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Feb 27, 2023
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Nextil reported lower revenues in 2022 to just 50 million euros due to the closure of its El Masnou plant

Translated by
Feb 27, 2023

The Spanish textile industrial group Nextil saw its revenues fall by 22% in 2022, mainly due to the closure of its plant in El Masnou (Barcelona). Thus, its turnover stood at 49.7 million euros, compared to 63.4 million euros in 2021.

Nextil reported lower revenues in 2022 to just 50 million euros due to the closure of its El Masnou plant - Nextil

The company clarified in its annual results report that "on a like-for-like basis, i.e. without including the discontinued activity of El Masnou, turnover in 2021 would have been 51.3 million euros.’’

In addition, Nextil's Ebitda in 2022 stood at 2.3 million euros, "although, discounting the costs of setting up the new factory in Guatemala, which amounted to 1.5 million euros, it would have reached 4.3 million euros," the group stated. It also added that its Ebitda suffered from the increase in raw materials, transport and energy costs that affected the industry over the last year and on a global scale, and which "could not be passed on to customers."

Despite these circumstances, its operating profit margin slightly increased from 8.6% to 8.7%. Net operating income, on the other hand, amounted to negative 0.9 million euros, compared to the positive 0.9 million euros recorded in 2021.

The company's balance sheet for 2022 stated that "it is finalizing its reorganization and reorientation towards higher value-added segments in order to begin a new phase focused on business growth, cash generation and increased profitability."

Nextil is confident that the opening of its plant in Guatemala will be one of its growth drivers in 2023. With an annual production capacity of 6 million meters of textiles, the company predicts that the new factory will allow it to expand its portfolio of European and American customers.

The group also believes that its Portuguese companies in the luxury segment, SICI93 and Playvest, will generate higher earnings. At the same time, Nextil is exploring new opportunities "to grow inorganically in Portugal, in order to strengthen its position in the luxury sector, generating synergies and creating value."

Finally, Nextil noted in its annual report that it "is continuing to actively develop new lines of research and dry cleaning certifications with the Greendyes patent,’’ which, it expects, will open up "new business opportunities."

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