Delfi Limited released a statement on Apr, 23 2026 summarising the board’s written replies to substantial questions submitted by investors in connection with its upcoming annual general meeting scheduled for Apr, 28 2026.

The confectionery group said lower cocoa prices are expected to bolster margins only gradually because it had secured forward-priced contracts during 2024 and 2025. Benefits will emerge as these contracts and inventories run off, while the firm continues to focus on pricing discipline and operating efficiency.

Regarding capital expenditure, Delfi noted that heavy capacity outlays in FY2023 and FY2024 are giving way to a “more moderate” programme centred on automation, labour efficiency and food-quality upgrades. Future spending will remain flexible, aligned with market conditions and balance-sheet discipline.

On geopolitical risks, management acknowledged that the Middle East conflict and potential disruption to the Strait of Hormuz could lift energy and logistics costs. Delfi is increasing buffer stocks of affected raw materials and benefits in the short term from fuel subsidies and electricity tariff support in Indonesia and Malaysia.

The board said its nominating committee maintains an active succession pipeline for the chief executive role but has not designated a successor. Decision-making has been decentralised to ensure continuity if a transition is required.

For the Agency Brands distribution unit, the ability to pass on higher energy costs lies mainly with principals; passthrough is typically partial and can lag.

The company mitigates regional currency depreciation through operational efficiencies, price reviews and product innovation, while maintaining a strong balance sheet.

Explaining governance changes, Delfi endorsed the re-election of Group CEO John Chuang as executive chairman following the previous chairman’s retirement. Lead independent director Chin Koon Yew will provide additional oversight, and independent directors continue to form the majority of the board and its committees.

Addressing comparisons with ingredient supplier Barry Callebaut, Delfi stressed that it operates as a branded consumer confectionery company and is therefore not exposed to the same industrial processing issues cited in Callebaut’s recent profit warning.

The board reiterated confidence in its brand portfolio, distribution network and financial resilience to pursue sustainable growth despite market volatility.