From the Sector

Reset
16.08.2022

Suominen to implement surcharges in North America

Suominen announces general surcharges on all its products in North America effective immediately. These surcharges are a response to significant unexpected increases in raw materials, energy and freight costs.

“We have done all we can to mitigate these increases on behalf of our customers. Suominen can no longer absorb the full extent of these increases. We are living in an unusual time in the nonwovens industry with unprecedented and unexpected cost increases accompanied by volatility in demand patterns and supply chain disruptions. We understand circumstances are extremely challenging and we remain committed to serving our customers during this difficult period,” says Lynda A. Kelly, SVP, Americas.

Suominen announces general surcharges on all its products in North America effective immediately. These surcharges are a response to significant unexpected increases in raw materials, energy and freight costs.

“We have done all we can to mitigate these increases on behalf of our customers. Suominen can no longer absorb the full extent of these increases. We are living in an unusual time in the nonwovens industry with unprecedented and unexpected cost increases accompanied by volatility in demand patterns and supply chain disruptions. We understand circumstances are extremely challenging and we remain committed to serving our customers during this difficult period,” says Lynda A. Kelly, SVP, Americas.

Source:

Suominen

Photo: Mark Stebnicki, pexels
16.08.2022

USDA presents new study of Chinese Cotton Textile Industry

  • Growing geographic separation between cotton production and textile manufacturing since the 1990s

The United States Department of Agriculture (USDA) released a comprehensive study about Chinese cotton in August 2022. The authors, Fred Gale and Eric Davis, concentrate on textiles, imports and Xinjiang.

China is the world’s largest textile manufacturer and the largest cotton consumer, but changes in China’s economy are reshaping the geography of its cotton-textile sector. Nearly all of China’s cotton is produced in the Xinjiang Uyghur Autonomous Region (XUAR), also known more simply as Xinjiang.

  • Growing geographic separation between cotton production and textile manufacturing since the 1990s

The United States Department of Agriculture (USDA) released a comprehensive study about Chinese cotton in August 2022. The authors, Fred Gale and Eric Davis, concentrate on textiles, imports and Xinjiang.

China is the world’s largest textile manufacturer and the largest cotton consumer, but changes in China’s economy are reshaping the geography of its cotton-textile sector. Nearly all of China’s cotton is produced in the Xinjiang Uyghur Autonomous Region (XUAR), also known more simply as Xinjiang.

Their study reviewed the regional patterns of China’s cotton textile industry development and identified growing geographic separation between cotton production and textile manufacturing since the 1990s using data from Chinese sources. The study investigated spatial patterns of demand for imported cotton by analyzing lists of Chinese companies applying for a share of the import quota from 2016 to 2022. Multiple regression analysis was used to control for potentially confounding influences when investigating whether companies in coastal provinces were more likely to use imported cotton than similarly sized companies in other regions.

Textile manufacturers — the main consumers of cotton — are concentrated in coastal and central regions where the share of China’s cotton production fell from over 50 percent to 10 percent during 2011–21. These geographic changes are a factor influencing global trade in cotton and textiles. Additionally, the use of forced labor in Xinjiang attracted more attention to the industry, prompting the United States and other countries to ban products produced in the region.

This study reviews the economic, geographic, and policy factors reshaping the industry and influencing the global trade of cotton and textile products. The study also examines data on Chinese companies applying for a share of China’s cotton import quota to gain insight about the demand for imported cotton.

China became the world’s largest producer, consumer, and importer of cotton soon after joining the World Trade Organization (WTO) in 2001. Despite adopting a tariff-rate quota (TRQ) system for cotton imports and issuing supplemental quotas in most years, the large number of cotton goods manufacturers that request shares of the quota suggests demand for imported cotton exceeds  the quota.

While the TRQ was intended to protect China’s cotton farmers, many farmers abandoned the labor-intensive crop as wages rose rapidly in many other industries and other crops produced higher returns. In response, officials encouraged cotton production in the relatively remote region of Xinjiang to prevent China from becoming reliant on imported cotton. Xinjiang growers receive a subsidy payment for cotton, and subsidies for machinery and seeds. A transportation subsidy induces textile manufacturers in eastern and central regions to purchase cotton from Xinjiang, which is about 2,200 to 2,900 miles from most of the country’s textile manufacturers. Financial support and other incentives encourage manufacturers to shift operations to Xinjiang.

Textile manufacturers in China are highly interested in importing cotton due to its lower price and quality. China imports about 20 percent of its cotton, and the United States is a chief exporter of cotton to China. While imported cotton is used in all provinces, manufacturers near the eastern seaboard show a greater propensity for imports. Nevertheless, in all regions, domestic cotton has the largest share of mill use.

Between 2016 and 2022, 1,581 companies applied for a share of the TRQ, and 265 companies applied in all 7 years. Most of these companies also applied for supplemental quotas issued with slightly higher tariffs. This large number of applicants suggests that imports could be even greater if quotas did not limit them. The operation of the quota application process is not public information, but data submitted by applicants suggests access to imported cotton is uneven. About 14 percent of applicants said imported cotton comprised over half of the cotton they used. Another 20 percent of companies requesting import quota did not use any imported cotton, suggesting that many applicants are unable to import. Textile manufacturers coped with limits on cotton imports by increasing their use of synthetic, chemical-based fibers or by importing cotton yarn. From 2000 to 2020, China’s yarn imports doubled from under 1 million metric tons to around 2 million metric tons with Vietnam supplying about 45 percent of that total in 2020.

The number of textile manufacturers in Xinjiang applying for a share of the cotton import quota rose from 37 to 68 between 2016 and 2022. However, imports constituted less than 2 percent of  the cotton Xinjiang applicants reported using—and 66 percent of them reported using no imported cotton—suggesting that applications from Xinjiang textile companies were often denied.
Analysis found that applicants in coastal provinces used more imported cotton than similarly sized applicants in other regions. Each location of a multi-plant company must apply separately for tariff-rate quotas. Textile manufacturers in Xinjiang that requested a share of the import quota included branches of some of China’s largest textile companies, but the analysis found that Xinjiang applicants used less imported cotton than similar manufacturing plants located in other regions. China’s role as a cotton importer appears to have peaked, while other countries are increasing their share of imports.

USDA baseline projections suggest that by 2030 Vietnam, Pakistan, Indonesia, Bangladesh, and Turkey will together account for 47 percent of the world’s cotton imports while China will only account for 24 percent. The study cam be downloaded from the USDA website.

More information:
cotton Cotton USA China Xinjiang
(c) DNFI
16.08.2022

DNFI: Cotton prices the highest in a decade during 2021/22

The Discover Natural Fibres Initiative DNFI published their statistical World Natural Fibre Update this month. The world production of natural fibres is estimated at 33.7 million tonnes in 2022, a slight increase compared with a preliminary 33.3 million tonnes in 2021 and 31.6 million in 2020.

The DNFI Natural Fibre Composite Price dropped 2% in July 2022 to US 219 cents/kg, compared with US 223 cents the previous month. The DNFI Composite is an average of prices in major markets for cotton, wool, jute, silk, coir fibre, and sisal, converted to US$ per kilogram and weighted by shares of world production.

The Discover Natural Fibres Initiative DNFI published their statistical World Natural Fibre Update this month. The world production of natural fibres is estimated at 33.7 million tonnes in 2022, a slight increase compared with a preliminary 33.3 million tonnes in 2021 and 31.6 million in 2020.

The DNFI Natural Fibre Composite Price dropped 2% in July 2022 to US 219 cents/kg, compared with US 223 cents the previous month. The DNFI Composite is an average of prices in major markets for cotton, wool, jute, silk, coir fibre, and sisal, converted to US$ per kilogram and weighted by shares of world production.

  • The DNFI Composite was pulled downward primarily by a 9% decline in the Eastern Market Indicator of wool prices in Australia, which fell from US$ 10.27 per kilogram in June to US$9.38 in July.
  • October cotton ICE futures (the nearby contract) finished July marginally lower, closing at 228 US cents per kilogram, compared with 229 at the end of June.
  • Prices of jute fibre in India quoted by the Jute Balers Association (JBA) at the end of July were unchanged from a month earlier, but with depreciation of the Rupee versus the dollar, calculated prices fell from 84 cents to 82 cents per kilogram.
  • Prices of silk in China equalled US$29.5 per kilogram in July 2022, coconut coir fibre in India held at US cents 21 per kilogram, and sisal in Brazil finished July at US cents 41 per kilogram.

Cotton prices were the highest in a decade during 2021/22, and world cotton production is estimated by the International Cotton Advisory Committee at 25.8 million tonnes during the 2022/23 season which began August 1, up from 25.4 million in the season just completed. Extreme drought in Texas, the largest producing state in the United States, is limiting the rise in world production that would otherwise be occurring.

World production of jute and allied fibres is estimated unchanged at 3.2 million tonnes in 2022 compared with 2021. High market prices in 2021 motivated farmers to expand planted area in both Bangladesh and India, but dry weather in jute-growing areas during June and July has undermined earlier optimistic hopes for yields. Rainfall was approximately half of normal in the city of Kolkata from early June to mid-July.

Production of coir fibre rose by an average of 18,000 tonnes per year during the past decade, and production was record high at 1.12 million tonnes in 2021. Production is expected to remain high in 2022.

Flax has also been trending upward, rising by an average of 27,000 tonnes per year, and production in 2022 is estimated to remain above one million tonnes.
World wool production is forecast up by 5% in 2022 to 1.09 million tonnes (clean), the highest since 2018. Wetter weather in the Southern Hemisphere, following eight years of drought, is allowing farmers to rebuild herds.

More information:
natural fibers DNFI
Source:

DNFI

Photo: Pixabay
15.08.2022

Cotton prices outlook

Cotton Incorporated published its monthly economic letter of August and shared new insights of the cotton prices:

Cotton prices continue to be caught between the two competing storylines that have been in play for the past several months.
On one side, there is the deteriorating global macroeconomic situation.  The International Monetary Fund (IMF) lowered its projection for global economic growth in both 2022 (3.2%) and 2023 (2.9%) in the updates released in late July.  Current IMF forecasts are significantly beneath those from January (called for 4.4% growth in 2022 and 3.8% growth in 2023) and April (called for 3.6% growth in 2022 and 3.6% growth in 2023).  The evolution in the macroeconomy was a likely factor contributing to the shift in investors’ outlook on the commodity sector, which led to a collapse in prices for cotton and a range of other commodities in June and July.

Cotton Incorporated published its monthly economic letter of August and shared new insights of the cotton prices:

Cotton prices continue to be caught between the two competing storylines that have been in play for the past several months.
On one side, there is the deteriorating global macroeconomic situation.  The International Monetary Fund (IMF) lowered its projection for global economic growth in both 2022 (3.2%) and 2023 (2.9%) in the updates released in late July.  Current IMF forecasts are significantly beneath those from January (called for 4.4% growth in 2022 and 3.8% growth in 2023) and April (called for 3.6% growth in 2022 and 3.6% growth in 2023).  The evolution in the macroeconomy was a likely factor contributing to the shift in investors’ outlook on the commodity sector, which led to a collapse in prices for cotton and a range of other commodities in June and July.

Beyond the weakening macroeconomic environment, there also may be factors associated with cotton supply chains that could affect demand during the 2022/23 crop year.  Downstream consumer markets for cotton can be viewed as more discretionary than other spending categories, such as food, energy, and lodging, that experienced some of the sharpest effects of inflation.  Given price increases for necessities, consumers may have less income to devote to apparel and home furnishings.

In the U.S., consumer spending on clothing has been flat for the past year.  However, it has been holding at levels that are 25% higher than they were in 2019.  If U.S. consumers pull back on clothing purchases, it may hit the market just as retailers have caught up with consumer demand after the onset of the shipping crisis.  In weight volume, the cotton contained in U.S. apparel imports was up 22% year-over-year in the first half of 2022.  Relative to 2019 (pre-COVID and pre-shipping crisis), the volume in the first half of 2022 was up 23%.  Given strong import volumes, if there is a dip in consumer demand, inventory could build both at retail and upstream in supply chains.  This could lead to cancelations, potentially all the way back to the fiber level, where contracts signed at prices higher than current values could be particularly susceptible.

Tight U.S. supply is on the other side of price direction arguments.  Cotton is drought tolerant, and that is why it can be viably grown in perennially dry locations like West Texas.  However, cotton requires some moisture to germinate and generate healthy yields.  West Texas has had very little rain over the past year, and drought conditions have been extreme.  As a result, abandonment is forecast to be widespread.  It remains to be seen exactly how small the U.S. crop will be, but the current USDA forecast predicts only 12.6 million bales in 2022/23 (-5.0 million fewer bales than in 2021/22).

Meanwhile, demand for U.S. cotton has been relatively consistent, near 18 million bales over the past five crop years (an average of 15.5 million bales of exports and 2.7 million bales of domestic mill-use).  A harvest of only 12.6 million falls well short of the recent average for exports alone, and U.S. stocks were near multi-decade lows coming into 2022/23.  All these statistics suggest shipments from the world’s largest exporter may have to be rationed in 2022/23.  If cotton is not readily available from other sources, the scarcity of supply from the U.S. could support prices globally.

Simultaneously, there is weakness from the demand side.  The market has struggled to find the balance between the weakened demand environment and limited exportable supply in recent months.  The conflict between these two influences makes it difficult to discern a clear direction for prices and suggests continued volatility.

More information:
Cotton Inc. cotton
Source:

Cotton Inc.

(c) Fraunhofer UMSICHT/Mike Henning
Prof. Christian Doetsch (l.) and Prof. Manfred Renner (r.)
09.08.2022

Fraunhofer UMSICHT: New institute directors

Prof. Manfred Renner and Prof. Christian Doetsch will take joint leadership of the Fraunhofer Institute for Environmental, Safety and Energy Technology UMSICHT from August 2022. As renowned scientists, they have most recently shaped the direction of the institute as heads of the Products division and Energy division respectively, and will now follow in the footsteps of Prof. Eckhard Weidner, who has entered retirement.

This is the first time in its history that Fraunhofer UMSICHT is led by two directors. Both institute directors began their professional careers at the institute and from August they will have a joint hand in its future.

Prof. Manfred Renner and Prof. Christian Doetsch will take joint leadership of the Fraunhofer Institute for Environmental, Safety and Energy Technology UMSICHT from August 2022. As renowned scientists, they have most recently shaped the direction of the institute as heads of the Products division and Energy division respectively, and will now follow in the footsteps of Prof. Eckhard Weidner, who has entered retirement.

This is the first time in its history that Fraunhofer UMSICHT is led by two directors. Both institute directors began their professional careers at the institute and from August they will have a joint hand in its future.

Prof. Manfred Renner holds a doctorate in mechanical engineering, specializing in process engineering and business development. Since 2006, he has held various roles at Fraunhofer UMSICHT, most recently heading up the Products division and overseeing its 126 employees and its budget of 14.8 million euros. He has set international standards through his award-winning research into a free of water tanning leather tanning process that uses compressed carbon dioxide. With the development of innovative aerogel-based insulation materials for building facades, he has made a significant contribution to environmentally friendly, circular applications in the construction industry and initiated a number of industrial projects. One of the notable technological breakthroughs made by his team was the development of a new type of fire-resistant glass, which can withstand even the most extreme heat. This won his development team the Joseph von Fraunhofer Prize in October 2020.

Alongside becoming institute director, Prof. Renner will also take over the leadership of the Fraunhofer Cluster of Excellence Circular Plastics Economy CCPE in August 2022. In this role, he will represent the Fraunhofer-Gesellschaft on a national and international level with regard to the transformation of industry and society to a circular economy. In addition, he will start his professorship in Responsible Process Engineering at the Faculty of Mechanical Engineering of the Ruhr-Universität Bochum. Over the course of his professorship, he will shape the systemic development of the circular economy at a corporate, regional and European level.

Prof. Christian Doetsch has worked in energy research for more than 25 years, spending most of this time at Fraunhofer UMSICHT. As head of the Energy division, he managed a team of around 145 employees and was responsible for a budget of approximately 10.4 million euros. His technological focal points are energy storage, Power-to-X technologies including hydrogen electrolysis and chemical conversion, catalysts, and energy system modeling and optimization. His overarching aim is the integration of renewable energies into a cross-sectoral, resilient energy system.

In 2015, Doetsch co-founded the award-winning start-up Volterion GmbH & Co. KG, which develops redox flow batteries. He attained high visibility on a global scale by redesigning stacks, one of the main components of redox flow batteries, an achievement for which he, his team and Volterion representatives were awarded the Joseph von Fraunhofer Prize in May 2021. The energy expert also acts as deputy spokesperson for the Fraunhofer Energy Alliance and task manager for the energy storage group at the International Energy Agency (IEA). He also co-founded the “Open District Hub e. V.,” an association that promotes the energy transition in the sector by means of energy systems integration.

Since January 2020, he has been Professor of Cross Energy Systems at the Faculty of Mechanical Engineering of the Ruhr-Universität Bochum. In this role, he conducts research into ecological evaluation and resilience of cross-sectoral energy systems.

Source:

Fraunhofer UMSICHT

09.08.2022

Carbios joined WhiteCycle to process and recycle plastic textile waste

  • An innovative European project to process and recycle plastic textile waste
  • A partnership to reach the objectives set by the European Union in reducing CO2 emissions by 2030
  • A unique consortium rallying 16 public and private European organizations working together for more circular economy

Carbios joined WhiteCycle, a project coordinated by Michelin, which was launched in July 2022. Its main goal is to develop a circular solution to convert complex[1] waste containing textile made of plastic into products with high added value. Co-funded by Horizon Europe, the European Union’s research and innovation program, this unprecedented public/private European partnership includes 16 organizations and will run for four years.
 

  • An innovative European project to process and recycle plastic textile waste
  • A partnership to reach the objectives set by the European Union in reducing CO2 emissions by 2030
  • A unique consortium rallying 16 public and private European organizations working together for more circular economy

Carbios joined WhiteCycle, a project coordinated by Michelin, which was launched in July 2022. Its main goal is to develop a circular solution to convert complex[1] waste containing textile made of plastic into products with high added value. Co-funded by Horizon Europe, the European Union’s research and innovation program, this unprecedented public/private European partnership includes 16 organizations and will run for four years.
 
WhiteCycle envisions that by 2030 the uptake and deployment of its circular solution will lead to the annual recycling of more than 2 million tons of the third most widely used plastic in the world, PET[2]. This project should prevent landfilling or incineration of more than 1.8 million tons of that plastic each year. Also, it should enable reduction of CO2 emissions by around 2 million tons.
 
Complex waste containing textile (PET) from end-of-life tyres, hoses and multilayer clothes are currently difficult to recycle, but could soon become recyclable thanks to the project outcomes. Raw material from PET plastic waste could go back into creation of high-performance products, through a circular and viable value chain.
 
Public and private European organizations are combining their scientific and industrial expertises:

  • industrial partners (Michelin, Mandals, KORDSA);
  • cross-sector partnership (Inditex)
  • waste management companies (Synergies TLC, ESTATO);
  • intelligent monitoring systems for sorting (IRIS);
  • biological recycling SME (Carbios);
  • product life cycle analysis company (IPOINT);
  • university, expert in FAIR data management (HVL);
  • universities, research and technology organizations (PPRIME – Université de Poitiers/CNRS, DITF, IFTH, ERASME);
  • industry cluster (Axelera);
  • project management consulting company (Dynergie).

 
The consortium will develop new processes required throughout the industrial value chain:

  • Innovative sorting technologies, to enable significant increase of the PET plastic content of complex waste streams in order to better process them;
  • A pre-treatment for recuperated PET plastic content, followed by a breakthrough recycling enzyme-based process to decompose it into pure monomers in a sustainable way;
  • Repolymerization of the recycled monomers into like new plastic;
  • Fabrication and quality verification of the new products made of recycled plastic materials

 
WhiteCycle has a global budget of nearly 9.6 million euros and receives European funding in the amount of nearly 7.1 million euros. The consortium’s partners are based in five countries (France, Spain, Germany, Norway and Turkey). Coordinated by Michelin, it has an effective governance system involving a steering committee, an advisory board and a technical support committee.

[1] Complex waste: multi materials waste (Rubber goods composites and multi-layer textile)
[2] PET: Polyethylene terephthalate

Source:

Carbios

09.08.2022

Suominen Corporation’s Half-Year Financial Report

April–June 2022 in brief:

  • Net sales increased by 4% and amounted to EUR 118.0 million (113.6)
  • Comparable EBITDA decreased to EUR 1.9 million (15.3)
  • Cash flow from operations was EUR 11.9 million (1.2)

January–June 2022 in brief:

April–June 2022 in brief:

  • Net sales increased by 4% and amounted to EUR 118.0 million (113.6)
  • Comparable EBITDA decreased to EUR 1.9 million (15.3)
  • Cash flow from operations was EUR 11.9 million (1.2)

January–June 2022 in brief:

  • Net sales were in line with the previous year and amounted to EUR 228.3 million (229.0)
  • Comparable EBITDA decreased to EUR 5.2 million (33.8)
  • Cash flow from operations was EUR 9.2 million (17.1)

Outlook for 2022 unchanged
Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2022 will decrease clearly from 2021. The war in Ukraine has increased the already significant cost inflation in raw materials, energy, and transportation. Also, while there has been progress in the normalization of the customer inventory levels in the US, it has been somewhat slower than expected. These factors will impact the full year result negatively even though we expect that the demand for our products will improve in the second half of the year. In 2021, Suominen’s comparable EBITDA was EUR 47.0 million.

See attached document for full report.

Source:

Suominen Corporation

09.08.2022

NCTO: North Carolina Textile Executives highlight Importance of Industry

North Carolina textile executives spanning the fiber, yarn, fabric, and finished product textile industries participated in a roundtable discussion with Rep. Kathy Manning (D-NC), at which they discussed the innovative achievements and competitiveness of the domestic industry and outlined priority issues in Washington that impact their daily operations.

The roundtable discussion, hosted by Unifi Inc. and sponsored by the National Council of Textile Organizations (NCTO), was held at Unifi’s headquarters in Greensboro, North Carolina.

North Carolina is the second largest state employer of textile-related jobs, employing more than 30,000 jobs in 2021, according to U.S. government data. The state’s $2.7 billion in textile-related exports leads the nation, according to U.S. government data.

Congresswoman Manning’s visit comes at a pivotal time for the U.S. textile supply chain, which produced $65.2 billion in output in 2021 and employed nearly 535,000 workers. The industry has been at the forefront of domestic manufacturing of over 1 billion personal protective equipment (PPE) items during the COVID-19 pandemic.

North Carolina textile executives spanning the fiber, yarn, fabric, and finished product textile industries participated in a roundtable discussion with Rep. Kathy Manning (D-NC), at which they discussed the innovative achievements and competitiveness of the domestic industry and outlined priority issues in Washington that impact their daily operations.

The roundtable discussion, hosted by Unifi Inc. and sponsored by the National Council of Textile Organizations (NCTO), was held at Unifi’s headquarters in Greensboro, North Carolina.

North Carolina is the second largest state employer of textile-related jobs, employing more than 30,000 jobs in 2021, according to U.S. government data. The state’s $2.7 billion in textile-related exports leads the nation, according to U.S. government data.

Congresswoman Manning’s visit comes at a pivotal time for the U.S. textile supply chain, which produced $65.2 billion in output in 2021 and employed nearly 535,000 workers. The industry has been at the forefront of domestic manufacturing of over 1 billion personal protective equipment (PPE) items during the COVID-19 pandemic.

During the roundtable, North Carolina executives showcased the industry’s important contribution to the state and the U.S. economy as well as its advanced sustainability initiatives, while outlining critical policies, such as the importance of Buy American and Berry Amendment government procurement policies, maintaining strong rules of origins in free trade agreements, supporting a domestic PPE production sector, and the need to address larger systemic trade issues with China.

“In North Carolina, the textile industry is woven into the very fabric of our state and economy, with more than 33,000 workers employed in over 600 textile manufacturing facilities across the state. In Congress, I am committed to supporting our homegrown industry by making PPE in America, protecting the yarn forward rule of origin in our trade agreements, and cracking down on China’s unfair trade practices. I am thrilled to engage with industry leaders in my district, as we discuss ways to grow the U.S. textile industry and the critical role that textile manufacturers play in our local, state, and national economy,” said Congresswoman Kathy Manning.

04.08.2022

adidas with strong growth in Western markets in Q2

  • Currency-neutral sales up 4%, despite more than € 300 million negative impact from macroeconomic constraints
  • Markets representing more than 85% of the business grow 14% overall
  • Gross margin down 1.5pp to 50.3% reflecting significantly higher supply chain costs
  • Operating profit reaches € 392 million
  • Net income from continuing operations amounts to € 360 million
  • FY 2022 outlook reflects double-digit growth during the second half of the year

“Our Western markets continued to show strong momentum in the second quarter amid heightened macroeconomic uncertainty. With Asia-Pacific returning to growth, markets combined representing more than 85% of our business grew at a double-digit rate,” said adidas CEO Kasper Rorsted. “With sports back at center stage this summer, revenues in our strategic growth categories Football, Running and Outdoor all increased by double digits. However, the macroeconomic environment, particularly in China, remains challenging. The recovery in this market is – due to continued covid-19-related restrictions – slower than expected.

  • Currency-neutral sales up 4%, despite more than € 300 million negative impact from macroeconomic constraints
  • Markets representing more than 85% of the business grow 14% overall
  • Gross margin down 1.5pp to 50.3% reflecting significantly higher supply chain costs
  • Operating profit reaches € 392 million
  • Net income from continuing operations amounts to € 360 million
  • FY 2022 outlook reflects double-digit growth during the second half of the year

“Our Western markets continued to show strong momentum in the second quarter amid heightened macroeconomic uncertainty. With Asia-Pacific returning to growth, markets combined representing more than 85% of our business grew at a double-digit rate,” said adidas CEO Kasper Rorsted. “With sports back at center stage this summer, revenues in our strategic growth categories Football, Running and Outdoor all increased by double digits. However, the macroeconomic environment, particularly in China, remains challenging. The recovery in this market is – due to continued covid-19-related restrictions – slower than expected. And we have to take into account a potential slowdown in consumer spending in all other markets for the remainder of the year.”

Currency-neutral revenues increase 4% despite macroeconomic constraints
In the second quarter, currency-neutral revenues increased 4% as adidas continued to see strong momentum in Western markets. This growth was achieved despite continued challenges on both supply and demand. Supply chain constraints as a result of last year’s lockdowns in Vietnam reduced top-line growth by around € 200 million in Q2 2022. In addition, the company’s decision to suspend its operations in Russia reduced revenues by more than € 100 million during the quarter. Continued covid-19-related lockdowns in Greater China also weighed on the top-line development in Q2. From a channel perspective, the top-line increase was to a similar extent driven by the company’s own direct-to-consumer (DTC) activities as well as increases in wholesale. Within DTC, e-commerce, which now represents more than 20% of the company’s total business, showed double-digit growth reflecting strong product sell-through. From a category perspective, revenue development was strongest in the company’s strategic growth categories Football, Running and Outdoor, which all grew at strong double-digit rates. In euro terms, revenues grew 10% to € 5.596 billion in the second quarter (2021: € 5.077 billion).

Strong demand in Western markets
Revenue growth in the second quarter was driven by Western markets despite last year’s lockdowns in Vietnam still reducing sales, particularly in EMEA and North America, by
€ 200 million in total. In addition, the top-line development in EMEA was also impacted by the loss of revenue in Russia/CIS of more than € 100 million. Nevertheless, currency-neutral sales grew 7% in the region. Revenues in North America increased 21% during the quarter driven by growth of more than 20% in both DTC and wholesale. Revenues in Latin America increased 37%, while Asia-Pacific returned to growth. Currency-neutral revenues increased 3% in this market despite still being impacted by limited tourism activity in the region. In contrast, the company continued to face a challenging market environment in Greater China, mainly related to the continued broad-based covid-19-related restrictions. As a result, currency-neutral revenues in the market declined 35% during the three-months period, in line with previous expectations. Excluding Greater China, currency-neutral revenues in the company’s other markets combined grew 14% in Q2.

Operating profit of € 392 million reflects operating margin of 7.0%
The company’s gross margin declined 1.5 percentage points to 50.3% (2021: 51.8%). Significantly higher supply chain costs and a less favorable market mix due to the significant sales decline in Greater China weighed on the gross margin development. This could only be partly offset by a higher share of full price sales, first price increases and the benefits from currency fluctuations. Other operating expenses were up 19% to € 2.501 billion (2021: € 2.107 billion). As a percentage of sales, other operating expenses increased 3.2 percentage points to 44.7% (2021: 41.5%). Marketing and point-of-sale expenses grew 8% to € 663 million (2021: € 616 million). The company continued to prioritize investments into the launch of new products such as adidas’ new Sportswear collection, the next iteration of its successful Supernova running franchise and first drops related to the Gucci collaboration as well as campaigns around major events like ‘Run for the Oceans.’ As a percentage of sales, marketing and point-of-sale expenses were down 0.3 percentage points to 11.8% (2021: 12.1%). Operating overhead expenses increased by 23% to a level of € 1.838 billion (2021:
€ 1.492 billion). This increase was driven by adidas’ continuous investments into DTC, its digital capabilities and the company’s logistics infrastructure as well as by unfavorable currency fluctuations. As a percentage of sales, operating overhead expenses increased 3.5 percentage points to 32.8% (2021: 29.4%). The company’s operating profit reached a level of € 392 million (2021: € 543 million), resulting in an operating margin of 7.0% (2021: 10.7%).

Net income from continuing operations reaches € 360 million
The company’s net income from continuing operations slightly declined to € 360 million (2021: € 387 million). This result was supported by a one-time tax benefit of more than € 100 million due to the reversal of a prior year provision. Consequently, basic EPS from continuing operations reached € 1.88 (2021: € 1.93) during the quarter.

Currency-neutral revenues on prior year level in the first half of 2022
In the first half of 2022, currency-neutral revenues were flat versus the prior year period. In euro terms, revenues grew 5% to € 10.897 billion in the first six months of 2022 (2021:
€ 10.345 billion). The company’s gross margin declined 1.7 percentage points to 50.1% (2021: 51.8%) during the first half of the year. While price increases as well as positive exchange rate effects benefited the gross margin, these developments were more than offset by the less favorable market mix and significantly higher supply chain costs. Other operating expenses increased to € 4.759 billion (2021: € 4.154 billion) in the first half of the year and were up 3.5 percentage points to 43.7% (2021: 40.2%) as a percentage of sales. adidas generated an operating profit of € 828 million (2021: € 1.248 billion) during the first six months of the year, resulting in an operating margin of 7.6% (2021: 12.1%). Net income from continuing operations reached € 671 million, reflecting a decline of € 219 million compared to the prior year level (2021: € 890 million). Accordingly, basic earnings per share from continuing operations declined to € 3.47 (2021: € 4.52).

Average operating working capital as a percentage of sales slightly decreases
Inventories increased 35% to € 5.483 billion (2021: € 4.054 billion) at June 30, 2022 in anticipation of strong revenue growth during the second half of the year. Longer lead times as well as the challenging market environment in Greater China also contributed to the increase. On a currency-neutral basis, inventories were up 28%. Operating working capital increased 23% to € 5.191 billion (2021: € 4.213 billion). On a currency-neutral basis, operating working capital was up 14%. Average operating working capital as a percentage of sales decreased 0.4 percentage points to 21.0% (2021: 21.4%), reflecting an overproportional increase in accounts payable due to higher sourcing volumes and product costs.

Adjusted net borrowings at € 5.301 billion
Adjusted net borrowings amounted to € 5.301 billion at June 30, 2022, representing a year-over-year increase of € 2.155 billion (June 30, 2021: € 3.146 billion). This development was mainly due to the significant decrease in cash and cash equivalents.

FY 2022 outlook reflects double-digit growth during the second half of the year
On July 26, adidas adjusted its guidance for FY 2022 due to the slower-than-expected recovery in Greater China since the start of the third quarter resulting from continued widespread covid-19-related restrictions. adidas now expects currency-neutral revenues for the total company to grow at a mid- to high-single-digit rate in 2022 (previously: at the lower end of the 11% to 13% range), reflecting a double-digit decline in Greater China (previously: significant decline). While so far the company did not experience a meaningful slowdown in the sell-through of its products or significant cancellations of wholesale orders in any market other than Greater China, the adjusted guidance also accounts for a potential slowdown of consumer spending in those markets during the second half of the year as a result of the more challenging macroeconomic conditions. Therefore, growth in EMEA is now expected to be in the low teens (previously: mid-teens growth), while revenues in Asia-Pacific are projected to grow at a high-single-digit rate (previously: mid-teens growth). Despite the more conservative view on the development of consumer spending in the second half of the year, adidas has increased its forecasts for North America and Latin America reflecting the strong momentum the brand is enjoying in these markets. In North America, currency-neutral revenues are now expected to increase in the high teens. Sales in Latin America are projected to grow between 30% and 40% (both previously: mid- to high-teens growth).   

Due to the less favorable market mix and the impacts from initiatives to clear excess inventories in Greater China until the end of the year, gross margin is now expected to reach a level of around 49.0% (previously: around 50.7%) in 2022. Consequently, the company’s operating margin is now forecast to be around 7.0% (previously: around 9.4%) and net income from continuing operations is expected to reach a level of around € 1.3 billion (previously: at the lower end of the € 1.8 billion to € 1.9 billion range).

More information:
adidas financial year 2022
Source:

adidas

04.08.2022

EU-India Free Trade negotiations

  • Opportunity to rebalance trade relations and promote a global sustainable textile industry

Today’s trade relations between the EU and India in textiles and clothing are characterised by a large and systemic trade deficit for the EU; annual imports from India exceed €6 bln (2021) – making it the 4th supplier – while EU exports to India reached just half a billion – the 20th place in our export markets.

Against this background, the free trade negotiations are an opportunity to rebalance that relationship; European textile and clothing companies can offer high quality and innovative products for the Indian market, but they can also offer solutions to reduce the environmental footprint of the textile industry.

EURATEX, as the voice of textiles and apparel manufacturers in Europe, supports an ambitious EU trade agenda, that puts reciprocity, transparency, fair competition and equal rules at the centre of its action. The FTA is an opportunity to establish a more sustainable and fair trading system, based on rules, global environmental and social standards, which are effectively respected by all.

  • Opportunity to rebalance trade relations and promote a global sustainable textile industry

Today’s trade relations between the EU and India in textiles and clothing are characterised by a large and systemic trade deficit for the EU; annual imports from India exceed €6 bln (2021) – making it the 4th supplier – while EU exports to India reached just half a billion – the 20th place in our export markets.

Against this background, the free trade negotiations are an opportunity to rebalance that relationship; European textile and clothing companies can offer high quality and innovative products for the Indian market, but they can also offer solutions to reduce the environmental footprint of the textile industry.

EURATEX, as the voice of textiles and apparel manufacturers in Europe, supports an ambitious EU trade agenda, that puts reciprocity, transparency, fair competition and equal rules at the centre of its action. The FTA is an opportunity to establish a more sustainable and fair trading system, based on rules, global environmental and social standards, which are effectively respected by all.

In this context, EURATEX highlights that the sector needs open and efficient markets, but combined with effective controls where necessary, thus ensuring level playing field for European companies. It is clearly essential that the same level of market access to India – both in terms of tariff and non-tariff barriers – is available to EU producers as vice versa.

India today benefits from reduced customs duties due to GSP. For European companies instead, market access to India is challenging, facing non-tariff barriers (related to proof of origin, quality control procedures, etc.) as well as national or state-level support programmes which distort the level playing field between EU and Indian companies.

That level playing field should also apply to our sustainability targets. As the EU will roll out its EU Textile Strategy, setting ambitious standards and restrictions (e.g. on chemicals), we must ensure the FTA is fully aligned with that strategy.

Director General Dirk Vantyghem commented: “We look to these negotiations with great interest. The FTA is an opportunity to develop a shared ambition between the European and Indian industry to make sustainable textiles the norm, and to create a regulatory framework where our companies can compete in a free and fair environment.”

Source:

EURATEX

(c) adidas AG
01.08.2022

adidas unveils collection that celebrates community, heritage, and identity

adidas unveils the first of two drops with South African luxury designer, Thebe Magugu. The debut collection for women features the celebratory and joyful artwork of a woman dancing, designed in collaboration with artist Phathu Nembilwi, and influenced by Thebe’s mother, aunt and grandmother, and the theme of femininity, interwoven with leading adidas material technology . Each garment features an abstract selection of bright and punchy colors including, impact orange and yellow, accents of shock pink, backgrounded by pulse lilac. The collection spans across sports including running , swimming , training , tennis , football , and cycling alongside a set of casual lifestyle garments.  

United by a shared passion for inclusivity and kinship, the collection includes a three-piece modesty swimwear set made in part with recycled materials and chlorine resistant fabric that is lightweight and chlorine-resistant; swimwear in inclusive sizing (XS-4XL); and gender-neutral pieces with UNITEFIT – a fit system that is created with a spectrum of sizes, genders, and forms in mind.

adidas unveils the first of two drops with South African luxury designer, Thebe Magugu. The debut collection for women features the celebratory and joyful artwork of a woman dancing, designed in collaboration with artist Phathu Nembilwi, and influenced by Thebe’s mother, aunt and grandmother, and the theme of femininity, interwoven with leading adidas material technology . Each garment features an abstract selection of bright and punchy colors including, impact orange and yellow, accents of shock pink, backgrounded by pulse lilac. The collection spans across sports including running , swimming , training , tennis , football , and cycling alongside a set of casual lifestyle garments.  

United by a shared passion for inclusivity and kinship, the collection includes a three-piece modesty swimwear set made in part with recycled materials and chlorine resistant fabric that is lightweight and chlorine-resistant; swimwear in inclusive sizing (XS-4XL); and gender-neutral pieces with UNITEFIT – a fit system that is created with a spectrum of sizes, genders, and forms in mind.

The high-performance tennis pieces will be premiered during one of the most prominent hardcourt tournaments by adidas’ inspirational athletes Dana Mathewson, Stefanos Tsitsipas, Felix Auger Aliassime and Daria Kasatkina who are passionate about showing support for what matters and encouraging diversity and inclusivity on and off the court. The tennis collection features the Purple NY UNITEFIT Tennis Dress, delivering style and functionality, made in part with recycled materials.

Alongside the performance pieces, the statement Originals looks include the Originals Crop T-shirt, in white and semi pulse lilac, delivering classic streetwear style, and the Originals 7/8 Leggings, a go-to choice for every occasion. The collaboration also includes remixes of iconic adidas footwear silhouettes including the Stan Smith, Nizza Platform, Astir and Forum footwear, which feature design accents from Thebe Magugu's signature prints. Reflecting adidas's commitment to consciously crafting performance materials, hero styles and pieces have also been made in part with recycled materials, just one of the innovations that represent adidas' commitment to help end plastic waste. 

More information:
adidas Sportswear
Source:

adidas AG

28.07.2022

Lenzing partners with Red Points to fight counterfeits

  • Collaboration with Red Points addresses consumers’ increasing expectations on transparency and highlights Lenzing’s commitment to trademark protection
  • Protects interest of Lenzing customer and partners who are making real efforts to enhance the transparency of their value chains
  • Builds upon Lenzing’s overall brand protection efforts that verify the authenticity of fibers up to the end products

Lenzing Group, a global producer of wood-based specialty fibers, has announced a partnership with Red Points, a company in online IP infringement detection and removal, to strengthen Lenzing’s existing brand protection efforts globally and enable round-the-clock brand monitoring services. As Lenzing’s textile brands TENCEL™, LENZING™, ECOVERO™, as well as nonwovens brand VEOCEL™ continue to generate widespread demand from industry partners and customers worldwide, it is becoming increasingly important to protect the company’s trademarks and provide full visibility into the brands’ presence online.

  • Collaboration with Red Points addresses consumers’ increasing expectations on transparency and highlights Lenzing’s commitment to trademark protection
  • Protects interest of Lenzing customer and partners who are making real efforts to enhance the transparency of their value chains
  • Builds upon Lenzing’s overall brand protection efforts that verify the authenticity of fibers up to the end products

Lenzing Group, a global producer of wood-based specialty fibers, has announced a partnership with Red Points, a company in online IP infringement detection and removal, to strengthen Lenzing’s existing brand protection efforts globally and enable round-the-clock brand monitoring services. As Lenzing’s textile brands TENCEL™, LENZING™, ECOVERO™, as well as nonwovens brand VEOCEL™ continue to generate widespread demand from industry partners and customers worldwide, it is becoming increasingly important to protect the company’s trademarks and provide full visibility into the brands’ presence online.

Protecting the interest of Lenzing’s partners and consumers
Red Points provides the ideal technology solution to help Lenzing monitor and remove unauthorized use of its trademarks and counterfeits online. The technology works by using Artificial Intelligence (AI) to automatically detect intellectual property infringements of Lenzing’ trademarks with high accuracy and efficiency.

Brand protection is just one of Lenzing’s ongoing proactive measures aimed at enhancing transparency in the supply chain and protecting the interest of Lenzing’s partners by ensuring they are purchasing genuine Lenzing fibers which meet their high standards.

In 2018, Lenzing launched the Lenzing E-Branding Service which allows Lenzing’s customers, retailers and brand partners to effectively use trademarks in their marketing materials. The platform has been welcomed by partners globally as it continues to deliver value to the fashion, textile and nonwoven sectors by facilitating the traceability of Lenzing’s fibers and enabling customers to promote them effectively.

Source:

Lenzing AG

28.07.2022

Lectra: Financial statements for the first half of 2022

  • Revenues: 250.8 million euros (+71%)
  • EBITDA before non-recurring items: 45.2 million euros (+95%)
  • Net income: 20.2 million euros (multiplied by 2.3)
  • Free cash flow before non-recurring items: 14.7 million euros

Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the first half of 2022, which have been subject to a limited review by the Statutory Auditors.

To facilitate 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.

  • Revenues: 250.8 million euros (+71%)
  • EBITDA before non-recurring items: 45.2 million euros (+95%)
  • Net income: 20.2 million euros (multiplied by 2.3)
  • Free cash flow before non-recurring items: 14.7 million euros

Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the first half of 2022, which have been subject to a limited review by the Statutory Auditors.

To facilitate 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.

(c) AVANTI/Hologenix
28.07.2022

AVANTI introduces dog beds powered by CELLIANT®

Hologenix’s CELLIANT® infrared technology, an ingredient in textiles across many categories including bedding, is now offered in a new line of sustainable dog beds. The first performance fabric product from AVANTI, RESPOND is a wellness collection that promotes good health not only for pets but also for the planet. It is made from 100% recycled PET and uses patented CELLIANT technology for unmatched performance.

CELLIANT transforms the body’s heat into full-spectrum infrared energy. This energy is reflected back to the body, making it possible for the tissue and muscle to absorb it, promoting local circulation and tissue oxygenation. This technology helps keep the body dry and at the appropriate temperature. CELLIANT has been demonstrated to enhance energy, endurance, strength, stamina and comfort as well as promote faster recovery and more restful sleep. The RESPOND beds’ orthopedic memory foam filler adds an extra layer of comfort and wellness.

Hologenix’s CELLIANT® infrared technology, an ingredient in textiles across many categories including bedding, is now offered in a new line of sustainable dog beds. The first performance fabric product from AVANTI, RESPOND is a wellness collection that promotes good health not only for pets but also for the planet. It is made from 100% recycled PET and uses patented CELLIANT technology for unmatched performance.

CELLIANT transforms the body’s heat into full-spectrum infrared energy. This energy is reflected back to the body, making it possible for the tissue and muscle to absorb it, promoting local circulation and tissue oxygenation. This technology helps keep the body dry and at the appropriate temperature. CELLIANT has been demonstrated to enhance energy, endurance, strength, stamina and comfort as well as promote faster recovery and more restful sleep. The RESPOND beds’ orthopedic memory foam filler adds an extra layer of comfort and wellness.

Introduced at Interzoo in Germany in May, RESPOND dog bedding was the result of determination by AVANTI leaders Raghav and Devika Modi to become champions of pet wellness and performance products while also aligning with the New Delhi, India-based company’s focus on sustainability.  

Ideal for ailing and senior pets, RESPOND beds are made from GRS-certified 100% recycled polyester CELLIANT yarns and orthopedic memory foam and have natural latex-coated bases for extra skid-resistance. AVANTI pet bed covers are removable and washable.

RESPOND dog beds are offered in nine SKUs, three different shapes and three colorways of each shape: grey, blue/grey and green/grey in shades that are associated with wellness.

More information:
Hologenix Celliant AVANTI Bedding
Source:

Hologenix, LLC

27.07.2022

Autoneum: Half Year Results 2022

Lower volumes due to geopolitical developments and the sharp rise in inflation impacted the result in the first half of 2022. In a slightly declining market, Autoneum increased revenue in local currencies by 0.5%. At CHF 888.7 million, revenue in Swiss francs reached the previous year's level. Despite the challenging environment, Autoneum achieved a positive operating result of CHF 6.4 million (EBIT margin: 0.7%). The net result decreased to CHF –12.8 million. On the other hand, Autoneum was able to generate a solid free cash flow of CHF 45.2 million. A high demand for sustainable products for electric vehicles confirms that Autoneum is well positioned for this growing market of the future.

Lower volumes due to geopolitical developments and the sharp rise in inflation impacted the result in the first half of 2022. In a slightly declining market, Autoneum increased revenue in local currencies by 0.5%. At CHF 888.7 million, revenue in Swiss francs reached the previous year's level. Despite the challenging environment, Autoneum achieved a positive operating result of CHF 6.4 million (EBIT margin: 0.7%). The net result decreased to CHF –12.8 million. On the other hand, Autoneum was able to generate a solid free cash flow of CHF 45.2 million. A high demand for sustainable products for electric vehicles confirms that Autoneum is well positioned for this growing market of the future.

Current geopolitical developments substantially affected business performance in the first half of 2022. They are accompanied by accelerating inflation and significant price increases in the commodities markets, which the war in Ukraine has further exacerbated. These developments are also delaying market recovery in the automotive industry. Autoneum does everything it can to minimize the impact on the Group. Despite the present challenges, we will continue to implement our strategy, focusing on innovative and sustainable technologies for growing markets of the future.

  • Revenue development influenced by the war in Ukraine and supply chain bottlenecks*
  • Low production volumes and high inflation impact profitability*
  • Solid free cash flow enables further reduction in net debt*
  • Business Groups*
  • Well positioned for e-mobility and sustainability*
  • Expanding the product portfolio for electric vehicles*
  • Autoneum joins the Science Based Targets initiative*

Outlook
According to global market forecasts1, automobile production will pick up again in the second half of the year with growth of 8.8% compared with the first half-year 2022. For full-year 2022, global automobile production is projected to reach 80.8 million vehicles, which is equivalent to a 4.7% increase on 2021. Based on the market forecasts, Autoneum expects to improve the operating result for the second half of the year. This will be supported by ongoing customer negotiations with a view to fair sharing of costs, the accompanying contribution of vehicle manufacturers to shouldering the sharp increases in material, energy and transport costs and the foreseeable normalization of production after the easing of lockdown measures in China. On this basis, Autoneum expects substantially enhanced results for full-year 2022, as well as an improvement in the EBIT margin to 2.0% to 3.0%. Free cash flow is expected to be in the mid to high double-digit million range for the full year 2022.

*For more information see attached document

1Source: IHS “Light Vehicle Production Forecasts” – July 15, 2022

More information:
Autoneum supply chain acoustic
Source:

Autoneum Management AG

26.07.2022

adidas adjusts outlook for 2022: Declining revenues in Greater China expected

adidas is adjusting its outlook for the financial year 2022. While second quarter results were somewhat ahead of expectations reflecting continued strong momentum in Western markets and a return to growth in Asia-Pacific, the company has been experiencing a slower-than-expected recovery in its business in Greater China since the start of the third quarter. Previously, the company had assumed that in absence of any major lockdowns as of Q3, currency-neutral revenues in the region would be flat during the second half of the year versus the prior year level. However, given the continued widespread covid-19-related restrictions, adidas now expects revenues in Greater China to decline at a double-digit rate during the remainder of the year.

adidas is adjusting its outlook for the financial year 2022. While second quarter results were somewhat ahead of expectations reflecting continued strong momentum in Western markets and a return to growth in Asia-Pacific, the company has been experiencing a slower-than-expected recovery in its business in Greater China since the start of the third quarter. Previously, the company had assumed that in absence of any major lockdowns as of Q3, currency-neutral revenues in the region would be flat during the second half of the year versus the prior year level. However, given the continued widespread covid-19-related restrictions, adidas now expects revenues in Greater China to decline at a double-digit rate during the remainder of the year.

As a result, adidas now expects currency-neutral revenues for the total company to grow at a mid- to high-single-digit rate in 2022 (previously: at the lower end of the 11% – 13% range). Because of the less favorable market mix due to lower-than-expected revenues in Greater China as well as the impact from initiatives to clear excess inventories in this market until the end of the year, the company’s gross margin is now expected to be around 49.0% in 2022 (previously: around 50.7%). Consequently, the company’s operating margin is now forecasted to be around 7.0% in 2022 (previously: around 9.4%) and net income from continuing operations is expected to reach a level of around € 1.3 billion (previously: at the lower end of the € 1.8 billion – € 1.9 billion range).

So far, the company did not experience a meaningful slowdown in the sell-through of its products or significant cancellations of wholesale orders in any other market. Nevertheless, the adjusted guidance also accounts for a potential slowdown of consumer spending in these markets during the second half of the year as a result of the more challenging macroeconomic conditions.

Despite these headwinds, adidas continues to expect double-digit revenue growth during the second half of the year for the total company. In addition to easier prior year comparables, the acceleration will be driven by adidas’ strong product pipeline, the restocking opportunity with its wholesale customers given unconstrained supply as well as the support from major sporting events.

Based on preliminary numbers, adidas’ currency-neutral revenues grew 4% during the second quarter. This increase was driven by strong double-digit growth in North America and Latin America, high-single-digit growth in EMEA (also double-digit growth excluding negative Russia/CIS impact) as well as a return to growth in Asia-Pacific. In euro terms, sales increased 10% to € 5.596 billion. The company’s gross margin declined 1.5 percentage points to a level of 50.3% and operating margin reached 7.0% during the second quarter (2021: 10.7%). Net income from continuing operations was € 360 million in Q2 (2021: € 387 million) supported by a one-time tax benefit of more than € 100 million due to the reversal of a prior year provision.

More information:
adidas financial year 2022
Source:

adidas AG

(c) Lindauer DORNIER GmbH
Maja Dornier (lhs) and Prof. Dr. Wolf Mutschler (rhs) hand over the Peter Dornier Foundation Award, endowed with 5,000 euros, to the award winner Dipl.-Ing. Mathis Bruns
26.07.2022

Peter Dornier Foundation Prize 2022 honours textile research on woven heart valve

According to the World Health Organization (WHO), cardiovascular disease is one of the most common natural causes of death. Every year, it is the cause of death of around 17 million people worldwide. The Peter Dornier Foundation Prize 2022 has now awarded a research work that is to improve the medical care of people with insufficient heart valve function in the future and prolong the patients' lives.

According to the World Health Organization (WHO), cardiovascular disease is one of the most common natural causes of death. Every year, it is the cause of death of around 17 million people worldwide. The Peter Dornier Foundation Prize 2022 has now awarded a research work that is to improve the medical care of people with insufficient heart valve function in the future and prolong the patients' lives.

The human heart is a high-performance machine: over the course of a person's life, it beats almost three billion times, pumping around 200 million litres of blood through the body. Enormous stresses that can sometimes lead to life-threatening signs of wear and tear. If a heart valve gets out of step, patients usually get artificial-mechanical or biological valves as a replacement. However, mechanical solutions imply patients to take blood-thinning medication for the rest of their lives. In addition, there may be audible closing noises. For example, almost a quarter of patients with mechanical heart valves complain of sleep disturbances. Biological heart valves, on the other hand, such as those made from animal tissue, require a great deal of manual work and have a shorter lifetime.

Potential of weaving for medical products demonstrated
For this reason, Graduate Engineer Mathis Bruns at the Institute for Textile Machinery and High-Performance Textile Materials Technology (ITM) at the TU Dresden is researching an implant alternative made of fabric. As part of a research project that also involved heart surgeons from the Dresden Heart Centre and the University Hospital in Würzburg, Mr. Bruns provided important findings for weaving an artificial heart valve in his diploma thesis. For his work entitled "Development of tubular structures with integrated valve function", Mathis Bruns has now received the Peter Dornier Foundation Prize 2022, endowed with 5,000 euros. In his laudation, Dr. Adnan Wahhoud, former head of the development department of air-jet weaving machines at DORNIER in Lindau, said: "With his work, the winner of the award demonstrates very clearly the potential of weaving technology to produce fabrics of complex form, geometry and structure with the aim of prolonging and improving people's lives." The award-winning thesis enriches research into three-dimensional tissues for use in medicine.

Weaving replacement heart valves without seams
"A particular advantage of our approach is the integral production method", says foundation prize winner Mathis Bruns. “The geometry and function of a heart valve is that complex that woven heart valves could not be produced in this form previously. Through the combined use of a rigid rapier weaving machine with bobbin shield and a Jacquard machine, it is possible to weave the replacement heart valve in such a way that it no longer has be sewn together. Even the tubular structures for the blood vessels and the integrated valve function are ‘all of one piece’. Seams are always a weak point in textile medical products," Mr. Bruns adds. “Another advantage of the woven heart valve is the possibility to insert it by the help of minimally invasive surgery. Hence, the folded valve which is about the size of a tea light is to be pushed with a catheter via the bloodstream to the target position in the heart and unfolded there. The patient's chest and heart would then no longer have to be cut open”, explains prize winner Mr. Bruns.

Textile structure is similar to human tissue
A wide variety of medical products have always been produced on DORNIER weaving machines. Customers use them to produce fabrics for bandages, prostheses, blood filters and orthoses among other things. For Mathis Bruns, it is only evident that implants such as heart valves will more and more be woven on the machines from Lindau in the future. "Textile tissue is very similar to human tissue," he says. The human body consists largely of thread-like materials, just as a textile fabric is made up of thousands of individual threads. "Muscle fibres convey force impulses, nerve tracts send stimuli such as pain and brain cells convey information via thread-like dendrites and axons." Because of their ‘thread-like properties’, woven implants are therefore particularly suitable for medical applications.

25.07.2022

Carbios: Strengthening its leadership in the biorecycling of plastics and textiles

  • Exceptional achievement of research work on the use of Nuclear Magnetic Resonance (NMR) spectroscopy for understanding PET depolymerization enzymes

Carbios (Euronext Growth Paris: ALCRB), a pioneer in the development of enzymatic solutions dedicated to the end-of-life of plastic and textile polymers, announces the publication of an article entitled “An NMR look at an engineered PET depolymerase” in the scientific journal Biophysical Journal.

The article describes the use of Nuclear Magnetic Resonance (NMR) spectroscopy to study the thermal stability of PET depolymerization enzymes and the mechanism of adsorption of the enzyme on the polymer. This innovative approach, which required months of development, is a world first and opens up new ways of improving these enzymes. This publication confirms Carbios' international lead in the development of the most efficient enzymes for the depolymerization and recycling of plastics.

  • Exceptional achievement of research work on the use of Nuclear Magnetic Resonance (NMR) spectroscopy for understanding PET depolymerization enzymes

Carbios (Euronext Growth Paris: ALCRB), a pioneer in the development of enzymatic solutions dedicated to the end-of-life of plastic and textile polymers, announces the publication of an article entitled “An NMR look at an engineered PET depolymerase” in the scientific journal Biophysical Journal.

The article describes the use of Nuclear Magnetic Resonance (NMR) spectroscopy to study the thermal stability of PET depolymerization enzymes and the mechanism of adsorption of the enzyme on the polymer. This innovative approach, which required months of development, is a world first and opens up new ways of improving these enzymes. This publication confirms Carbios' international lead in the development of the most efficient enzymes for the depolymerization and recycling of plastics.

Prof. Alain Marty, Chief Scientific Officer of Carbios and co-author of the article, explains: “ Nearly 25 researchers are currently working on our unique enzymatic technology. It is based on academic collaborations with the world's leading experts in their fields..”

Dr. Guy Lippens, CNRS Research Director and co-author of the artcle, adds: “Nuclear Magnetic Resonance (NMR) is an extraordinary biophysical technique for visualizing an enzyme directly in solution. Our study is the first to use NMR as a complementary technique to crystallography and molecular modeling to observe a PETase. This gives new perspectives to better understand the functioning of these enzymes and it makes it possible to imagine new ways of improving these enzymes. ”

More information:
Carbios de-polymerization
Source:

Carbios

(c) FROY
25.07.2022

FROY wins C.L.A.S.S. ICON 2022

C.L.A.S.S. Eco Hub has selected the winner of C.L.A.S.S. ICON Award 2022, the annual contest with the aim of sponsoring a visionary creative who is able to combine design, responsibility, innovation and communication. Receiving the third edition of the eye-turning award is FROY Club, an experimental and responsible fashion project born in 2018 by designer Arman Avetikyan.

Froy is rooted in Armenian culture and by mixes high quality materials and yarns. Working with a sustainable ethic, Froy reconciles traditional know how and innovative techniques to create hybrid, versatile and speaking surfaces. The brand uses Italian certified fabrics and yarns that meet European standards, selecting natural materials to create high-quality products with a circular life. Froy also chooses GOTS, FSC and OEKO-TEX certified fabrics and yarns in order to support a clear production chain.

C.L.A.S.S. Eco Hub has selected the winner of C.L.A.S.S. ICON Award 2022, the annual contest with the aim of sponsoring a visionary creative who is able to combine design, responsibility, innovation and communication. Receiving the third edition of the eye-turning award is FROY Club, an experimental and responsible fashion project born in 2018 by designer Arman Avetikyan.

Froy is rooted in Armenian culture and by mixes high quality materials and yarns. Working with a sustainable ethic, Froy reconciles traditional know how and innovative techniques to create hybrid, versatile and speaking surfaces. The brand uses Italian certified fabrics and yarns that meet European standards, selecting natural materials to create high-quality products with a circular life. Froy also chooses GOTS, FSC and OEKO-TEX certified fabrics and yarns in order to support a clear production chain.

By receiving two thousand euros for sourcing purposes, smart consultancy support and communication aid from the C.L.A.S.S. team, plus assistance to the brand in commercial activities, a physical stand in the WHITE Show and a dedicated brand page on Renoon powered by C.L.A.S.S. partners; Froy will have the opportunity to upgrade its efforts in terms of responsibility and innovation, while sharing its conscious vision and values with a wider audience. Moreover, the Italian brand with Armenian roots will become part of the C.L.A.S.S. ICON community, joining past winners such as the high fashion Italian designer Gilberto Calzolari and the Portuguese streetwear brand Duarte

Source:

C.L.A.S.S.

(c) Sappi Europe
25.07.2022

Sappi showcases its solutions at FACHPACK 2022

The FACHPACK in Nuremberg ranks among the most important packaging industry gatherings. From 27 to 29 September 2022, Sappi will be presenting its latest products and solutions for functional paper packaging, flexible packaging papers, label papers, containerboard and paperboard. The company is focusing its efforts on sustainable, recyclable and innovative solutions.

The FACHPACK in Nuremberg ranks among the most important packaging industry gatherings. From 27 to 29 September 2022, Sappi will be presenting its latest products and solutions for functional paper packaging, flexible packaging papers, label papers, containerboard and paperboard. The company is focusing its efforts on sustainable, recyclable and innovative solutions.

  • Wide range of barrier papers in the market for sustainable and recyclable packaging solutions
  • High-impact brand presence in corrugated board packaging thanks to Fusion Nature Plus in combination with Fusion Topliner
  • Parade Label Pro wet-glue label paper for an efficient operation and an excellent visual impression

Wide range of barrier papers
Sappi’s ultimate goal as a specialist in barrier papers is to replace non-recyclable aluminium and plastic multi-layer laminates through the introduction of truly sustainable alternatives that meet all market requirements in terms of performance and recycling. Sappi is continuously expanding its portfolio of barrier papers. At the show, Sappi will be showcasing several examples of food and non-food applications using these barrier papers.

A smooth surface and a high degree of whiteness: Parade Label Pro
Sappi will also be presenting its new, non-wet-strength wet-glue label paper Parade Label Pro – featuring samples from all over the world. This glossy, double-coated quality paper offers a smooth surface plus a high degree of whiteness. It’s suitable for numerous label and flexible packaging applications, such as labels for disposable bottles, food and non-food containers as well as wrappers for a variety of products. It can be printed in offset, flexo and gravure, and finished with hot foil and blind embossing, for example.

Brand presentation that appeals to the senses
“For manufacturers of branded goods, it is becoming increasingly important to convey brand values and product characteristics in a way that is emotionally appealing and that really sets the stage,” explains Luis Mata, Sales Director Packaging of Sappi Europe. At the FACHPACK, Sappi will also be presenting its containerboard products for corrugated board applications, which, with their brilliant colour reproduction, enhance on-shelf product impact and ensure real brand differentiation.

Sappi’s popular Algro Design paperboard portfolio also allows the design scope and leeway to communicate brand values in an emotionally appealing way.

Source:

Sappi Europe