Delfi Limited FY2025 Financial Results: Analysis & Investor Outlook

Delfi Limited released its unaudited financial results for the second half (2H) and full year (FY) ended 31 December 2025. The report highlights the company’s resilience amid challenging operating conditions, including elevated cocoa prices and currency depreciation. Below, we analyze the key financial metrics, historical trends, dividend policy, and outlook, followed by actionable investor recommendations.

Key Financial Metrics: YoY and QoQ Comparison

Historical Performance Trends

Delfi’s Net Sales for FY2025 slightly decreased by 0.5% year-on-year to \$500.1 million, reflecting the termination of an Agency Brand and currency headwinds. Own Brands, however, grew by 4.9% year-on-year, particularly in Indonesia and Malaysia. Excluding the Agency Brand termination, consolidated Net Sales would have increased by 6.2% year-on-year. EBITDA fell 1.9% year-on-year, while PATMI declined 2.1% year-on-year. Gross profit margin contracted to 26.5%, primarily due to higher promotional spending, weaker Indonesian Rupiah, and lower margin from Agency Brands.

Dividend Policy

The Board has proposed a final dividend of 1.72 US cents per share, bringing total dividends for FY2025 to 2.72 US cents per share—a payout ratio of 50%. This dividend is payable on 15 May 2026, subject to shareholder approval.

Balance Sheet & Cash Flow

• Cash and Equivalents: \$68.0 million at year-end, up from \$43.8 million due to strong operating cash flow.
• Net Assets: \$279.2 million versus \$264.6 million at end-2024.
• Net Cash Generated by Operations: \$78.1 million, a significant increase driven by tighter working capital management.
• Capital Expenditure: \$9.2 million, lower than prior year, reflecting reduced investment and sale of property.
• Borrowings: Reduced to \$14.5 million (from \$24.8 million).

Exceptional Events and Risks

• Macroeconomic Environment: Elevated cocoa prices and a depreciating Indonesian Rupiah (down 3.8% versus USD) pressured profit margins.
• Agency Brand Termination: A terminated agency account resulted in a 7.4% decline in Agency Brands revenue.
• Strategic Promotional Investments: Increased spending to secure long-term growth and market share, offsetting competitive pressures.
• Supply Chain & Inflation: Continued challenges, with tight inventory management to ensure steady supply of raw materials.

Outlook & Chairman’s Statement

“The global cocoa market has weakened from previous peaks due to expected supply recovery. However, this transition is taking place alongside an increasingly uncertain macroeconomic landscape in Indonesia, our primary market. Consequently, we are very focused on maintaining a high level of situational awareness, to stay agile and to adjust our operations as needed to support our growth objectives in Indonesia. To capture the region’s expanding opportunities, in 2026 we will strategically focus on reinforcing our market leadership through continued investment in core brands and product innovation to broaden consumer appeal. We are also strengthening our routes-to-market capabilities by expanding our geographical reach and enhancing our sales organisation to improve our position at the retail shelf. By combining these growth drivers with strict financial discipline and a focus on operational efficiency, we remain confident in our ability to adapt our strategies and deliver sustainable value.”

The Chairman’s tone is cautiously optimistic, acknowledging macroeconomic risks but emphasizing the company’s agility, strong balance sheet, and strategic investments for growth.

Conclusion & Investor Recommendations

Overall Performance: Delfi delivered resilient results in a challenging environment, with strong cash generation, healthy balance sheet, and solid performance in Own Brands offsetting setbacks in Agency Brands and margin contraction. The outlook is cautiously positive, supported by strategic initiatives and operational discipline.

For Existing Shareholders: Hold. The company’s strong balance sheet, robust cash flow, and commitment to dividends suggest stability and potential for future upside, especially if macroeconomic headwinds abate and strategic investments in Indonesia and Malaysia bear fruit.

For Prospective Investors: Consider buying on weakness. Delfi’s resilience and strategic focus on market share and innovation position it well for recovery as cocoa prices normalize and regional growth opportunities expand. However, monitor macro risks and currency volatility closely.

Disclaimer: This analysis is based solely on the company’s published financial report and is not investment advice. Investors should conduct their own due diligence and consider their risk tolerance before making any investment decisions.

View Delfi Historical chart here