Delfi Limited has reported net sales of US$117.6 million ($157.3 million) for the 3QFY2024 ended Sept 30, 5.5% lower y-o-y. The lower net sales were due to a 10.3% y-o-y decline in Indonesian net sales of US$70.5 million and slightly mitigated by a 2.9% y-o-y increase in regional markets sales of US$47.1 million.
According to Delfi in its Nov 12 release, the lower net sales stemmed from the impact of weaker regional currencies, particularly the Indonesian rupiah, as well as the impact from the termination of an agency brand in the 3QFY2023.
On a constant currency basis, 3QFY2024 net sales fell by 1.8% y-o-y while net sales in Indonesia fell by 4.6% y-o-y. Regional markets would have seen a 3% y-o-y increase.
During the quarter, Delfi’s gross profit margin (GPM) fell by 2 percentage points or 200 basis points y-o-y to 26.4%.
3QFY2024 ebitda fell by 31.7% y-o-y to US$8.8 million due to lower net sales and GPM.
In the 9MFY2024, net sales fell by 7.1% y-o-y to US$378.5 million. Sales would have been down by 2.8% y-o-y on a constant currency basis.
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Net sales in Indonesia for the 9MFY2024 fell by 10.6% y-o-y to US$240.3 million and down by 5.8% y-o-y on a constant currency basis. Net sales for regional markets dipped by 0.3% y-o-y to US$138.2 million, but would have seen a 2.9% y-o-y increase on a constant currency basis.
Delfi’s GPM for the 9MFY2024 fell by 0.9 percentage points y-o-y to 28.1% on the back of lower net sales and an increase in costs for raw materials. Ebitda for the 9MFY2024 fell by 21.2% y-o-y to US$41.6 million, but it would have been down by 16.2% y-o-y on a constant currency basis.
As at Sept 30, cash and cash equivalents stood at US$40.5 million, down from US$59.4 million as at Dec 31, 2023.
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Looking ahead, Delfi says it expects its businesses to continue seeing headwinds such as higher inflation, currency fluctuations, high commodity prices especially for cocoa, and ongoing disruptions in the global supply chain.
However, the group remains “positive” that it is able to proactively manage these risks.
“Supported by our group’s solid business foundation, including leading brands, a strong culture of innovation, and extensive distribution capabilities, combined with our healthy balance sheet and cash flow generation, we remain cautiously positive in our ability to navigate uncertainties that may arise in the future,” says Delfi.
Shares in Delfi closed flat at 86 cents on Nov 12.
