The specialist in smart clothes, New Body Line, reported a negative balance during the first half of 2013, where profits fell 64% to 0.6MDt (against 1.7 MTD at the end of June 2012).
The main reason for this decline is explained by the fact that some ‘smart’ items (averaging 80% of revenue) have reached the end of their sales cycle, lowering the turnover by 34% to 2.6 MTD.
As a result, profitability was severely impaired. With the explosion of staff costs (34%) to 0.6MDt, Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) has depreciated by 66% to 0.6 MTD, i.e. a margin of 23% against 45% for the same period in 2012. Ditto for the operating result which fell from 1.6 MTD to 0.4 MTD to the end of June 2013.