Delta Galil reported sales of 371.6 million dollars for the fourth quarter of 2017, compared with 376.3 million dollars for the same quarter last year, representing a 1 percent decrease. Sales for the 2017 full year increased 16 percent to a 1,368.1 million dollars against the previous year. Operating profit was 32.5 million dollars, a 1 percent increase, while operating profit for the year was 84.6 million dollars compared to 85.3 million dollars last year, a decrease of 1 percent.
Commenting on the company’s results, Isaac Dabah, CEO of Delta Galil, stated in a press release: ““Our recently acquired Delta Galil Premium Brands (DGPB) segment, continued to be a strong contributor to sales throughout 2017, and remains an exciting growth opportunity looking ahead. We have several strategic initiatives and category expansions in place for 2018 that are intended to maximize growth opportunities within that segment.”
Q4 net income rises 8 percent
Net income increased 8 percent to 20.1 million dollars in the fourth quarter and excluding one-time items net of tax increased 7 percent for the full year and amounted to 50.7 million dollars. Net income for the 2017 full year was 49 million dollars, compared to 51.9 million dollars last year, representing a 6 percent decrease.
Diluted earnings per share increased 7 percent in the fourth quarter to 0.79 dollar and excluding one-time items increased 7 percent and amounted to 1.98 dollars for the full year. For the full year, diluted earnings per share amounted to 1.91 dollars, compared to 2.03 dollars in 2016, a 6 percent decrease. EBITDA was 40 million dollars or 10.8 percent of sales in the fourth quarter, while for the full year, EBITDA was 115.9 million dollars or 8.5 percent of sales.
Delta Galil declared a dividend of 3.5 million dollars or 0.139 dollar per share, to be distributed on March 13, 2018.
Delta Galil expects FY18 sales to rise 2-5 percent
Delta Galil has provided its initial 2018 financial guidance, excluding one-time items, which is based on current market conditions. Full-year sales are expected to range between 1,400 million-1,440 million dollars, representing an increase of 2 percent-5 percent from 2017 actual sales of 1,368.1 million dollars.
Full-year 2018 EBIT is expected to range between 91 million dollars-96 million dollars, representing an increase of 4 percent-10 percent and EBITDA is expected to range between 119 million dollars-125 million dollars, representing an increase of 3 percent-8 percent. The company expects net income to range between 54 million dollars-59 million dollars, representing an increase of 7 percent-16 percent from 2017 actual net income of 50.7 million dollars and diluted EPS is expected to range between 2.11 dollars-2.30 dollars, representing an increase of 7 percent-16 percent.