Eclat Textile (1476) Q2 2024 earnings summary

Executive summary

• Achieved significant year-over-year growth in revenue and profit for Q2 and H1 2024, driven by strong performance in both fabric and garment segments.

• Operates globally in manufacturing and marketing of knitwear, with major operations in Asia and the Americas.

• Maintains a vertically integrated supply chain with global manufacturing bases, supporting rapid product development and delivery.

• Focuses on R&D, launching over 3,000 new fabrics annually and collaborating with top international brands.

• Financial statements received a qualified review due to certain non-significant subsidiaries not being reviewed by independent auditors, but overall financials are presented fairly.

Financial highlights

• Q2 2024 operating revenue rose 22.7% year-over-year to NTD 9.59 billion; H1 2024 revenue up 20.3% to NTD 17.23 billion.

• Q2 2024 net profit increased 24.5% year-over-year to NTD 1.73 billion; H1 2024 net profit up 42.4% to NTD 3.16 billion.

• Q2 2024 EPS was NTD 6.32, up 24.4% year-over-year; H1 2024 EPS reached NTD 11.51, up 42.3%.

• Gross margin improved to 31.5% in Q2 2024 from 31.2% in Q2 2023; H1 2024 gross margin at 31% versus 30% in H1 2023.

• Cash and cash equivalents at June 30, 2024, were NT$2,364.3 million, down from NT$8,265.9 million a year earlier.

Segment performance

• Fabric and garment segments both contributed to revenue growth, with fabric accounting for 39% and garment 61% of H1 2024 sales.

• For H1 2024, garments contributed NT$10,566.1 million and fabrics NT$6,659.8 million in external revenue.

• Segment profit for garments was NT$2,168.6 million and for fabrics NT$1,945.8 million in H1 2024.

• Both segments showed sequential and year-over-year increases in sales and profit.