Delfi H1 net profit down 37.7% to US$12.2 million on softer performance in Indonesia

[SINGAPORE] Delfi posted a 37.7 per cent drop in net profit to US$12.2 million for its first half ended Jun 30, 2025, from US$19.6 million in the previous corresponding period.

Excluding a non-recurring item resulting from the streamlining of its Philippine manufacturing operations, net profit would have been down 33.9 per cent to US$12.9 million, the chocolate confectionery company said in a bourse filing on Tuesday (Aug 12).

Earnings per share stood at 2 US cents for the half-year period, down from 3.2 cents the previous year.

In the half-year period, the company said it had spent more on promotions in Indonesia to drive the growth of its key brands and to address heightened competitive pressures.

Meanwhile, its agency brands in Indonesia recorded lower sales, on the back of reduced promotion spending by some agencies, it said.

Revenue for H1 fell 0.5 per cent to US$259.6 million, from US$260.8 million in the year before. This was primarily due to a softer performance in Indonesia, but largely offset by growth in its regional markets.

The top line also reflected the impact of a weaker Indonesian rupiah against the US dollar during the period, Delfi said.

An interim dividend of 1 US cent (1.28 Singapore cents) a share was declared for the half year, down from 2.72 Singapore cents the year before. The dividend will be paid on Sep 12, after books closure on Aug 28.

Delfi expects the operating environment to remain challenging in the rest of 2025 and into 2026, shaped by ongoing geopolitical tensions, macroeconomic headwinds and uncertainty in global trade.

Persistently high cocoa bean prices also remain a major headwind for chocolate manufacturers globally, and are expected to continue hurting industry earnings, it said.

Shares of Delfi closed S$0.01 or 1.2 per cent higher at S$0.85 on Tuesday, before the results were released.