Home / Knowledge / News / Textiles / Greek textile firms struggling to remain profitable

Greek textile firms struggling to remain profitable

07
May '12
Grappling to retain its foothold amidst domestic and international economic crisis, which has badly hit the business, Greek textile entrepreneurs are trying various measures, including cost cutting, diversification in new markets and boosting exports.

For over the past few months, the management of Hellenic Fabrics SA is in talks with representatives of a group of American investors to secure some financial support for its development plan.

With short-term obligations totalling €64.7 million at close of 2011, the listed firm secured two new long-term loans worth €23.15 million.

Meanwhile, the company is also planning to enhance its presence in North Africa this year through its subsidiary Blu Cotoni.

The firm hopes that it would be able to grow its exports this year, and also expects the Government would soon refund the sum of seven million euros collected by way of value-added tax on exports. However, till the Government releases the said sum, the firm would have to endure liquidity crisis.

Epilektos - Selected Textiles SA is also optimistic about an improvement in its performance during first half of the current year, as it has built up a good stock of raw materials, which is expected to help it keep its average weighted costs steady during remaining part of the current quarter. The firm expects the demand to rise during the first half of current year, as compared to last year.

The firm is also continuing with its cost-cutting efforts and has inked a deal with its workers for reduced pay for one year, and is also trying to cut expenses. The company has a loan debt of €73.4 million with its exports equalling to 78 percent of its turnover.

Nafpaktos Textile Industry SA witnessed a 52.4 percent fall in its turnover during 2011, mainly as its sales plummeted due to a depletion of stock. However, the company has been able to retain its strong hold on cash flow.

According to the firm's management, the soaring of cotton prices to unprecedented highs due to shortage of the natural commodity during first half of 2011 badly hit the entire industry.

However, the firm is looking at enhancing its revenues from its diversifications and acquisitions in other sectors.

Meanwhile, Varvaressos SA European Spinning Mills is awaiting the Ministry of Development and Competitiveness approval for a bail out and restructuring plan that the European Commission approved in December 2010.

However, in spite of all adversities, the firm has succeeded in retaining its export profit margin by shipping over 70 percent of its turnover to foreign countries during last year, which reaped it €12.72 million. This helped it to cut its losses after tax from 2010's €4.12 million to €3.55 million last year.

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Textiles | On 3rd Aug 2021

Pingnan County in China investing ¥26 bn in textile industry cluster

Pingnan County in the Guangxi region of China is building a textile...

Pic: Shutterstock

Apparel/Garments | On 3rd Aug 2021

84% industrial units in Bangladesh reopen; union leaders concerned

Around 84 per cent of Bangladesh's textile and readymade garment...

Pic: Shutterstock

Apparel/Garments | On 3rd Aug 2021

Prime Content| Vietnam textile & garment exports at $17.953 bn in Jan-June '21

Vietnam earned $17.953 billion from textile and garment exports in...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Multi-functional garments will be next big thing

India-EU Summit, Representatives

India-EU Summit
Representatives

India-EU FTA will provide EU with better access to a huge & rapidly...

Textile Industry, Head honchos

Textile Industry
Head honchos

Donating 20,000 N95 masks to hospitals & NGOs

Rishav Bajoria & Subham Sengupta,

Rishav Bajoria & Subham Sengupta

Launched in October 2020, the Gumti app could not have come at a more...

Susanna Koelblin,

Susanna Koelblin

Founded in 1920, Eastman is a global specialty materials company that...

Mumin Can Eker,

Mumin Can Eker

Maseksport Inc is a readymade garment exporter. Founded in Izmir in 1989,...

Michaela Griggs & Peggy Schulz, Barco Uniforms

Michaela Griggs & Peggy Schulz
Barco Uniforms

Founded in 1929, Barco Uniforms started as an apparel company for beauty...

Shujaul Rehman, Garware Technical Fibres

Shujaul Rehman
Garware Technical Fibres

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

Bebop Sensors' smart fabrics allows for a new level of interaction between ...

Megha Kumari & Jigar Mali, Label Megha & Jigar

Megha Kumari & Jigar Mali
Label Megha & Jigar

New Delhi based label Megha & Jigar blends India's unique handcrafts...

Suman Nathwani, Suman Nathwani

Suman Nathwani
Suman Nathwani

Designer <b>Suman Nathwani</b> talks about her journey of opening a...

Shalini Sharma & Shweta Pundir Sharma, Six Yard Story

Shalini Sharma & Shweta Pundir Sharma
Six Yard Story

Six Yard Story is a premium artisanal brand with a focus to bring handloom ...

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 2021

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


Advanced Search