Israel's Delta Galil Industries posts sales of $886 mn in H1 FY23

Gross margin improved by 150 basis points to 39.7 per cent in H1 FY23, while EBIT fell to $42.7 million from $72.7 million in the same period last year. Net income for the first half was down to $18.1 million compared to $41.6 million in the previous year, and diluted earnings per share decreased to $0.61 from $1.47.

EBITDA excluding the IFRS 16 impact in the first half of FY23 was $66.5 million, compared to $94.7 million in the corresponding period of FY22, the company said in a media release.

The company's second quarter in fiscal 2023 (Q2 FY23) also showed a declining trend, with sales dropping 10 per cent to $443.6 million from $491.3 million in Q2 of 2022. Despite the decrease in sales, the gross margin expanded by 190 basis points to 40.4 per cent, mainly due to a better customer, channel and segment mix, and lower freight costs.

The second quarter's EBIT was $28.2 million, compared to $38.5 million in the prior-year period, and net income reached $15.1 million, compared to $22.7 million in the same quarter last year. Diluted earnings per share in Q2 were $0.53, down from $0.80 in the previous year. EBITDA excluding the IFRS 16 impact in the second quarter was $38 million, compared to $52.1 million in the corresponding period of FY22.

“As the global apparel industry navigates a period of normalising trends, we are pursuing strategic actions aimed at reducing inventory levels, enhancing gross margin, and optimising our production capabilities. Additionally, we are focused on growing our direct-to-consumer channels, while simultaneously developing new and innovative products for our customers. During the quarter, most of our owned brands increased direct sales across both e-commerce and brick and mortar retail channels,” said Isaac Dabah, CEO of Delta Galil.

ALCHEMPro News Desk (DP)