Singapore licensed fund manager
Insights
Company Insights - Delfi Limited
By
Kenny Tan
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Weathering the next storm
Company description
Delfi Limited is a Singapore-listed, family-controlled chocolate confectionery manufacturer and consumer-goods distributor whose roots in Indonesia date to ~1950. It manufactures proprietary brands at its centralised Bandung hub and distributes them, alongside a third-party Agency Brands portfolio (established 1987), across Indonesia, Malaysia, the Philippines and Singapore. Delfi has held >30% market share of the Indonesia chocolate-confectionery market for over a decade. FY25 net sales were USD500mn (Indonesia 60%; Own Brands 59%), PATMI USD33mn, with net cash of USD71mn.
Investment merits & opportunities
Structural growth intact: Despite the sales slowdown of the past 2 years following record cocoa prices, Delfi has still grown sales at 5% CAGR over the past 4 years. Active work to prune underperforming brands has materialised through the company’s operating efficiencies, with record ROE% achieved in 2022.
Conservative stance: The recent share price retracement suggests an unwinding of earlier expectations regarding a margin recovery after two difficult years with elevated cocoa prices, as cocoa prices rebound in 2Q26. Delfi’s conservative capital structure and investment prudency should see them tide through this upcoming storm.
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