Delta Galil posts 23 percent rise in Q1 sales, net income falls

Delta Galil Industries sales for the first quarter ended March 31, 2017 of 315.7 million dollars increased 23 percent compared to 256.7 million dollars for the same quarter last year. The company said, increase was primarily driven by the addition of Delta Premium Brands.

“We are pleased with the continued strength of our diversified business model. During the quarter, we made meaningful changes in our company that will improve our efficiency and production capacity. We continue to have a strong balance sheet to support our acquisition strategy, and we remain focused on growing our global business segment, while attaining strong EBITDA growth in 2017 and beyond,” said Isaac Dabah, CEO of Delta Galil in a media statement.

Q1 profit declines 29 percent

Operating profit excluding one-time items amounted to 12.9 million dollars for the quarter compared to 14.8 million dollars for the first quarter last year, representing a 13 percent decrease. Operating profit was 10.2 million dollars compared to 14.8 million dollars in the same period last year, representing a 31 percent decrease.

Net income excluding one-time items was 7.2 million dollars representing an 8 percent decrease from 7.9 million dollars in the first quarter last year. Otherwise, net income was 5.6 million dollars compared to 7.9 million dollars in the first quarter last year, representing a 29 percent decrease.

Diluted earnings per share excluding one-time items amounted to 0.28 dollar compared to 0.31 dollar in the same quarter of 2016. Diluted earnings per share were 0.22 dollars compared to 0.31 dollar in the same quarter last quarter last year.

EBITDA was 19.1 million dollars or 6 percent of sales in the first quarter compared to 20.2 million dollars or 7.9 percent of sales in the same quarter last year.

Delta Galil reaffirms outlook for 2017

Full-year 2017 sales are expected to range between 1,330 million dollars to 1,370 million dollars, representing an increase of 13 percent to 16 percent from 2016 actual sales of 1,179 million dollars.

Full-year 2017 EBIT is expected to range between 86 million dollars to 91 million dollars, representing an increase of 3 percent to 9 percent from 2016 actual EBIT of 83.2 million dollars. EBITDA is expected to range between 113 million dollars to 118 million dollars, representing an increase of 6 percent to 10 percent from 2016 actual EBITDA of 107 million dollars.

Net income for the year is expected to range between 50 million dollars to 52 million dollars, representing an increase of 6 percent to 10 percent from 2016 actual net income of 47.2 million dollars. Diluted EPS is expected to range between 1.95 dollars to 2.02 dollars, representing an increase of 5 percent to 9 percent from last year’s actual EPS of 1.85 dollars.

Delta Galil declared a dividend of 2.75 million dollars or 0.108 dollar per share, to be distributed on June 6, 2017 and also completed a successful issuance of a five-year USD series bond for 57 million dollars at a 3.85 percent coupon.

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