Nextil manages to maintain positive EBITDA in H1
29 Oct 2020
Nextil, owner of brands such as Treiss, EFA, Ritex, SICI93, Playvest, Anna Llop and Dogi managed to maintain a positive EBITDA of 1.4 million euros in the first half of the year, despite much of the commercial activity has been paralyzed since February in some markets, such as Italy or Asia, due to the Covid-19 pandemic. The company said in a statement that the turnover for the period was 34.8 million euros, down 28.6 percent.
The company added that in the last few weeks, a reactivation in orders is being noticed, especially in lingerie and swimwear, so a slight recovery in sales is expected in the second half of the year. In the coming months, the company also expects athleisure segment to grow by 25 percent and a progressive recovery is expected as commercial activity recovers.
Performance of Nextil’s business units
The turnover of the garment unit was 19.8 million euros, down 26.1 percent, mainly because of the pandemic and the reduction of activity in the fast-fashion segment. However, the company said, in the luxury segment turnover grew by 29 percent compared to the first half of 2019, reaching 15.5 million euros. In Playvest, it remained practically constant and reached 2.2 million euros. Thus, the annual EBITDA of this business unit was positive by 2.5 million euros, a reduction of 2 million euros compared to the results for the same period last year.
Nextil’s fabrics unit recorded a 31.7 percent fall in sales and an EBITDA of negative 1.1 million euros, which represents an improvement of 0.5 million euros compared to the same half of 2019 due to measures implemented to improve the structure of the group and the optimization of processes, which have helped to mitigate the effects of the pandemic. Within this unit, EFA in the USA performed well, as it has focused on the medical segment. With a very significant improvement in gross margins and a considerable reduction in costs, EFA has achieved an EBITDA of 0.240 million euros in the first half of the year.