Redan has published the financial statements for the first three quarters of 2020. In that period, the Company reported stand-alone net loss of PLN 1.6 million, an improvement of PLN 9.6 million compared to the same period a year earlier. The operations related to the Top Secret brand will remain the core business of Redan. Furthermore, the Company will continue to develop foreign sales of the Top Secret branded goods and will start looking for new customers in the area of logistics and IT services.
“The sale of Top Secret shares at the end of August does not affect Redan’s on-going business operations. Redan will continue to provide Top Secret with logistics operations and services (including IT, financial management and HR) to the same extent as before. Thus, the operations related to the Top Secret brand will remain a key focus of our business. However, since the results of Top Secret are no longer consolidated, the Group will now draft reports on a stand-alone basis” – says Bogusz Kruszyński, Redan CEO.
In the first three quarters of 2020, despite a very difficult situation in the clothing industry, Redan reported a stand-alone net loss of PLN 1.6 million, which means an improvement of PLN 9.6 million as compared to the same period of 2019. On the other hand, stand-alone sales declined y/y by 53%, to PLN 52.7 million. The decrease in Redan’ s sales of goods to Top Secret stores and e-commerce customers in Poland (i.e. Top Secret company) was directly affected by the SARS-CoV-2 epidemic. Due to the spread of the virus, the stores had to be temporarily closed. After the re-opening of commerce, there was a significant reduction in the number of customer entries to the outlets and, consequently, a drop in the sales from Redan to Top Secret.
“As a result of the changes in the rules of cooperation with the Top Secret Group companies implemented at the end of August this year, we expect the conditions for running our business to improve in further periods. This will include both an increase in the margin on the sale of goods and elimination of the risk of unsold goods under the Top Secret brand borne by Redan, for which responsibility has been assumed by the company operating the distribution channels” – adds Bogusz Kruszyński. He emphasises that sales to foreign customers are also expected to increase. “In the case of Ukraine, last year we closed the sales to wholesalers and since March this year we have been selling directly online via www.topsecret.ua online store. The retail margin generated on these operations has been much higher than the wholesale margin. The new form of sales will certainly have a positive impact on our results” – states Bogusz Kruszyński.
In the coming periods, in addition to developing its domestic (to Top Secret) and foreign sales, Redan will also look for new customers in the field of logistics and IT services.