Utenos Trikotažas Group Recorded EUR 3.1 Million in Revenue for the First Quarter of the Year

2024-04-30    |
Utenos Trikotažas Group Recorded EUR 3.1 Million in Revenue for the First Quarter of the Year

During the first quarter of 2024, the SBA textile group Utenos Trikotažas realized production orders and provided services for EUR 3.1 million, marking a 48.6% decline compared to the same period last year, when the group’s sales reached EUR 6.1 million. According to company representatives, these results were anticipated as the European textile sector adjusts to market fluctuations, with expectations for a sales recovery in the second half of the year.

Affected by Seasoning

“As expected, at the beginning of this year, we are still feeling the effects of macroeconomic turbulence. Among all industrial sectors, textile manufacturing is among the last to experience the gradual return to normal consumption. Seasoning also plays a role, with the first and second quarters traditionally being slower for textiles. However, we have positive indications towards the end of summer – Utenos Trikotažas’ clients are planning larger orders for the second half of 2024, primarily for July and August,”

states Nomeda Kaučikienė, the head of Utenos trikotažas.

According to her, the decline in consumption that began with the pandemic and continued due to inflation, rising interest rates, and geopolitical tensions has fundamentally reshaped the textile market. “In an effort to cut costs, some clients relocated their production back to Asian countries, therefore our focus becomes even more focused on customers who value and can afford European quality. We are fully committed to focusing on efficiency and future sales growth to minimize losses and preserve the core of our team,” shares Nomeda Kaučikienė.

Exploring New Markets

Compared to the first quarter of 2023, the Utenos Trikotažas group’s largest sales segment – contract manufacturing – experienced a 48% decrease in sales to EUR 2.5 million, while its own brands saw a 62% reduction to EUR 0.2 million. The German-speaking countries region remains the major export destination, but the company sees potential in surrounding markets, and is therefore looking to expand its export geography.

“We observe how strong, decades-established apparel brands are shutting down their operations, while new brands that have just launched are growing exponentially. We are carefully evaluating new trends and emerging stars. However, we are filling our customer portfolio responsibly – without losing our strategic direction to produce complex, innovation and sustainability-based products with higher added value,”

says Nomeda Kaučikienė.

In addition to Utenos Trikotažas, the group includes companies Aboutwear, Gotija, Šatrija, and Mrija (Ukraine). Sales of functional-technical clothing produced by Šatrija fell by 40,3% this quarter.

Over the first three months of 2024, the Utenos Trikotažas group experienced pre-tax losses of EUR 1,48 million, while Utenos Trikotažas alone incurred EUR 1,2 million in pre-tax losses. The EBITDA for both – the group and the company – remains negative, at -EUR 1,17 million and -EUR 0,94 million, respectively.

About Utenos Trikotažas

Utenos Trikotažas is one of the largest and sustainable knitwear manufacturers in Central and Eastern Europe. Its specialized focus lies in on-demand ready-to-wear production and jersey fabric development for leading international brands, covering the entire production process from yarn to finished products.

Utenos Trikotažas Group operates three factories – Utenos Trikotažas (Lithuania), Šatrija (Lithuania) and OAO Mrija (Ukraine). Environmental and social responsibility commitments cover all areas of Utenos Trikotažas’ production and operations – from organically farmed natural fibers, the use of chemicals in production, to fair pay for employees and absolute transparency in production processes. Utenos Trikotažas is part of the SBA group.