Schiesser parent Delta Galil ends 2023 with a decline in sales and profits

The Israeli textile group Delta Galil Industries Ltd. had to accept losses in sales and earnings in the 2023 financial year. In the current year, the parent company of the lingerie brand Schiesser wants to return to its growth path.

According to a statement published on Monday, group sales in 2023 amounted to almost 1.86 billion US dollars (1.71 billion euros). This means that it missed the previous year’s level by nine percent. Adjusted for exchange rate changes, revenue fell by eight percent.

Delta Galil forecasts a return to growth in 2024

Due to the decline in sales, earnings fell significantly despite an increased gross margin. Operating profit shrank by 22 percent to $144.9 million. The annual surplus attributable to shareholders fell by 28 percent to 79.2 million US dollars (73.1 million euros). Adjusted for special effects, which resulted primarily from restructuring measures and value adjustments, net profit fell by 24 percent to $91.6 million.

Despite ongoing uncertain conditions, management expects sales and earnings growth again in 2024 thanks to the cost-cutting measures implemented last year. Group sales are forecast to increase to between $1.951 and $2.031 billion, while net profit adjusted for special items is expected to reach between $99.1 and $114.7 million.