Polygiene is at the center of media attention since it launched ViralOff, a fabric treatment with antiviral properties, in April. In the context of Covid-19 outbreak, demand for the garment has soared, and the group expanded its scope from initially treating protective clothing, face masks and other hospital products to much broader areas of use such as apparel and accessories.
The Swedish company saw its revenues soar by 37.4 percent in the second quarter to 17.3 million Swedish kronor (€1.7m-$2.0m). ViralOff was solely responsible for the increase, since sales in the existing business declined by 8.5 percent. It narrowed its operating loss to SEK 1.1 million (€106,670-$126,197), compared with a loss of SEK 4.2 million for the same period of 2019. A weaker dollar had a negative impact on operating profit of SEK 1.2 million (€116,367-$137,689). Excluding the effects of foreign currency fluctuations, operating profit would have been positive. The gross margin fell by 1.7 percentage points, but remained high at 70.3 percent.
Polygiene’s anti-microbial treatment, which is said to reduce viruses by 99 percent in two hours, was declared by a jury as the Overall Winner of the Scandinavian Outdoor Awards in July. During the period, Polygiene unveiled ViralOff+, with it says offers a lifetime of garment washability.
Looking at the rest of the year, the management said the effect of larger ViralOff agreements signed in the first half will be seen in the third and fourth quarter of this year, and in 2021. These include the signature with Spanish company General Tactic to provides apparel and textiles for first responders in Spain and North America. Additional European adapters include German brand Everbasics that launched a scarf design that will provide coverage for the nose and mouth. Polish brand, Lekko has adapted their offering to include ViralOff. Others include, Spira Protekta from Germany and the U.K. provider, Screenworks that will launch a facemask and neck gaiter option. Diesel Sports is also working with Polygiene for some products with the fabric, while Fossil will launch ViralOff treated watches.
As previously reported, the group is strengthening its corporate management team due to increased demand for ViralOff. Andreas Holm, who was brought in as a temporary resource during the launch of the product, will assume the position of chief commercial officer on Sept. 1 at the company head office in Malmö, Sweden. Previously, he was the sales director Nordic & Baltic for the Thule Group. Effective Sept. 18, Dane Momcilovic will assume the role of chief technology officer with a focus on streamlining processes and driving the technical team forward. Prior to joining Polygiene, Momcilovic served as group R&D manager at Diab, a Swedish composite core material developer.
