Nextil's shareholders, gathered on 29^th June in an Ordinary General Meeting with an attendance quorum of 61.62%, and approved the accounts for the 2021 financial year, as well as the management carried out by the Board of Directors, which has led to the recovery of profitability levels after the pandemic. Shareholders also approved new appointments to the Board and ratified the capital increase of 7.5 million euros by offsetting loans.

Nextil closed 2021 with a turnover of 63.4 million euros, 8% more than in the previous year, and achieved an EBITDA of 4.7 million euros compared to the negative EBITDA of 8.9 million euros recorded in 2020. The improvement was possible despite supply chain disruptions due to the shutdown in China and the exponential rise in raw material, energy and transport prices, which had a negative impact of around 1 million euros. Excluding non-recurring effects, EBITDA would have reached 5.4 million euros.

The optimization measures implemented in the company during the last fiscal year, both operational and strategic, and the focus on higher value-added segments allowed for a substantial recovery in profitability levels. Thus, the EBITDA/sales margin was 7.4%, already exceeding pre-pandemic levels (3.2% in fiscal 2019) and well above the negative percentage of 2020 (-15.3%).

EBIT in 2021 was almost €1 million (0.918 million), compared with a loss of €22 million in 2020, confirming the recovery trend. The group seeks to consolidate this sustainable growth through a strategy that has 4 main axes: nearshore production, service excellence, development of more sustainable products and technical innovation.

This strategy is also supported by the new production centre that the company is building in Guatemala with the aim of optimizing production costs, obtaining European and US certifications and opening the supply to volumes that are currently manufactured in Asia. The first of the two plants is expected to be operational as early as August of this year and in full operation as of May 2023.

On the other hand, during the Shareholders' Meeting, it was announced that the group’s factory in El Masnou (Barcelona) will cease operations, since it has not been possible to solve the technical problems which have been dragging on for some years and which did not enable the group's high quality standards. In addition, it has been difficult to pass on the increase in the cost of raw materials and energy to the customer, which has significantly eroded margins.

Nextil Group is the leading industrial textile group in Europe, founded in 1954 in El Masnou (Barcelona). It has factories in Spain, Portugal and the United States. With a commercial presence on five continents, Nextil manufactures knitted fabrics and garments for the world's leading fashion companies in the fashion, swimwear, athleisure and lingerie sectors.

nextil.com