ISRAEL: Delta Galil posts first-quarter net income jump
Israel-based lingerie manufacturer Delta Galil reported a jump in first-quarter net income as the company recorded rising sales combined with lower expenses and favourable currency exchange rates.
The company today (10 May) said net profit rose 30% over the quarter ended 31 March to reach US$3.9m. Sales rose 7% to $168.1m.
Operating profit rose 60% to $6.4m, which the company said reflected a combination of a growth in sales, lower general, administrative and other expenses, largely due to favourable currency exchange rates.
"We have started 2012 on a strong footing, delivering a solid performance in the first quarter," said CEO Isaac Dabah.
"Our sales increase primarily reflected our growth in North America, where we have gained share in the higher end of the market, and in Israel, where our retail business including the Delta Kids chain continues to expand. Overall, we have continued to focus on innovation, inspired by our ‘body-before-fabric' philosophy, with the goal of creating an expanding portfolio of products that are differentiated in the marketplace and have a strong consumer appeal."
"Delta Galil continues to successfully pursue strategies to grow our branded business, geographic presence and product breadth. In this regard, we recently announced an agreement to acquire Schiesser, the leading underwear manufacturer and marketer in Germany, in a deal that is expected to close in July 2012. The Schiesser transaction will significantly increase our sales of branded products, add depth in Europe's strongest market, and increase the Men's component of our business - while being solidly accretive to earnings this year."
Delta Galil has seen its third-quarter net income jump 29% as the Israel-based lingerie manufacturer booked record sales....
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