Delta Galil Industries Ltd. · TASE:DELG
Delta Galil Industries — Q2 2018 Earnings Presentation
19 slides from Delta Galil Industries's earnings presentation, August 2018
Slide 1: Results Overview Q2 2018
RESULTS OVERVIEW Q2 2018 AUGUST 2018
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 30ליוני .2018 בין היתר ,העובדות והנתונים ששימשו בסיס למידע המפורט במצגת
Slide 3: Eminence Acquisition
R E S U L T S O V E R V I E W Q 2 2 0 1 8 EMINENCE ACQUISITION Completed the acquisition on July 6th , earlier than planned Consolidated Eminence group results starting Q3/2018 The contribution to profit per share for 2019 is projected to amount to $0.40-0.45. Q2 results include $3.95M total
Slide 4: Q2 2018 Highlights
R E S U L T S O V E R V I E W Q 2 2 0 1 8 Q2 2018 HIGHLIGHTS Sales -0.5% and Gross Margin -30 bps, however Net Income was +2% Costs increased in H1 2018 due to RMB currency appreciation. We will see a benefit during Q4 2018 and beyond as RMB weakened DGUSA sales flat to last year – EBIT challe
Slide 5: Q2 2018 Highlights
R E S U L T S O V E R V I E W Q 2 2 0 1 8 Q2 2018 HIGHLIGHTS DGPB EBIT negatively influenced by the new distribution center running cost and shift in Easter sale vs last year H1 EBIT flat to last year Tim Baxter, DGPB CEO, started in May 2018 GUM EBIT challenged by Thailand factory due to ch
Slide 6: Q2 2018 Highlights
R E S U L T S O V E R V I E W Q 2 2 0 1 8 Q2 2018 HIGHLIGHTS Significant improvement in Delta Israel 14% increase in sales and $2m improvement in EBIT 22% increase in sales for H1 and $5m improvement in EBIT Strong growth in comparable sales and online channel Strong results for Schiesser
Slide 7: Q2 2018 Results
R E S U L T S O V E R V I E W Q 2 2 0 1 8 Q2 2018 ($ million) % change vs RESULTS Q2 2018 Q2 2017 last year Sales 338.9 340.5 (0.5%) Operating Profit 11.3 17.7 (36%) -0.5% Sales % from sales 3.3% 5.2% Sales in original currency -2% Operating Profit 15.2 17.7 (14%) Excluding one-time items % from sal
Slide 8: H1 2018 Results
R E S U L T S O V E R V I E W Q 2 2 0 1 8 H1 2018 ($ million) RESULTS % change vs 2018 2017 last year Sales 673.4 656.1 3% Operating Profit 25.3 27.9 (9%) +3% % from sales 3.8% 4.3% Sales Sales in original currency 0% Operating Profit 29.2 30.6 (4%) Excluding one-time items % from sales 4.3% 4.7% EB
Slide 9: Q2 Sales and EBIT by Segment
RR EE SS UU LL TT SS OO VV EE RR VV I I EE WW QQ 22 22 00 11 88 Q2 SALES AND EBIT BY SEGMENT % change in ($ thousands) SALES EBIT original Q2 2018 Q2 2017 % change currency Q2 2018 Q2 2017 Delta USA 118,911 118,787 0% 0% 6,586 8,286 % from segment sales 5.5% 7.0% Global Upper Market 75,793 79,902 (5
Slide 10: H1 Sales and EBIT by Segment
R E S U L T S O V E R V I E W Q 2 2 0 1 8 H1 SALES AND EBIT BY SEGMENT % change in ($ thousands) SALES EBIT original 2018 2017 % change currency 2018 2017 Delta USA 221,599 227,988 (3%) (3%) 11,551 14,367 % from segment sales 5.2% 6.3% Global Upper Market 144,217 142,780 1% 1% 10,375 15,136 % from s
Slide 11: Sales Analysis by Geographic Area
R E S U L T S O V E R V I E W Q 2 2 0 1 8 SALES ANALYSIS BY GEOGRAPHIC AREA ($ thousands) Q2 YTD % change % change % of % of % % of % of % 2018 2017 in original 2018 2017 in original sales sales change currency sales sales change currency U.S.A 195,141 58% 203,282 60% (4%) (4%) 371,390 55% 384,297 5
Slide 12: Segmental Results on a Quarterly Basis
R E S U L T S O V E R V I E W Q 2 2 0 1 8 SEGMENTAL RESULTS ON A QUARTERLY BASIS Excluding one time items 2017 2018 TRAILING TWELVE ($ thousands) Q2 Q3 Q4 Q1 Q2 MONTHS EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES Delta USA 8,286 118,787 5,917 100,160 10,016 117,174 4,966 102,688
Slide 13: Capital Expenditures
R E S U L T S O V E R V I E W Q 2 2 0 1 8 CAPITAL EXPENDITURES 21.9 ($ million) 14.8 Manufacturing .…….…………………… 11.2 Schiesser* ……….……………………. 2.2 Delta Israel ….………………………..... 2.5 DGPB** ….……………………….…….. 4.0 Others ….……………………………..... 2.0 H1.2017 H1.2018 Total ……...………………………..….. 21.9 * excluding man
Slide 14: Strong Balance Sheet
R E S U L T S O V E R V I E W Q 2 2 0 1 8 STRONG ($ million) BALANCE % FROM % FROM Jun. 30 2018 Jun. 30 2017 TOTAL TOTAL Cash and cash equivalents 105.9 10% 100.7 10% SHEET Other current assets Total current assets 478.0 583.9 47% 57% 434.2 534.9 45% 55% Non current assets 434.5 43% 429.1 45% $106M
Slide 15: Financial Indicators
R E S U L T S O V E R V I E W Q 2 2 0 1 8 FINANCIAL INDICATORS 30.06.2018 30.06.2017 Current ratio 2.15 2.48 Quick ratio 1.06 1.27 Days of Sales Outstanding 41 40 Days Payable Outstanding 49 42 Inventory Days 123 109 Operating cash flow - Q2 ($ million) 10.4 15.9 Operating cash flow - YTD ($ million
Slide 16: Diversified Portfolio
R E S U L T S O V E R V I E W Q 2 2 0 1 8 Enables Delta to mitigate the market changes DIVERSIFIED % from sales (for Q2.2018) PORTFOLIO The numbers are rounded 16
Slide 17: Reiterating 2018 Guidance
R E S U L T S O V E R V I E W Q 2 2 0 1 8 REITERATING 2018 GUIDANCE * Excluding one time items Excluding Eminence impact which is expected to positively contribute to our results Based on current market conditions Ex-rates used: Euro/USD 1.15; USD/NIS 3.65 ($ million except per share data) % INCREAS
Slide 18: Future Growth
R E S U L T S O V E R V I E W Q 2 2 0 1 8 FUTURE GROWTH Signed global Ted Baker license for Men’s, launching Spring 2019 Continued long term growth in DGPB to get to above 10% EBIT Investments in manufacturing facilities will start to have positive effects on our bottom line towards Q4 2018
Slide 19: Thank You
THANK YOU 19
Delta Galil Industries — Q2 2018 Earnings Presentation on 6ix