Canadian clothing manufacturer Gildan has seena rise of 8 per cent in its Q2 net earnings to record US $ 158 million.
Notably, the diluted EPS grew by 15 per cent during the quarter.
Owing to inflationary cost pressures, Gildan Activewear Inc. reported operating margins of 19.4 per cent and adjusted operating margins of 19.6 per cent in the second quarter.
Gildan generated US $ 210 million cash from operating activities in Q2. While after capital expenditures totalled around US $ 50 million, the free cash flow was US $ 159 million.
The company attributed the growth to planned capacity expansions in Central America, the Caribbean and Bangladesh.
The selling, general and administrative expenses of US $ 88 million were about US $ 8 million higher than last year’s US $ 80 million – owing mainly to the effect of cost inflation and higher volume-driven distribution expenses.
The second quarter sales, which ended 3 July 2022, rose by 20 per cent year-on-year to US $ 896 million.
The activewear sales grew at 27 per cent to US $ 758 million, while the hosiery and underwear segment slumped by 8 per cent to clock US $ 138 million.
Founded in 1984, Gildan Activewear Inc. is a Canadian manufacturer of branded clothing, including undecorated blank activewear such as T-shirts, sport shirts and fleeces.
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