CREDITEX operates in the cotton textile sector, where it manages integrated processes from cotton ginning to the manufacture and finishing of fabrics, in addition to the garment manufacturing processes carried out through its subsidiary Texgroup S.A., which provides garment manufacturing services.
In the domestic market, it is the main supplier of extra-long fiber yarns for Peruvian clothing manufacturers, who are mainly exporters. This type of product has become a niche market that Peru sustains and has earned worldwide recognition for its quality.
The company produced 6,708,329 kilograms of yarn in 2020. In weaving, it was able to produce 2,254,307 meters. In terms of garments, production totaled 741,437 units in 2020, which were produced through the manufacturing services of its subsidiary Texgroup.
The level of sales experienced a reduction of 26% compared to the previous year in the context of a global pandemic which, as a consequence, led to a contraction in the markets. CREDITEX's sales revenues as of December 31, 2020 amounted to S/ 197,817,671.
The company's gross margin decreased from 13.69% to 12.03% with respect to revenues when comparing the end of 2019 with 2020, mainly affected by the fabric and flat fabric apparel segments, which reduced demand and production assuming their higher fixed load in production levels and, therefore, higher costs.
As a consequence of the aforementioned effects, the operating income result decreased from S/ 9 227 848 in 2019 to (S/ 1 244 501) in 2020. In addition, the Company's net income obtained in 2020 was S/ (600 283).
During 2020, CREDITEX continued with its investment projects, which are carried out permanently to maintain the competitiveness of its products. This condition demands an adequate technological platform to offer product quality, variety, and flexibility. Thus, the investment with its own resources was S/. 1,192,070 and financed S/. 61,870, corresponding to the modernization of the spinning process and the new fabric store project.
During the first quarter of 2021, total income increased by 29.78% compared to the same period of 2020, mainly due to good sales in yarns and certain lines that were affected, such as fabrics and flat fabrics. The level of sales at the end of the first quarter compared to the same period of the previous year increased by 29.78%.
Cost of sales fell from 83.77% to 80.76% of total revenues. The increase in sales with cost reduction favored the increase in gross margin by S/4,330,750 as of March 2021, compared to the end of the 2020 quarter.
The liquidity ratio at the end of the first quarter of 2021 was 5.25 times and the acid test was 1.43 times, which compared to the same date of 2020 were 3.85 times and 1.08 times, respectively.
Therefore, a net result of S/4,289,738 was achieved as of March 2021.
The level of sales at the end of the second quarter of 2021 compared to the same period of the previous year increased by 79.74%.
Cost of sales fell from 93.32% to 79.07% of total revenues. The increase in sales with cost reduction favored the increase in gross margin by S/22,938,727 as of June 2021, compared to the end of the second quarter of 2020.
The operating margin increased significantly in the comparative to the second quarter of the year 2021, going from a loss position at June 2020 of S/7'064,460 to a profit of S/12'854,957 at the cut-off analyzed. Therefore, a net result of S/12,621,205 was achieved as of June 2021.
The general liquidity ratio as of June 30, 2021 was 2.88 times and 0.83 times the acid test, which, compared to the same date in 2020, were 3.43 times and 0.68 times, respectively.
