Nueva Expresión Textil (NXT) H1 2024 earnings summary

Executive summary

• Achieved positive net income of €75,000 in 1H 2024, a turnaround from a €-5.9M loss in 1H 2023, driven by cost restructuring and operational efficiency improvements.

• Revenue declined 38% year-over-year to €13.7M due to structural changes, US factory closure, and challenging market conditions.

• Operating profit improved to €1.35M from a loss of €2.08M in the prior year period.

• Strategic focus on Premium Fabric, Luxury-Premium Garment, and Natural Dyeing (Greendyes®), with new production ramping up in Guatemala.

• Launched a 2024-2026 Strategic Plan, including capital increases and a new management team.

Financial highlights

• Revenue: €13.7M (vs. €22.3M in 1H 2023), a 38% decline.

• EBITDA: €2.2M (vs. €0.1M in 1H 2023), margin 16%.

• EBIT: €1.4M (vs. €-2.1M in 1H 2023).

• Net income: €75,000 (vs. €-5.9M in 1H 2023).

• Gross margin increased to 57% from 39% year-over-year.

• Net cash from operating activities improved to an outflow of €118,000 from €2.98M outflow in 1H 2023.

• Cash and equivalents at period end were €767,000, down from €2.36M at year-end 2023.

Outlook and guidance

• Expecting improved EBITDA in coming quarters as new units in Fabric and Natural Dyeing scale up.

• Anticipates double-digit organic growth in the Garment unit and full ramp-up of Guatemalan operations by 2025.

• Strategic plan targets net financial position at 6x EBITDA by year-end 2024.

• No explicit forward-looking guidance provided, but return to profitability and improved cash flow suggest stabilization.