SOEX Group increases EBITDA 2022 to 3 million euros
- Further increase of profitability with minor decrease in turnover
- Restructuring process finalised to the greatest extent
- New alignment for the future and change of management
Ahrensburg, 24 Oktober 2023
In the financial year 2022, the SOEX Group was again able to increase its operative result. Last year the EBITDA of about 3 million euros was roughly 0.5 million euros higher than in the previous year (2021: 2.6 million euros). The consolidated result also increased by 1.3 million euros to -0.9 million euros (2021: -2.1 million euros).
Further increase of profitability with minor decrease in turnover
Despite difficult framework conditions, the SOEX Group developed positively in the financial year 2022. Both the general economic situation and COVID-19-related changes in consumer behaviour presented the activities of the company with challenges. At the same time, the ongoing war on Ukraine has significant effects on the sale of second-hand articles. Added to this were high volatilities in the commodities market as well as political and economic difficulties in various sales markets, e.g. in Africa and Eastern Europe. Despite these framework conditions, the SOEX Group was able to increase its operative profitability (EBITDA) by around 18%, while the turnover decreased slightly by around 6% to 60.4 million euros (2021: 64.2 million euros). The SOEX subsidiary in the United Arab Emirates made the largest contribution to the operative result, while the operative performance of the Bitterfeld-Wolfen site is still falling short of expectations.
Restructuring process finalised to the greatest extent
The SOEX Group has undergone comprehensive restructuring in recent years. Focusing on profitable sales and cost reductions at the same time, the company’s financial performance has developed significantly positively. As a consequence, the operating result (EBITDA) was improved from around -9.8 million euros (2019) to around 3 million euros (2022). Within the same period, the consolidated result improved from -19.8 million euros (2019) to -0.9 million euros (2022). Against the background of this overall positive economic development, the restructuring of the company can be considered to be completed to a great extent.
New alignment for the future and change of management
Especially the new regulations for sustainability in the textile industry which are currently being developed in Europe contain significant opportunities for the SOEX Group. It can be assumed that the upcoming European legislation, combined with the planned extended producer responsibility, will result in a significant increase in the collection of used textiles. With improved sorting and marketing of second-hand textiles as well as a sophisticated sorting technology, the SOEX Group is perfectly positioned for future “closed-loop” recycling processes. It can be assumed that these developments will lead to profitable growth for the group in the medium term.
Against the background of the upcoming legal and economic framework conditions and the anticipated course for growth after the restructuring, which is now completed for the greatest part, there will be a change in the Management Board of the SOEX Group. Effective 24 October 2023, Roland Hovestadt assumes the position of Walter J. Thomsen.
Roland Hovestadt has many years of profound experience in the management of international medium-sized companies and has proven recycling expertise. The company thanks Walter J. Thomsen for his commitment to the SOEX Group over the last four years, particularly for his great success in the steering of the restructuring process. CFO Ingo Thomsen will retain his function for the SOEX.
Since 1977 SOEX has been providing services in the areas of used textiles and footwear, from collection and sorting to re-use and recycling. For this purpose the SOEX Group has set up a textile recycling network which is unique worldwide. The goal is to retain 100% used textiles in the product circle, saving natural resources and minimising waste (www.soex.de)