AB „Utenos trikotažas“ group earned EUR 0,5 million of pre-tax profit and recorded 34,2 percent sales growth in Q1 2018
Utenos Trikotažas AB, the largest textile group in Central and Eastern Europe, consolidated sales stood at EUR 8,0 million in the Q1 2018 posting a 34,2 percent growth over the corresponding period last year. The Company alone generated sales of EUR 7,1 million, an increase of 41,1 percent as compared to last year.
“Q1 2018 was quite successful. We reached a quarterly sales level that we have not seen since 2008 when the global economic crisis started. The main driver for such performance was 48 percent growth in sales of on-demand jersey products to both of our main export regions Scandinavia and German speaking countries (DACH - Germany, Austria, Switzerland). Exports stood at EUR 6,6 million and made 83 percent of total group sales. The sales of own brands, namely UTENOS and ABOUT, posted only 2,4 percent growth reaching EUR 0,8 million due to unusually cold weather this March. We expect the growth to pick-up in Q2 along with warmer weather season. The sales of services of functional-technical garment manufacturing by our subsidiary Satrija has declined slightly by 3.1 percent and stood at EUR 0,9 million.
Rapid growth of sales and manufacturing was the key reason to almost double the Groups’ pre-tax profit that reached EUR 0,5 million and grow EBITDA by 31,1 percent to EUR 658 thousand.
Despite higher level of raw materials and wages that we experience this year we observe positive dynamics in our order books and strong demand in our export markets. Consistent implementation of our strategy, Organically Innovative, allows us to offer new fabric qualities to the market and successfully attract new clients. Thus, we are making investments to expand manufacturing capacity and add new technologies in order to realize current growth opportunities as well as to strengthen our innovation capabilities. As a result, we expect to maintain significant double digit growth dynamics for the rest of 2018”, says Algirdas Šabūnas, CEO of AB Utenos trikotažas.
The Utenos Trikotažas AB group includes the companies Utenos Trikotažas, Šatrija, Gotija and Mrija (Ukraine). The Group of companies is part of the SBA concern.
About Utenos Trikotažas AB:
Utenos Trikotažas AB is the largest and most modern textile group in Central and Eastern Europe and part of the SBA concern. Companies in the Group include Šatrija, Gotija and Mrija (Ukraine). The company Utenos Trikotažas itself owns two retail brands – UTENOS and ABOUT. In 2017, Utenos Trikotažas AB was the first in Lithuania to join Greenpeace’s “Detox” project for fashion without pollution and commit by 2020 to eliminate from its production chain any chemical substances that adversely affect people or the environment.