New Body Line, a Tunisian textile company listed on the Bourse de Tunis, has released its financial statements for the first half of 2026, revealing a significant decline in business. The company's revenue fell by 41% to 2.646 MDT, with exports plummeting 47.1% to 2.317 MDT. This decline in exports has had a ripple effect on the company's financial performance, with its gross margin on raw materials decreasing by 36.7% and its value added decreasing by 38.4%.
The company's operating profit was severely impacted, falling by 84.2% to 160.990 DT, and its net profit decreased by 70.9% to 169.118 DT. The relatively small decline in net profit is attributed to a one-off provision related to the Tuniso-Saoudienne d'Investissement (TSI) case in the previous year. New Body Line has 5.8 MDT invested in TSI, which is currently under investigation by the Financial Market Council (CMF) for alleged irregularities.
The TSI case has significant implications for New Body Line's financial health, with 74.7% of its total assets - 6.150.631 DT - tied up in the TSI investment. The company's production facilities are also showing signs of wear and tear, with 93.9% of its tangible assets and 90.7% of its intangible assets fully depreciated. There were no new acquisitions reported during the semester.
Meanwhile, New Body Line's cash flow is being directed towards related parties. The company has a significant receivable from WAT Tunisie Sarl, a company with shared management, amounting to 1.446.244 DT or 50.4% of its total receivables. New Body Line has also granted a loan to its French subsidiary, Lytess SAS, amounting to 843.123 DT.
In contrast, New Body Line's local business has shown growth, with its domestic revenue increasing from 109.040 DT to 329.285 DT. This shift towards local business may be a response to the decline in export markets, but it is unclear whether this trend will continue.
The company's management has significant related-party transactions, including a lease agreement for the factory premises with Nessim Rejeb, the deputy general manager. These transactions have been disclosed, but their concentration warrants close monitoring.
New Body Line's financial struggles highlight the challenges faced by Tunisian companies operating in the textile sector. The company's ability to recover from these setbacks remains uncertain, and investors will be closely watching its future performance.
Key points
- New Body Line's export business declined by 47.1% in the first half of 2026.
- The company's investment in TSI accounts for 74.7% of its total assets.
- New Body Line's local business revenue increased by 202% in the first half of 2026.
