Redan posts considerably improved performance

Redan released its financial statements for the first quarter of 2021. In that period, the Company recorded PLN 21 million in revenue, which represents a 37% increase year on year. Its sales margin grew by a whooping 75%, to PLN 3.5 million. The performance was primarily driven by the change of rules of cooperation with Top Secret implemented in September 2020 and an increase in export sales of the brand’s products.

“In the first quarter of 2021, the situation in the clothing industry was still difficult. The ban on trading in shopping centres lasted longer than in the corresponding period of the previous year. However, compared with last year, customers’ approach to the risk of getting COVID-19 changed significantly, making them more willing to shop both online and at brick-and-mortar stores not covered with the ban. The significantly better performance also resulted from a change in rules of cooperation with Top Secret implemented in September 2020, which helped Redan rise its sales margin from 7.3% to 11.1%. Operations related to the Top Secret brand continue to be our core business,” said Bogusz Kruszyński, the President of the Redan Management Board.

In the first quarter of 2021, Redan’s revenue was PLN 21 million, up 37% relative to the corresponding period of the previous year. The sales margin grew by 75%, to PLN 3.5 million. Distribution costs and administrative expenses were higher only by 15%. In consequence, the Company’s gross loss was reduced by PLN 0.9 million, to PLN -1.3 million.

Redan has consistently developed export sales of Top Secret products. In the first quarter of 2021, they went up by nearly PLN 2 million, by a staggering 680%.  PLN 1.2 million of that amount was attributable to the takeover of operations carried out in 2020 by Top Secret, while PLN 0.7 million was generated by an increased scale of transactions with the existing counterparties and acquisition of new customers. “The business generates a higher sales margin, with a low risk of receivables and relatively low operating costs. That’s why in subsequent periods we will strongly focus on expanding the scale of export sales,” added Bogusz Kruszyński.