Delta Galil Industries Ltd. · TASE:DELG
Delta Galil Industries — Q1 2017 Earnings Presentation
16 slides from Delta Galil Industries's earnings presentation, May 2017
Slide 1: Results Overview Q1 2017
May 2017 RESULTS OVERVIEW Q1 2017 1
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 31במרץ .2017 בין היתר ,העובדות והנתונים ששימשו בסיס למידע המפורט במצגת
Slide 3: Q1 2017 Highlights
R E S U L T S O V E R V I E W Q 1 2 0 1 7 03 Q1 2017 Highlights Q1 RETAIL WAS CHALLENGING The Easter holiday fell on April 16 vs March 27 last year SIGNED A NEW 5-YEAR LICENSE AGREEMENT WITH CALVIN KLEIN FOR KIDS Underwear / Sleepwear / Socks CONTINUE TO IMPROVE DGPB FINANCIAL PERFORMANCE Implemente
Slide 4: Q1 2017 Highlights
R E S U L T S O V E R V I E W Q 1 2 0 1 7 04 Q1 2017 Highlights INVESTED IN GROWING OUR PRODUCTION CAPACITY Starting to run the Vietnamese factory with 750 new employees First order was shipped in April 2017 Significant improvement in our Egyptian facilities
Slide 5: Q1 2017 Results were affected by
R E S U L T S O V E R V I E W Q 1 2 0 1 7 05 Q1 2017 Results were affected by RESTRUCTURING PHASE 2 IMPACT $ 2.7M on EBIT $ 1.6M on net income DEVALUATION OF THE USD IMPACT ON THE HEDGING POSITION Euro appreciation against the USD 1.6% - $ (0.6M) on EBIT NIS appreciation against the USD 5.5% - $ (1.
Slide 6: Q1 2017 Highlights
R E S U L T S O V E R V I E W Q 1 2 0 1 7 06 Q1 2017 Highlights ($ million) 23% Q1 2017 Q1 2016 % change vs last year Sales up 23% Sales 315.7 256.7 23% Organic sales down 3% Operating Profit 10.2 14.8 (31%) % from sales 3.2% 5.8% (13)% Operating Profit Excluding one-time items % from sales 12.9 4.1
Slide 7: Q1 Sales and EBIT by segment
R E S U L T S O V E R V I E W Q 1 2 0 1 7 07 Q1 Sales and EBIT by segment ($ thousands) SALES % change in EBIT Q1 2017 Q1 2016 % change original currency Q1 2017 Q1 2016 Delta USA 109,201 112,758 (3%) (3%) 6,081 6,871 % from segment sales 5.6% 6.1% Global Upper Market 62,878 67,513 (7%) (7%) 5,613 7
Slide 8: Sales Analysis by Geographic Area
R E S U L T S O V E R V I E W Q 1 2 0 1 7 08 Sales Analysis by Geographic Area ($ thousands) Q1 2017 % of sales 2016 % of sales % change U.S.A 181,015 57% 137,366 54% 32% Europe 47,394 15% 39,168 15% 21% (excluding Germany) Germany 41,993 13% 39,461 15% 6% Israel 33,549 11% 33,279 13% 1% Others 11,7
Slide 9: Segmental Results on a Quarterly Basis
R E S U L T S O V E R V I E W Q 1 2 0 1 7 09 Segmental Results on a Quarterly Basis Excluding one time items ($ thousands) 2016 2017 TRAILING TWELVE MONTHS Q1 Q2 Q3 Q4 Q1 EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES Delta USA 6,871 112,758 5,052 109,447 8,692 112,800 10,153 126,
Slide 10: Capital Expenditures
R E S U L T S O V E R V I E W Q 1 2 0 1 7 010 Capital Expenditures 10.2 ($ million) 7.8 Manufacturing …….…………………. 2.4 Schiesser* ……….………………….. 1.3 Israeli market ………………………... 0.6 DGPB ………………………………… 1.6 Others ………………………………... 1.9 Total ………………………………….. 7.8 Q1 2016 Q1 2017 *excluding manufacturing
Slide 11: Strong Balance Sheet
R E S U L T S O V E R V I E W Q 1 2 0 1 7 11 Strong Balance Sheet Strong balance sheet post acquisition ($ million) $66M cash on hand MARCH 31 2017 % FROM TOTAL MARCH 31 2016 % FROM TOTAL Cash and cash equivalents 66.2 7% 130.3 17% $399M Other current assets Total current assets 403.8 470.0 45% 52%
Slide 12: Financial Indicators
R E S U L T S O V E R V I E W Q 1 2 0 1 7 12 Financial Indicators 31.03.2017 31.03.2016 Current ratio* 2.48 2.78 Quick ratio* 1.17 1.61 Days of Sales Outstanding 38 41 Days Payable Outstanding 36 42 Inventory Days** 110 100 Operating cash flow - Q1 ($ million) (13.1) (23.6) Operating cash flow - Las
Slide 13: Diversified Portfolio
R E S U L T S O V E R V I E W Q 1 2 0 1 7 13 Diversified Portfolio % from sales 13
Slide 14: Reiterating 2017 Guidance
R E S U L T S O V E R V I E W Q 1 2 0 1 7 14 Reiterating 2017 Guidance Excluding one time items Based on current market conditions Ex-rates used: Euro/USD 1.09; USD/NIS 3.65 ($ million except per share data) % INCREASE 2017 GUIDANCE 2016 ACTUAL 2017 GUIDANCE COMPARED TO 2016 ACTUAL Sales 1,179 1,330
Slide 15: Future Growth
R E S U L T S O V E R V I E W Q 1 2 0 1 7 15 Future Growth Launch of CK Brand Kids Underwear in 2018 Improving our financial results of DGPB Launching of Splendid Yoga, Splendid Sleepwear and Seven For All Mankind men’s underwear Growing our international business presence Reaching full operational
Slide 16: Thank You
THANK YOU 16
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