Utenos Trikotažas reached 17.3 million euros in revenue in the first half of the year
The textile group Utenos Trikotažas (hereinafter referred to as the “Group”) controlled by the SBA Group realized production orders and provided services for 17.3 million euros within six years of 2022., i. e. 28.6% more than in the same period a year ago, when the Group’s sales reached 13.4 million euros.
Contract manufacturing boosted the revenue
“Like most manufacturing companies, we are currently facing challenges caused by war, increasing costs for materials and growing energy prices. However, the refined strategic direction of the company – orientation towards bespoke, higher added value production, active work with the world-famous clients of textile sector, and optimization of production processes – continues to help to increase sales”,says Nomeda Kaučikienė, CEO of Utenos Trikotažas.
Separately, the company Utenos trikotažas received 15.7 milllion euros of revenue during the first half of 2022. Meanwhile, the sales revenue in the same period increased by 3.3 million euros or 26.1% compared to 2021.
Compared to the corresponding period of the previous year, the sales of the Group’s largest sales segment – made-to-order knitwear products – increased by 33.6%, up to 13.8 million euros, and the sales of the Group‘s own brands amounted to 2 million euros and were slightly (0.3%) lower than last year at the same time.
In addition to Utenos trikotažas, the Utenos trikotažas company group currently constitutes of companies Šatrija and Mrija (Ukraine). The Group exported 78.7% of production during the first half of this year. Sales of functional-technical clothing produced by Šatrijaincreased by 34.4% this year.
Strategic transformation proceeds
According to the CEO of Utenos trikotažas, the financial result of the first half of the year was affected by growing costs for raw materials and energy. Mainly due to these external factors, the company’s pre-tax loss for the first half of this year amounted to 1 417 thousand euros before taxes (in the first half of 2021 – 858 thousand euros).
According to N. Kaučikienė, the result of the second half of the year will also strongly depend on the dynamics of prices of energy and raw materials. Therefore, in order to overcome these challenges, the company will concentrate even more attention on operational efficiency in the nearest future. In parallel, Utenos Trikotažas will continue the strategic transformation of the Group.
“We are one of the largest and most modern manufacturers of functional wool and its blends and innovative organic certified clothing in Central and Eastern Europe. Contract manufacturing and the production of products of higher complexity and higher price levels remain a key priority. We are convinced that this strategic direction will increase our resilience to crises, improve profitability and strengthen our position in the global textile market”,says Nomeda Kaučikienė, CEO of Utenos Trikotažas.
The EBITDA of Utenos trikotažas is negative – 929 thousand euros, i. e. 440 thousand euros less than in the first half of the year 2021, when the company’s EBITDA was negative 489 thousand euros.
During the first half of the year, the Group suffered 1 702 thousand euros loss before taxes, while in 2021, during the same period, the Group’s loss before taxes was 1 098 thousand euros. The Group’s EBITDA was 995 thousand euros (337 thousand euros less than in the same period in 2021).