Value Creation and Financial Highlights of ELG
Highlights of
6M/Q2 2019
Secured bond listing
The bonds issued by European Lingerie Group AB were
approved for listing on Nasdaq Stockholm Corporate Bond list
in December 2018 and are traded since 2 January 2019.
Acquisition of Yustyna Ltd, a lingerie ready
garment producer in Belarus
In January 2019, the Group announced the acquisition of
000 Yustyna (subsequently renamed to 000 Senselle), a
lingerie ready garment producer in Belarus. The acquisition is
part of the Group's strategy to expand operations and add
capacity for private label and ELG newest own brand Senselle
by Felina production.
In May 2019, 000 Senselle obtained the Business Social
Compliance Initiative (BSCI) A-grade certificate, being the
first lingerie producer to obtain BSCI A-grade certificate in
Belarus and also in the region. The Group is certain the
certificate will raise the reputation of Senselle as a socially
responsible business and offer more value to its customers.
Omni-channel strategy implementation
In January 2019 European Lingerie Group AB established a new
subsidiary Brafetch GmbH and in March 2019 Brafetch GmbH
established a new subsidiary SistersOf Production SIA. The
companies are involved in the implementation of the omni-channel
strategy of the Group. On 14 June 2019, European Lingerie Group
AB sold Brafetch GmbH, a wholly owned subsidiary, with the
objective to search for separate financing of the project.
Medical business separation
In May 2019 LSEZ Lauma Fabrics SIA established a new subsidiary
SIA Lauma Medical in order to separate its medical business into it.
The separation was done for allowing the business to develop and
be led independently as it focuses on a different market, product
development process, etc.
Investments into production
During 6 months 2019 the Group invested into property plant and
equipment and intangible assets EUR 1,400 thousand. The main
investments during this period related to the remaining payment for
the spacer molding equipment for Lauma Fabrics, the down-
payment for 2 new knitting machines, lace and rasheltronic
technology, as well as the next instalment for the stenter acquired
by LSEZ Lauma Fabrics SIA. In addition to this, the Group
continues investing in its new sewing plant in Belarus, whereby it
increases the number of sewing machines there and develops a
new material cutting facility, which is necessary for sewing
operations.
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