Broker: CGS International
Date of Report: March 20, 2026
Excerpt from CGS International report.
Report Summary
- Delfi Ltd is expected to experience gradual gross profit margin recovery through 2026 as high-cost cocoa inventory rolls off, with stronger margin expansion anticipated from 2H26 as forward cocoa hedges expire and cocoa prices remain lower.
- Despite a minor dip in revenue for FY25, Delfi’s cash flow has improved significantly, allowing continued investment in marketing to strengthen its brands in core markets like Indonesia and the Philippines, setting the stage for a potential earnings upcycle in FY27.
- Short-term margin relief appears priced into Delfi’s share price, and while earnings recovery in FY26 may be gradual due to elevated operating expenses, stronger growth is expected in FY27, supported by improved margins and continued brand investment.
- Risks include currency fluctuations, economic downturns affecting demand, and unresolved legacy tax claims in Brazil that could impact financials if materialized.
- Delfi maintains a solid ESG profile relative to peers, with improvements in sustainability practices, though the broker sees room for even higher environmental scores in future assessments.
above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com/
