Home / Knowledge / News / Textiles / Rieter more than doubles H1 net profit
Rieter more than doubles H1 net profit
23
Jul '15
Net profit in the first six months of 2015 at Switzerland based spinning technologies manufacturer Rieter Management AG more than doubled over the same period of 2014.

In a press release, Rieter said its net profit in the six months to June 30, 2015 soared to CHF 29.1 million or 5.3 per cent of sales compared to CHF 14.3 million or 2.7 per cent of sales in the first half of 2014.

Sales however rose much slower at 6 per cent to CHF 553.9 million in the first half of 2015 as against CHF 522.1 million in the corresponding period of the previous year.

According to the spinning technologies producer, it posted growth in sales on the back of its large order backlog at the start of the year.

EBITDA for the reporting period climbed 36 per cent year on year to CHF 66.0 million or 11.9 per cent of sales as against 9.3 per cent of sales in the first half of 2014.

EBIT surged higher by 60 per cent from the same period in the prior year to CHF 46.1 million in the period under review, while EBIT margin increased from 5.5 per cent to 8.3 per cent of sales.

“This reflects the positive development in the three business groups and effects of cost-reduction measures which were implemented as a response to scrapping of minimum exchange rate of the euro,” it noted.

“The gain on the sale of a property amounting to CHF 5.0 million also contributed to the satisfying result,” Rieter added.

Rieter's financial result in the first half of the current year improved to a loss of CHF 4.7 million compared to a loss of CHF 7.3 million in the same period of the earlier year.

In the six months to June 30, 2015, the tax ratio was down to 29.7 per cent as against 33.5 per cent in six months to June 30, 2014.

On account of the favourable trend of these two parameters along with the improvement in EBIT, Rieter was able to more than double its net profit in the first half of 2015.

Rieter's capital expenditure in the period under review totaled CHF 7.3 million, down a steep 40 per cent from the prior year first half, while R&D spend rose marginally to CHF 22.9 million.

Net working capital grew by CHF 37.5 million CHF in the first half year of 2015, although inventories were reduced.

“This development is due to an increase in trade receivables and a reduction in trade payables as well as advance payments from customers,” it explained.

Rieter paid a dividend of CHF 20.6 million or CHF 4.50 per share out of the reserve from capital contributions and repaid a bond issue totaling to CHF 151.9 million CHF in April 2015.

After which, cash and cash equivalents at Rieter amounted to CHF 257.6 million and net liquidity to CHF 139.0 million as of June 30, 2015. (AR)

Fibre2Fashion News Desk - India


Must ReadView All

Courtesy: Pyrates Smart Fabrics

Textiles | On 16th Jul 2018

Spain's Pyrates Smart Fabrics targets Asia, S America

Spain-based Pyrates Smart Fabrics, whose major markets are northern...

Bangladesh to modernise 3 jute factories to boost sector

Textiles | On 16th Jul 2018

Bangladesh to modernise 3 jute factories to boost sector

The executive committee of Bangladesh’s National Economic Council...

Courtesy: Asda

Apparel/Garments | On 16th Jul 2018

J Sainsbury agrees to £3.5 bn financing for Asda merger

J Sainsbury plc has agreed for a financing package of £3.5 billion in ...

Interviews View All

Top executives
Textile & apparel bodies

The mid-term review of FTP is progressive, growth oriented

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Top executives
Textile industry

It will take some time for the people to change their buying choices

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search