Delta Galil delivers sales and profit growth

Delta Galil Industries recorded a third quarter sales increase of 13 percent to 524.2 million dollars, driven by growth across all channels.

For the nine-month period, sales were were 1,446.4 million dollars, a 7 percent increase from the prior-year period.

Reiterating full year outlook, the company said in a release that it continue to expect sales in the range of 1,991 to 2,031 million dollars, EBIT in the range of 173 to 183 million dollars, EBITDA in the range of 266.3 to 276.3 million dollars, net income between 106.9 to 114.7 million dollars and diluted EPS to range between 3.82 dollars to 4.11 dollars.

Commenting on the third quarter trading, Isaac Dabah, CEO of Delta Galil, stated: “Delta Galil delivered record third quarter revenue, gross profit and gross margin, leading to a 14 percent increase in EBITDA, excluding IFRS 16.”

The company’s gross margin for the third quarter of 41.6 percent was up 70 basis points, EBIT increased 13 percent to 52.3 million dollars or 10 percent of sales, while net income increased by 9 percent to 32 million dollars, or 6.1 percent of sales and diluted earnings per share increased 6 percent to 1.16 dollars.

Gross margin increased by 180-basis points to 41.9 percent, EBIT rose to 119.4 million dollars or 8.3 percent of sales, net income increased 37 percent to 65.1 million dollars, while net income excluding non-core items, net of tax, increased 26 percent to 67.6 million dollars.

Diluted earnings per share increased to 2.29 dollars, and excluding non-core items, net of tax, diluted EPS were 2.39 dollars, while EBITDA, excluding IFRS 16, was 144.7 million dollars.

Delta Galil has declared a dividend of 8.1 million dollars or 31 cents per share, which will be distributed on December 10, 2024.