Reima’s strong growth and expansion of responsibility efforts continued in 2019

Reima’s 75th anniversary was marked by record net sales and EBITDA results. We invested in responsibility through making our products safer than ever, increasing supply chain transparency and circularity, all of which is explored in detail in Reima’s Corporate Responsibility Report published today.

Net sales grew by 14% in 2019 – growth in all markets

Reima Group’s (RE Child Wear Group) net sales in 2019 was 140.7 million Euros (2018: 122.8 mil. Euros). Net sales grew across channels (wholesale and direct-to-consumer) and regional clusters: Europe, Russia, Asia and North America. Already over 85% of revenue comes from outside of Finland. Our international expansion has been rapid in the past five years.

Digital business has been the key focus in Reima’s strategy for a long time. In 2019, our own digital business represented 15% of sales, most of which came from our own ecommerce store operating in 38 countries. Together digital channels represent already around 50% of net sales, as a major share of wholesale is also online.

New initiatives promote circular economy

Innovation and responsibility have been at the heart of Reima’s operations since its founding in 1944, when the company started making clothes out of excess army snowsuits. In the fall of 2019, Reima’s Board of Directors approved a new, ambitious sustainability roadmap for 2020-2023.

Reima’s goal is to be carbon neutral in own operations by 2023, and promoting circular economy with new innovations. An increasing share of products are made from recycled materials.

Improved profitability helps face challenging market situation caused by corona

In 2019, Reima Group’s adjusted EBITDA was 19.5 million Euros (2018: 14.6 mil. Euros) and reported EBITDA was 16.4 million Euros (10.5 mil. Euros). The improvement was due to strong revenue growth, increased share of direct-to-consumer business and improvements in operational efficiency. Additionally, Reima concluded a new long-term financing solution, supporting the company’s growth strategy until 2024 and strengthening the company’s equity. Improved profitability and good financial position provide a strong base for operations in 2020, despite the uncertainties caused by COVID-19.

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