars or 0.167 dollar per share.
Delta Galil confirm 2017 financial guidance
Delta Galil reaffirmed its 2017 financial guidance, excluding non-recurring items which is based on current market conditions and current exchange rate of 1.14 dollars per euro and 3.60 NIS per dollar. Full-year sales are expected to range between 1,330 million dollars-1,370 million dollars, representing an increase of 13percent-16 percent. EBIT is expected to range between 86 million dollars-91 million dollars, representing an increase of 3percent-9percent and EBITDA is expected to range between 113 million dollars-118 million dollars, representing an increase of 6percent-10percent.
Full-year net income is expected to range between 50 million dollars-52 million dollars, representing an increase of 6percent-10percent and diluted EPS is expected to range between 1.95 dollars-2.02 dollars, representing an increase of 5percent-9percent.
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