Delfi announced their FY21 unaudited financial results on 22nd February 2022. Net profit increased 67.5% to US$29.3 million.
The company generated a free cash flow of US$74.5 million in FY2021 which is higher Y-o-Y by US$35.8 million on the higher profitability, tight management of costs, collections and capital spending.
A final dividend of 1.08 US cents per share and special dividend of 0.48 US cents per share was proposed. Together with interim dividend of 1.27 US cents paid, the total dividends for FY2021 will be 2.83 US cents.
As an existing investor of Delfi, I am definitely happy with the news of the dividend payout. Delfi currently makes up 2.09% of my stock portfolio.
I have been trying to accumulate more of Delfi over the past few months when the share price dropped. With the announcement of such excellent FY21 financial results, the share price has jumped 4.67% to close at S$0.78 on 23rd Feb 2022.
Let us take a look at its financial results in more details.
Delfi 2H2021 Financial Results
| 2H2021 (US$’mil) |
2H2020 (US$’mil) |
Change | |
| Revenue | 194.6 | 188.0 | 3.5% |
| – Indonesia | 126.2 | 121.9 | 3.5% |
| – Regional markets | 68.4 | 66.1 | 3.6% |
| Gross Profit | 58.7 | 50.6 | 16.1% |
| Gross Profit Margin | 30.2% | 26.9% | 3.3% pt |
| EBITDA | 31.6 | 18.3 | 72.7% |
| EBITDA Margin | 16.3% | 9.7% | 6.6% pt |
| PATMI (excluding non-recurring items) | 14.0 | 6.7 | 111% |
| PATMI (including non-recurring items) | 17.0 | 6.7 | 155% |
Delfi FY21 Financial Results (Full Year)
For FY21, EBITDA (earnings before interest, taxes, depreciation, and amortization) was US$58.1 million which is an increase of 32.4% Y-o-Y.
Delfi also achieved full year PATMI (including non-recurring items) of US$29.3 million (Y-o-Y growth of 67.5%).
| FY2021 (US$’mil) |
FY2020 (US$’mil) |
Change | |
| Revenue | 405.1 | 385.1 | 5.2% |
| – Indonesia | 270.2 | 255.2 | 5.9% |
| – Regional markets | 255.2 | 129.9 | 3.9% |
| Gross Profit | 119.7 | 110.1 | 8.7% |
| Gross Profit Margin | 29.5% | 28.6% | 0.9% pt |
| EBITDA | 58.1 | 43.9 | 32.4% |
| EBITDA Margin | 14.3% | 11.4% | 6.6% pt |
| PATMI (excluding non-recurring items) | 26.0 | 17.5 | 48.9% |
| PATMI (including non-recurring items) | 29.3 | 17.5 | 67.5% |
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$0.78, the current dividend yield works out to be 4.10%.
If we include the special dividend, the current dividend yield works out to be 4.87%.
Summary of Delfi FY21 Financial Results
In summary, Delfi’s improved 2021 business performance can be attributed to:
- Higher revenue driven by their own brands and agency brands portfolio
- Higher gross profit margins achieved
- Tight control of operating expenses and
- Lower finance costs
I may refrain from buying more of Delfi since the share price has gone up. Once the share price has come down after the dividend payout, I may consider further accumulation as part of my continued strategy of building a dividend portfolio.
Are you vested?
definitely a good stock,high cash flow, little debt , good management…