Net profits up 30% at Delta Galil in Q1

11 May '12

5 min read

Delta Galil Industries Ltd. the global manufacturer and marketer of branded and private label apparel products for men, women and children, reported its financial results for the first quarter of 2012.

Delta Galil reported sales of $168.1 million for the 2012 first quarter, compared to $157.4 million for the same period last year, an increase of 7%. The sales growth was primarily driven by strong performance of the Company's business in North America and Israel.

Net income for the 2012 first quarter was $3.9 million before capital gains (net of tax), increasing 30% from $3.0 million for the year-ago quarter. Diluted earnings per share before capital gains (net of tax) attributable to shareholders were $0.16 in Q1 2012, up from $0.12 in Q1 2011. Including capital gains, net income for the first quarter of 2011 (net of tax) was $5.8 million, or $0.24 per diluted share.

Quarterly Highlights
• Sales were $168.1 million in the 2012 first quarter, up 7% from the same period of 2011.
• Operating income before capital gains was $6.4 million, a 60% increase over the first quarter of 2011.
• Net income before capital gains (net of tax) was $3.9 million in the 2012 first quarter, compared to $3.0 million a year earlier, an increase of 30%.
• Net diluted EPS before capital gains attributable to shareholders was $0.16 in the 2012 first quarter, up from $0.12 in the 2011 first quarter.
• Net financial debt at March 31, 2012 was $40.8 million, decreasing from $79.9 million at March 31, 2011 and $53.8 million at December 31, 2011.
• Delta Galil 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.
• Isaac Dabah, CEO of Delta Galil, noted: “Delta Galil continues to successfully pursue strategies to grow our branded business, geographic presence and product breadth.”

Growth in Global Markets, Continued Expansion
Isaac Dabah, CEO of Delta Galil, stated: “We have started 2012 on a strong footing, delivering a solid performance in the first quarter. Our sales increase primarily reflected our growth in North America, where we have gained share in the higher end of the market, and in Israel, where our retail business including the Delta Kids chain continues to expand.

“Overall, we have continued to focus on innovation, inspired by our 'body-before-fabric' philosophy, with the goal of creating an expanding portfolio of products that are differentiated in the marketplace and have a strong consumer appeal.”

“Delta Galil continues to successfully pursue strategies to grow our branded business, geographic presence and product breadth. In this regard, we recently announced an agreement to acquire Schiesser AG, the leading underwear manufacturer and marketer in Germany, in a deal that is expected to close in July 2012.

“The Schiesser transaction will significantly increase our sales of branded products, add depth in Europe's strongest market, and increase the Men's component of our business – while being solidly accretive to earnings this year.”

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