From the Sector

• CARBIOS Group’s solid financial structure: cash position of €192 million on December 31, 2023
• Construction progress of world’s first PET biorecycling plant in France: in line with delivery targets for customers in 2026
• Licensing: international sales teams deployed in more than ten countries, with several partnerships feasible for 2024

CARBIOS reported its operating and financial results for the financial year 2023. The financial statements as of December 31, 2023, were approved by the Company’s Board of Directors at their meeting on April 10, 2024.

2023 Financial highlights
The consolidated financial statements of the Company as of December 31, 2023, are presented in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and adopted by the European Union.

For 2022 and 2023, these IFRS consolidated financial statements include the financial statements of CARBIOS, the parent company, and the financial statements of its fully integrated subsidiaries Carbiolice and CARBIOS 54. The group formed by CARBIOS, Carbiolice and CARBIOS 54 is hereinafter referred to as the “Group”.

These IFRS financial statements for the Group have been prepared to provide high quality information in line with that of similar companies and based on international standards.

Outlook
Given the progress made by the Group during 2023 and the success of the financing operation closed in July 2023 as well as the received grants, CARBIOS confirms its operating targets and the provisional calendar of the industrial and commercial deployment of its PET biorecycling technology.
2024  • Construction of the Longlaville plant further to permits obtained in October 2023
2024  • Recruitment of plant operations team and training at demonstration facility
2026  • First significant deliveries to clients

Alongside this project, CARBIOS aims to sign its first licensing contracts for its PET biorecycling technology in 2024.

As part of a broader initiative to reduce environmental impacts and keep ahead of evolving global chemical regulations, Active Apparel Group (AAG), manufacturer of performance apparel for the leisure/lifestyle and active market, is embracing water-based OEKO-TEX 100 Class 1 Standard Printing Inks in their manufacturing process.

Common and inexpensive inks used in the global manufacture of apparel contain a wide range of toxic chemicals, including phthalates, petroleum-based co-solvents, PVC, and other volatile organic compounds. AAG’s initiative to use OEKO-TEX approved, water-based inks creates benefits for factory workers, people living local to these factories, consumers, and everyone downstream.

AAG offers a range of printing methods to address a variety of customer needs, including:  digital printing, screen printing, and heat transfers for on-garment logos and care instructions. OEKO-TEX certified water-based inks are used for all of its digital printing and for the majority of its screen printing. These non-toxic water-based inks offer a socially and environmentally better alternative to the more commonly used Plastisol inks.

Making a sizable environmental impact, the printing service of AAG’s business is significant. Digital printing averages 25,000 meters per month with screen printing averaging 60,000 garments per month.

The use of water-based inks requires a skilled production team and training of employees is ongoing. AAG currently employs 30 people at its printing operations in Ningbo, China.

Victoria Beckham's new collection for Mango, which coincides with the brand’s 40th anniversary, will go on sale internationally on April 23th, 2024.
The collaboration is part of Mango’s new 2024-26 Strategic Plan Elevate lever, which aims to reinforce the company’s differential value proposition based on aspirationalism, quality and its unique style.

Mango is teaming up with Victoria Beckham to launch a new capsule collection, which will be available internationally on April 23, 2024. Victoria Beckham x Mango has been designed by Victoria Beckham and reflects the essence of the designer's eponymous label, considered the perfect blend of classic British luxury with a subtle contemporary twist, as well as the shared values of both fashion brands, such as quality and femininity.

The new collection, which coincides with Mango's 40th anniversary, is the latest in a series of collaborations with other brands, artists and talents including SIMONMILLER, Camille Charrière, and Pernille Teisbaek. It follows the latest edition in Mango’s Capsule collection, a collection of eventwear for woman differentiated by the quality of its materials and finishes, which was released in March 2024 after being launched in 2023.

Mango’s collaboration with Victoria Beckham is part of the new Strategic Plan 2024-26, which aims to generate total turnover of more than 4 billion euros by 2026 through a differentiated value proposition, strong expansion drive, and improving sales in existing stores and online channels, as presented by the company last March.

The collaboration supports Elevate, one of the core pillars of the Plan. Elevate focuses on promoting a differential value proposition in all lines through aspirationalism, quality and a unique style designed in Barcelona, with excellent customer service. Since its inception, Mango has a very clear DNA and its own design and style proposal, whose main attribute is a positioning of superior quality to its competitors.

Building on a renewed five-year strategy, Fashion for Good selects ten new innovators for its 2024 programme to receive tailored support validating their technologies. This cohort represents an increased focus on novel footwear material and recycling technologies, man-made cellulosics, and nylon recycling.

The 2024 Innovation Programme provides support based on the development stage and ambitions of each innovator, matching them with relevant industry partners to drive technology and impact technology and impact validation as well as investing activities.

The selected innovators joining the 2024 Innovation Programme are:

• Algreen Ltd: Algreen co-develops alternative materials from algae and biobased sources that can replace fossil-based products such as PU.
• Balena: Balena creates biodegradable partly biobased polymers for footwear outsoles.
• Epoch Biodesign: Epoch Biodesign is an enzymatic recycler of PA66 and PA6 textile waste.
• Fibre52: Fibre52 is a bio-based solution replacing traditional bleach prepared-for-dyeing and dye processes.
• Gencrest BioProducts Pvt Ltd: Gencrest works with various agri-residues to convert them into textile-grade fibres using their enzymatic technology.
• HeiQ AeoniQ: HeiQ AeoniQ™ is a continuous cellulose filament yarn with enhanced tensile properties.
• Nanollose - Nullabor: Nullarbor™Lyocell is developed from microbial cellulose which is converted into pulp pulp to produce a lyocell fibre with their partner Birla Cellulose.  
• REGENELEY:  REGENELEY pioneers advanced shoe sole recycling technologies by separating and recycling EVA, TPU, and rubber components found in footwear.
• Samsara Eco: Samsara Eco is an enzymatic recycler of PA66 and PET textile waste.
• SEFF: SEFF Fibre produces cottonised fibres and blends of hemp fabrics utilising a patented HVPED process.

KARL MAYER has already produced a wide range of electrically conductive warp-knitted items for a wide variety of applications in the TEXTILE-CIRCUIT division of its TEXTILE MAKERSPACE, including a sensor shirt, a gesture control system and a conductive charging station. In order to drive the topic of wearables forward, the textile machine manufacturer has signed a cooperation agreement with the Grabher Group and delivered an MJ 52/1-S to the specialist for high-tech textiles in Lustenau. Managing Director Günter Grabher officially inaugurated the key machine for project work in the smart textiles sector in May 2023.

The machine is involved in various research projects, but is also available for new projects and tasks. The smart textiles competence team at KARL MAYER and Grabher is looking forward to supporting the ideas and work of interested parties also outside the research network with its know-how and the possibilities of the MJ 52/1-S.

The MJ 52/1 S is also an extremely flexible project machine. The 138″ model in gauge E 28 produces a wide range of warp-knitted fabrics and incorporates conductive material directly into the textile surface - exactly where it is needed and with the structure that is required. The basis for the tailor-made fiber placement is KARL MAYER's string bar technology. The system for controlling the pattern guide bars ensures a fast, established textile production process and a high degree of pattern freedom.

On March 6, 2024, Rieter received an order for the first batch of Rieter technology amounting to around CHF 62 million from Shanghai Digital Intelligence World Industrial Technology Group Co., Ltd. (DIW). Rieter also signed a strategic partnership with DIW to develop an intelligent yarn manufacturing technology that utilizes digitization and automation to minimize conversion costs.

Rieter and DIW signed a first order in the amount of around CHF 62 million for combers and draw frames that will provide the basis to transform DIW’s spinning mills into state-of-the-art industrial textile operations. DIW, a fast-growing company specializing in intelligent manufacturing and industrial operation services, selected Rieter following a competition in which the company’s machines achieved better stability and higher production than competitors. The strategic partnership of DIW and Rieter is designed to further enhance the overall operational efficiency of DIW’s mills by providing highly efficient machines, automation and digitization technology. This will also minimize conversion cost and consolidate the sustainable growth of both companies, while contributing to the high-quality development of the Chinese textile industry.

SGL Carbon SE is currently evaluating various strategic options for the Business Unit Carbon Fibers (CF). These include a possible partial or complete divestment of the Business Unit. In a first step, potential interested parties shall be approached with the general data of the Business Unit to determine their interest in an acquisition. If there is sufficient interest, a structured transaction process will be carried out in a second step. Overall, a share of sales amounting to around € 179.6 million after nine months in 2023 (9M 2022: € 269.0 million) is therefore under review. The CF sales share corresponded to 21.9% of SGL Carbon's consolidated sales after nine months in 2023 (9M 2022: 31.5%). Adjusted EBITDA of the Business Unit excluding the result from joint ventures amounted to minus € 10,9 million after nine months in 2023 (9M 2022: € 27,9 million). Despite the operating loss of CF after nine months in 2023, SGL Carbon maintains its guidance for fiscal year 2023. This shows the positive development of the three other business units and the resilience of SGL Carbon's business model.

Carbon Fibers manufactures textile, acrylic and carbon fibers as well as composite materials at seven locations in Europe and North America. Following the temporary drop in demand for carbon fibers from the important wind industry market, the Business Unit's sales and earnings fell significantly in the course of fiscal year 2023. Due to the importance of the wind industry for the European Green Deal, SGL Carbon and many experts assumed that the wind industry recovers quickly. Unfortunately, this is currently not the case. Even if demand picks up, the company assumes that Carbon Fibers will need additional resources to remain competitive in the international market environment and to exploit market opportunities in the best possible way. Against this background, SGL Carbon is reviewing all possibilities to support a positive further development of the Carbon Fibers Business Unit.

• Revenues: 477.6 million euros (-6%)
• EBITDA before non-recurring items: 79.0 million euros (-15%)
• Net income: 32.6 million euros (-26%)
• Free cash flow before non-recurring items: 45.3 million euros
• Dividend: €0.36 per share

Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the fiscal year 2023. Audit procedures have been performed by the Statutory Auditors.

Currency changes between 2022 and 2023 mechanically decreased revenues and EBITDA before non-recurring items by 3.9 million euros (-3%) and 1.7 million euros (-8%) respectively in Q4, and by 11.2 million euros (-2%) and 4.8 million euros (-6%) respectively in the year, at actual exchange rates compared to like-for-like figures.

OUTLOOK
While the 2023 full-year results were affected by the adverse environment, they also attest to the substantial improvement in the fundamentals of the Group's business model, which will have a positive impact on 2024 results. Persistent macroeconomic and geopolitical uncertainties could nevertheless continue to weigh on investment decisions by the Group's customers.

While the most recent indicators seem to suggest that the situation is unlikely to deteriorate further, the timing and magnitude of a rebound in new system orders remain uncertain.

Outlook for 2024
To facilitate analysis, the accounts of Lectra excluding the Launchmetrics acquisition ("Lectra 2023 Scope") will be analysed separately from the Launchmetrics accounts in 2024.

The Group has based its 2024 objectives on the exchange rates in effect on December 29, 2023, in particular $1.10/€1. When converting 2023 results using the exchange rates retained for 2024, 2023 revenues are mechanically reduced by 4.7 million euros (to 472.9 million euros) and 2023 EBITDA before non-recurring items is reduced by 2.2 million euros (to 76.8 million euros). Thus, for the Lectra 2023 Scope, the comparisons between 2024 and 2023 printed below are based on constant exchange rates.

At this early stage of 2024, continuing low visibility regarding orders and revenues from new systems makes it impossible to predict the actual timing and scale of the future rebound in this area. On the other hand, visibility is high for recurring revenues, which accounted for 68% of total revenues in 2023 and will continue to grow in 2024.

In light of the above, Lectra has set as its objective for 2024, for the Lectra 2023 Scope, to achieve revenues in the range of 480 to 530 million euros (+2% to +12%) and EBITDA before non-recurring items in the range of 85 to 107 million euros (+10% to +40%).

The low end of the revenues range is based on the absence of a rebound in new systems orders, which would remain stable in 2024 relative to 2023, with a 6% decline in revenues from perpetual software licenses, equipment and accompanying software and non-recurring services, as the order backlog was lower on December 31, 2023 than a year before.

The high end of the revenues range reflects a gradual rebound in new systems orders, which at year-end 2024 would be back to year-end 2022 level.
 
In addition, Launchmetrics revenues (for the consolidation period from January 23 to December 31) are projected to be in the range of 42 to 46 million euros, with an EBITDA margin before non-recurring items of more than 15% (assuming an exchange rate of $1.10/€1).

Many end-users now expect recycled materials to be in textile products they purchase – and this is driving innovation throughout the industry. However, there are still many technical and economic issues facing yarn and fabric producers using recycled resources. Members of the Swiss Textile Machinery Association offer some effective solutions to these challenges.

Synthetic recycled materials such as PET can usually be treated similarly to new yarn, but there are additional complexities where natural fibres like wool and cotton are involved. Today, there’s a trend towards mechanically recycled wool and cotton fibres.

Spinning recycled cotton
The use of mechanically recycled fibres in spinning brings specific quality considerations: they have higher levels of short fibres and neps – and may often be colored, particularly if post-consumer material is used. It’s also true that recycled yarns have limitations in terms of fineness. The Uster Statistics 2023 edition features an extended range of fibre data, supporting sustainability goals, including benchmarks for blends of virgin and recycled cotton.
In general, short fibres such as those in recycled material can easily be handled by rotor spinning machines. For ring spinning, the shorter the fibres, the more difficult it is to guide them through the drafting zone to integrate them into the yarn body. Still, for wider yarn counts and higher yarn quality, the focus is now shifting to ring spinning. The presence of short fibres is a challenge, but Rieter offers solutions to address this issue.

Knitting recycled wool
For recycling, wool fibres undergo mechanical procedures such as shredding, cutting, and re-spinning, influencing the quality and characteristics of the resulting yarn. These operations remove the natural scales and variations in fibre length of the wool, causing a decrease in the overall strength and durability of the recycled yarn. This makes the yarn more prone to breakage, especially under the tension exerted during knitting.

Adapting to process recycled materials often requires adjustments to existing machinery. Knitting machines must be equipped with positive yarn suppliers to control fibre tension. Steiger engages in continuous testing of new yarns on the market, to check their suitability for processing on knitting machines. For satisfactory quality, the challenges intensify, with natural yarns requiring careful consideration and adaptation in the knitting processes.

From fibres to nonwovens
Nonwovens technology was born partly from the idea of recycling to reduce manufacturing costs and to process textile waste and previously unusable materials into fabric structures. Nonwovens production lines, where fibre webs are bonded mechanically, thermally or chemically, can easily process almost all mechanically and chemically recycled fibres.

Autefa Solutions offers nonwovens lines from a single source, enabling products such as liners, wipes, wadding and insulation to be produced in a true closed loop. Fibres are often used up to four times for one product.

Recycling: total strategy
Great services, technology and machines from members of Swiss Textile Machinery support the efforts of the circular economy to process recycled fibres. The machines incorporate the know-how of several decades, with the innovative power and quality standards in production and materials.
Stäubli’s global ESG (environmental, social & governance) strategy defines KPIs in the context of energy consumption, machine longevity and the recycling capacity in production units worldwide, as well in terms of machinery recyclability. The machine recyclability of automatic drawing in machines, weaving systems and jacquard machines ranges from 96 to 99%.

The testing service provider and research partner Hohenstein is joining the Innovation Park for Artificial Intelligence (IPAI) in Heilbronn. There are already points of contact with AI applications in some interdisciplinary research projects. In addition, there is the cooperation with the Munich-based start-up Sizekick and its AI-based technology for size recommendations, which aims to reduce size-related returns in online fashion retail.

"We expect the connection to the IPAI AI network to provide us with valuable impulses to remain fit for the future," explains Hohenstein CEO Dr. Timo Hammer, "This unique platform brings together a wide variety of players with their experience and knowledge. New ideas, projects and even products can be generated with great dynamism in the network as an intelligent response to future requirements. Because one thing is clear - artificial intelligence is THE key technology of the future".

The Innovation Park for Artificial Intelligence (IPAI) in Heilbronn (www.ip.ai) sees itself as an innovation platform for applied AI and a German lighthouse project with international appeal. The center is intended to map the entire AI value chain, from the qualification of specialists to the application of ethically responsible AI. The aim is to use the AI ecosystem to bring together companies, start-ups, research institutions, scientists, and public institutions and to secure Germany's digital independence and competitiveness in a key future technology.