Nextil achieves positive EBITDA despite drop in revenues

Nextil, owner of brands such as Treiss, EFA, Ritex, SICI93, Playvest, Anna Llop and Dogi, managed to maintain a positive EBITDA of 0.6 million euros in the first nine months of the year, despite the fall in sales owing to the lack of commercial activity in key markets, such as Italy or Asia, due to the Covid-19. The company said in a statement that turnover for the first nine months of the year was 44.6 million euros, down 37.9 percent. The company added that this trend that is expected to continue until the beginning of next year.

EBIT for the period under review was negative by 8.2 million euros due to drop in sales and 3.6 million euros of impairment charges related to Treiss brand, where strategy aimed at gradually reducing activity in the fast-fashion segment and focusing on higher value-added segments was carried out.

The company’s turnover in the garment unit was 25.4 million euros, down 37 percent, mainly because of the pandemic and the reduction of activity in the fast-fashion segment. The company further said that in the luxury segment, turnover was 23 million euros, in line with the results for 2019. SICI93 recorded growth and Playvest maintained its turnover, although it expects to close the year with an increase of more than 20 percent. The EBITDA of this business unit was positive at 3.1 million euros.

The company’s fabrics unit recorded a 39.1 percent drop in sales, to 19.3 million euros. The El Masnou plant had low activity for the last four months, making it necessary to apply a temporary employment regulation to adjust the workforce to the current reality of the business. Within this unit, EFA in the USA focused on the medical segment, performed well. This, together with a very significant improvement in gross margins and a considerable reduction in costs, enabled EFA to obtain an EBITDA of 0.110 million euros in the first nine months of the year.