CHOCOLATE confectionery company Delfi on Tuesday (Feb 27) posted a net profit of US$21.1 million for the six months ended Dec 31, 2023, marking a 14.1 per cent decrease from the US$24.5 million booked for the corresponding year-ago period.
This came despite a 9 per cent increase in revenue, to US$255.2 million from US$234.0 million in H2 FY2022.
Earnings per share stood at 3.44 US cents, a decrease from the 4.01 US cents recorded in the same period a year earlier.
For the full financial year, revenue increased by 12.7 per cent, to US$538.2 million from US$477.5 million in FY2022, while net profit rose to US$46.3 million, up 5.4 percent from US$43.9 million the year before.
The increase in revenue was attributed to the robust net sales of Delfi’s own brands and agency brands across the Indonesia and regional markets, with year-on-year sales growth of 9.9 per cent and 16.7 per cent, respectively, for FY2023.
For its own-brands portfolio, growth was driven by the group’s operations in Indonesia and the Philippines; for agency brands, growth continued to be driven by the snacking category, it noted.
With confidence in the business’ performance, the directors are proposing a final dividend of 1.74 US cents and a special dividend of 0.52 US cents per share.
Subject to the approval of shareholders at the group’s annual general meeting on Apr 23, both dividends are expected to be payable on May 15.
John Chuang, chief executive of Delfi, said: “While year-on-year top- and bottom-line growth slowed in FY2023 as compared to FY2022, it is important to note that although the group’s performance occurred in a more challenging environment, we were still able to drive our efforts in product innovation and the development of our premium and value categories.”
The group said it remains cautious due to ongoing uncertainties in the global economy and geopolitical landscapes. These factors “have caused a strain on specific supply chains and sent commodity prices, especially cocoa, soaring”, it added.
Shares of Delfi closed 1.9 per cent or S$0.02 down at S$1.03 on Tuesday, before the business update was released.
