Delta Galil Industries Ltd. · TASE:DELG

Delta Galil Industries — Q1 2019 Earnings Presentation

16 slides from Delta Galil Industries's earnings presentation, May 2019

  1. Slide 1: Results Overview Q1 2019

    Results Overview Q1 2019 MAY 2019

  2. Slide 2: ‫האמור במצגת בכל הקשור לניתוח פעילותיה של החברה הינו תמצית בלבד‪ ,‬ועל מנת לקבל

    ‫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 ‪ 31‬למרץ ‪.2019‬‬ ‫בין היתר‪ ,‬העובדות והנתונים ששימשו בסיס למידע המפורט במצגת ז

  3. Slide 3: Q1 2019 Highlights

    CONCLUDED THE QUARTER WITH  9% INCREASE IN SALES TO $365M  $14M IMPROVEMENT IN CASH FLOW*  25% DECREASE IN EBIT TO $10M  Impacted by devaluation of the Euro 7.5% vs USD and NIS 5.3% vs USD. Q1 2019 Total of 3% in sales & ~ 10% in EBIT  Shift of Easter and Passover to second quarter Highlights D

  4. Slide 4: Q1 2019 Highlights

    DELTA EUROPEAN BRANDS  $23.6M contribution to sales from Eminence in Q1  Negative impact on EBIT due to :  Shift of Easter  Devaluation of 7.5% in Euro/USD vs. last year  Softness in the European market as well as cold weather Q1 2019 DELTA PREMIUM BRANDS  Sales down 6.8% due to weakness in wh

  5. Slide 5: Q1 2019 IFRS16 Impact

    WE APPLIED IFRS16 STARTING Q1/2019 HERE ARE THE MAIN RESULTS : ($ million) EXCLUDING Q1 2019 REPORTED IFRS16 OPERATING PROFIT 8.8 10.4 IFRS16 Impact EBITDA 17.2 30.6 FINANCIAL EXPENSES 5.8 8.0 NET INCOME 3.4 3.0 OPERATING CASH FLOW (16.2( (2.8) R E S U L T S O V E R V I E W Q 1 2 0 1 9 5

  6. Slide 6: Q1 2019 Results

    Q1 2019 Results % change ($ million) Q1 2019 Q1 2018 vs last year Sales SALES 365.4 334.5 9% +9% Sales in original currency +12% Sales excluding Eminence +2% OPERATING PROFIT % from sales 10.4 2.9% 14.0 4.2% (25%) Sales organic growth in original currency +5% -25% Operating Profit EBITDA 30.6 21.4 4

  7. Slide 7: Q1 Sales and EBIT by Segment

    Q1 Sales and EBIT by Segment ($ thousands) SALES % change in EBIT original Q1 2019 Q1 2018 % change currency Q1 2019 Q1 2018 DELTA USA 111,775 102,688 9% 9% 4,815 4,966 % from sales 4.3% 4.8% GLOBAL UPPER MARKET 79,548 68,423 16% 16% 5,197 3,798 % from sales 6.5% 5.6% DELTA EUROPEAN BRANDS 74,761 57

  8. Slide 8: Sales Analysis by Geographic Area

    Sales Analysis by Geographic Area ($ thousands) Q1 % change % of % of % in original 2019 2018 sales sales change currency U.S.A 191,266 52% 176,249 53% 9% 9% EUROPE (excluding Germany) 68,772 19% 48,864 15% 41% 48% GERMANY 44,186 12% 50,926 15% (13%) (6%) ISRAEL 44,515 12% 44,002 13% 1% 6% OTHERS 16

  9. Slide 9: Segmental Results on a Quarterly Basis

    Segmental Results on a Quarterly Basis Excluding one time items ($ thousands) 2018 2019 TRAILING TWELVE Q1 Q2 Q3 Q4 Q1 MONTHS EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES DELTA USA 4,966 102,688 6,586 118,911 8,836 108,704 12,600 139,019 4,815 111,775 32,836 478,409 % from sales

  10. Slide 10: Capital Expenditures

    ($ million) 9.5 Manufacturing .…….……………..….. 2.3 Capital 7.7 Delta European brands* ........…...…. 1.4 Delta Israel ….……………………...... 0.5 Expenditures DGPB ….…...………………….….….. 2.0 Others ….………………….……..….... 1.5 Total ……...……….……………..…..…7.7 Q1 Q1 2018 2019 * excluding manufacturing R E S U L T S O V

  11. Slide 11: Balance Sheet

    Balance ($ million) Sheet Mar. 31 2019 % FROM TOTAL Mar. 31 2018 % FROM TOTAL Increased following Eminence acquisition CASH AND CASH EQUIVALENTS 45.8 3% 88.5 9% and IFRS16 implementation OTHER CURRENT ASSETS 557.3 41% 467.5 47% TOTAL CURRENT ASSETS 603.1 44% 555.9 56% $46M Cash on hand NON CURRENT A

  12. Slide 12: Financial Indicators

    Financial Indicators 31.03.2019 31.03.2018 Current ratio 1.90 2.41 Quick ratio 0.90 1.16 Days of Sales Outstanding 46 41 Days Payable Outstanding 39 44 Inventory Days 122 125 Operating cash flow - Q1 ($ million) (2.8) (30.3) Operating cash flow - Last 4 Quarters ($ million) 49.9 57.5 EBITDA - Q1 ($

  13. Slide 13: Diversified Portfolio

    5% 14% 10% OTHER 35% SOCKS KIDS 12% PRIVATE ISRAEL LABEL 27% GEOGRAPHIC 52% BRANDED/ MENS PRODUCT USA CAREGORIES AREA PRIVATE LABEL Diversified 49% LADIES 31% EUROPE 65% BRANDED Portfolio 12% Enables Delta to mitigate the market changes 30% DELTA ISRAEL 31% 21% MASS DUSA IN HOUSE % from sales (for Q

  14. Slide 14: Guidance

    ($ million) % INCREASE 2019 GUIDANCE 2018 ACTUAL 2019 GUIDANCE COMPARED TO 2018 ACTUAL 2019 SALES 1,498 1,550 - 1,590 3% - 6% EBIT 98 104 - 109 6% - 11% Guidance EBITDA NET INCOME 130 60 138 - 143 64 - 67 6% - 10% 5% - 12% Excluding one time items Based on current market conditions DILUTED EPS ($) 2

  15. Slide 15: Future Growth

    Continued growth in direct to consumer channel Factories full for 2019 Future DGPB will increase EBITDA to 15% Growth Expanding our distribution of Delta core products through in 3 years Eminence acquisition Focusing on growing our sales in Asia and South America Strategic M&A R E S U L T S O V E R

  16. Slide 16: Thank You

    Thank You

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