Home / Knowledge / News / Textiles / AWI well placed to withstand global financial crisis

AWI well placed to withstand global financial crisis

19
Nov '08
Australian Wool Innovation has brought in a healthy operating surplus of $5.5m and shareholders have been told that it is well placed to withstand the global financial crisis.

AWI Chief Executive Craig Welsh said the company had been prudent with its reserves and had moved millions of dollars out of floating investments into cash before the crisis hit.

As a result AWI had suffered no ill effects from the dip in global stock markets which have been prevalent throughout 2008.

"It was the right move at the right time and one which leaves AWI well placed to weather the economic uncertainty," Mr Welsh said.

Revenue for 2008 at $91m was $27m higher than 2007.

On a line by line basis, levy income was $45m versus $46.5 in 2007.

Government co-funding contribution was $12.3m up from $11.6m and Investment income was $5m up from $4.8m.

Combined with the lift in revenue, over $5m in costs were eliminated from the business with a further $4m plus in savings expected to be realised in 2009/10 when the impact of changes already underway are implemented.

"Management has significantly cut overheads to allow valuable dollars to be channelled towards marketing Australian Merino to the world," Mr Welsh said.

"These are dollars which will be saved year on year for the foreseeable future."

He told the Annual General Meeting that AWI had new goals, a new management team, a new strategic plan, new brand architecture and new relationships with key business partners, both at manufacturing and retail level, around the world.

"We have a new culture at AWI - it's a culture of accountability, driving results and making things happen in a much more dynamic global business environment," he said.

"We are now a global business with 18 overseas offices servicing more than 60 countries and several thousand Woolmark partners working with us on a business to business basis.

He said AWI had been investing in IT, to be faster, better and smarter.

"In particular, our customer relationship management program is connecting us with our business to business partners around the world and allowing us to more proactively service them," he said.

He said the new strategic plan was developed with input from Australian wool industry leaders, from our partners throughout the supply chains, endorsed by AWI's stakeholders and unanimously approved by the Board.

"We have built a business that will create sustainable long term demand for Australian Merino Wool," he said.

AWI's mission is to create new demand for Australian wool which I believe will positively impact the price that woolgrowers receive. Which is why we are positioning Australian Merino as an affordable luxury fibre. It's about getting the demand up, getting the volume up, getting the price up, and making growers and the industry more profitable and more certain to invest in the future.

Australian Wool Innovation(AWI)


Must ReadView All

Pic: Better Work

Apparel/Garments | On 24th Oct 2020

Positive change in Cambodian garment sector due to ILO BWP

Cambodian factories receiving the full package of services by Better...

Pic: Awaj Foundation

Apparel/Garments | On 24th Oct 2020

COVID erodes income of a third of Bangla apparel workers

Nearly a third of Bangladeshi garment workers suffered loss of...

Pic: Ralph Lauren

Fashion | On 24th Oct 2020

Ralph Lauren, Parity.org convene group to close gender gap

Ralph Lauren, which designs and markets premium lifestyle products,...

Interviews View All

Kaizad Hansotia, GetNatty

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Sunil Kumar Sharma, Loknayak JPNSSSG Ltd

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Spokesperson, Hugo Boss

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Fan Liyuan,

Fan Liyuan

Chinese company Jiangsu Yingyang Nonwoven Machinery, established in 1993,...

Ramez Basmaji,

Ramez Basmaji

Fabusse is a Lebanon-based fashion agency that offers a variety of...

Anupam Chakrabarty,

Anupam Chakrabarty

Headquartered in Finland, Helsinki, Lindström Group is a textile rental...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, a global association of the nonwoven fabrics industry, has been...

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Karan Bose, Hula Global

Karan Bose
Hula Global

Hula Global, a leading isolation gown manufacturer in India, has been...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Sweta Agarwal, A Humming Way

Sweta Agarwal
A Humming Way

A Humming Way (AHW) is inspired by the old-world regalia of Rajasthan...

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

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


October 2020

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


Advanced Search