Value Creation and Financial Highlights of ELG slide image

Value Creation and Financial Highlights of ELG

Key findings of 6M/Q2 2019 EUR 40.0m Sales 6 months 2019 EUR 4.6m Normalized EBITDA 6 months 2019 In 2019, the Group's new product lines, including our new brand Senselle by Felina and also Felina swimwear, have started bringing good volumes. The contribution of these new products to total sales will continue with increasing pace throughout the whole year. Even though the trend of closure of small specialized retail shops in the Southern and Central Europe still continues and the macroeconomy is slowing down in most European markets, which limits the recovery speed to some extent, the sales results of the second quarter of 2019 for European Lingerie Group were at the level of the previous year. - During 6 months 2019, both textiles and lingerie segments performed better than in 6 months 2018. This was driven by the improvement of the sales trend in particular markets and start of the sales of new products. While the textiles segment had positive trend in both Q1 and Q2 2019, the lingerie segment showed a decrease in sales in Q2 2019 due to the partial shift of sales to Q3 2019. The Group continues realizing its strategy of vertical integration, which takes time and bears costs during the transformation phase of the previous processes. On the production side, the Group continues investing in its manufacturing base in order to improve the quality of the products as well as to offer better and new materials to its customers. As a results of these investments the Group will be able to serve backlog on orders it has in new technologies. Named investments will gradually convert into cost savings and profit margin improvement. 23
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