None other than an Italian company is the leader in the Bulgarian clothing and textile sector for 2021. E. Miroglio, which also happens to be the usual leader in this sector, recorded an 8.7% growth in sales to over 242 million levs (121 million euro), and a loss of 35.6 million levs. The rise in revenue came from higher sales on the European markets and increasing average selling prices of the different types of fabrics. Sales of fabrics and yarns abroad (10%), as well as knitwear and clothing (63%) marked the greatest growth rates. E. Miroglio reports that in 2021 the costs of electricity and energy increased by 50% compared to 2020, and those of basic and auxiliary materials - wool, cotton, etc. - by 25%. The company received a state subsidy of 12 million levs.
Edoardo Miroglio, founder of E. Miroglio, made his first investment in Bulgaria in the mid-1990s - in the then leader in the country's wool industry Slitex in Sliven. Since 2006, Slitex has been expanded, completely renovatedand fully taken over by Miroglio. Today, the Italian investor with a Bulgarian passport owns seven textile factories in Sliven, three in Yambol and one in Svishtov. He also owns a hotel and a wine cellar, as well as perennial plantations in the village of Elenovo, Nova Zagora region, and several office buildings in Sofia. E. Miroglio has its own registered companies in France, Serbia, Romania and joint ventures in China and Georgia.
An overview of the sector
In 2021, the combined revenues of the 15 largest clothing and textile companies grеw by only 3.5% to just under 1 billion levs. And although most companies increased their turnover, average levels still remained lower compared to the strong years before the pandemic. Moreover, last year there were six companies that even had lower sales than in the previous Covid-marred year 2020. And five companies recorded a loss. Staff hiring has also decreased.Revenues of over 187 million levs for 2021 put Gabrovo-based Zalli - also an Italian investment - second in the sector. Zalli manufactures products for the brands Intimissimi, Tezenis, Calzedonia, Falconeri, Atelier Eme. It has three production sites on the territory of Gabrovo.
For the second year in a row, Kalinel - Troyan, is in the top 3 in the sector ranking. The company is among Europe's largest home textile companies and one of the largest suppliers to Sweden's IKEA. The main factory and administration are located in Troyan, but Kalinel also has production centers in Cherven Bryag, Teteven, as well as in Vranje, Serbia.
More foreign investment
BTB Bulgaria - Ruse (6th) is owned by the German investor Achim Bayerl and Kalinka Petkova Kirova. The company reports a 12.2% drop in revenue in 2021, to 41.2 million levs, with a decrease in profit. The company produces women's clothing for global fashion giants such as Comma, s.Oliver, Hallhuber, Esprit, Peek & Cloppenburg and Oui.A decline in sales in 2021 was also reported by Balkantex (8th), owned by the Swiss company Cross Fashion. The Bulgarian company has its own design team and constructors, and works with subcontractor factories for Esprit, s.Oliver, Migroc, Marc O Polo, Tommy Hilfiger, Tom Tailor, and the Swiss army.
Pirin-tex - Gotse Delchev (10th), owned by the German investor Bertram Rohlman, saw a drop in sales by over 32% and marked yet another year with a loss.
In 2021, Feldhus BG, owned by the German holding of the same name, reported over 22% growth in revenues, which exceeded 19 million levs, and a three-digit growth in profit to 1.6 million levs. The company ranks 11th in the sector ranking.
Coats Bulgaria (12th), part of the British-based Coats, a world leader in the production of industrial threads and auxiliary materials for the sewing industry, reports growth in both sales and financial results. The company ranks first in profit growth (197.5%), second in revenue increase (22.1%) and second in profitability in the top 15.
The Bulgarian stars
With the highest revenue growth rate (28.6%) and ranking first in terms of profitability is Gabrovo-based joint-stock company MAK with majority shareholder Georgi Dimitrov Bizhev. The company has facilities for the preparation and processing of all types of textile fabrics. IT manufactures more than 400 types of finished products of its own design with its own fabrics, sold abroad. According to the company's data, exports account for 45% of the total sales volume.The family-owned company Aglika Trade (7th), successor to state-owned textile factory Petko Vladov, reports a slight increase in revenue and a decrease in profit. "The biggest difficulty we encountered in 2021 is related to the provision of qualified personnel. In this regard, the only possible solution for finding specialists turned out to be the ability to attract such people from other countries. For this purpose, we have invested in a residential building with ideal conditions for our new employees. Forty employees from Turkey that specialize in weaving, dyeing and quilting will increase the production capacity in our factories, which will stabilize the position of Aglika in our country and in Europe ", says Elitsa Petkova, commercial director at Aglika. She says that in 2021, the company also invested in the purchase of complete equipment for a furniture factory for sofas. In addition, the company began building its own photovoltaic installation with the aim of achieving complete energy independence by 2024.
Growth in both sales and profit for 2021 is reported by the Haskovo-based company Yanev (9th) - a manufacturer of casual men's and women's clothing. The sole owner of the capital is Yanko Ivanov Yanev.
A double-digit drop in revenues and a loss of 615 thousand levs in 2021 is reported by the public company with Bulgarian owners Mizia - 96, Pleven (14th). The company owns seven production lines and manufactures men's clothing for EU markets - suits, jackets, trousers, vests.
Forecasts
It is expected that in the medium term demand for production capacities will exceed supply, a possibility heightened by the temporary withdrawal of Ukraine as a production destination, Pirin-tex comments.Radina Bankova, Chairperson of the Bulgarian Association of Manufacturers and Exporters of Clothing and Textiles, recalls that the sewing business sells clothes 8 months in advance. "At the moment, orders for spring - summer 2023 are being negotiated. We do not know what the real costs of production will be, and this leads to the failure of some orders. The price increase for our end customers - order givers, traders, is 40 - 50 %, but some were forced to compromise on the prices of certain types of products, because they had to deliver goods to their stores," summarizes Bankova.
In March and April of this year, there was an increased interest in Bulgarian sewing factories. "In addition to the Ukrainian crisis, manufacturers who had factories or other facilities in Ukraine and even in neighboring countries are now experiencing difficulties and moving their orders to other contractors. However, it is not clear whether they will remain in Europe, at what price and whether the end customer of the clothing will be able to pay for it. More so that consumer demand is falling. Forecasts are for a decrease in volumes. We will grit our teeth to survive. After all, this is a 185-year-old industry," adds Bankova.
None other than an Italian company is the leader in the Bulgarian clothing and textile sector for 2021. E. Miroglio, which also happens to be the usual leader in this sector, recorded an 8.7% growth in sales to over 242 million levs (121 million euro), and a loss of 35.6 million levs. The rise in revenue came from higher sales on the European markets and increasing average selling prices of the different types of fabrics. Sales of fabrics and yarns abroad (10%), as well as knitwear and clothing (63%) marked the greatest growth rates. E. Miroglio reports that in 2021 the costs of electricity and energy increased by 50% compared to 2020, and those of basic and auxiliary materials - wool, cotton, etc. - by 25%. The company received a state subsidy of 12 million levs.
Edoardo Miroglio, founder of E. Miroglio, made his first investment in Bulgaria in the mid-1990s - in the then leader in the country's wool industry Slitex in Sliven. Since 2006, Slitex has been expanded, completely renovatedand fully taken over by Miroglio. Today, the Italian investor with a Bulgarian passport owns seven textile factories in Sliven, three in Yambol and one in Svishtov. He also owns a hotel and a wine cellar, as well as perennial plantations in the village of Elenovo, Nova Zagora region, and several office buildings in Sofia. E. Miroglio has its own registered companies in France, Serbia, Romania and joint ventures in China and Georgia.
