Delta Galil Industries Ltd. · TASE:DELG
Delta Galil Industries — Q3 2021 Earnings Presentation
22 slides from Delta Galil Industries's earnings presentation, November 2021
Slide 1: Welcome to Q3 2021 Results
WELCOME TO Q3 2021 RESULTS November 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: Q3-2021 5th Consecutive Quarter of Record Profitability
Q3 D E L T A | R E S U L T S O V E R V I E W 2021 Q3-2021 5th Consecutive Quarter of Record Profitability REVENUES EBITDA* NET PROFIT (BOT) $501.1M $60.7M $36.4M +31% +$19.2M +$16.8M GROSS MARGIN EBIT MARGIN OWN DIGITAL 39.6% 10.6% +102% +150 BPS +180 BPS * Excluding IFRS16 Impact. The numbers are r
Slide 4: Q3 2021 Highlights
Q3 2021 Highlights Q3 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 • Organic sales higher than 2019 for two consecutive quarters • GM at Q3 record level of 39.6% due to strategic shift to more profitable channels, customers and product mix • EBIT and EB
Slide 5: Q3 2021 Financial Highlights vs. Q3 2020
Q3 D E L T A | R E S U L T S O V E R V I E W 2021 Q3 2021 Financial Highlights vs. Q3 2020 Sales in Original Total Sales Organic Sales* Own Web Site Currency SALES Increased $501.1 M 31% $472.7 M 23% $496.1 M 30% 102% YoY Gross Margin Operating Margin*** EBITDA** Net Income (BOT) PROFIT/MARGINS Incr
Slide 6: Cash cycle 30/09/2020 to 30/09/2021
Q3 D E L T A | R E S U L T S O V E R V I E W 2021 Cash cycle 30/09/2020 to 30/09/2021 $M FCF = 102.6 77.1 Loans -23.4 133.6 Bonds -132 -31.0 -155.4 -12.0 -9.4 -7.7 215.5 210.8 Cash 30/09/2020 Cash Flow from Net CAPEX Delta Israel IPO, Net loans & BN Acquisition Dividend Others Cash 30/09/2021 operat
Slide 7: Qs Trend Analysis
Q3 D E L T A | R E S U L T S O V E R V I E W 2021 Qs Trend Analysis • Third consecutive quarter of record sales for the Q • Second Q since COVID of higher organic sales vs. 2019 • Fifth consecutive quarter of record EBIT margin & fourth consecutive quarter with record GM 60 .0 % 504.8 501.1 459.7 45
Slide 8: Q3 2021 GM Expansion
Q3 D E L T A | R E S U L T S O V E R V I E W 2021 Q3 2021 GM Expansion Results of focused strategy and continued efficiency measures BETTER MIX IMPACT High margin High margin products Better channels Bare Necessities customers & categories OPERATIONAL Increased sales High Same Stores Controlled pric
Slide 9: Debt Restructuring: Early Redemption of Bond Series B
Q3 D E L T A | R E S U L T S O V E R V I E W 2021 Debt Restructuring: Early Redemption of Bond Series B by Cash Payment ($25M) and Conversion to Loans ($75M) BONDS’ REPAYMENT SCHEDULE BEFORE AND AFTER DEBT RESTRUCTURING ($M) 140.0 135.3 120.0 100.0 80.0 60.0 40.0 20.0 0.0 2021 2022 2023 2024 2025 20
Slide 10: Q3 Update by Segment
Q3 UPDATE BY SEGMENT
Slide 11: Brands
Q3 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 activewear Brands, Owned & Licensed, all with high brand awareness & loyalty Brands segment presents strong Q3-21 results with record level of sales and profitability. Var vs. Q3 ($M) Q3 2020
Slide 12: Polo Ralph Lauren licensing agreement
Q3 D E L T A | R E S U L T S O V E R V I E W 2021 • We signed a long-term global licensing agreement for women’s intimates and sleepwear for the Polo Ralph Lauren brand, and for women’s intimates for the Lauren brand. • This partnership represents a significant addition to our licensing portfolio, a
Slide 13: Private Label 1/2
Q3 DRAFT D E L T A | R E S U L T S O V E R V I E W 2021 Private Label 1/2 Fully vertical from innovative design to distribution for Fully vertical from innovative leading brands & retailers design to distribution for PL customers (brands & retailers) • Performance socks business continues to trend w
Slide 14: Private Label 2/2
Q3 D E L T A | R E S U L T S O V E R V I E W 2021 Private Label 2/2 Var vs. Q3 ($M) Q3 2020 Q3 2021 2020 SALES 131.4 179.1 36% EBIT 9.5 12.2 27% EBIT% 7.3% 6.8%** -0.5% Q3 2021 vs Q3 2020 Sales increased 36% to $179.1M, driven by Socks, Mass market and pure online customers EBIT increased by $2.6M f
Slide 15: Seven For All Mankind
Q3 D E L T A | R E S U L T S O V E R V I E W 2021 Seven For All Mankind We recently consolidated 7FMK U.S. and 7FMK EU under one global leader and will be introducing an exciting global collection Var vs. Q3 ($M) Q3 2020 Q3 2021 2020 SALES 36.7 47.5 29% EBIT -4.3 2.1 EBIT% -11.8% 4.4% 16.2% Q3 2021
Slide 16: Delta Israel
Q3 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 sales & profitability for the third quarter Var vs. Q3 ($M) Q3 2020 Q3 2021 2020 SALES 56.8 65.2 15% EBIT 9.2 12.1 32% EBIT% 16.2% 18.6% 2.4% THE LEADING ISRAELI INTIMATE Q3 2021 vs Q3 2020 APPAREL COMPANY F
Slide 17: Online Retailer
Q3 D E L T A | R E S U L T S O V E R V I E W 2021 Online Retailer ($M) Q3 2020 * Q3 2021 SALES 2.0 28.3 EBIT 0.0 -1.0 EBIT% -1.6% -3.7% • Investing in re-branding the website including updated layout, content and features INDEPENDENT DIGITAL • Launched private label sleepwear collection under Bare ™
Slide 18: Growing Our Digital Ecosystem
Growing Our Digital Long Term Digital Focus Key Drivers Ecosystem Percent of consolidated sales, excluding Private 35% Category Expansion • Centralize digital marketing across brands to Label segment leverage learnings and expand social presence 27% Personalization • Invest in new technologies for p
Slide 19: Strong Balance Sheet gets stronger
Q3 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 Sep. 30 2020 % OF TOTAL Sep. 30 2021 % OF TOTAL $211.6M CASH AND CASH EQUIVALENTS 218.0 13% 211.6 12% INVENTORY 307.0 19% 409.3 23% Cash balance OTHER CURRENT ASSETS 228.1 14% 252.1 14% TOTAL CURRENT A
Slide 20: Increased guidance
Q3 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 2021 PREVIOUS 2021 CURRENT ** 2019 ACTUAL GUIDANCE VS. GUIDANCE VS. 2019 GUIDANCE GUIDANCE PREVIOUS GUIDANCE ACTUAL Sales 1,690.2 1,825- 1,875 1,900-1,940 4% 14% EBIT* 106
Slide 21: Increased guidance – IFRS 16 impact
Q3 D E L T A | R E S U L T S O V E R V I E W 2021 Increased guidance – IFRS 16 impact $ in millions IFRS16 Impact 2019 IFRS16 Impact 2021 * EBIT 8.1 12.4 EBITDA 57.9 64.0 * Net income -0.1 2.7 *Before one time items
Slide 22: Thank You
Thank You
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