Delta Galil Industries, Ltd. (DELT/Tel Aviv Stock Exchange), the global manufacturer and marketer of branded and private label intimate, activewear, loungewear and denim apparel for men, women and children, reported yesterday financial results for the fourth quarter and full year ended December 31, 2022.
Whilst sales decreased by 6% in the last quarter (to £544.4million) to end December 2022 in light of challenging conditions, the 12 month period to December 2022 reported an overall rise in sales of 4% (7% in constant currency) to a record $2,031.5 million.
- The Company’s balance sheet remains strong with $194.9 million in cash and short-term deposits, and record equity of $710.3 at December 31, 2022;
- EBIT before non-core items increased 1% to a record $190.2 million, or 9.4% of sales;
- EBITDA excluding IFRS 16 impact increased 1% to $224.2 million.
- The Company declared a dividend of $8 million, or $0.312 per share, which will be distributed on March 14, 2023, with a record and “ex-dividend” date of February 22, 2023
Schiesser Originals
Isaac Dabah, CEO of Delta Galil, stated:
We achieved record annual sales in 2022, driven by sales growth across all of our geographies and within all of our segments, on a constant currency basis. Our performance throughout the year is especially noteworthy as our global teams continued to navigate challenging economic conditions, increased customer inventories and higher promotional activities. During the fourth quarter, we reduced our inventories and generated strong cash flows which further strengthened our balance sheet.
“While we expect challenging market conditions to continue throughout 2023, we believe we are well positioned to grow sales and improve profitability in the second half of the year. During 2023, we will continue to invest in our digital capabilities and further extend our leading private label offerings to iconic and digitally native global brands. We expect to launch new brands, such as Polo Ralph Lauren, and expand our existing brands globally. As part of our commitment to sustainability, we plan to launch an exciting new global collection at Organic Basics. Finally, we plan to further enhance our flexible global supply chain with a new factory in Vietnam and Egypt.
“We remain focused on pursuing our growth strategies which include acquisitions and strategic collaborations, streamlining our global cost base, strengthening our balance sheet, and returning capital to shareholders. I am proud of our team’s success during a challenging 2022, and I am excited about the long-term opportunities we are pursuing.”
