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Delta Galil reports record 2016 results

Net income increased by 51% to US$ 18.5 million in the fourth quarter of 2016, compared to US$ 12.3 million in 2015.

23rd February 2017

Knitting Industry
 |  Tel Aviv

Knitted Outerwear, Sports/​Activewear

Net income increased by 51% to US$ 18.5 million in the fourth quarter of 2016, compared to US$ 12.3 million in the same quarter last year. Net income excluding one-time items totalled US$ 18.5 million, compared to US$ 16.0 million for the same period last year, representing a 16% increase.

“We are very pleased with our results for 2016, which concluded with a particularly strong fourth quarter and reflected all-time high sales, operating profit and cash flow. Throughout the year, we remained focused on a number of operational and growth initiatives that improved our business segments and helped make us a more efficient company. Further, our diverse blend of business segments, product categories and an expanded global presence continue to drive both growth momentum and balance,” commented Isaac Dabah, CEO of Delta Galil.

Sales

The company reported sales of US$ 376.3 million for the fourth quarter of 2016, a 31% increase compared to US$ 287.1 million for the same quarter last year. Sales for the 2016 full year were US$ 1,179.2 million, a 9% increase from US$ 1,080.0 million for the 2015 full year.

The year-over-year increase reflected top-line growth in all key geographic regions, as well as the positive impact of Delta Galil’s diversified portfolio. This includes a significant increase in its branded activity, new businesses with strong global reach, and expansion of its retail activity in Israel and Germany.

Acquisitions

“During the year, we made the successful acquisition of 7 For All Mankind, Splendid and Ella Moss, reflecting our strategic efforts to grow Delta Galil’s branded business and expand our global footprint. These brands further diversify our product offering and distribution channels, while adding significant strength to our structure,” commented Isaac Dabah.

“We’ve upgraded our digital platform and increased our ecommerce market share by selling to wholesale customers such as Amazon, Zalando, and Otto, while elevating sales on our proprietary Schiesser and Delta Israel websites. We also launched a new advanced digital platform for the 7 For All Mankind, Splendid and Ella Moss brands.

Other results

EBITDA was US$ 39.2 million in the fourth quarter of 2016, compared to US$ 29.5 million in the same quarter last year. For the 2016 full year, EBITDA was US$ 107.0 million, compared to US$ 95.3 million last year.

Operating cash flow was US$ 61.1 million in the fourth quarter of 2016, compared with US$ 60.3 million in the fourth quarter of 2015. For the 2016 full year, operating cash flow was US$ 76.6 million, compared to US$ 70.5 million last year.

2017 financial guidance

“Looking ahead, we remain committed to investing in new products and resources to drive sustained profitable growth and long-term shareholder value and, with a strong balance sheet and cash position, we have the necessary financial resources to continue to invest, innovate and grow,” said Isaac Dabah.

Delta Galil provided its 2017 financial guidance, excluding non-recurring items which is based on current market conditions and current exchange rate of US$ 1.06 per euro and 3.8 NIS per USUS$. Full-year 2017 sales are expected to range between US$ 1,330 million-US$ 1,370 million, representing an increase of 13%-16% from 2016 actual sales of US$ 1,179 million. Full-year 2017 EBIT is expected to range between US$ 86 million-US$ 91 million, representing an increase of 3%-9%.

Full-year 2017 EBITDA is expected to range between US$ 113.0 million-US$ 118.0 million, representing an increase of 6%-10% from 2016 actual EBITDA of US$ 107.0 million. Full-year 2017 net income is expected to range between US$ 50.0 million-US$ 52.0 million, representing an increase of 6%-10% from 2016 actual net income of US$ 47.2 million.

www.deltagalil.com

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