News & numbers “The results of this second quarter of 2023 once again demonstrated the strength
of our diversified global platform.” Gilberto Tomazoni, CEO, JBS Global
Spanish leather exports set record levels
Throughout the initial five months of 2023 the value of Spanish exports of semi- tanned and tanned skins has consistently reached unprecedented heights due to the prevailing high inflation over recent months. Conversely, overseas sales of raw skins saw a decline exceeding 16%. Based on information sourced from the General Directorate of Customs, January to May of this year witnessed a 16.5% reduction, €11.3m ($12.3m) in raw skin exports in comparison to the same timeframe in 2022. Meanwhile, exports of semi-tanned skins surged by 32.7%, translating to a €10m ($10.8m)
Coalition of leather and footwear industries in Brazilian
parliament The leather, footwear, and footwear components industries in Brazil have gained increased influence within the nation’s federal government. A support coalition, consisting of members of parliament from various states and political parties, was re-established in Brasilia on 15 August. The Parliamentary Front for the Defence of Leather and Footwear has garnered endorsement from industry associations CICB (leather), Abicalçados (footwear) and Assintecal (footwear components). Among the participating parliamentarians are Lucas Redecker from Rio Grande do Sul, who will serve as the group’s president, Otto Filho from Bahia, as vice-president, and Newton Cardoso from Minas Gerais, as secretary general. Upon the launch of the initiative, the three industry associations emphasised that the combined production of leather, footwear and footwear components contributes approximately $9.75bn to Brazil’s economy and supports more than 1.2 million jobs both directly and indirectly. They view the formation of this parliamentary group as a crucial milestone, poised to significantly amplify the contributions of these sectors to Brazil’s future growth. Their aim is to enhance production for both domestic consumption and international exports.
Leather International /
www.leathermag.com
increment, and exports of tanned skins registered a 6.6% uptick, amounting to a €12m ($13m) increase.
Compared with the initial five months of 2019, the period preceding the Covid-19 pandemic, sales of raw hides experienced an 18.4% contraction. In contrast, semi- tanned hides encountered an impressive 80.1% upswing, while tanned skin exports grew by 16.1%.
Moving on to imports, between January and May 2023 purchases of foreign raw fur rose by 6% compared with the same period in 2022, reflecting an additional €1.8m ($2m). The procurement of semi-
tanned skins from abroad also displayed a 0.1% decrease, amounting to €52,800 ($57,500) less, and imports of tanned skins diminished by 0.7%, equivalent to €800,000 ($870,000) less.
In comparison to January–May 2019, raw skin imports witnessed a substantial 41.8% growth and semi-tanned skin imports saw a 15.1% increase, while imports of tanned skins encountered a decline of 16.8%. Consequently, the trade balance for the leather industry within the initial five months of 2023 depicted an overall imbalance favouring exports, amounting to €88.8m ($97m).
Tandy Leather Factory reports decline in second quarter
Tandy Leather Factory announced its results for Q2 2023, with sales down to $17.5m, down 5% from $18.4m in 2022. This comes after Q1 reported a profit of $10.9m, up from $10.5m in the previous year. The company’s gross margin reached 62.5%, with an adjusted EBITDA of $1.3m and concluded the quarter with $10m in cash and cash equivalents. “In the second quarter, we continued to pursue our strategies to increase operating income and cash flow offsetting the ongoing weakening consumer demand. Despite the expected decline in total sales, we were able to generate $0.8m
in operating income, versus a quarterly loss in 2022, and a $2m increase in cash year to date,” said CEO Janet Carr. “We have continued to successfully manage operating expenses, notably by putting a microscope on store staffing to maximise efficiency of operating and employee hours. We were also pleased with excellent gross margins in the quarter, although some of those were attributable to non-recurring adjustments made in the quarter. We believe we are well positioned to further leverage these efficiencies for more profitability when sales begin to rebound.”
TFL has new interim CEO
TFL Group announced that the TFL supervisory board did not prolong the current contract of Dr Wolfgang Schütt – CEO of TFL Group – effective July 2023. Its statement read: “Dr Schütt has been with TFL for the past 2.5 years and we would like to thank him for his numerous contributions during the strategically and operationally important integration of Lanxess’ Organic Leather Chemicals business as well as tactical projects and wish him the very best
for the future. With this change, we are announcing the appointment of Russell Taylor as interim CEO. Russell Taylor is currently on the TFL Board and is also the executive chairman of Bakelite Synthetics, a speciality manufacturer of industrial chemicals, and has been associated with Black Diamond Capital Mgmt for several years. Prior to that, Russell Taylor has held leadership positions at several public and privately owned companies.”
9
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41
