Israel's Delta Galil's sales surge 4% to $922.2 mn in H1 FY24

Israel’s Delta Galil, a leading global manufacturer and marketer of branded and private label apparel products, has reported sales of $922.2 million in the first half of fiscal 2024 (H1 FY24), marking a 4 per cent increase from $886 million in the prior-year period. The company also reported strong performance in the second quarter of fiscal 2024 (Q2 FY24), with sales rising by 6 per cent to $471.4 million, compared to $443.6 million in the second quarter of FY23.

The company achieved a record gross margin in H1 FY24, increasing by 240 basis points to 42.1 per cent, up from 39.7 per cent in the first half of FY23. In Q2 FY24, Delta Galil continued to deliver strong results with a record gross margin of 41.9 per cent, compared to 40.4 per cent in the same period last year, the company said in a media release.

Delta Galil’s EBIT for the first half of FY24 rose significantly to $63.8 million, compared to $42.7 million in the corresponding period last year. Excluding non-core items, EBIT was $67.2 million, or 7 per cent of sales, up from $50.7 million, or 6 per cent of sales, in H1 FY23.

In Q2 FY24, EBIT increased by 34 per cent to $37.8 million, or 8.0 per cent of sales, compared to $28.2 million, or 6.4 per cent of sales, in the prior-year period. Excluding non-core items, EBIT rose by 22 per cent to $37.8 million, or 8.0 per cent of sales, compared to $30.9 million, or 7.0 per cent of sales, in Q2 FY23.

Net income for the first half of FY24 surged by 83 per cent to $33.1 million, up from $18.1 million in the first half of FY23. When excluding non-core items, net of tax, net income increased by 46 per cent to $35.5 million, compared to $24.3 million in H1 FY23.

In Q2 FY24, net income increased by 40 per cent to $21.0 million, compared to $15.0 million in the same quarter last year. Excluding non-core items, net of tax, net income rose by 27 per cent to $21.0 million, compared to $16.6 million in Q2 FY23.

Diluted EPS in H1 FY24 was $1.13, up from $0.61 in the same period last year. Excluding non-core items, net of tax, diluted EPS reached $1.22, compared to $0.85 in H1 FY23. For Q2 FY24, diluted EPS was $0.74, compared to $0.53 in the second quarter of FY23. Excluding non-core items, net of tax, diluted EPS remained at $0.74, up from $0.59 in Q2 FY23.

In the first half of FY24, EBITDA excluding IFRS 16 impact was $84.2 million, an increase from $66.5 million in H1 FY23. The second quarter of FY24 saw EBITDA excluding IFRS 16 impact rise to $46.5 million, up from $38.0 million in the corresponding period last year.

“This was another strong quarter for Delta Galil, highlighted by record second-quarter DTC sales, growth in our private label sector, and significant expansion in profitability. Our strategic initiatives, aimed at enhancing operating efficiencies and realigning our manufacturing capabilities, have led to a record second-quarter gross margin of 41.9 per cent, marking the fourth consecutive quarterly record of gross margin,” said Isaac Dabah, CEO of Delta Galil.

Fibre2Fashion News Desk (DP)