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Delta Galil delivers excellent third quarter sales results

18 Nov '11
6 min read

Growth in Gross Profit, Operating Profit and EBITDA
The company noted that higher gross profit and a stronger margin contributed to the growth in profitability in the 2011 periods. The company's gross profit in Q3 2011 amounted to $37.2 million, representing 20.1% of overall sales, compared to $33.4 million in Q3 2010, or 19.7% of overall sales, an increase of some 11%. In the first nine months of 2011, gross profit totaled $98.9 million, or 19.7% of sales, compared to $91.1 million in the first nine months of 2010, or 19.5% of sales – an increase of approximately 9%.

The operating profit in the third quarter of 2011 was $12.8 million, compared to $9.2 million in Q3 2010, an increase of approximately 40%. The operating profit in the first nine months of 2011 was $28.3 million, compared to $22.9 million in the first nine months of last year, an increase of 23%. The improvement in the operating profit in the 2011 third quarter and nine month periods resulted primarily from the growth in sales and gross profit, as described above.

EBITDA amounted to $15.9 million in Q3 2011, versus $11.8 million in the same period of last year, an increase of 35%. For the first nine months of 2011, EBITDA was $36.9 million, rising 14% compared to $32.3 million in the same period last year.

Increase in Sales – In Israel and Around the World

Delta Galil reported an increase in sales in all of its geographic areas of operation.

Sales in Europe grew in the third quarter and first nine months of this year at 40% and 32% respectively, compared to the same periods last year. The sales increase in Europe was driven mainly by growth in the company's socks and seamless shapewear and sportswear products.

Sales in Israel grew in the third quarter of this year by 18% in US dollars and 11% in NIS, compared to the corresponding quarter last year. Sales in the first nine months of this year rose by 17% in dollars and 10% in NIS, compared to the corresponding period last year.

The growth in sales in Israel in the third quarter and first nine months of this year resulted from the addition of five new standalone stores, and the remodeling of nine existing stores, which combine intimates with the new Delta Kids concept for children.

Sales in the UK grew in the third quarter and first nine months of 2011 by 14% and 8% respectively, compared to same periods last year, mainly due to the growth in lingerie sales to existing customers.

Additionally, sales in North America grew by 1% in both the third quarter and first nine months of this year, compared to the corresponding periods, as sales growth in the upper market sector offset the relative weakness in the US mass market.

Delta Galil Industries is a global manufacturer and marketer of branded and private label apparel products for men, women and children. Since its inception in 1975, Company has continually strived to create products that follow a body-before-fabric philosophy, placing equal emphasis on comfort, aesthetics and quality.

Delta Galil Industries Ltd

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