Israel's Delta Galil's sales up 2% to $450.8 mn in Q1 FY24

The company achieved a record gross margin of 42.3 per cent in Q1 FY24, up from 39.1 per cent in the first quarter of FY23. The improvement in gross margin underscores the company's operational efficiency and effective cost management, Delta Galil said in a press release.

Earnings before interest and taxes (EBIT) saw a significant increase of 80 per cent, reaching $26.0 million, or 5.8 per cent of sales, compared to $14.4 million, or 3.3 per cent of sales, in the prior-year period. EBIT before non-core items rose by 48 per cent to $29.4 million, or 6.5 per cent of sales, compared to $19.8 million, or 4.5 per cent of sales, in the first quarter of FY23.

Net income for the first quarter surged by 300 per cent to $12 million, compared to $3 million in the first quarter of the previous fiscal. Excluding non-core items, net income increased by 86 per cent to $14.5 million, compared to $7.8 million in Q1 FY23.

Diluted earnings per share (EPS) for Q1 FY24 were $0.39, up from $0.08 in the same quarter last year. Excluding non-core items, diluted EPS increased to $0.49 from $0.26 in Q1 FY23.

EBITDA, excluding the impact of IFRS 16, was $37.7 million for the first quarter of FY24, compared to $28.5 million in the first quarter of FY23.

“Our performance during the first quarter is especially encouraging as we returned to year-over-year growth in sales with strong profitability and record first quarter operating cash flow. This is a testament to the hard work and dedication of our global teams, and the success of recent initiatives aimed at driving sales, improving operating efficiencies and realigning our manufacturing capabilities,” said Isaac Dabah, CEO of Delta Galil.

Fibre2Fashion News Desk (DP)