Utenos Trikotažas earned 8.6 million euros in income during the first quarter of this year

2022-04-29    |
Utenos Trikotažas earned 8.6 million euros in income during the first quarter of this year

The textile group Utenos Trikotažas (hereinafter referred to as the “Group”) managed by the SBA Group has realized production orders and provided services for 8.6 million euros during the first quarter of 2022. It is 33.8% more than in the same period a year ago when the Group’s sales reached 6.4 million euros.

“Currently, Utenos Trikotažas is working at full capacity. We have orders for the year ahead. However, the results of the first quarter of the year were notably affected by the rising prices of raw materials, energy, especially gas, which significantly adjusted the company’s profitability. At present, special attention is paid to the risks of price fluctuations. We adjust production pricing, identify the sensitivity of each production order to price changes, and strive for even closer cooperation with both suppliers and customers,”

says Vytautas Vaškys, General Manager of Utenos Trikotažas.

Separately, the company Utenos Trikotažas received 7.9 million euros of income during the first three months of the year. Sales revenue compared to the first quarter of 2021 increased by 2.1 million euros, that is by 35.9%. The company’s export sales revenue amounted to 84.1 percent.

Focusing on higher added value

According to the head of Utenos Trikotažas, the strategic focus of the company remains the largest revenue-generating custom order manufacturing activity. In the first quarter of this year, the Group exported 84 percent of its production. 

“Strategic priorities are focused on the development of export customers focused on sustainable production. We can offer them the development of environmentally friendly innovations, which allows us to strengthen our position in global markets. In the global textile market, the growing demand for functional garments made of wool and its blends dictates the aim to increase the share of such orders, while reducing the production of simple cotton garments. We are much more advanced in this area than our competitors in other European textile companies, and we will strive to make the most out of this competitive advantage,”

emphasizes V. Vaškys.

In addition to Utenos Trikotažas, the Utenos Trikotažas Group currently owns Šatrija and Mrija (Ukraine). Compared to the first quarter of the previous year, the sales of the Group’s largest sales segment – custom knitwear production – increased by 39.3 % up to 6.9 million euros. Sales of brands owned increased by 29 % up to 1.1 million euros. Sales of functional and technical clothing produced by the subsidiary Šatrija decreased by 3.5 %.

The impact of war

The Group’s subsidiary Mrija, which operates in the Ukrainian market, is based in the west part of the country.This company provides sewing services to Utenos Trikotažas, and its own external sales are insignificant. Despite the negative impact of the war on Ukraine’s political and business environment, Mrija is now operating stably.

During the first three months of 2022, the Group incurred a 1,264 thousand euro pre-tax loss. Meanwhile, in the first quarter of 2021, the Group’s loss before taxes amounted to 640 thousand euros. During the same period, the company Utenos Trikotažas suffered losses of 942 thousand euros before taxes, when last year, the losses amounted to 688 thousand euros before taxes.

The EBITDA Group’s indicator was 841 thousand euros. It is 385 thousand euros less than in the same period in 2021. The company’s EBITDA amounted to 700 thousand euros, which is 193 thousand euros less than in the first quarter of 2021.

Changes in the Management

It is reported, that as of May 3, the CEO of Utenos Trikotažas will change. The Board has approved Nomeda Kaučikienė as the General Director of the company. Ms. Kaučikienė has been the head of the company’s Business Development Department since last year. Vytautas Vaškys, who has temporarily headed Utenos Trikotažas, will continue to lead the Business Risk Department of the SBA and will serve on the boards of other SBA companies.