The change in outlook reflects the deterioration in Naturtex’s sales and profitability as demand for its discretionary products declines due to the unfavorable macroeconomic environment.

The affirmation reflects the resilient profitability amid rising materials costs and the strong interest cover despite a weaker financial risk profile following the planned issuance of a new loan and the correction of calculation errors.

Naturtex made up for its 2020 revenue loss in 2021. Business expansion was financed by short-term loans and credit metrics are therefore expected to remain broadly stable for 2021 and 2022.

Positive signals ahead are expected to give sales boost in 2021

Although a relatively small-sized privately owned company, Naturtex is one of the leading bedding brands in Hungary, with a clear international profile.