Admit it energy cost but with a decrease in demand for clothing from European markets, companies in this sector are coming textile industryHow inflation it eats up revenues and changes consumer behavior. “We expect a difficult year due to inflation. In general, there is a decrease in demand for textiles, which we began to notice back in September last year.” – tells “K” the management of Nafpaktos Textiles., a listed company that recently completed an investment project worth around 5.5 million euros to increase its production capacity. “The investment has been completed, we now have more production, but demand has decreased,” she says, referring to the progress of orders for her end product, i.e. cotton yarn, in European markets such as Germany and Italy.

After the end of the pandemic, the demand for the product rose sharply, but since mid-2022, the curve has been moving downwards. “We’re talking to the average European citizen, so the impact of inflation on their purchasing power affects us.”

According to the recent EY Future Consumer Index Greece 2023 survey, 57% of European consumers say they are very concerned about rising costs of living, with Greeks appearing slightly more optimistic (56%) compared to Italy (71%) and Spain. (73%). However, one in two consumers surveyed said they only buy essentials, and 12% rely on perks to make ends meet.

As indicated in the listed company’s published financial statements for 2022, the implementation of the plan was completed in the second half of 2021, with the company also expanding its gin operations through a long-term lease of the gin. A.S. Nafpaktias – Union in Neohori Messolonghi. “What is produced in the gin is the raw material for the spinning mill in Nafpaktos,” the management sources explain. However, a sharp increase in energy costs, combined with a decrease in demand for clothing, has led to a reduction in profit margins and an increase in inventories, “which are being liquidated slowly and in some cases at prices below cost,” the report says. financial reports.

Despite problems, the group closed last year with revenues of 16.3 million euros from 13.5 million euros (+20.75%), but profitability was under pressure: EBITDA reached 1.8 million euros at the group level from 2.1 million euro in 2021 (-14.2%).