Home / Knowledge / News / Textiles / Turnover of Nilorn Group goes up for second quarter
Turnover of Nilorn Group goes up for second quarter
21
Jul '08
Nilorn Group reports the results for the second quarter of 2008. The operating profit, excluding items of none recurring nature, improved both for the second quarter and for the first half year 2008 in comparison with the same period for 2007.

We have continued our focus on sales and marketing activities and worked intensively with design and product development, showcasing new concepts to both new and existing customers. This work has produced good results and has attracted strong interest among our customers.

Great effort has been done to improve our purchasing routines, which has resulted in a substantially improved gross margin.

The work to strengthen the Nilorn Group regarding branding and design has led to change structure of Nilorn Turkey to a client- and concept oriented organisation. With this change we have improved our service to global clients with production in Turkey.

During the second quarter a joint-venture agreement was signed with Hembly International Holdings Limited, a garment producer, for an establishment in China. This co-operation gives local presence in China, shorter lead times and opportunities to be introduced via Hembly, to new clients and new markets.

We are also pleased to announce Steve Ablett as new MD for Nilorn UK. Steve, who is market- and client oriented, has experience from our business and will add a lot of competence and experience to Nilörns business in United Kingdom and to the Group. With these activities, modifications and increased focus on clients, I look forward to the rest of 2008.

ORDER INCOME:
Order income during the second quarter decreased by 4 % in comparison with the same quarter of the previous year and totalled SEK 81m (84). Order income during the half year increased to SEK 160m (158).

NET TURNOVER AND PROFIT:
Net turnover for the second quarter increased by 7 % to SEK 85m (80). Net turnover for the half year increased by 4 % to SEK 151m (145). The currency exchange rates have had a negative effect on the sales with SEK 9m. Adjusted for the currency effect the growth was 10 % for the half year.

The gross profit margin, excluding items of none recurring nature, improved to 45 (40) % for the quarter and to 46 (41) % for the half year. The gross profit margin increased due to moved production from Europe to Asia and to increased design value in the products.

The selling expenses totalled 27.3 (24.6) % of turnover and administrative expenses to 12.8 (11.9) %. The increased selling expenses depend on marketing activities and improved client service.

Operating profit for the second quarter was SEK 3.2m (4.3) and profit before tax SEK 4.1m (3.5). Items of none recurring nature affected the result by SEK 2.8m (1.4). Operating profit for the half year was SEK 2.7m (3.8) and profit before tax SEK 2.9m (3.0).

Items of none recurring nature affected the result by SEK -2.5m (2.7). The items of none recurring nature during 2008 comes from the decision to close down the production in Turkey and dismissal of employees. Net financial items for the second quarter totaled SEK 1.0m (-0.9), of which exchange-rate differences were SEK 0.3m (0.0).

The tax-rate was 24 (26) % for the quarter and 36 (4) for the half year. The tax affected positively 2007 of adjustment in deferred tax liabilities and negatively in 2008 of close-down of production in Turkey as no deferred tax receivable is booked.

Profit before tax for the second quarter improved with SEK 0.6m to SEK 3.2m (2.6) and earnings per share totalled SEK 1.22 (0.98). Profit before tax for the half year decreased with SEK 1.0m to SEK 1.9m (2.9).

CAPITAL TIED UP:
During the period, capital tied up in goods has increased by SEK 1.1m to SEK 43.0m (41.9). Account receivable decreased by SEK 4.5m to SEK 43.6m (48.1).


Must ReadView All

ITC, ICS tie up to help Moroccan textile value chain

Textiles | On 21st Apr 2018

ITC, ICS tie up to help Moroccan textile value chain

The International Trade Centre (ITC) has partnered with ICS, which...

Bangladesh garment manufacturers call for fair pricing

Apparel/Garments | On 21st Apr 2018

Bangladesh garment manufacturers call for fair pricing

Bangladesh garment manufacturers want a ‘commensurate adjustment’ by...

Pak ministry proposes extension to PM package for 2018-19

Textiles | On 21st Apr 2018

Pak ministry proposes extension to PM package for 2018-19

Pakistani textile ministry has reportedly proposed extending the...

Interviews View All

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Tom Adeyoola

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

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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


April 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search