The textile technology group HeiQ Plc, which specializes in the development of sustainable fibers, was able to increase its sales in the first half of 2022, but at the same time had to accept a significant drop in profits. Despite the mixed numbers, co-founder and CEO Carlo Centonze was confident: “Despite the persistently difficult global market conditions and a three-month lockdown in our main market China, we remain cautiously optimistic. We have developed plans to address these challenges and are making rapid progress commercializing our breakthrough, innovative technologies,” he said in an interim statement released on Tuesday.
For the months of January through June, consolidated sales were $30.3 million (EUR 30.3 million), an increase of 17 percent over the same period last year. The company was able to improve its gross margin, but had to book significantly higher operating costs as a result of its strategic growth measures. Operating profit fell by 62.5 percent to 1.24 million US dollars. Net income attributable to shareholders was $1.11 million, down from $3.13 million in the first half of last year (-64.4 percent ).
Despite the adverse conditions, the company was “cautiously optimistic” that it would be able to meet market expectations in the current fiscal year. It continues to have high hopes for its sustainable fiber HeiQ AeoniQ. Well-known clothing companies such as the German fashion group Hugo Boss AG have now invested several million euros in the corresponding subsidiary. After expanding the existing pilot factory, the textile manufacturer now wants to set up the first large production facility for HeiQ AeoniQ. This will probably be located in Portugal and, according to current expectations, will start operations in 2025, the company said.