Delfi’s Q1 Ebitda slips 0.8% to US$16.8 million despite higher sales
The group expects the Middle East conflict to exert upward pressure on some operating costs
[SINGAPORE] Chocolate confectioner Delfi reported a 0.8 per cent dip in its earnings before interest, taxes, depreciation and amortisation (Ebitda) to US$16.8 million for the first quarter ended Mar 31, 2026, from US$17.0 million in the year before.
The slight drop in Ebitda came even as net sales for the quarter rose 6.2 per cent year on year to US$159.1 million, the group said in a business update on Tuesday (May 19).
Topline growth was driven by a 19.6 per cent increase in the group’s Own Brands sales across the region, sustaining a momentum from late 2025. However, the overall dip in earnings was weighed down by a decrease in Agency Brands sales.
Gross profit margin for Q1 fell by 140 basis points to 26.6 per cent from the year before. The group attributed this primarily to a weaker Indonesian rupiah and the absorption of higher cocoa costs in its cost base from earlier forward contracts.
Sales in Indonesia, the group’s largest market, grew 2.5 per cent to US$101.9 million. Delfi noted that Own Brands in the country maintained strong growth momentum, growing 20.5 per cent on the back of its core premium brands. This was partially offset by the strategic termination of an Agency Brands account.
Sales in its regional markets – comprising Malaysia, the Philippines and Singapore – climbed to US$57.2 million, up 13.3 per cent from the year-ago period.
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Delfi generated net cash from operations of US$28.7 million for the quarter. Its cash balance stood at US$93.8 million as at end-March, up from US$68.0 million as at end-December.
The group expects the ongoing Middle East conflict to exert upward pressure on some operating costs. It added that while the cocoa market has retreated from 2025 peaks on expectations of a supply recovery, the outlook remains volatile.
It said: “The ongoing conflict in the Middle East has heightened macroeconomic uncertainty and triggered volatility in energy costs and global currencies, including those in our key markets.”
To mitigate risks, Delfi said it is proactively managing its supply chain and strategically increasing its inventory of essential raw materials.
Shares of Delfi closed flat on Tuesday at S$1 before the announcement.
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