Utenos trikotažas Group earned EUR 6.1 million in revenue in the first quarter of this year
April 28 2023 - 10:30AM
Utenos trikotažas Group earned EUR 6.1 million in revenue in the
first quarter of this year
In the first quarter of 2023, the SBA Textile
Group Utenos trikotažas (hereinafter the Group) sold products and
provided services for EUR 6.1 million, i.e. 29.8 percent less than
in the same period of the previous year, when the Group’s sales
reached EUR 8.6 million. According to the company’s
representatives, this performance is due to macroeconomic
developments, particularly the trend of declining consumption in
the main export markets.
Results due to low
demand “At the moment, the textile sector, as well as
the whole industry in Lithuania, is facing significant challenges
due to the declining consumption in export markets, especially in
Germany and Scandinavian countries. The industry in our country is
already in recession, and high energy costs at the beginning of the
first quarter of the year made the situation even more difficult.
All of this has led to a decline in sales of Utenos trikotažas in
the first three months of this year, compared to the results for
2022,” says Nomeda Kaučikienė, CEO of “Utenos trikotažas”.
Separately, Utenos trikotažas generated revenue
of EUR 5.3 million in the first three months of 2023, with sales
revenue decreasing by EUR 2.6 million, or 32.4 percent, compared to
the same period of 2022. The company’s export sales revenue was
80.1 percent.
Compared to the same period last year, sales of
the Group’s largest sales segment, on-demand jersey garment
production, decreased by 31.7 percent to EUR 4.7 million, while
sales of own brands decreased by 42.8 percent to EUR 0.6
million.
Strategic transformation
continues
Utenos trikotažas continues the strategic
transformation of the company started at the end of last year,
during which it has focused its energy and resources on the most
profitable segment of its business – high value-added outsource
manufacturing.
“Although the market is challenging, strategic
direction and strong discipline help us to deliver results
consistently and purposefully. We continue to successfully increase
the number of new clients, bring new products to the market and
maintain our high sustainability standards. In March,
products of Utenos trikotažas won prizes at Performance Days, the
sector’s largest functional materials’ exhibition in Munich, based
on the amount of CO2 emissions reduced by their production,” says
N. Kaučikienė.
According to the CEO of Utenos trikotažas, “the
main focus of the company is on the production of products with
higher complexity and higher price level, especially functional
wool and its blends. We are actively working with world-renowned
clients in the textile sector, which strengthens the position of
Utenos trikotažas in the global textile market. All these ongoing
changes, despite the market situation, are yielding positive
results and the company’s profitability is improving,” says N.
Kaučikienė.
Improved performance
Utenos trikotažas reduced its losses by more
than 70 percent in the first quarter of this year – losses amounted
to EUR 264 thousand before taxes, compared to EUR 942 thousand a
year ago. EBITDA of Utenos trikotažas remains negative at EUR -42
thousand, but profitability has improved significantly despite the
fall in sales and was EUR 658 thousand higher than in the same
period of 2022, when EBITDA was negative at EUR -700 thousand.
In the first three months of the year, the
Group’s loss before tax decreased compared to the same period last
year and amounted to EUR 248 thousand (2022: EUR 1,246 thousand).
The Group’s EBITDA was positive and amounted to EUR 19 thousand ,
i.e. EUR 860 thousand more than in the same period in 2022.
In addition to Utenos trikotažas, the Group of
companies currently includes Aboutwear, Gotija, Šatrija and Mrija
(Ukraine). In the first 3 months of this year, the Group exported
82.3 percent of its production. Sales of functional-technical
clothing produced by Šatrija increased by 16 percent.
Utenos trikotažas is the largest and one of the
most sustainable jersey manufacturing companies in Central and
Eastern Europe. The main activities of “Utenos trikotažas” are
custom-made clothing production and development of innovative
materials.
More information: Živilė
Jonaitytė CFOAB Utenos trikotažas J. Basanavičiaus g. 122,
LT-28214, Utena +370 686 51938 www.ut.ltzivile.jonaityte@ut.lt
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