Delfi Limited (SGX:P34
) has reported an EBITDA of US$16.8 million ($21.6 million) for 1QFY2026 ended March 31, which is a decline of 0.8% y-o-y due to lower gross profit margin and slightly higher operating costs.
The group’s net sales for 1QFY2026 increased 6.2% y-o-y to US$159.1 million, mainly driven by its own brands business despite ongoing macroeconomic pressures from the Middle East conflict.
Net sales from its Own brands business rose 19.6% y-o-y led by the strong performance in Indonesia. However, overall net sales were partially impacted by a lower revenue contribution in agency brands sales due to the termination of an agency account.
Excluding the impact of the termination in 3QFY2025, agency brands sales would have grown 30.4% y-o-y.
Gross profit margin for 1QFY2026 stood at 26.6% and was down 140 basis points y-o-y, mainly driven by weaker Indonesian Rupiah and the absorption of higher cocoa costs in the cost base from earlier forward contracts.
On the cash flow front, Delfi generated US$28.7 million in net cash from operations (after working capital), a portion of which was used to fund US$2.0 million in capital expenditures and fixed asset advances.
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Working capital stood at US$134.9 million, an increase of US$1.1 million against the figure as at December 31, 2025. The higher number was driven by a US$22.0 million reduction in trade payables, and US$5.7 million increase in trade receivables, partially offset by a US$26.6 million reduction in inventories.
Cash balance increased by US$25.9 million to US$93.8 million at March 31, up from US$68.0 million as at December 31, 2025. The figure excludes the US$10.3 million final dividend for FY2025, which was already paid on May 15.
Looking ahead, to mitigate the various risks arising from the Middle East conflict, Delfi will proactively manage its supply chain and increase its inventory of essential raw materials.
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The group will also continue reinforcing its market leadership through targeted investments in its core brands and product innovation.
Shares in Delfi closed unchanged at $1 on May 19.
