Decline in revenue is due to regional currencies weakness, increased promotional investments, and decline in net sales from termination of an agency brand in 3Q2023.

Chocolate confectionary company Delfi Limited P34 has reported earnings of US$34.0 million ($45.47 million) for the FY2024 ended Dec 31, 2024, down 26.6% y-o-y. 

The group’s 2HFY2024 earnings came in 31.7% y-o-y lower at US$14.4 million. 

Earnings per share for FY2024 came in at 5.55 US cents per ordinary share, down 26.6% y-o-y from the 7.57 US cents declared in the same period a year ago. 

Revenue for FY2024 decreased 6.6% y-o-y to US$502.7 million, and gross profit decreased 10.1% y-o-y to US$137.8 million.

The decline in revenue is due to regional currencies weakness, in which the Indonesian rupiah depreciated by 3.9% against the US dollar, impacting raw material costs and resulting in a 110 basis points decline in FY2024 gross profit margin. 

The group also increased promotion investments in 2HFY2024 to drive long-term growth of brands and counter strong competition. Meanwhile, net sales declined due to the termination of an agency brand in 3Q2023. 

The group generated net cash from operating activities of US$52.6 million, which was mainly used to fund its capital expenditure programme for capacity expansion, which was started in 2023, and to improve efficiencies. 

As at Dec 31, 2024, Delfi’s cash balance stood at US$43.8 million. 

The group is declaring a total FY2024 dividend of 3.24 US cents per share. 

Shares in Delfi closed 0.5 cents lower or 0.676% down at 73.5 cents on Feb 25.