ISRAEL: Delta Galil Q4 surges on strong European sales
- Q4 profit jumped 66% to $13.9m
- Sales rose 40% to $246.6m
- CEO aims to reach $1bn in sales during 2013
Strong sales in Europe and the acquisition of German lingerie group Schiesser have helped Israel-based underwear and sock maker Delta Galil Industries to book a 66% jump in fourth-quarter profit.
The company today (20 February) said net income reached US$13.9m for the three months ended 31 December, compared to $8.3m the year before.
Sales reached $246.6m, up 40% on the $176.4m recorded last time. Gross margin improved to 25.5% from 20.1%.
Growth was driven by Delta's acquisition of Schiesser as well as strong sales in Europe, mainly in Germany, and positive momentum in the US.
"In 2012 we delivered exceptional top-line and bottom-line performance and made great strides in executing Delta Galil's long-term strategies to transform the company into a leading, diversified global competitor in branded and private label intimate apparel," said CEO Isaac Dabah.
"We increased our branded business and our European footprint through the Schiesser acquisition, further penetrated the US mass market channel, and expanded our socks category and US kids business, through our recent acquisition of Little Miss Matched."
Over the full-year, net income climbed to $57m, from $33.9m the year before. Sales increased 20% to $817.8m from $678.8m last time.
Looking forward, Delta Galil expects full-year profit to range from $38m to $40m - a 15% rise on 2012 - while sales are seen at between $910m and $920m.
"Our outlook for 2013 calls for Delta Galil to approach $1bn in sales, accompanied by further growth in profitability. We plan to get there through continued organic growth in areas such as in Delta USA, Socks business and Delta Israel retail operations," Dabah added.
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