Delta Galil Industries Ltd. · TASE:DELG
Delta Galil Industries — Q2 2017 Earnings Presentation
20 slides from Delta Galil Industries's earnings presentation, August 2017
Slide 1: Results Overview Q2 2017
August 2017 RESULTS OVERVIEW Q2 2017 INTRODUCING CALVIN KLEIN KIDS COLLECTION
Slide 2: Disclaimer (Hebrew)
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 30ביוני .2017 בין היתר ,העובדות והנתונים ששימשו בסיס למידע המפורט במצג
Slide 3: Q2 2017 Highlights
R E S U L T S O V E R V I E W Q 2 2 0 1 7 03 Q2 2017 Highlights CONCLUDED A STRONG QUARTER WITH 36% INCREASE IN SALES AND 31% INCREASE IN EBIT 9% ORGANIC SALES GROWTH Sales growth of 9% in Delta USA and 12% in Global Upper Market EBIT growth of 64% in Delta USA and 16% in Global Upper Market
Slide 4: Q2 2017 Highlights: Delta Premium Brands
R E S U L T S O V E R V I E W Q 2 2 0 1 7 04 Q2 2017 Highlights DELTA PREMIUM BRANDS Q2 EBIT $ 3M, YTD EBIT $ 5.8M Moved 7FAM Europe to our new offices in Mendrisio Transition of the European activity to be completed by September 2017 Concluded sale of 7FAM DC in LA for $ 28M net Working
Slide 5: Q2 2017 Highlights
R E S U L T S O V E R V I E W Q 2 2 0 1 7 5 Q2 2017 Highlights LAUNCHED CALVIN KLEIN COLLECTION FOR SPRING 2018 AND RECEIVED A GREAT REACTION FROM THE MARKET RECEIVED THE INNOVATION AWARD FROM PVH CONTINUED WEAKNESS IN THE ISRAELI RETAIL MARKET Fix brand shows significant sales increase $
Slide 6: Q2 2017 Financial comments
R E S U L T S O V E R V I E W Q 2 2 0 1 7 6 Q2 2017 Financial comments DGPB SEGMENT EBIT AFFECTED BY $ 3.1M CAPITAL GAIN FROM REAL ESTATE SALE, OFFSET BY: $ 1.1M impairment of intangible asset $ 2.1M impairment of other assets DEVALUATION OF THE USD IMPACT ON THE HEDGING POSITION Euro appr
Slide 7: Q2 2017 Results
R E S U L T S O V E R V I E W Q 2 2 0 1 7 7 Q2 2017 Results 36% ($ million) Sales up 36% Organic sales up 9% % change vs Q2 2017 Q2 2016 last year 31% Operating Profit up 31% Sales Operating Profit 340.5 17.7 249.5 13.5 36% 31% % from sales 5.2% 5.4% EBITDA 25.5 18.9 35% 35% EBITDA up 35% % from sal
Slide 8: H1 2017 Results
R E S U L T S O V E R V I E W Q 2 2 0 1 7 8 H1 2017 Results ($ million) % change vs H1 2017 H1 2016 last year 30% Sales Operating Profit 656.1 27.9 506.2 28.4 30% (2%) Sales up 30% % from sales 4.3% 5.6% Organic sales up 3% Operating Profit 30.6 28.4 8% Excluding one-time items % from sales 4.7% 5.6
Slide 9: Q2 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 7 9 Q2 Sales and EBIT by segment ($ thousands) SALES % change in EBIT Q2 2017 Q2 2016 % change original currency Q2 2017 Q2 2016 Delta USA 118,787 109,447 9% 9% 8,286 5,052 % from segment sales 7.0% 4.6% Global Upper Market 79,902 71,352 12% 12% 9,523 8,211 %
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 7 10 H1 Sales and EBIT by segment ($ thousands) SALES % change in EBIT H1 2017 H1 2016 % change original currency H1 2017 H1 2016 Delta USA 227,988 222,206 3% 3% 14,367 11,923 % from segment sales 6.3% 5.4% Global Upper Market 142,780 138,865 3% 3% 15,136 15,2
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 7 11 Sales Analysis by Geographic Area ($ thousands) Q2 YTD % of % of % % of % of % 2017 2016 2017 2016 sales sales change sales sales change U.S.A 203,282 60% 137,889 55% 47% 384,297 59% 275,255 54% 40% Europe 50,321 15% 39,507 16% 27% 97,716 15% 78,675 16% 2
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 7 12 Segmental Results on a Quarterly Basis Excluding one time items ($ thousands) 2016 2017 TRAILING TWELVE MONTHS Q2 Q3 Q4 Q1 Q2 EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES Delta USA 5,052 109,447 8,692 112,800 10,153 126,465 6,081 109,
Slide 13: Capital Expenditures
R E S U L T S O V E R V I E W Q 2 2 0 1 7 13 Capital Expenditures 21.5 ($ million) 14.8 Manufacturing .…….…………………. 4.4 Schiesser* ……….………………….. 2.1 Israeli market ………………………... 2.2 DGPB …………………………….…… 3.4 Others ….……………………………... 2.7 Total ………………………………….. 14.8 H1 2016 H1 2017 *excluding manufacturing
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 7 14 Strong Balance Sheet Strong balance sheet post acquisition ($ million) % FROM % FROM JUNE 30 2017 JUNE 30 2016 $101M cash on hand Cash and cash equivalents 100.7 TOTAL 10% 134.7 TOTAL 17% Other current assets 434.2 45% 332.0 42% $418M Total current assets
Slide 15: Financial Indicators
R E S U L T S O V E R V I E W Q 2 2 0 1 7 15 Financial Indicators 30.06.2017 30.06.2016 Current ratio* 2.48 2.60 Quick ratio* 1.27 1.52 Days of Sales Outstanding 40 41 Days Payable Outstanding 42 46 Inventory Days** 109 100 Operating cash flow - Q2 ($ million) 15.9 26.5 Operating cash flow - YTD ($
Slide 16: Diversified Portfolio
R E S U L T S O V E R V I E W Q 2 2 0 1 7 16 Diversified Portfolio Enables Delta to better withstand market changes % from sales (for H1 2017)
Slide 17: Reiterating 2017 Guidance
R E S U L T S O V E R V I E W Q 2 2 0 1 7 17 Reiterating 2017 Guidance Excluding one time items Based on current market conditions Ex-rates used: Euro/USD 1.14; USD/NIS 3.60 ($ million except per share data) % INCREASE 2017 GUIDANCE 2016 ACTUAL 2017 GUIDANCE COMPARED TO 2016 ACTUAL Sales 1,179 1,330
Slide 18: Future Growth
R E S U L T S O V E R V I E W Q 2 2 0 1 7 18 Future Growth LAUNCHING OF CK BRAND KIDS UNDERWEAR IN 2018 REACHING FULL OPERATIONAL STATUS IN SEAMLESS AND CUT & SEW FACTORIES IN OUR VIETNAM FACILITY IN H2 2018 FOCUSING ON OUR E-COMMERCE BUSINESS GROWING OUR PRESENCE IN ASIA AND SOUTH AMERICA
Slide 19: Future Growth
R E S U L T S O V E R V I E W Q 2 2 0 1 7 19 Future Growth CONTINUE IMPROVING OUR FINANCIAL RESULTS OF DGPB DGPB LAUNCHES FOR 2018: Splendid Yoga Splendid Sleepwear Seven For All Mankind men’s underwear TOOK OVER KIDS LICENSE OF SPLENDID AND OPERATIONS OF 7FAM KIDS IN 2018 CONTINUE TO
Slide 20: Thank You
20 THANK YOU
Delta Galil Industries — Q2 2017 Earnings Presentation on 6ix