Sociedad Textil Lonia’s revenue up by 15 percent in 2016

The Galician group that markets Purificación García and CH Carolina Herrera brands obtained a profit of 37.3 million euros during its last accounting year, finalized on February, 28.

This figure implies an improvement of 15 percent over the gains recorded in the previous twelve months, according to the accounts deposited with the Spanish Mercantile Register.

In spite of the general improvement, Textil Lonia invoiced 0.5 percent less than the previous year, closing the period with a turnover of 331.8 million euros (compared to 333.5 million euros noted in 2016) and marking a historical record, highlights 'La Voz de Galicia'.

Textile Lonia saves the year thanks to sales rebound in America

The group managed to maintain its results in Europe, although it was not enough to compensate for the slowdown in its domestic market or the falls in Asia. A slight rebound in sales in America, a market where they earn a third of their income, mitigated the blow.

The fall in sales in Spain is reflected in the management report of the company, where it is recognised that "the greatest risk to which the group is subject remains the contraction of consumption, especially in Spain and Portugal." Looking ahead, Textil Lonia is more positive, pointing out that they already see "symptoms of improvement".

Textile Lonia closed the year with 37 million euro in profits, five million more than in the previous year, thanks to lower spending on supplies, which were reduced by 10 million euros, and a more favourable currency effect. Nevertheless, the directors of the company, including fellow fashion mogul Adolfo Domínguez’s brothers, will allocate this year’s proceeds entirely to strengthen the company's reserves. In other words, the Dominguez siblings and the Puig family, who control 25 percent of the capital, are left without dividends. In the previous year, the two families took 20 million euro to account for the benefits of the exercise, recalls the Spanish online journal ’Economia Digital’.

On another note, the group's management reported earlier this month on its strategic plan, which they have been designing since last March, and which will include "a series of organisational and management improvements aimed at increase revenue and results in the coming months ".

Photo:CH Web