Innovative tailoring provider Bagir Q2 sales up 120%
31 Aug '05
3 min read
Innovative tailoring provider Bagir Ltd posted a 120% increase in its net profit for the second quarter of 2005. Bagir posted a net profit of $3.7 million (NIS 13.7 million) for the second quarter, compared with $1.4 million (NIS 6.5 million) for the corresponding quarter of 2004.
Bagir posted a net profit of NIS 24.9 million for the first half of 2005, 147% higher than its net profit of NIS 10.6 million for the first half of last year.
Bagir's second quarter revenue fell 16% to $30.8 million from $36.7 million for the corresponding quarter of last year. It posted $65.8 million (NIS 288.3 million) in revenue for the first half of the year, compared with $72 million (NIS 325.9 million) for the first half of last year.
The fall in revenue was due to discounts granted to UK retail chain Marks and Spencer, which accounted for 67% of Bagir's sales during the first half of the year.
Bagir's cash flow from current operations was NIS 9.5 million for the second quarter, and its shareholders' equity was NIS 122.3 million.
Bagir CEO Offer Gilboa said today, “They are proud of our growth in profits. We attribute the increase to the start of production in China, a more profitable mix of products, and a greater proportion of innovative products in our sales basket. These products accounted for 32% of sales, compared with 25% in 2004.”
Bagir raised NIS 192 million in a private placement and IPO of shares and bonds in April 2005. The proceeds from the issue are intended for mergers and acquisitions of foreign companies, in order to strengthen Bagir's position in the tailored fashion market.
marketing@alchempro.com
