From the Sector

Yalin Xu has been appointed Managing Director and President of DyStar Group by the Board of Directors. He will be directly responsible for the management and operations of DyStar Group. Mr Xu first joined DyStar in 2010 and has since been the Executive Board Director.
 
Eric Hopmann has been redesignated as CCO (Chief Commercial Officer), with a focus on Sales and Marketing of DyStar Group. He will continue to report to Yalin Xu. Mr Hopmann was with DyStar when the company started in 1995 and has been leading various leadership positions at DyStar Group, including the most recent CEO role, to which he was appointed in 2014.
 
DyStar’s leadership change is in response to the rapid global market changes, and to enable the group to accelerate growth and drive productivity. The group wants to streamline their operations and better utilise resources efficiently across the network.

• Business situation has worsened markedly but not expectations.

The 17th ITMF Global Textile Industry Survey (GTIS, formerly known as ITMF Corona-Survey) shows that on average the business situation in the global textile industry has deteriorated further in November 2022. At the same time, global business expectations in six months’ time remained in negative territory but did not get gloomier. The indicators for order intake, order backlog, and capacity utilisation rate dropped, globally.

According to the survey, the business situation in the three Asian regions and Europe remained especially poor. In North & Central America the business situation has improved again markedly. Except for the textile machinery segment that still benefits on average from a long order backlog, all other segments found themselves in negative business situations, especially fibre producers and spinners. Global business expectations have remained negative but “stabilized” around -10 percentage points (pp) since July 2022. Expectations have improved significantly in South Asia to +10pp, and Europe to -30pp. Business expectations in all segments remain negative territory with four out of seven recording improvements.

Order intake nose-dived in November, in line with weaker business situation and weaker demand, currently the biggest concern for the global textile value chain. Only companies in North & Central America registered on average a good order intake, while all other regions were faced with an unsatisfactory order situation. Except for South-East Asia and North & Central America order backlog fell. The only segments where order backlog increased were the down-stream segments garments and home textiles. Capacity utilization rate dropped in all regions in November 2022. It only increased in the textile machinery segment but fell otherwise.

“Weakening demand” is by far the biggest concern in the global textile industry, followed by the root causes of demand reduction, namely high energy and raw material prices which lead to high inflation rates. Good news is that logistical costs are not much of a concern anymore. Concerns about geopolitics on the other hand have increased again in the past two months.

BTMA member Dent Instrumentation – a specialist in contactless yarn sensors – has become an employee-owned business following the formation of a new Employee Ownership Trust (EOT).

The company, based in Colne, Lancashire, has been family owned since its founder Geoffrey Dent secured a patent for the very first contactless yarn sensor in the 1960s. It has been successfully run by his son Andrew and the family for many years.
“This deal ensures a smooth succession as well as the preservation of the company’s core family values and the Dent Instrumentation name,” said Managing Director Colin Hull. “The EOT structure will maintain the integrity of the business for years to come.”

The liability of Dent sensors makes them integral to the yarn spinning and winding processes and they have become a standard throughout the textile industry, recognised for their quality, performance and value. They are used by major manufacturers of textiles and textile machinery under either Dent or OEM machine builder brands.

• Potential loss of competitiveness, caused by the EU’s inaction of the energy crisis, and Chinese and US subsidies to domestic industry

Following yesterday’s European Council summit and its conclusions on the measures to tackle the energy crisis, the European textiles industry is extremely concerned about the fast loss of competitiveness of Europe and demands urgent action to save the industry.

The chain of factors determining this sharp decline in competitiveness is twofold. First, the energy cost in Europe is more than 6 times higher than in the US, China, and neighbouring countries. This factor alone has almost erased the business case for producing in the EU. At present, many textiles and clothing companies are producing at net loss or have shut down production. The industrial conditions have worsened in such a way that there is no business case to invest in Europe or buy products produced or processed in the EU. It is only the sense of responsibility of the entrepreneurs towards the European society that is keeping the plants and production running.

Secondly, while the EU is passive and extremely slow in articulating a credible and effective response to the energy crisis, the main international competitors and trade partners (China, India and the US respectively) have developed comprehensive state-aid frameworks for their domestic industry despite not being affected by this crisis at all. The latest example is the 369-billion-dollar scheme of the Inflation Reduction Act rolled out by the Biden administration.

Recent trade data  already indicate a loss of global competitiveness: imports to the EU have grown tremendously in 2022 (+35% year-to-date). It is also evident that the surge in imports goes in parallel with the surge of natural gas price. It is expected that energy prices will remain high and volatile, opening the door for imports to gain substantial market shares in the EU.

The chart indicates the development of the Title Transfer Facility (TTF) until September 2022 since Eurostat data for Q4 2022 has not been published yet. Euratex is aware that the market situation has eased somewhat since in the past months, but the crisis remains because gas prices are still extremely high in comparison to last year. This suggests that the current loss of competitiveness of the EU manufacturing will not be recovered even with lower energy prices, unless measures are taken to correct the unlevel playing field on which the EU industry has to operate in the international markets. Only with an ambitious and comprehensive relaunch plan at EU level, Europe will be able to restore its credibility as a global manufacturing powerhouse and investments.

If the status quo is maintained, not only the EU will not be able to recover its competitive position on the global business stage, but it will also fail its plans to reach zero-net emissions and achieve circularity. It is evident that these ambitions - that the industry is passionately supporting - need massive capital investments. However, in the current scenario an investments diversion can only be expected to markets where governments are actively supporting those investments and energy costs are much lower – regardless of their fossil- or non-fossil origin.

The European textiles industry – the whole value chain, from fibres, nonwoven, to fabrics, clothing manufacturers - are facing unprecedented pressure deriving from the current geopolitical situation, the new macroeconomic conditions and unfair competition from third states. The situation is going to worsen if no emergency action is taken, especially because a recession is expected in the coming months.

The main structural component of the EU manufacturing are SMEs: these are economic actors that are particularly exposed to the current crisis as they do not have the financial leverage to absorb the impact of energy prices for much longer. Urgent EU action is needed to ensure their survival.

EURATEX calls on the EU political leaders in the Commission, in the European Council and in the national capitals to:

1. Raise the ambition and adopt a comprehensive approach at EU level: energy, state-aid and trade policy must be brought together in a single strategy with concrete emergency solutions and with a clear SME dimension;
    
2. Let all hesitations aside and adopt a meaningful price cap on natural gas wholesales, that should be ideally no higher than 80 euro/MWh. In parallel, it should also be ensured that electricity prices are brought to a sustainable price level;
    
3. Change the European posture on state-aid, even temporarily. An ambitious plan of investments and state-aid in green technologies to support the industrial transition should be rolled out.

Such a plan, however, should not be conceived as a retaliation against our most necessary and like-minded trade partners. Access to finance and markets must be safeguarded for all those actors who are capable and willing to invest in Europe, on the basis of reciprocity. In   these challenging times for geopolitical stability, ensuring strong trade ties with our traditional allies and partners is of utmost importance. The roll-out of an investment and state aid plan should not interfere, but rather support, the dialogue with the US (and other partners) and the deepening of our trade and investment partnership. Such a dialogue should be accelerated in the context of the TTC as well as at WTO level.

The Montalvo Corporation, an international company in web tension control products and services based in Gorham Maine, has promoted Inside Sales Support Manager Vince Mullen to Manager of North American Sales.

Russ Hall, Montalvo CEO said, “Vince has more than proven himself in his years of working with Team Montalvo on the Inside Sales Support Team. And most recently he has done an impressive job leading that department. He will continue leading that department in addition to taking on a more direct role of working with all of our Field Sales Representatives across North America.”

About the new position Mullen said, “having joined Montalvo since moving to Maine from the UK I have enjoyed working with and learning from the very best in web tension control. It’s a great honor to have been given this promotion and I am excited for the future of our company as new developments enter our product portfolio, along with working with our more traditional lines. Our teams at Montalvo are fully committed to embracing the day to day and long term needs of our customer base and I am especially looking forward to working closely with our nationwide network of representatives.

First insights, first new materials and trend highlights: On 29 and 30 November 2022, the European premium fabric sector will meet for an important exchange with international producers at VIEW in Munich to find out about the first colour and material trends for spring/summer 2024 at the earliest possible time. A selected range of around 300 pre-collections will be on show at the MVG Museum. This means that VIEW will once again be strong and business-relevant this season.

The past VIEW Premium Selection in June 2022 was a great success. Completely booked out and more international than ever, the Preview Textile Show of Munich Fabric Start Exhibitions GmbH was an important contact point for the buying and design teams of companies such as Akris, Baldessarini, Bogner, Calvin Klein, Cinque, Comma, Drykorn, Escada, Hugo Boss, Lala Berlin, Lagerfeld, Laurél, MAC, Marc Cain, Marc O'Polo, Riani, Schumacher or Strellson. The trend towards an increasingly international range continues in November. Numerous buyers, designers and product managers from European ready-to-wear manufacturers are expected in Munich the week after next, looking for new material innovations and trends at VIEW and the parallel ISPO.

International exhibitor portfolio with many new names
Material influences from Europe to Asia bring a highly exciting mix for the trend research of the new collections. Exhibitors from Bulgaria, China, Denmark, Germany, France, Great Britain, Greece, Hong Kong, Italy, Japan, Korea, Spain and Turkey are among the participants.

The newcomers and returnees include, in addition to others:
AGNSTR / ALA CAMPOLMI / BAIRD MC NUTT / BELL & THUNDER / CB STILE / COLORA / EKOTEN / FABRIC LAB / GUARISCO / JECA LIMITED / KING BUTTON / LANIFICIO CAVERNI / LIMONATA EAST / M.T.T. MANIFATTURA / MANTERO / MILIOR / MTP PIEROZZI / PADROCASAS / PIZVAL / RIBBONTEX / SITIP / TEKSTINA SINCE 1828 / TEXMODA / VIVOLO und WAY.

• Successful repositioning: BOGNER achieves its best financial year since 2015 following the completion of the two-year performance program.
• Continuity in management: Gerrit Schneider takes over as sole CEO. Heinz Hackl, present Co-CEO, leaves the company by mutual agreement. With former CEO Andreas Baumgaertner and Andreas Gall two experienced advisors move closer to the management.
• Streamlined governance and corporate structure: Arndt Geiwitz hands the company back into the hands of the family after the successful completion of the performance program and takes over the chairmanship of the newly created advisory board. BOGNER operates with GmbH as legal form in the future.

With the financial results in 2021/22, BOGNER has achieved the most successful financial year since 2015. A key contribution to this was provided by the performance program developed with the management consultancy EY Parthenon in July 2020. Since then, it was implemented as planned and successfully promoted profitability and sustainable global growth. In order to create the ideal framework conditions for further success, BOGNER is now simplifying its management, governance and corporate structures.

Gerrit Schneider takes over as sole CEO
Gerrit Schneider, Co-CEO of BOGNER since April 2020 and responsible for Finance, Legal, IT, Operations and HR, will take over the sole CEO role of BOGNER with immediate effect. Heinz Hackl, present Co-CEO of BOGNER and currently responsible for Sales, Design, Marketing and Licensing, will leave BOGNER by mutual agreement.

The former BOGNER CEO Andreas Baumgaertner (2017-2020) will move closer to the management for all product- and design-specific topics and will intensify his advisory role. He has already advised the company in the background in recent years and will now accompany and help to shape the future direction of the brand even more closely. As for the external media presence, BOGNER secures further know-how and experience with Andreas Gall, the former founding CEO and Chief Innovation Officer (CINO) of Red Bull Media House.

Streamlined structures with end of trusteeship and new active advisory board
In addition to the management, BOGNER is also refining its governance structures: With the successful completion of the performance programm, trustee Arndt Geiwitz has achieved the goal he has set together with management and family to bring BOGNER in a strong position. Now he returns the company back to the family. Arndt Geiwitz will remain closely associated with BOGNER and will accompany the company in its further development as Chairman of the newly created advisory board.

Furthermore, BOGNER changes the legal form of the company to a GmbH (limited liability company) and merges individual group companies as part of this step. This simplifies the corporate structures and reduces complexity. As part of this adjustment, BOGNER is setting up an advisory board with supervisory function. The advisory board, staffed with experienced personalities, will advise the management comprehensively on the strategic direction, function as a sparring partner and serve as a supervisory body. In addition to Arndt Geiwitz as Chairman, Christian Laus, a long-standing advisor of the Bogner family and Managing Director of BOGNER Film GmbH, will become a member of the advisory board. Furthermore, Dr. Daniel Heine, Managing Director of Patrimonium Asset Management AG, will join the advisory board. A private debt fund of Patrimonium Asset Management AG as strategic financing partner and BOGNER have signed financial agreements to replace the loan agreement concluded with various banks as part of the performance program.

As part of an ongoing investment programme ensuring it remains at the forefront of advanced technology for carpet production, West Yorkshire, UK-headquartered Phoenox Textiles has recently installed a new two-metre-wide shearing line supplied by BTMA member Sellers Textiles Engineers.

Phoenox, which has been family owned since its foundation in 1954, develops original creative flooring design concepts for retail brands. Its products are sold through high street outlets, department stores and volume retailers across Europe and North America, in addition to substantial online and catalogue-driven business. All told, the company’s 24-hour parcel service dispatches some 3.2 million orders every year.

Operating from two manufacturing sites, Phoenox manufactures an annual 1.7 million metres of flooring in the UK. Over a combined area of 1,700,000 square metres, the two plants are equipped for tufting, backcoating, cloth printing and finishing along with automated cutting, sewing and packing.

In addition to the Sellers shearing line, other recent investments for the UK operations have included three new advanced tufting machines and a high-speed Sellers backcoating line equipped to handle widths of up to two metres and coat at six metres per minute. Washable and dyeable foams and eco-friendly applications in different weights are applied for many product areas.

The company’s state-of-the-art Chromo jet printing process line is meanwhile the only one of its kind in the UK, with its 256 jets making possible designs in up eight colours per pattern. With sustainability very much at the forefront of the company’s approach, Phoenox recycles most of its paste and inks and uses organic options wherever possible, as well as recycled water.

“We operate a piece dye colour cloth programme and can dye nylon and cotton with weights of up to 500kg per load, working with direct, organic, vat and reactive dyes,” says Mosley. “We also offer computerised and weighed commission dyeing. Computerised automated cutting machines and photocell pattern recognition enable us to cut at high speed in most cloth densities. With finishing and sewing though, it’s all about the detail, and our team have years of experience and hand-finish our products on traditional high-speed machines.”

The new Sellers Hybrid Shearing Cylinder can provide a competitive edge for manufacturers which is currently being proven in the field, including at Phoenox. It’s one of a number of new innovations BTMA members are planning to showcase at next year’s ITMA exhibition in Milan.

The Supervisory Board of adidas AG resolved upon the succession for adidas CEO Kasper Rorsted. Effective January 1, 2023, Bjørn Gulden is appointed as member of the Executive Board and CEO of adidas AG. Kasper Rorsted and the Supervisory Board mutually agreed that he will step down as CEO and leave the company upon expiry of November 11, 2022. Harm Ohlmeyer, Chief Financial Officer of adidas AG, will lead the company in the interim until December 31, 2022. The Supervisory Board had announced a CEO transition on August 22, 2022.

Bjørn Gulden is 57 years old, Norwegian and has been CEO of Puma SE since 2013. Bjørn Gulden looks back at a tenure at adidas as, amongst others, Senior Vice President of Apparel and Accessories from 1992 to 1999. Additionally, he was CEO of Danish jewelry brand Pandora, Managing Director of footwear retailer Deichmann, President of Rack Room Shoes, and held various management positions at outdoor apparel company Helly Hansen. He also holds the position of Chairman of the Board of Salling Group, Denmark’s largest food retailer.

“We are very pleased to welcome Bjørn Gulden back at adidas. Bjørn Gulden brings almost 30 years of experience in the sporting goods and footwear industry. As a result, he knows the industry extremely well and draws on a rich network in sport and retail. Bjørn Gulden already served adidas successfully for seven years in the 1990s. As CEO of Puma, he re-invigorated the brand and led the company to record results. The Supervisory Board of adidas AG is convinced that Bjørn Gulden will head adidas into a new era of strength and is looking very much forward to a successful cooperation,” said Thomas Rabe, Chairman of the Supervisory Board of adidas AG. 

• Revenues: 392.1 million euros (+50%)
• EBITDA before non-recurring items: 74.9 million euros (+73%)
• Net income: 35.4 million euros (multiplied by 2.1)
• Free cash flow before non-recurring items: 31.6 million euros

Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the third quarter and first nine months of 2022, which have not been reviewed by the Statutory Auditors.
To facilitate the analysis of the Group’s results, the financial statements are compared to those published in 2021 and to the 2021 pro forma financial statement ("2021 Pro forma"), prepared by integrating the three acquisitions made in 2021 – Gerber Technology (“Gerber”), Neteven, and Gemini CAD Systems (“Gemini”) – as if they had been consolidated from January 1, 2021, whereas they have been consolidated since June 1, July 28 and September 27, 2021 respectively.

See attached document for full report.