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Home News fashion

Nextil increases sales by 13.5% in the first quarter to 15.5 million euros

Carmen Toraya by Carmen Toraya
mayo 17, 2022
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Nextil increases sales by 13.5% in the first quarter to 15.5 million euros
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Nextil has increased sales by 13.5% in the first quarter of the year, reaching 15.5 million euros, as reported by the company to the Comisión Nacional del Mercado de Valores (CNMV).

 

Specifically, in this quarter, the company recorded a positive comparable gross operating profit (Ebitda) of 300,000 euros, after deducting the non-recurring expenses for this period.

On the other hand, the accounting Ebitda was 20,000 euros, a 95 % decrease compared to the 400,000 euros recorded in the same period of the previous year, due to the expenses generated by the start-up of the new factory in Guatemala and the substantial increase in the cost of raw materials, energy and transport, which could not be passed on in full to customers.

The company has specified that once the new plant in Guatemala comes into operation in the first quarter of 2023, the cost structure will be optimized with respect to the group’s current centers, which will have a positive impact on profitability.

In addition, he recalled that during this quarter, the business has been affected by tensions in the supply chain derived from the war in Ukraine and the closure of ports in China due to the pandemic.

Financial indebtedness increased by two million euros due to the net effect of a new loan of six million euros and the settlement of a final payment for the purchase of the Portuguese company Keupe.

By business unit, the garment business unit fell to 400,000 euros of Ebitda in the first quarter, compared to 1.4 million euros in the same period of the previous year, due to the commercial focus on the sports unit as a result of the drop in sales at Playvest’s main customer.

Meanwhile, the weaving unit recorded a negative Ebitda of 100,000 euros, compared to the 700,000 euros recorded in the previous year.

The company has specified that the Ebitda reflects the impact of the increase in raw material, energy and personnel costs, which have not yet been passed on to customers. Excluding non-recurring effects, the tissue unit’s Ebitda would be higher than last year’s, given that the sales figure increased by 47.8 % compared to the same period the previous year.

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