Delta Galil Industries, Ltd., a global leader in intimate apparel, activewear, and denim, has reported record financial performance for the third quarter of 2024, with significant growth across key metrics and channels. The company’s robust results underscore the success of its diversified business model, innovative strategies, and operational efficiencies.

Financial highlights

- Record Sales: Third-quarter sales surged by 13% to $524.2 million, marking a record performance across all channels. Year-to-date sales reached $1.45 billion, up 7% from 2023.

- mproved Margins: Gross margin rose to a record 41.6%, a 70-basis point improvement year-on-year, driven by higher volumes, enhanced factory efficiencies, and a favorable channel mix.

- EBIT Growth: Earnings Before Interest and Taxes (EBIT) climbed 13% to $52.3 million, representing 10.0% of sales.

- Earnings Per Share: Diluted EPS increased 6% to $1.16 for the quarter, and 34% to $2.29 for the first nine months of the year.

- Dividend Announcement: Delta Galil declared a $0.31 per share dividend, amounting to $8.1 million, to be distributed on December 10, 2024.

Operational strength

Delta Galil's CEO, Isaac Dabah, attributed the record results to the company’s comprehensive strategies, including realignment of manufacturing capabilities and operational efficiency enhancements. “Our strong performance reflects the value of our diversified business model and global workforce,” Dabah said.

Strategic initiatives and ESG commitment

During the quarter, Delta Galil announced a strategic partnership with Reliance Retail Ventures, India’s largest retail company. This collaboration aims to expand Delta Galil's innovative presence in the Indian intimate apparel sector. Additionally, the company published its 2023 ESG report, reaffirming its commitment to sustainability and inclusivity.

Solid financial position

Delta Galil’s balance sheet highlights its stability and growth:

- Equity: Record shareholders’ equity of $797.8 million, up 10% year-on-year.

- Net Debt: Reduced by 9% to $162.5 million, reflecting strong operating cash flow and disciplined capital allocation.

- Cash Flow: Operating cash flow (excluding IFRS 16) rose by 23% to $37.2 million in Q3.

Reaffirmed 2024 Guidance

Based on its year-to-date performance, Delta Galil reaffirmed its full-year 2024 guidance:

- Sales: $1.99 billion to $2.03 billion.

- EBITDA: $266.3 million to $276.3 million.

- Net Income: $106.9 million to $114.7 million.

The company’s focus on innovation, operational excellence, and strategic partnerships positions it well for continued growth in 2024 and beyond.

For more details on Delta Galil's financial performance and strategic initiatives, visit www.deltagalil.com.