New Body Line Reports 19% Increase in Net Profit for 2023
New Body Line, a specialist in intelligent textiles, has announced a net profit of 1,315 million Tunisian dinars (Mtnd) for 2023, representing a 19% increase year-over-year. This growth is attributed to higher sales revenue of 6,580 Mtnd (compared to 5,448 Mtnd in 2022) and effective control of operating expenses. The company's payroll expenses even decreased by 6.9% to 1,954 Mtnd.
The company's EBIT (Earnings Before Interest and Taxes) rose from 0.511 Mtnd in 2022 to 0.852 Mtnd in 2023, while EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reached 1,105 Mtnd.
Growing Demand for Intelligent Textiles
New Body Line has seen a surge in demand for intelligent textiles, which now account for 56.6% of its sales revenue. In contrast, sales of women's lingerie have declined to 2,856 Mtnd. Despite the shift in product mix, the company's gross margin on raw materials remained stable at 3,669 Mtnd (compared to 3,657 Mtnd in 2022).
Debt-Free and Cash-Rich
With a total value of 20,401 Mtnd, New Body Line remains a debt-free company. Financial expenses of 0.055 Mtnd are mainly due to exchange losses and discount fees. The company's excess cash has even allowed it to earn interest on treasury bills totaling 0.612 Mtnd.
Upcoming Annual General Meeting
Shareholders have been convened to an ordinary general meeting on Thursday, June 27, with a proposal to distribute 0.300 Tnd per share. Although the net yield is equivalent to a bank savings account, the debate is likely to focus on the proposed payment date of September 26, 2024. This may not please minority shareholders who want to receive their dividends quickly, while management aims to optimize its cash reserves.
