Delfi Limited Brands of Chocolates

Delfi 1H2022 Financial Results

Delfi Limited

Delfi announced their 1H2022 Financial Results on 10th August 2022. The company has declared an Interim Dividend of 1.58 US cents (2.18 Singapore cents) per share. This was Delfi’s highest Interim Dividend declared since 2014, the year after divesting the cocoa business.

If you are not familiar with Delfi, the company markets and distributes its own brand of chocolate confectionery products in its core markets of Indonesia, Philippines, Singapore and Malaysia.

Currently, Delfi makes up 4.16% of my stock porfolio. This is after I increased my stake in Delfi in July 2022.

How has Delfi fared among current global inflationary pressures? Let us look at its 1H2022 Financial Results below.

Delfi 1H2022 Financial Results

Revenue increased 17.0% Y-o-Y to US$246.3 million. This signals a recovery and return to pre- COVID-19 levels.

In line with higher revenue, gross profit rose 18.8% Y-o-Y to US$72.5 million in 1H2022, with gross profit margin coming in 0.4 percentage point higher at 29.4%.

1H2022
(US$’mil)
1H2021
(US$’mil)
Change
Revenue 246.3 210.5 17.0%
– Indonesia 167.2 144.0 16.1%
– Regional markets 79.1  66.5 18.9%
Gross Profit 72.5 61.0 18.8%
Gross Profit Margin 29.4% 29.0% 0.4% pt
EBITDA 34.6 26.5 30.5%
EBITDA Margin 14.0% 12.6% 1.4% pt
PATMI 19.4 12.3 57.6%

A picture shows a thousand words. As shown in the chart below, revenue and gross profit margins are consistently and slowly improving since 2019.

Current Dividend Yield

Based on the full year dividend payout (exclude special dividend) of US$2.83 cents (~ 3.2 Singapore cents) and current share price of S$0.80, the current dividend yield works out to be 4.00%.

Summary of Delfi 1H2022 Financial Results

As you can see, the positive financial results has driven its share price from S$0.74 to S$0.80.

In summary,

  • An Interim Dividend of 1.58 US cents (2.18 Singapore cents) per share was declared which was the highest since 2014.
  • Revenue increased 17.0% Y-o-Y to US$246.3 million, signalling a recovery to pre-COVID-19 levels.
  • Because the share price has ran up, the current dividend yield works out to be 4.00% based on S$0.80 per share.

The improving consumer sentiment from the reversal of government lockdowns, school re-openings, and widespread distribution of vaccinations across Delfi’s markets, has helped drive sales growth throughout the first six months of the year as compared to 2021.

Delfi expect a more challenging global macro-economic environment with supply chains further strained, additional geo-political uncertainty, potential for inflationary pressures in Indonesia later in the year and higher prices for raw materials and ingredients.

To cushion these challenges, Delfi will need to manage its operating costs, collections and capital spending.

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