The Israeli textile group Delta Galil Industries Ltd. exceeded its own expectations in the 2022 financial year and achieved a solid increase in sales despite adverse conditions. In terms of earnings, however, the parent company of the Schiesser lingerie brand was not quite able to match the previous year’s level due to higher costs. In the current year, however, profits are expected to increase again.
According to the annual report for 2022 published on Wednesday, the group’s sales amounted to 2.03 billion US dollars (1.90 billion euros). Compared to the previous year, this meant growth of four percent. Adjusted for exchange rate changes, revenues increased by seven percent. Adjusted for currency effects, sales increased in all market regions and business areas, the company announced.
However, operating income fell 2 percent to $185.1 million due to a lower gross margin, higher sales and marketing expenses, and negative special items. Reported net income was $115.4 million (€107.8 million), down four percent from a year earlier. Adjusted for special effects, it was 120.6 million US dollars and thus at the upper end of the forecast range.
For 2023, CEO Isaac Dabah expects “challenging market conditions” to continue, but hopes for an increase in sales and increasing profitability in the second half of the year. The CEO also announced further investments in digital capabilities and the launch of new brands. Specifically, management is forecasting revenue in the range of $2.00 billion to $2.08 billion and net income of between $120.9 million and $130.2 million for the current year.