SINGAPORE (May 14): Delfi reported 1Q19 earnings ended March increased 21.6% to US$9.2 million ($12.6 million) from US$7.6 million in 1Q18.

Revenue for 1Q19 was 19.5% higher at US$128.2 million from US$107.3 million a year ago, with higher revenue contribution from both Indonesia and regional markets.

Building on the positive momentum from FY18, the group’s Own Brands sales increased by 25.7% y-o-y with growth driven by the strong demand for its products in the premium format category mainly in Indonesia.

Delfi’s Own Brands sales continues to be the major contributor to its business, forming 68.9% of revenue, compared to 65.5% in the previous period. The Own Brands portfolio extends into the categories of chocolate confectionary, biscuits and wafers, breakfast, beverages and baking.

The group’s Agency Brands also achieved y-o-y revenue growth across markets of 7.7%.

Since cost of sales increased by 17.2% y-o-y to US$82.3 million, 1Q19 gross profit came in at US$45.9 million, 23.8% higher than US$37.1 million a year ago.

Gross profit margin increased by 1.3 percentage points to 35.8%, the highest level the group has achieved over the last three years.

Other operating income dropped by 30.1% to US$0.9 million from US$1.3 million in the previous year.

As at end March, the group’s cash and cash equivalents stood at $49.4 million.

Selling and distribution expenses increased by 18.0% y-o-y to US$25.3 million, while administrative expenses increased by 23.6% y-o-y to US$6.4 million and finance costs grew by 44.3% y-o-y to US$1.0 million.

John Chuang, CEO of Delfi, says, “Looking ahead, I believe that although the operating environment remains challenging, we have established a solid foundation upon which we can continue to pursue our growth objectives and build a strong and sustainable future for our business.”

“Through our continued focus on top line expansion by further growing our core premium brands, extending into the snacking category and strengthening our value segment; and stepped up productivity efforts, we expect, barring unforeseen circumstances, to continue the growth momentum achieved in 1Q19 and perform better in FY19 as compared to FY18,” Chuang adds.

Shares in Delfi closed at $1.35 on Tuesday.