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Net profits up 30% at Delta Galil in Q1
11 May '12
5 min read
Increasing Gross Profit and Operating Profit
The gross profit of Delta Galil was $31.3 million in the first quarter of 2012, an increase of 8% over the gross profit of $29.0 million for the first quarter of 2011. Gross margin increased to 18.6% of sales for the 2012 first quarter, from 18.4% of sales in the 2011 period.
Operating income was $6.4 million for the 2012 first quarter. This represents an increase of 60% over the comparable operating income of $4.0 million (before $3.6 million of capital gains from asset and franchise agreement sales) in the 2011 first quarter.
In addition to the growth in sales, the trend in recurring operating income reflected lower general, administrative and other expenses, largely due to favorable currency exchange rates. The operating margin increased to 3.8% in the recent quarter from 2.5% a year ago, excluding the effect of the capital gains in the 2011 period.
Strengthening Financial Position
Delta Galil had $75.1 million in cash and cash equivalents on March 31, 2012, an increase from $46.8 million on March 31, 2011 and $65.8 million on December 31, 2011, primarily as a result of a positive cash flow from current operations. Cash flow from current operations in Q1 2012 amounted to $19.4 million, compared to a negative cash flow of $3.1 million in Q1 2011.
Net financial debt as of March 31, 2012 amounted to $40.8 million, down from $79.9 million on March 31, 2011 and $53.8 million on December 31, 2011. The reduction in debt also was a result of the positive cash flow from operations in the recent quarter.
Equity as of March 31, 2012 amounted to $220.0 million or 50.9% of the total balance sheet, as compared with approximately $201.4 million or 47.9% of total balance sheet on March 31, 2011.
The Company declared a dividend totaling $1.9 million, or $0.0807 per share, to be distributed on June 20, 2012. The determining and "ex-dividend" date for this distribution will be June 6, 2012.
Delta Galil Industries is a global manufacturer and marketer of branded and private label apparel products for men, women and children.
The gross profit of Delta Galil was $31.3 million in the first quarter of 2012, an increase of 8% over the gross profit of $29.0 million for the first quarter of 2011. Gross margin increased to 18.6% of sales for the 2012 first quarter, from 18.4% of sales in the 2011 period.
Operating income was $6.4 million for the 2012 first quarter. This represents an increase of 60% over the comparable operating income of $4.0 million (before $3.6 million of capital gains from asset and franchise agreement sales) in the 2011 first quarter.
In addition to the growth in sales, the trend in recurring operating income reflected lower general, administrative and other expenses, largely due to favorable currency exchange rates. The operating margin increased to 3.8% in the recent quarter from 2.5% a year ago, excluding the effect of the capital gains in the 2011 period.
Strengthening Financial Position
Delta Galil had $75.1 million in cash and cash equivalents on March 31, 2012, an increase from $46.8 million on March 31, 2011 and $65.8 million on December 31, 2011, primarily as a result of a positive cash flow from current operations. Cash flow from current operations in Q1 2012 amounted to $19.4 million, compared to a negative cash flow of $3.1 million in Q1 2011.
Net financial debt as of March 31, 2012 amounted to $40.8 million, down from $79.9 million on March 31, 2011 and $53.8 million on December 31, 2011. The reduction in debt also was a result of the positive cash flow from operations in the recent quarter.
Equity as of March 31, 2012 amounted to $220.0 million or 50.9% of the total balance sheet, as compared with approximately $201.4 million or 47.9% of total balance sheet on March 31, 2011.
The Company declared a dividend totaling $1.9 million, or $0.0807 per share, to be distributed on June 20, 2012. The determining and "ex-dividend" date for this distribution will be June 6, 2012.
Delta Galil Industries is a global manufacturer and marketer of branded and private label apparel products for men, women and children.
Delta Galil Industries Ltd
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