Intimate apparel and sportswear producer Tefron has announced its latest financial results which show that its sales of seamless products increased by 80% in the first quarter of 2011 when compared to the same quarter last year. Sales of seamless products were boosted to US$20 million and were mainly attributed to initial sales to new customers following the acquisition of the North American Nouvelle business.

Commenting on the results, Amit Meridor, Tefron's CEO said: "In the first quarter of 2011, Tefron succeeded in achieving a significant increase in the number of customers in the athletic wear and intimate apparel sectors, in both the branded and mass market segments. In our core seamless segment, sales rose to 20 million dollars, an increase of approximately 80% compared to the equivalent quarter in 2010, thus returning Tefron to the position of global leader in seamless apparel.

Meridor said that Tefron has long maintained technological leadership in the seamless segment and will continue to invest significant efforts in the technology and the development of new products to maintain the sales leadership position it has now regained.

Regarding other financial results, Meridor continued: "In the first quarter of 2011, Tefron achieved positive EBITDA-and we have yet to realize the full potential of the Nouvelle acquisition. I can report that Tefron has continued to sustain the very good operational performance we reached in 2010, and it is our focus now to increase sales while maintaining that high operational performance. I am also very pleased to reveal that our customers are reporting a high level of satisfaction regarding our services, including our main customer, Victoria's Secret."

Tefron's Chairman, Arnon Tieberg, commented: "The Company's results during the first quarter were directly and positively influenced by the successful implementation of the turnaround plan, together with the acquisition of Nouvelle's operations, and the support and confidence of the new and present investors. These factors clearly contributed to the positive EBITDA and an impressive increase in the level of sales that we are reporting today. We are particularly pleased that Tefron's customers are again showing a high level of confidence and satisfaction with the company's performance, including with our On Time Performance and new product developments."

Financial highlights

The Company's sales in the first quarter of 2011 amounted to 27.9 million dollars, an increase of 8.4% compared to 25.8 million dollars during the first quarter of 2010, and an increase of 61% in sales compared to 17.3 million dollars in fourth quarter of 2010.

A positive EBITDA of 269 thousand dollars, compared to a negative EBITDA of 1.2 million dollars in the equivalent quarter last year.

Cash flows during the first quarter of 2011 amounted to 7.7 million dollars and were allocated to investments in working capital required for the increased operations.

Loss in the first quarter of 2011 amounted to 2.3 million dollars, a decrease of 30% compared to the loss during the first quarter of 2010.