Israel's Delta Galil posts record sales of $512 mn, up 2% in Q3 FY22

E-commerce sales on the company’s own websites were $49.0 million in the third quarter, representing a 7 per cent decrease, compared to $52.4 million in Q3 FY21. E-commerce sales in the first nine months of 2022 were $157.4 million, representing a 16 per cent year-over-year (YoY) decrease from $186.4 million. The decline followed a shift in consumer behaviour back to physical retail stores after COVID-19 related lockdowns, the company said in a media release.

EBIT in Q3 FY22 increased 4 per cent to $55.1 million, from $53.0 million last year. In the first nine months of 2022, EBIT increased by 4 per cent to $127.8 million from $123.4 million in the same period in 2021, while EBIT before non-core items increased 8 per cent to $133.3 million, compared to $123.4 million in the corresponding period of last year.

In Q3 FY22, the company’s net income increased 11 per cent to $36.1 million, from $32.5 million in the third quarter last year. Net income in the first nine months of 2022 increased 4 per cent to $77.7 million, from $74.8 million for the corresponding period in 2021.

Delta Galil’s Q3 FY22 diluted earnings per share rose 14 per cent to $1.32, from $1.16 in the third quarter of 2021. Diluted earnings per share in the first three quarters of 2022 rose to $2.79, compared to $2.70 in the same period of 2021.

EBITDA excluding IFRS 16 impact increased 5 per cent to $63.9 million in Q3 FY22, from $60.7 million in the third quarter of 2021. For the first nine months of 2022, EBITDA excluding IFRS 16 impact increased 7 per cent to $158.5 million, from $148.1 million in the comparable period last year.

Operating cash flow excluding IFRS 16 impact and non-core items was a use of $36.1 million for Q3 FY22, compared to positive operating cash flow of $4.7 million in Q3 FY21. Operating cash flow excluding IFRS 16 impact and non-core items in the first nine months of 2022 was a use of $104.4 million, compared to $63 million in the first nine months of 2021.

Delta Galil has revised its revenue and earnings outlook to reflect increased negative impacts from foreign currency fluctuations as well as heightened inventory levels and increased promotional activity in the marketplace. As per the 2022 updated guidance, the company expects fiscal 2022 sales to be around $2,023–$2,030 million, up 3.7–4.1 per cent compared to fiscal 2021. Delta Galil’s fiscal 2022 EBITDA is expected to be around $281–$284 million, while the net income is expected to be around $119–$121 million.

Fibre2Fashion News Desk (DP)