Delfi Limited

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Condensed Interim Financial Statements For the six months ended 30 June 2023

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Profit and Loss

(1) Diluted earnings per share for 6 months ended 30 June 2023 and 2022 are the same as basic earnings per share as there were no potentially dilutive ordinary shares.
NM - Not meaningful.


Comprehensive Income


Balance Sheet

Review of Performance

Key Figures for the Group (unaudited)

Review of the Group’s 1H 2023 Financial Performance

With positive momentum carrying through from 2022, the Group achieved 1H 2023 revenue and PATMI growth of 16.2% and 30.1% respectively, as we continued to execute our growth strategies to capture the robust consumer demand in our markets. In constant currency terms, our performance would have been higher than reported.

For 1H 2023, we achieved PATMI of US$25.2 million, higher Y-o-Y by 30.1% with the key drivers as follows:

  1. The positive momentum which drove double digit sales growth across our operations;
  2. Strong revenue growth of 16.2% Y-o-Y over 1H 2022 to US$286.2 million driven by growth in both Own Brands and Agency Brands, which grew higher Y-o-Y by 11.4% and 23.8%, respectively; and
  3. Increase in 1H 2023 gross profit margin by 60 basis points to 30.0%, driven by strong sales of our Premium products combined with pricing actions that helped mitigate cost pressures, portfolio optimisation and through disciplined cost control.

Our strong Own Brands revenue growth of 11.4% Y-o-Y to US$168.1 million is attributed to the strength of consumer demand in our key markets, especially Indonesia and the Philippines. This was complemented by our Agency Brands portfolio, that grew by 23.8% Y-o-Y to US$118.1 million which included contributions from new Agency Brands secured.

Both segments were supported by significant efforts over the last three years to strengthen our distribution in both the Modern Trade and Traditional Trade channels, and the continuing focus on Gen-Zs and Millennials.

In 1H 2023, we generated net cash from operations of US$23.5 million as we continued to control costs, collections and capital spending. The Group’s cash position as at 30 June 2023 stood at US$73.2 million, after dividend payment of US$16.6 million and capital expenditure of US$13.6 million during the first six months of the year.

The Board has declared an interim dividend per share for the period ended 30 June 2023 of 2.06 US cents (or 2.73 Singapore cents), compared to the 1.58 US cents for the same period last year, based on a pay-out ratio of 50%. The interim dividend will be paid to shareholders on 7 September 2023.

Performance Review by Markets


Our business in Indonesia generated revenue of US$190.1 million (Y-o-Y increase of 13.7%) driven by growth in Own Brands, especially our SilverQueen, Delfi Premium and TOP which all grew by double-digits.

Our Agency Brands grew 21.0% Y-o-Y in 1H 2023, driven primarily by the growth in the snacks and consumer categories.

The Regional Markets

For our Regional Markets, revenues during 1H 2023 were higher Y-o-Y by 21.5% to US$96.1 million. The growth achieved was mainly attributed to demand for Agency Brands in our Malaysian operations, particularly from contributions of new Agency Brands secured.

Review of 1H 2023 Profitability

We achieved an overall Gross Profit Margin of 30.0% for 1H 2023, higher Y-o-Y by 60 basis points which can be attributed to pricing, portfolio optimisation and through disciplined cost controls.

On the higher sales and GPM achieved, the Group generated EBITDA for the period of US$40.0 million, an increase of 15.6% Y-o-Y (EBITDA margin of 14.0% achieved) despite higher selling and distribution costs and advertising and promotion expenses. We continued to invest in our brand building initiatives and in our routes-to-market, which we believe is necessary in order to support the long-term growth of our business.

Review of Financial Position and Cash Flow

As at 30 June 2023, the Group’s cash and cash equivalents were US$73.2 million after dividend payments of US$16.6 million in May of this year and US$13.6 million of capital expenditure and advances for purchase of property, plant and equipment during the first six months of the year. The increase in capital expenditure comprised investment in production equipment in anticipation of continued market growth and for a land parcel in Indonesia to meet our long term operational needs. This capital expenditure programme will be constantly monitored and evaluated against any changes in market conditions with investments possibly deferred to a later period, if required. We remain confident that our strong balance sheet gives us a resiliency in the face of any uncertainties that might emerge going forward.

Compared to 31 December 2022, total assets as at 30 June 2023 were marginally lower by US$0.3 million reflecting mainly: (1) the lower cash balance; (2) decrease in inventories; partially offset by; and (3) an increase in property, plant and equipment. Shareholders’ equity was higher by US$15.6 million as a result of higher retained earnings, and a lower foreign currency translation loss (see Note 16 on page 21) although reduced by dividend paid of US$16.6 million.


Looking ahead to the rest of 2023, it remains unclear what might be the impact on the global economy from prolonged geopolitical tensions, stabilising but still higher interest rates, continued pressure on selected supply chains, high commodity prices, and pronounced economic and political pressures on many lesser developed economies. The global economic outlook could weigh on consumer confidence going forward.

Despite these headwinds, barring any unexpected severe economic circumstances, we believe our iconic brands, strong balance sheet, low debt level, strong culture of innovation, and effective distribution capabilities, position us well to not only successfully navigate potential uncertainties that might lie ahead but also, allow us to benefit from opportunities in the future that may arise.

We remain confident we can mitigate many of these potential risks by:

  • Remaining focused on growing our core strategic products and further driving growth in our Premium and Value format categories;
  • Continuing to strengthen our distribution capabilities; and
  • Tightly managing our operating costs, collections and working capital levels. Although we expect to have higher working capital requirements to support future business growth, we will remain vigilant and tightly manage appropriate levels of receivables, inventories, and payables.