Page 15 - Annual Report 2019

Supervisory Board Report
Group Management Report
Consolidated Financial Statements
Annexes

2.4. Business performance
Results of operations

Change
in EUR million 2019 2018
abs. in %
Sales 171.1 174.1 -3.0 -1.7

Gross revenue 166.8 173.6 -6.8 -3.9
Gross profit 86.5 91.0 -4.5 -4.9
Cost of materials -83.8 -87.2 +3.4 -3.9
Personnel expenses -46.3 -45.6 -0.7 +0.9
Net income for the fiscal year 2.7 8.0 -5.3 -66.3
EBITDA 15.4 20.8 -5.4 -26.0

Sales in the HOFTEX Group sank by 1.7% to EUR 171.1 million. Despite the difficult market
environment, TENOWO was able to build on the previous year’s figures, but was unable to reach its
targets. The HOFTEX and NEUTEX divisions saw major declines in revenues in their target markets.
We generate a far greater share of sales abroad. Sales generated with other countries during
the 2019 fiscal year totalled EUR 102.1 million (prior year: EUR 104.0 million). Sales in the EU region
and third countries made up 30% each. Domestic sales were similar to the previous year’s
levels at 40%.

51.7

69.0 Domestic
Other EU member states
Rest of world

50.4

Fig. 5: Classification of sales by region in EUR million

The decline in inventory levels for finished goods and unfinished goods resulted in a reduction in
inventory levels of EUR -4.3 million (prior year: EUR -0.5 million). Lower inventory levels are
primarily a result of the sale of the Hoftex CoreTech GmbH spinning mill and the associated sale of
its stock. The gross profit margin calculated as gross profit to gross revenue remained unchanged
over the previous year at 52%. Similarly, the cost of materials ratio of 50% remained the same.
Other operating income fell to EUR 3.5 million (prior year: EUR 4.6 million). One key reason for this
was lower income from the disposal of fixed assets, as income from the sale of a foreign minority
share had a strong positive effect.

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