Delta Galil Industries, Ltd. reported sales for the second quarter of 455.8 millions dollars, an increase of 68 percent over last year and strong growth across all business segments. According to the company, organic sales, including Bare Necessities which was acquired in October last year, rose 56 percent in second quarter.
Commenting on the company’s performance, Isaac Dabah, CEO of Delta Galil, stated in a release: “We are very pleased with our performance this quarter, which now marks four consecutive quarters of record operating margin and three consecutive quarters of record gross margin, including achieving the highest ever gross margin of 41.1 percent in this quarter.” Sales increased by 35 percent, excluding Bare Necessities which was acquired in Oct 2020.
E-commerce sales on the company’s own website for the second quarter and first six months of 2021 rose 97 percent and 162 percent to 63.3 million dollars and 134.1 million dollars, respectively, compared to comparable periods in 2020. The e-commerce sales on its own website declined by 5 percent in 2021, but rose 46 percent in the first six months of the year.
Delta Galil returns to profitability in Q2 Net income, net of taxes, was 42.4 million dollars. This compares to a net loss last year of 43 million. The diluted earnings per share were 1.54 dollars compared to the 3.27 dollar diluted loss per share in the same period in 2020. The diluted earnings per share, excluding non-core items, were 1.54 dollars, compared with a loss of 1.67 dollars in the same period last year.
EBIT for the second quarter increased 97.8 million dollars to 42.4 million dollars, compared to negative 55.4 million dollars in the second quarter of 2020. EBIT before non-core items increased by 58.7 millions dollars to 42.4million dollars, compared to negative 16.2 million in the second quarter 2020.
EBIT for the first six months of 2021 increased to 70.4 million dollars, compared to a negative EBIT of 84.1 million dollars for the first six months of 2020. Non-core items excluded, EBIT was 70.4 millions dollars, compared with a negative EBIT (32.1 million dollars) for the same period lastyear.
EBITDA was 66.9 million dollars in the second quarter of 2021, compared to 6.7 million dollars in the second quarter of 2020. EBITDA for the first six months in 2021 was 119.7 millions dollars, compared with 14.2 million last year.
Delta Galil increased its dividend to 5 million dollars or 196 cents per share, to be distributed on August 26, 2021. The expected diluted EPS will range between 3.40 and 3.70 dollars. This is an increase of 15% compared to previous guidance, and up 44 to 57 percent from the actual EPS for 2019.
