Bagir, a formalwear tailor based in London with a specific focus on the US and UK markets, has recently announced a remarkable increase in revenues despite facing various challenges in the retail and political landscape. The company, under the leadership of CEO Micha Ronen, experienced a significant surge in sales, reporting a 32% revenue growth to $32.8 million for the six months ending on June 30th. This growth was primarily driven by an increase in sales from existing customers. Additionally, Bagir revealed that sales had reached $46 million by September 19, with an order backlog of $20.1 million.
Moreover, Bagir saw a turnaround in its core earnings, with adjusted EBITDA reaching $1 million, a stark contrast to the $1.7 million loss in the previous year. The company also managed to reduce its pre-tax loss to $1.05 million from $3.6 million and improve its gross margin to 11.9% from 6.7%. General and administrative expenses were trimmed to $1.1 million in the first half of the year from $1.5 million in the same period last year. Bagir is now projecting revenues of approximately $59 million for 2019, up from $56.4 million in 2018.
CEO Micha Ronen expressed his contentment with the company’s performance, highlighting the improvements in all operational aspects. He emphasized the significant increase in demand for Bagir’s tailored products, resulting in the substantial revenue growth. While acknowledging the challenging market conditions, Ronen assured that Bagir is making necessary adjustments to its organization.
Additionally, Bagir disclosed that a new completion date has been set for the awaited takeover by Shandong Ruyi. The takeover deal, involving an investment of $16.5 million by Shandong Ruyi for a 53.7% stake in Bagir, has faced delays but is now making progress. Collaboration between Bagir and Shandong Ruyi includes a production order from Vietnam for a client, along with a focus on enhancing the group’s standalone operations. Bagir also sees potential in expanding its product lines and entering the tailored uniform market alongside its core business of manufacturing tailored garments for major clients in the US and UK.
For more information on Bagir, visit their official website here. Additionally, to learn more about the latest trends in the formalwear industry, click here.
