Yahoo Finance

Mr. Dabah concluded, "I am excited with the direction Delta is headed, as we benefit from a diversified portfolio and strategies focused on driving sustainable profitable growth. Our continuous commitment to product innovation continues to fuel growth for both our Private Label customers and our Brands, creating a powerful flywheel of market and consumer insights that we believe will continue to support profitable growth in both pillars."

Sales

The Company reported second quarter 2024 sales of $471.4 million, a 6% increase from $443.6 million in the second quarter of 2023. First-half sales were $922.2 million, a 4% increase from $886.0 million in the prior-year period.

Gross Margin

The Company reported record second quarter gross margin of 41.9% as compared to 40.4% for the same period last year. The 150-basis point expansion was due primarily to a better segment and channel mix and improved profitability of our factories due to higher volume. Gross margin in the first half of 2024 increased by 240-basis points to a first half record of 42.1%, compared to 39.7% in the first half of 2023.

EBIT

EBIT in the second quarter of 2024 increased by 34% to $37.8 million, or 8.0% of sales compared to $28.2 million, or 6.4% of sales in the prior-year period. EBIT before non-core items increased by 22% to $37.8 million, or 8.0% of sales, compared to $30.9 million, or 7.0% of sales, in the second quarter of 2023.

EBIT in the first half of 2024 was $63.8 million, compared to $42.7 million in the same period last year. In the first half of 2024, EBIT before non-core items was $67.2 million, or 7% of sales, compared to $50.7 million, or 6% of sales, in the first half of 2023.

The increase in EBIT was due to higher sales and gross margin and leverage of effective operational structure partially offset by higher SG&A expenses derived directly from revenues growth as well as from investing in new licenses and brand's launch activities.

Non-Core Items

In the second quarter of 2024, no non-core items were recorded, compared to $6.0 million of expenses related to realignment plans, $4.0 million benefit from the change in the fair value of earn-out liability, and $0.7 million of deal costs in the second quarter of 2023. For the first half of 2024, expenses associated with the Company’s previously disclosed realignment plan for Bare Necessities were $3.4 million, compared to $11.4 million of expenses related to realignment plans, $4.0 benefit from the change in the fair value of earn-out liability, and $0.7 million of deal costs in the first half of 2023.

Net Income

Net income in the second quarter of 2024 increased 40% to $21.0 million, compared to $15.0 million in the second quarter last year. Net income, excluding non-core items, net of tax, increased by 27% to $21.0 million, compared to $16.6 million in the second quarter of 2023.

Net income in the first half of 2024 increased 83% to $33.1 million, compared to $18.1 million in the first half last year. Net income excluding non-core items, net of tax, increased 46% to $35.5 million, compared to $24.3 million in the first half of 2023.

Diluted Earnings Per Share

Diluted earnings per share in the second quarter of 2024 were $0.74, compared to $0.53 in the second quarter of 2023. Diluted earnings per share, excluding non-core items, net of tax, were $0.74 compared to $0.59 in the second quarter of 2023.

Diluted earnings per share in the first half of 2024 were $1.13, compared to $0.61 in the same period last year. Diluted earnings per share, excluding non-core items, net of tax, were $1.22 compared to $0.85 in 2023.

EBITDA, Cash Flow, Net Debt, Equity, and Dividend

EBITDA excluding IFRS 16 impact in the second quarter of 2024 was $46.5 million, compared to $38.0 million in the second quarter of 2023. In the first half of 2024, EBITDA excluding IFRS 16 impact was $84.2 million, compared to $66.5 million in the first half of 2023.

Cash flow generated from operating activities, excluding IFRS 16, was $28.1 million, compared to $58.4 million in the second quarter of 2023. Cash flow generated from operating activities, excluding IFRS 16, was $51.5 million in the first half of 2024, compared to $69.3 million in the first half of 2023. The year-over-year reduction in operating cash flow was primarily attributable to changes in working capital, mainly inventory, to support the expected growth in sales in the second half of 2024.

Net financial debt, excluding IFRS 16, at June 30, 2024, was $153.3 million, compared to $189.5 million at June 30, 2023. The year-over-year reduction in net debt is primarily due to the strong operating cash flow, partially offset by growth-oriented capital expenditures and dividend payments.

Equity on June 30, 2024, was a record of $771.8 million, up 8.2% from $713.6 million on June 30, 2023.

Delta Galil declared a dividend of $8.0 million, or $0.31 per share, which will be distributed on September 4, 2024, with a record and "ex-dividend" date of August 27, 2024.

2024 Financial Outlook

The Company reaffirms its 2024 outlook based on the Company’s solid first half performance and strong backlog.

The Company’s outlook excludes non-core items and includes IFRS 16

These forward-looking statements are based largely on the expectations of the Company and are subject to uncertainties including macroeconomic trends. Actual results may differ materially from those included in the guidance as result of risks and uncertainties which cannot be fully predicted. There is no certainty that the aforementioned conditions will occur, and actual results may be significantly different from those forecasted or implied above.

Constant Currency - Excluding the Impact of Foreign Currency
This release refers to "reported" amounts in accordance with IFRS accounting principles ("GAAP"), which include translation and transactional impacts from foreign currency exchange rates. The release also refers to "constant dollar" amounts, which exclude the impact of translating foreign currencies into U.S. dollars, and are considered a non-GAAP financial measure. These constant currency performance measures should be viewed in addition to, and not in lieu of, or superior to, Delta Galil’s operating performance measures calculated in accordance with GAAP.

About Delta Galil Industries
Delta Galil Industries is a global manufacturer and marketer of branded and private label apparel products for men, women and children. Since its inception in 1975, the Company has continually endeavored to create products that follow a body-before-fabric philosophy, placing equal emphasis on comfort, aesthetics and quality. Delta Galil develops innovative seamless apparel including bras, shapewear and socks; intimate apparel for women; underwear for men including under its owned brands Schiesser, Eminence, Organic Basics, and Athena; babywear, activewear, sleepwear, and loungewear including under its owned P.J. Salvage and Delta brands. Delta Galil also designs, develops markets and sells branded denim and apparel under the brand 7 For All Mankind®, and ladies’ and kids’ apparel under the brand Splendid®. In addition, it sells its products under brand names licensed to the company, including adidas, Wolford, Wilson, Columbia, Tommy Hilfiger and others. For more information, visit www.deltagalil.com.

Safe Harbor Statement

Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may" "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, tax rates in the various countries the company operates in, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

Source: Delta Galil Industries, Ltd.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240820242243/en/

Contacts

Nissim Douek
+972-54-5201178
Nissim@unik.co.il

U.S. Media:
Danielle Poggi
Berns Communications Group
+1-212-994-4660
dpoggi@bcg-pr.com