Delta Galil Industries Ltd. · TASE:DELG
Delta Galil Industries — Q2 2021 Earnings Presentation
22 slides from Delta Galil Industries's earnings presentation, August 2021
Slide 1: Welcome to Q2 2021 Results
WELCOME TO Q2 2021 RESULTS August 2021
Slide 2: האמור במצגת בכל הקשור לניתוח פעילותיה של החברה הינו תמצית בלבד .המצגת עשויה לכלול
האמור במצגת בכל הקשור לניתוח פעילותיה של החברה הינו תמצית בלבד .המצגת עשויה לכלול מידע המוצג באופן שונה מהאופן שבו הוצג בדיווחי החברה לציבור עד כה ,כך שבמצגת עשויים להיכלל נתונים המוצגים באופן ו/או אפיון ו/או בעריכה ו/או בפילוח שונים מאלה שהוצגו בדוחותיה ,במצגות החברה או בדיווחיה בעבר
Slide 3: Q2-2021 Record Profitability for 4 consecutive quarters
Q2 D E L T A | R E S U L T S O V E R V I E W 2021 Q2-2021 Record Profitability for 4 consecutive quarters REVENUES EBITDA* OPERATING CASH FLOW* $455.8M $50.9M $36.9M +68% +$59.3M GROSS MARGIN EBIT MARGIN OWN DIGITAL 41.1% 9.3% +97% +1180 bps * Excluding IFRS16 Impact.
Slide 4: Q2 2021 Highlights
Q2 2021 Highlights Q2 D E L T A | R E S U L T S O V E R V I E W 2021 Business fundamentals continue to strengthen across all business segments • GM reached all-time-high of 41.1% due to strategic shift to more profitable channels, customers and product mix • Net debt* is down from $306.6M to $124.6M
Slide 5: Q2 2021 Financial Highlights vs. Q2 2020
Q2 D E L T A | R E S U L T S O V E R V I E W 2021 Q2 2021 Financial Highlights vs. Q2 2020 Sales in Original Total Sales Organic Sales* Own Web Site SALES Currency $455.8M 68% $422.8M 56% $443.6M 64% Increase YoY 97% Gross Margin Operating margin (BOT) EBITDA** Net Income (BOT) PROFIT/ MARGINS Incre
Slide 6: Q2 2021 Financial Highlights vs. Q2 2019
Q2 D E L T A | R E S U L T S O V E R V I E W 2021 Q2 2021 Financial Highlights vs. Q2 2019 Sales in Original Total Sales Organic Sales* Own web site SALES Currency $455.8M 22% $384.9M 3% $443.9M 19% Increase vs. Q2-19 426% Gross Profit Operating Profit (BOT) EBITDA** Net Income (BOT) PROFIT $187.3M
Slide 7: Qs Trend Analysis
Q2 D E L T A | R E S U L T S O V E R V I E W 2021 Qs Trend Analysis • 4 consecutive quarters of record EBIT margin for the Q • 2 consecutive quarters of record sales for the Q • First Q since COVID of higher organic sales vs. 2019 ** * * * * ** * ** * * * *Record for Quarter **Record level The numbe
Slide 8: Q2 2021 GM Expansion
Q2 D E L T A | R E S U L T S O V E R V I E W 2021 Q2 2021 GM Expansion Results of focused strategy and continues efficiency measures BETTER MIX IMPACT High margin High margin products Better channels Bare Necessities customers & categories OPERATIONAL Increased sales Controlled inventory Controlled
Slide 9: Qs Trend Analysis: Strong Liquidity Position
Q2 D E L T A | R E S U L T S O V E R V I E W 2021 Qs Trend Analysis Strong Liquidity Position Operating CF($M)* Net Debt ($M)* Net Debt / EBITDA* 75.6 3.8 65.9 3.3 306.6 286.4 2.9 236.3 36.9 27.8 1.2 21.4 150.2 0.7 124.6 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q2-20 Q3-20 Q4-20 Q
Slide 10: Q2 Update by Segment
Q2 D E L T A | R E S U L T S O V E R V I E W 2021 Q2 UPDATE BY SEGMENT
Slide 11: New Business Segments to align with our strategy and structure
Q2 D E L T A | R E S U L T S O V E R V I E W 2021 NEW BUSINESS SEGMENTS to align with our strategy and structure FROM TO GUM PRIVATE LABEL DG US (PRIVATE LABEL+BRANDS) BRANDS DG EU BRANDS Owned brands, License brands (SCHIESSER+EMINENCE) PREMIUM BRANDS (SPLENDID + 7FAM) OTHER ONLINE RETAILER
Slide 12: Brands
Q2 D E L T A | R E S U L T S O V E R V I E W 2021 Brands Comprehensive portfolio of top intimate apparel and active wear Brands, Owned & Licensed, all with high brand awareness & loyalty SALES & EBIT($M), Var vs. Var vs. Q2 2021 Q2 2020 Q2 2019 BOT Q2 2020 Q2 2019 SALES 133.2 86.4 132.8 54% 0% EBIT
Slide 13: Private Label 1/2
Q2 DRAFT D E L T A | R E S U L T S O V E R V I E W 2021 Private Label 1/2 Fully vertical from innovative design to distribution for Fully vertical from innovative leading brands & retailers design to distribution for PL customers (brands & retailers) • Performance socks business continues to trend w
Slide 14: Private Label 2/2
Q2 D E L T A | R E S U L T S O V E R V I E W 2021 Private Label 2/2 SALES & Var vs. Var vs. EBIT($M), BOT Q2 2021 Q2 2020 Q2 2019 Q2/2020 Q2 2019 SALES 178.4 122.4 144.6 46% 23% EBIT 15.6 -4.2 11.3 38% EBIT% 8.7% -3.5% 7.8% 12.1% 0.8% Q2 2021 vs Q2 2019 Sales increased 23% to $178.4M, driven by Boga
Slide 15: Seven For All Mankind
Q2 D E L T A | R E S U L T S O V E R V I E W 2021 Seven For All Mankind We recently consolidated 7FMK U.S. and 7FMK EU under one global leader and will be introducing an exciting global collection SALES & Var vs. Var vs. EBIT($M), BOT Q2 2021 Q2 2020 Q2 2019 Q2 2020 Q2 2019 SALES 50.9 17.4 51.8 192%
Slide 16: Delta Israel
Q2 D E L T A | R E S U L T S O V E R V I E W 2021 Delta Israel Delta Israel presented record Q2 2021 sales & profitability for the second quarter (NIS) SALES & Var vs. Var vs. EBIT($M), BOT Q2 2021 Q2 2020 Q2 2019 Q2 2020 Q2 2019 SALES 60.9 44.2 45.9 38% 33% EBIT 13.0 6.6 3.0 99% 341% EBIT% 21.4% 14
Slide 17: Online Retailer
Q2 D E L T A | R E S U L T S O V E R V I E W 2021 Online Retailer SALES & * EBIT($M), BOT Q2/2021 Q2/2020 SALES 35.6 1.1 EBIT -0.1 0.0 EBIT% -0.3% -3.7% • Sales increased sequentially by 32% from $26.9M in Q1-21 to $35.6M in Q2-21 INDEPENDENT DIGITAL PLATFORM ACUIRED IN OCTOBER 2020 • Breakeven EBIT
Slide 18: Strong Balance Sheet gets stronger
Q2 D E L T A | R E S U L T S O V E R V I E W 2021 Strong Balance Sheet gets stronger $ in millions Jun. 30 2021 % OF TOTAL Jun. 30 2020 % OF TOTAL CASH AND CASH EQUIVALENTS 280.8 16% 255.6 16% $280.8M INVENTORY 357.4 20% 290.0 18% Cash balance OTHER CURRENT ASSETS 222.9 13% 189.7 12% TOTAL CURRENT A
Slide 19: Increased guidance
Q2 D E L T A | R E S U L T S O V E R V I E W 2021 Increased guidance $ in millions % INCREASE CURRENT % INCREASE CURRENT ** 2019 ACTUAL 2021 PREVIOUS GUIDANCE 2021 CURRENT GUIDANCE GUIDANCE VS. PREVIOUS GUIDANCE VS. 2019 GUIDANCE ACTUAL Sales 1,690.2 1,780 - 1,820 1,825- 1,875 3% 8% - 11% EBIT* 106.
Slide 20: Our Goals
Q2 D E L T A | R E S U L T S O V E R V I E W 2021 STRATEGICALLY POSITIONED TO DELIVER CONTINUOUS Our Goals GROWTH & VALUE CREATION FOR OUR SHAREHOLDERS IN THE YEARS AHEAD
Slide 21: Our Strategy
Q2 D E L T A | R E S U L T S O V E R V I E W 2021 Our Strategy OPTIMIZE OUR GROWTH OF GLOBAL INTIMATES ACCELERATE GLOBAL AND ACTIVEWEAR IN DIGITAL BRANDED CHANNEL FOOTPRINT
Slide 22: Thank You
Thank You
Delta Galil Industries — Q2 2021 Earnings Presentation on 6ix