MONTREAL-Gildan releases its fourth-quarter results citing strong numbers and projected growth for 2019. The company says it met projected targets for 2018 despite “unanticipated weather impacts and supply chain disruptions during the year.”
Gildan’s activewear division continues to grow, with an increase of 22 percent during the fourth quarter. The company credits fourth quarter net sales of $742.7 million, an increase of 13.6 percent, to this growth.
The report also says the company plans to continue expansion and consolidation in Honduras. Gildan decided to close the AKH textile facility in Honduras, which was acquired as part of the Anvil acquisition in 2012 and existed outside of the company’s multi-site manufacturing complex in Rio Nance. Focused primarily on fashion basics, that arm of Gildan’s manufacturing has since been consolidated to the Rio Nance 6 textile facility. In addition, Gildan says it has consolidated its sock manufacturing operations to the Rio Nance 4 facility, while Rio Nance 3 focuses on garment-dyeing operations. Going forward, Gildan says it aims to invest in expansions at the Rio Nance 6 site.
“For 2019, the Company is projecting capital expenditures of approximately $125 million primarily for the continued development of the Rio Nance 6 facility in Honduras, investments in existing textile facilities, sewing capacity expansion to align with increases in textile capacity, as well as expenditures in information technology,” the company says in its fourth-quarter report.
Gildan’s growth in the region has continued over the last few years with expansions and consolidations, as well as community initiatives. In 2018 the company donated $570,000 for park restoration funds in the city of San Pedro Sula.
To read the full report, visit http://www.gildancorp.com/documents/Q4-2018-Earnings-Release-/Gildan-Q4-2018-Earnings-Press-Release—Final.pdf.