The DOGI group achieved an improvement of 7.1 million euros in its operating results in the first six months of 2008. This number represents an improvement in its results of 50% compared with the same period in the previous financial year. The group continues to make progress towards the achievement of its goals in terms of financial profitability and efficiency, and is holding onto its position as world leader in its sector.
This improvement is due largely to the positive results of the Spanish business, following the major restructuring carried out in 2007. Moreover, the adjustment of production capacity in Spain to suit the realities of demand on the European market has allowed the company to focus production on innovative, highly profitable fabrics and rescale the group's production structure in the most efficient way possible.
This positive trend in results will accelerate following the concentration of production capacity at the new facilities in Spain, DOGI II, which has been operational since 25th August and is also home to the group's corporate headquarters.
With regard to the Asian resource optimisation plan, presented at the annual general meeting of shareholders last April, and in particular to the process of transferring production from the Philippines plant to other Asian sites, this is going ahead according to plan in terms of timescale and form. Production has finally been shut down completely, a month ahead of schedule. Moreover, the redundancy scheme drawn up has been very well received by all concerned.
The companies which recently joined the group have also contributed to this considerable improvement in results. DOGIEFA, the operations centre on the Indian subcontinent, is fully operational and the American firm EFA, acquired in April 2007, is now fully integrated into the DOGI group.
The consolidated net turnover of the DOGI group in the first half of 2008 was 7.37% down on that recorded in 2007. This fall would only be 3.69% if variations in exchange rates for the euro against local currencies were not taken into account.
This figure is due essentially to the reduction in sales in Spain – a consequence of adjusting production at the Spanish plant to the realities of demand on the European market– and to a slight fall in sales in the United States, due to the slow-down in demand from our main American customers.