The company reported financial results for the fourth quarter and full year ended December 31, 2014, which was a first year to cross the US 1 billion mark, with improved profitability.

“We summarize today six years of growth and increased profitability. With US 167 million cash on hand, a strong balance sheet and strengthened management, we are ready to rise to the next level,” commented Isaac Dabah, Delta Galil CEO.

Sales growth

Delta Galil reported sales of US 277.4 million for the fourth quarter of 2014, an increase of 8% from US 255.9 million for the same quarter of 2013. Sales for the full year 2014 were US 1,031.9 million, an increase of 6% from US 974.7 million in 2013.

Representing the company’s first full year of sales over US 1 billion, the annual increase reflected top-line growth in all key geographic regions, as well as the positive impact of Delta Galil’s diverse customer mix and growing sales of branded products.

Income

Operating income was US 22.3 million for fourth quarter of 2014, up 6% from US 21.1 million in the same quarter of 2013.  For the full year 2014, operating income rose by 9%, to US 74.4 million.

The growth in full year operating income reflected the company’s growing sales and higher gross profit margin, partly offset by increased selling and marketing expenses as it invested in the growth of its business.

Net income excluding non-recurring items was US 15.3 million in the 2014 fourth quarter, a 6% increase compared with US 14.5 million a year earlier. For the full year 2014, net income excluding non-recurring items was US 48.4 million, compared to US 44.3 million for 2013.

Growth potential

“Our performance in 2014 set records in many key areas, including our first full year of sales over US 1 billion, and meaningful increases in operating income, cash flow and net income,” said Isaac Dabah.

“As a global enterprise, we are capitalizing on the growth potential of diverse markets around the world. In the past year, our progress included double-digit top-line growth and improved profitability for Delta US A, higher sales and EBIT at Delta Israel, and solid sales growth and higher EBIT in our Schiesser bUS iness in Europe.”

“We also continued to add or expand several lines, including the introduction of Avia branded sports products in Walmart, and new joint ventures in socks and seamless products. And we have added significant management talent in areas that will drive our future growth.”

2015 financial guidance

The company estimates that the impact of the changes in 2015 expected rates compared to the average exchange rates in 2014, on the operating income and EBITDA are approximately US 8 million, and on net income is approximately US 5.8 million.

Full-year 2015 sales are expected to range between US 1,065 million-US 1,085 million, representing an increase of 3%-5% from 2014 actual sales of US 1,031.9 million.

Full-year 2015 net income is expected to range between US 48.5 million-US 51.5 million, representing an increase of 0%-6% from 2014 actual net income of US 48.4 million.

www.deltagalil.com