Delta Galil Industries Ltd. · TASE:DELG
Delta Galil Industries — Q1 2021 Earnings Presentation
22 slides from Delta Galil Industries's earnings presentation, May 2021
Slide 1: May 2021
M AY 2 0 2 1
Slide 2: Disclaimer (Hebrew)
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: Our Strategy
Q1 D E L T A | R E S U L T S O V E R V I E W 2021 Our Strategy OPTIMIZE OUR GROWTH OF GLOBAL INTIMATES, ACCELERATE GLOBAL SLEEPWEAR AND IN DIGITAL BRANDED PERFORMANCE CHANNEL FOOTPRINT SOCKS PORTFOLIO
Slide 4: Q1-'21 back to growth with record profitability for 3 consecutive quarters
Q1 D E L T A | R E S U L T S O V E R V I E W 2021 Q1-’21 back to growth while achieving record profitability for 3 consecutive quarters REVENUES EBITDA* OPERATING CASH FLOW* $416.1M $36.5M $21.4M +25% GROSS MARGIN EBIT MARGIN DIGITAL 38.2% 6.7% +272% +400 bps * Excluding IFRS16 Impact.
Slide 5: Q1 2021 Highlights
Q1 D E L T A | R E S U L T S O V E R V I E W 2021 Q1 2021Highlights • Business fundamentals continue to improve with strength in Digital, European brands, Mass Channel, Delta Israel and our PJ categories • Net debt* is down from $366.4M to $150.2M year over year • Inventory is down by $25.8M year ov
Slide 6: Q1 Update by Segment
Q1 D E L T A | R E S U L T S O V E R V I E W 2021 Q1 UPDATE BY SEGMENT
Slide 7: Delta USA
Q1 D E L T A | R E S U L T S O V E R V I E W 2021 Delta USA • EBIT significantly increased by $15.7M to $5.9M, EBIT margin at 6.6% • Grew our mass market segment, driven by strength at Walmart and Target • Strength in our branded segment, particularly with PJ Salvage and clubs • New customer pipelin
Slide 8: DGPB
Q1 D E L T A | R E S U L T S O V E R V I E W 2021 DGPB • Sales increased by 15% to $59.2M, from $51.5M • EBIT improved by $5.4M to ($3.7M) 7FAM • The retail channel continues to be challenging, though traffic has improved in the past month • Implementing additional restructuring measures that will b
Slide 9: DGPB (cont'd)
Q1 D E L T A | R E S U L T S O V E R V I E W 2021 DGPB (cont’d) Splendid • Second consecutive profitable quarter with sales improvement despite COVID • Traffic trend in stores is improving • Successful launch of Sundown in Macys, Nordstrom’s, Dillard’s and Bloomingdales • Strong Splendid orders from
Slide 10: DG European Brands
Q1 D E L T A | R E S U L T S O V E R V I E W 2021 DG European Brands • Sales in EURO at the same level, despite lengthy shutdown of retail stores • EBIT increased from $1.2M to $7.8M (11% of sales) • Restructuring plan implementation will allow further reduction of costs in the second half of 2021 a
Slide 11: GUM
Q1 D E L T A | R E S U L T S O V E R V I E W 2021 GUM • Sales increased 21% to $123.9M, from $102.2M • EBIT increased by $6.6M to $7.3M • Performance socks business continues to trend well with significant growth opportunities • Shapewear segments are rebounding with opportunities in Spanx, VS and W
Slide 12: Delta Israel
Q1 D E L T A | R E S U L T S O V E R V I E W 2021 Delta Israel • Successful IPO with $77M (net) in proceeds raised from leading institutional investors • Sales increased by 36% to $59.4M (28% in NIS), despite closure of retail stores for 50 days • EBIT increased by $10.3M to $12.2M, representing 21%
Slide 13: Q1 Financial Highlights
Q1 D E L T A | R E S U L T S O V E R V I E W 2021 Q1 Financial Highlights $ in millions Change vs Q1 2021 Q1 2020 Q1 change last year TOTAL SALES 416.1 332.7 83.5 GROSS PROFIT 159.0 113.7 45.3 +25% % from sales 38.2% 34.2% Sales in original OPERATING PROFIT (Before one-time items) 28.0 (15.9) 43.8 c
Slide 14: Q1 Sales and EBIT by Segment
Q1 D E L T A | R E S U L T S O V E R V I E W 2021 Q1 Sales and EBIT by Segment $ in millions SALES EBIT % change in Q1 2021 Q1 2020 % change original Q1 2021 Q1 2020 % change currency DELTA USA 88.9 74.0 20% 20% 5.9 (9.8) % of sales 7% (13%) GLOBAL UPPER MARKET 123.9 102.2 21% 21% 7.3 0.7 921% % of
Slide 15: Qs Trend Analysis
Q1 D E L T A | R E S U L T S O V E R V I E W 2021 Qs Trend Analysis * ** * ** * * *Record for Quarter **Record level The numbers are rounded
Slide 16: Qs Trend Analysis
Q1 D E L T A | R E S U L T S O V E R V I E W 2021 Qs Trend Analysis Operating CF ($M)* Net Debt ($M)* Net Debt / EBITDA* 75.6 3.8 65.9 366.4 3.4 3.3 2.9 306.6 286.4 27.8 236.3 21.4 1.2 150.2 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 -7.8 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 * Excluding IF
Slide 17: Strong Balance Sheet
Q1 D E L T A | R E S U L T S O V E R V I E W 2021 Strong Balance Sheet $ in millions Mar. 31 2021 % OF TOTAL Mar. 31 2020 % OF TOTAL CASH AND CASH EQUIVALENTS * 312.9 18% 144.1 9% $312.9M INVENTORY 315.2 18% 323.1 21% Cash balance OTHER CURRENT ASSETS 243.6 14% 191.9 13% TOTAL CURRENT ASSETS 871.6 4
Slide 18: Financial Indicators
Q1 D E L T A | R E S U L T S O V E R V I E W 2021 Financial Indicators 31.03.2021 31.03.2020 Current ratio 1.67 1.61 Quick ratio 1.07 0.82 Days of Sales Outstanding 41 40 Days Payable Outstanding 72 45 Inventory Days 110 133 Operating cash flow ($ in millions)* 21.4 (7.8) EBITDA ($ in millions)* 36.
Slide 19: Guidance
Q1 D E L T A | R E S U L T S O V E R V I E W 2021 Guidance $ in millions % INCREASE GUIDANCE 2019 ACTUAL 2021 GUIDANCE VS. 2019 ACTUAL Sales 1,690.2 1,780 - 1,820 5% - 8% EBIT* 106.0 140 -150 32% - 41% EBITDA* 195.6 240 -250 23% - 28% Net Income* 60.2 81.5 - 89.5 35% - 49% Diluted EPS* ($) 2.36 2.95
Slide 20: Compelling Platforms for Growth
Q1 D E L T A | R E S U L T S O V E R V I E W 2021 Compelling Platforms for Growth Growing digital through personalization (AI) and enhanced STRENGHTS omni channel experience GROWTH ENGINES Longstanding strategic relationships with intimate, athleisure & active, all industry winners in multiple marke
Slide 21: Our Goals
Q1 D E L T A | R E S U L T S O V E R V I E W 2021 STRATEGICALLY POSITIONED TO DELIVER CONTINUOUS Our Goals GROWTH & VALUE CREATION FOR OUR SHAREHOLDERS IN THE YEARS AHEAD
Slide 22: Thank You
Thank You
Delta Galil Industries — Q1 2021 Earnings Presentation on 6ix