Delfi Limited's 1H 2025 Net Profit Declines 37.7%
Singapore-listed chocolate confectionery company Delfi Limited, reported a 37.7% decline in net profit for the first half of 2025, dropping to USD 12.2 million from US$19.6 million in the same period last year. Excluding a non-recurring expense from streamlining its Philippine manufacturing operations, net profit would have fallen by 33.9% to US$12.9 million.
Revenue for the period saw a slight dip of 0.5%, totaling USD 259.6 million compared to USD 260.8 million in H1 2024, primarily due to softer performance in Indonesia, partially offset by growth in regional markets such as the Philippines and Malaysia. The weaker Indonesian rupiah against the US dollar further pressured the top line. Delfi attributed the profit decline to increased promotional spending in Indonesia to bolster its key brands amid intense competition, coupled with reduced promotional activity by some agency brands. Persistently high cocoa bean prices, a global challenge for chocolate manufacturers, also continue to strain margins. Rivals like The Hershey Company and Mondelez International, both competitors in the mass market segment that Delfi competes in have also been navigating challenging operating conditions. The Hershey Company saw a significant 26.0% increase in consolidated net sales for the second quarter of 2025, but net income, however, decreased by 65.2%. Mondelez International reported a 7.7% increase in net revenues for the second quarter of 2025, along with higher operating income. Their outlook however is less optimistic with management projecting a 10% decline in EPS for the year.
In contrast, premium brand Lindt & Sprüngli announced strong 1H 2025 financial results with an 11.2% organic sales growth in H1 2025, leading to an upward revision of its full-year guidance.
Delfi holds a commanding position in Indonesia’s chocolate confectionery market, with their flagship brand, SilverQueen, remaining a household name, bolstered by a legacy of brand loyalty since the 1950s and a portfolio that includes premium offerings like Van Houten and Delfi Premium.
Delfi has actively pursued innovation to strengthen its market position. In March 2025, SilverQueen launched a limited-edition Dubai Chocolate bar (capitalizing on the viral pistachio-knafeh chocolate trend which propelled pistachio to be among the top flavors in 1H 2025 chocolate confectionery product launches), alongside special edition Chunky bars and Montes Flower canister packaging. These launches align with consumer demand for indulgent, premium products, particularly during festive seasons like Valentine’s Day.
Competitors are also innovating to capture market share. In January 2025, Godiva introduced a Lunar New Year Gift Box with flavors like Almond Apricot Dark Chocolate and Strawberry Caramel Milk Chocolate, targeting gifting occasions. The Harvest launched an Angel Hair Chocolate bar (combining arum manis and yogurt-flavored cereal for a unique texture), while RR Chocolate rolled out multiple flavors like Matcha and Sea Salt Dark Chocolate. Baked Indonesia introduced single-origin Sumatra chocolate bars, emphasizing local sourcing.