Utenos trikotažas group reached 26.3 million EUR in revenue during the three quarters of this year
The textile group Utenos Trikotažas (hereinafter referred to as the “Group”) controlled by the SBA Group implemented production orders and provided services for 26.3 million EUR during the nine months of 2022, i.e., 23.2% more than in the same period a year ago, when the group sales reached 21.3 million EUR. The strategic transformation is actively continued and the efficiency of activities helped to improve the financial result.
Revenues were driven by core business
“The performance results of the 9th month of this year show that, despite the sharp increase in the prices of raw materials and energy, better results were achieved than in the same period of 2021. An even stronger orientation of Utenos trikotažas towards custom, higher added value production significantly increased sales, and the implementation of changes in the field of optimization of production processes and the policy of cost reduction and savings within the company managed to reduce losses. We estimate that these measures allowed us to save up about 20% of energy resources”, –says Nomeda Kaučikienė, CEO of Utenos trikotažas.
Separately, the company Utenos trikotažas reached 24.3 million EUR in revenue in 9 months of 2022, and sales revenue increased by 4.4 million EUR or 22.2% compared to the same period in 2021.
Compared to the corresponding period of the previous year, the sales of the Group’s largest sales segment – B2B production on demand – increased by 31% to 21.5 million EUR, while sales of own brands amounted to 2.9 million EUR and were 12.6% lower than at the same time last year.
In addition to Utenos trikotažas, the Group currently constitutes of the companies Šatrija, Mrija (Ukraine), Aboutwear and Gotija. The group exported 82.6% of its production in 9 months of this year. Sales of functional-technical clothing produced by Šatrija increased by 17.3%.
Strategic transformation improves financial performance
At the end of last year, Utenos trikotažas started a strategic transformation of the company, during which effort and resources were focused on the most profitable activity segment – high value-added order production.
“Strategic direction and strong discipline in its execution bear fruit. Despite the unprecedented challenges, when the prices of gas and electricity, which are intensively used in our activities, jumped more than 10 times, we managed to significantly reduce the negative impact on operating result. Further transformation – orientation towards the production of products of higher complexity and higher price level, especially functional wool and its mixtures, active work with world-famous clients of the textile sector will further strengthen the position of Utenos trikotažas in the global textile market. In parallel, we will increase operational efficiency by continuing to raise the bar of sustainability and quality of our operations”, –says N. Kaučikienė.
During the 9 months of this year, the Group’s pre-tax losses decreased by almost a tenth compared to the corresponding period last year and amounted to 1,669 thousand (2021 – 1,839 thousand euros). The Group’s EBITDA indicator (profit before interest, taxes, depreciation, and amortization) was negative and amounted to – 453 thousand euros, but the indicator was 337 thousand euros better than in the same period in 2021.
The EBITDA indicator of the company Utenos trikotažas reached minus 406 thousand euros and was 48% better than in the same period in 2021, when it reached minus 783 thousand euros.
Utenos trikotažas is the largest and one of the most sustainable knitwear production companies in Central and Eastern Europe. The main areas of activity of Utenos trikotažas are custom clothing production and the development of innovative materials. In 2020, the company became the first in the world to be awarded the Greenpeace textile production standard.