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Nextil posts improved sales and profitability

By Prachi Singh

15 Nov 2021

Business

Image: Nextil

Nexti reported a positive operating profit of 0.048 million euros in the first nine months of the year, compared with a loss of 8 million euros in the same period of the previous year.

The company’s revenue in September 2021 reached 44.8 million euros, in line with the results of the previous period, and represented 80 percent of 2019 revenue. In the third quarter of this year, sales grew by 50 percent.

Despite the increase in the price of raw materials, energy and transport, the company said in a release, EBITDA in September grew by 498 percent to 3.2 million euros, while the cumulative EBITDA margin rose from 4.3 percent in 2019 to 7.1 percent in 2021 or 8.5 percent comparable.

The group’s garment unit achieved 2.4 million EBITDA in the third quarter, compared to 0.6 million euros in 2020, with a revenue increase of over 57 percent compared to the previous year. The EBITDA margin grew from 20.8 percent in 2019 to 26.7 percent in 2021.

In the fabrics unit, EBITDA was negative 1.1 million euros compared to negative 1.4 million euros in 2020, an improvement of 22 percent. Sales in the fabrics unit grew by 34 percent, but could have been higher as the order backlog increased by 180% compared to 2019. However, the company added, ongoing yarn supply chain outages in both Europe and the Americas forced intermittent closures that prevented from meeting full demand.

Textil further said that the outlook for the last quarter of the year is very optimistic. In sports, it expects to consolidate last year’s strong growth. In the fabrics unit, the order backlog continues to grow and the recovery is noticeable in lingerie and swimwear, which exceeded the 2020 figures by 4.6 million euros.

Nextil