Delta Galil reports 23 percent rise in Q1 sales

Delta Galil Industries, Ltd. has recorded sales of 315.7 million dollars for the first quarter of 2017, a 23 percent increase compared to 256.7 million dollars for the same quarter last year. The company said, this increase was primarily driven by the addition of Delta premium brands. Operating profit excluding one-time items amounted to 12.9 million dollars compared to 14.8 million dollars for the same quarter last year, representing a 13 percent decrease.

Commenting on the company’s first quarter, Isaac Dabah, CEO of Delta Galil, said in a media release: “Our first quarter results were in line with our plan. During the quarter, we started to run our Vietnamese factory with 750 new employees, signed a licensing deal with Calvin Klein Inc. We continue to have a strong balance sheet to support our acquisition strategy, and we remain focused on growing our global business segment, while attaining strong EBITDA growth in 2017 and beyond.”

Financial highlights of Delta Galil’s Q1

Operating profit was 10.2 million for the quarter compared to 14.8 million dollars in the same period last year, representing a 31percent decrease. Net income excluding one-time items was 7.2 million dollars, representing an 8 percent decrease from 7.9 million dollars in the first quarter last year. Net income was 5.6 million dollars compared to 7.9 million dollars in the first quarter last year, representing a 29 percent decrease.

Diluted earnings per share excluding one-time items amounted to 0.28 dollar compared to 0.31 dollar in the first quarter of 2016. Diluted earnings per share were 0.22 dollar compared to 0.31 dollar in the same quarter last quarter last year. The company added that these results reflect a stronger gross margin offset by higher marketing and other expenses including negative impact of foreign currency translation.

EBITDA was 19.1 million dollars or 6 percent of sales compared to 20.2 million dollars or 7.9 percent of sales in the same quarter last year. Delta Galil declared a dividend of 2.75 million dollars or 0.108 dollar per share, to be distributed on June 6, 2017.

Delta Galil reaffirms its 2017 financial guidance

The company said, full-year sales are expected to range between 1,330 million dollars to 1,370 million dollars, representing an increase of 13 percent-16 percent from 2016 actual sales of 1,179 million dollars. EBIT is expected to range between 86 million dollars to 91 million dollars, representing an increase of 3 percent-9 percent from 2016 actual EBIT of 83.2 million dollars. EBITDA is expected to range between 113 million dollars to 118 million dollars, representing an increase of 6 percent-10 percent from 2016 actual EBITDA of 107 million dollars.

Full-year 2017 net income is expected to range between 50 million dollars to 52 million dollars, representing an increase of 6 percent-10 percent from 2016 actual net income of 47.2 million dollars and diluted EPS is expected to range between 1.95 dollars to 2.02 dollars, representing an increase of 5 percent-9 percent from 2016 actual EPS of 1.85 dollars.

Picture:Facebook/Delta Galil Industries