Swedish fabric technology brand, Polygiene has released third quarter results from a busy year, with sales down slightly, but profits up.
In the third quarter, net sales amounted to MSEK 18.3 (19.0), which corresponds to a decrease of 3.7 per cent compared to the same period last year. Operating profit/loss (EBIT) for the period amounted to MSEK 0.6 (0.7), while cash flow for the third quarter was positive at MSEK 0.4 (-1.9).
CEO Ulrika Björk, commented: “Total operating revenues amounted to MSEK 18.3 (19.0) during the third quarter – the second most profitable quarter in company history. The best quarter ever was the same quarter last year, after which sales fell by 3.7%. Operating profit for the third quarter 2018 amounted to MSEK 0.6 (0.7) with a positive cash flow of MSEK 0.4 (-1.9). Matching 2017’s quarterly figures this year was difficult; September 2017 was a record sales month for Polygiene and sales during the same period this year were somewhat weaker.
“Last year, the fourth quarter was relatively weaker; this year, however, we anticipate that we will be able to recoup the difference from the third quarter during the last months of 2018. Our ambition for 2018 remains: to generate solid growth with a significant improvement in earnings before interest and taxes (EBIT) compared to 2017. EBIT through September of this year have improved by MSEK 2.8 compared to the first three quarters of last year, which indicates that we are on track.
“New brand partners have joined the Polygiene fold in 2018 and there is a lot of positive news with regard to the market for Polygiene. The year to date, however, has not been without its challenges. One such challenge that we have seen is a slower development with some of our current brand partners.
“We believe this is due, in part, to the fact that, in a competitive market, we have neither been sufficiently clear about our offering nor have we been sufficiently quick in developing it further. Growing our business with our brand partners requires that they feel that Polygiene continuously adds value and competitive advantage to their brands and products. It is therefore extremely important that Polygiene succeed in further developing our offering and, at the same time, succeed in communicating the value of the benefits we offer. This will help ensure continued growth with our brand partners.
“During this quarter, we have taken a critical step forward in developing our product offering. We have started to prelaunch a new non-biocidal, anti-odor product. This, in combination with our new marketing strategy to deepen collaboration with our brand partners, makes me extremely proud and confident that we will continue to accelerate growth.”