HeiQ, the Swiss high-performance textile innovator, has reported escalating losses for the first half of 2023. The company's pretax loss rose to $6.4 million from $1.65 million, a significant increase attributed to adverse trading conditions and reduced demand across all commercialized product ranges, including textiles and flooring.
This follows on from a challenging year for the company, which saw a full-year pretax loss of $29.8 million. Adjusted losses reached $3.6 million, a stark contrast to the prior profit of $721,000. Revenue for the first half of 2023 also fell by 26% to $20.5 million.
The company's financial difficulties were compounded by China's coronavirus lockdown in 2022, which resulted in a decrease in revenue from $55.4 million to $47.2 million.
Despite these setbacks, Chairwoman Esther Dale-Kolb remains optimistic about HeiQ's future. She confirmed that the company possesses adequate resources to reduce costs and restructure the business. This will include transitioning from uncommitted to committed long-term credit facilities, a move that signals HeiQ's determination to weather these difficult market conditions and emerge stronger.
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