[SINGAPORE] Chocolate confectioner Delfi ran up a 27.2 per cent drop in earnings before interest, taxes, depreciation and amortisation (Ebitda) to US$17 million in the first quarter ended Mar 31, down from US$23.3 million the year before.
Net sales fell some 0.5 per cent to US$149.8 million in Q1 2025 from US$150.7 million in the same period a year earlier.
In a business update posted on the local bourse on Tuesday (May 20), Delfi attributed the performance to “weaker regional currencies”, particularly the rupiah, as well as to lower sales in their agency brands business after certain agency partners in Indonesia cut back on promotional spending for their products during the period.
But it maintained that lower sales in the agency brands segment were partially offset by their higher own brands sales for Indonesia, especially for its premium-products segment.
These stronger sales figures were driven by heftier promotional investment, which countered stronger competition during the quarter and sustained momentum from the second half of last year to boost Delfi’s market share in Indonesia, said the statement.
Growth in regional markets were led by robust own-brands performance in the Philippines, as well as improved agency brands sales in the archipelago and Malaysia.
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The group generated healthy net cash from operations of US$37.6 million in the first quarter, up from US$35 million in the corresponding year-ago period.
The net cash from operations went into funding capital expenditures of US$3.2 million and repaying US$6.1 million in debt, said the group.
Looking ahead, Delfi noted that high cocoa bean prices continue to be the most significant headwind for chocolate manufacturers globally. It said it expects such pressures on industry earnings to persist.
Despite these short-term challenges, Delfi remains focused on its long-term objectives. It said it is “well-positioned to manage the evolving environment” plagued by ongoing geopolitical tensions, trade uncertainties from tariff pressures and macroeconomic headwinds such as currency volatility and inflation, it said.
Shares of Delfi closed flat at S$0.71 on Tuesday before the announcement.
