Delta Galil Industries Ltd. · TASE:DELG
Delta Galil Industries — Q2 2019 Earnings Presentation
19 slides from Delta Galil Industries's earnings presentation, August 2019
Slide 1: Results Overview Q2 2019
Results Overview Q2 2019 Aug 2019
Slide 2: Disclaimer (Hebrew)
האמור במצגת בכל הקשור לניתוח פעילותיה של החברה הינו תמצית בלבד ,ועל מנת לקבל תמונה מלאה של פעילות החברה ושל הסיכונים עימם מתמודדת החברה ,יש לעיין בדיווחיה השוטפים של החברה לרבות בדוח הרבעוני לתקופה שהסתיימה ביום 30יוני .2019 בין היתר ,העובדות והנתונים ששימשו בסיס למידע המפורט במצגת ז
Slide 3: Q2 2019 Highlights
CONCLUDED THE SECOND QUARTER WITH SALES INCREASE OF 10% TO $374M * EBIT INCREASE OF 13% TO $17M , REPORTED IS UP 27% ** OPERATING CASH FLOW INCREASED BY $11M TO $21M Q2 2019 DGUSA Q2 Sales are down 10%, EBIT down 83% Highlights Mainly due to one time product return and continued weakness in
Slide 4: Q2 2019 Highlights
DELTA EUROPEAN BRANDS $20.8M contribution to sales from Eminence in Q2 Q2 EBIT is +$1.8M DELTA PREMIUM BRANDS Q2 2019 Sales are down 2% due to weakness in the US wholesale channel EBIT was affected by sales decrease Highlights Strong E-comm sales DELTA ISRAEL Strong Q2 Sales +16% Q2 EB
Slide 5: IFRS16 Impact
WE APPLIED IFRS16 STARTING Q1/2019 ($ million) Q2.2019 YTD 2019 EXCLUDING EXCLUDING REPORTED REPORTED IFRS16 IFRS16 IFRS16 OPERATING PROFIT OPERATING PROFIT (Excluding one-time items) 12.3 15.2 14.3 17.2 21.1 24.0 24.8 27.6 Impact EBITDA FINANCIAL EXPENSES 23.9 5.5 37.3 7.4 41.2 11.3 68.0 15.3 NET I
Slide 6: Q2 2019 Results
Q2 2019 % change ($ million) Results Q2 2019 Q2 2018 vs last year SALES 373.9 338.9 10% OPERATING PROFIT 14.3 11.3 27% % from sales 3.8% 3.3% Sales +10% OPERATING PROFIT Sales in original currency +11% Excluding one-time items 17.2 15.2 13% Sales excluding Eminence +4% % from sales 4.6% 4.5% Sales o
Slide 7: H1 2019 Results
H1 2019 ($ million) Results % change 2019 2018 vs last year SALES 739.3 673.4 10% OPERATING PROFIT 24.8 25.3 (2%) % from sales 3.3% 3.8% Sales +10% OPERATING PROFIT Sales in original currency +12% Excluding one-time items 27.6 29.2 (5%) Sales excluding Eminence +3% % from sales 3.7% 4.3% Sales organ
Slide 8: Q2 Sales and EBIT by Segment
Q2 Sales and EBIT by Segment ($ thousands) SALES % change in EBIT original Q2 2019 Q2 2018 % change currency Q2 2019 Q2 2018 DELTA USA 107,332 118,911 (10%) (10%) 1,115 6,586 % from sales 1.0% 5.5% GLOBAL UPPER MARKET 95,573 75,793 26% 26% 11,460 6,577 % from sales 12.0% 8.7% DELTA EUROPEAN BRANDS 6
Slide 9: H1 Sales and EBIT by Segment
H1 Sales and EBIT by Segment ($ thousands) SALES % change in EBIT original 2019 2018 % change currency 2019 2018 DELTA USA 219,107 221,599 (1%) (1%) 5,929 11,551 % from sales 2.7% 5.2% GLOBAL UPPER MARKET 175,121 144,217 21% 21% 16,657 10,375 % from sales 9.5% 7.2% DELTA EUROPEAN BRANDS 140,761 102,
Slide 10: Sales Analysis by Geographic Area
Sales Analysis by Geographic Area ($ thousands) Q2 YTD % change % change % of % of % in original % of % of % in original 2019 2018 2019 2018 sales sales change currency sales sales change currency U.S.A 197,819 53% 195,141 58% 1% 1% 389,085 53% 371,390 55% 5% 5% EUROPE (excluding Germany) 70,124 19%
Slide 11: Segmental Results on a Quarterly Basis
Segmental Results on a Quarterly Basis Excluding one time items ($ thousands) 2018 2019 TRAILING TWELVE Q2 Q3 Q4 Q1 Q2 MONTHS EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES DELTA USA 6,586 118,911 8,836 108,704 12,600 139,019 4,815 111,775 1,115 107,332 27,364 466,830 % from sales
Slide 12: Capital Expenditures
21.9 ($ million) Global upper market …..…...…..….. 5.4 Capital 15.2 Delta European brands ….……..…… 4.3 DGPB …………………...………......... 2.7 Expenditures Delta Israel ..……………………….... 1.3 Others ….………………….….…....... 1.5 Back to normal level Total .........……….…………...….… 15.2 H1 H1 2018 2019 R E S U L T S O
Slide 13: Balance Sheet
Balance Sheet ($ million) % FROM % FROM Jun. 30 2019 Jun. 30 2018 TOTAL TOTAL Increased following Eminence acquisition CASH AND CASH EQUIVALENTS 39.8 3% 105.9 10% and IFRS16 implementation OTHER CURRENT ASSETS 604.5 43% 478.0 47% $40M TOTAL CURRENT ASSETS 644.3 46% 583.9 57% Cash on hand NON CURRENT
Slide 14: Financial Indicators
Financial Indicators 30.06.2019 30.06.2018 Current ratio 1.83 2.15 Quick ratio 0.84 1.06 Days of Sales Outstanding 45 41 Days Payable Outstanding 54 49 Inventory Days 131 123 Operating cash flow - Q2 ($ million) 34.5 10.4 Operating cash flow - YTD ($ million) 31.6 (20.0) Operating cash flow - Last 4
Slide 15: Diversified Portfolio
4% 36% 14% 11% OTHER PRIVATE 12% SOCKS KIDS LABEL ISRAEL GEOGRAPHIC 53% BRANDED/ 27% PRODUCT USA CAREGORIES AREA PRIVATE LABEL MENS Diversified 48% LADIES 31% EUROPE 64% BRANDED Portfolio 12% DELTA Enables Delta to mitigate the market changes 29% ISRAEL 30% 22% IN HOUSE MASS DUSA % from sales (for H
Slide 16: Guidance
($ million) % INCREASE 2019 GUIDANCE 2018 ACTUAL 2019 GUIDANCE COMPARED TO 2018 ACTUAL 2019 SALES EBIT 1,498 98 1,550 - 1,590 104 - 109 3% - 6% 6% - 11% Guidance EBITDA NET INCOME 130 60 138 - 143 64 - 67 6% - 10% 5% - 12% Excluding one time items DILUTED EPS ($) 2.37 2.50 - 2.65 5% - 12% INCLUDING
Slide 17: Bogart Acquisition
Deal closed on July 2nd 2019 We will consolidate Bogart group results starting Q3/2019 under GUM segment Q2 results include $2.8M deal cost Delta invested $32M as of 30.06.2019 and additional $40M until today Bogart Business is returning to normal activity Acquisition H2/2019 production an
Slide 18: Future Growth
Strengthening Delta’s ladies intimate footprint in the lingerie categories through Bogart acquisition Future Delta manufacturing are full for 2019 Growth Continued growth in direct to consumer channel Improving DGPB results by new designed collection R E S U L T S O V E R V I E W Q 2 2 0 1 9 18
Slide 19: Thank You
Thank You
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