Utenos trikotažas Group earned EUR 6.1 million in revenue in the first quarter of this year
In the first quarter of 2023, the SBA Textile Group Utenos trikotažas (hereinafter the Group) sold products and provided services for EUR 6.1 million, i.e. 29.8 percent less than in the same period of the previous year, when the Group’s sales reached EUR 8.6 million. According to the company’s representatives, this performance is due to macroeconomic developments, particularly the trend of declining consumption in the main export markets.
Results due to low demand
“At the moment, the textile sector, as well as the whole industry in Lithuania, is facing significant challenges due to the declining consumption in export markets, especially in Germany and Scandinavian countries. The industry in our country is already in recession, and high energy costs at the beginning of the first quarter of the year made the situation even more difficult. All of this has led to a decline in sales of Utenos trikotažas in the first three months of this year, compared to the results for 2022,”says Nomeda Kaučikienė, CEO of “Utenos trikotažas”.
Separately, Utenos trikotažas generated revenue of EUR 5.3 million in the first three months of 2023, with sales revenue decreasing by EUR 2.6 million, or 32.4 percent, compared to the same period of 2022. The company’s export sales revenue was 80.1 percent.
Compared to the same period last year, sales of the Group’s largest sales segment, on-demand jersey garment production, decreased by 31.7 percent to EUR 4.7 million, while sales of own brands decreased by 42.8 percent to EUR 0.6 million.
Strategic transformation continues
Utenos trikotažas continues the strategic transformation of the company started at the end of last year, during which it has focused its energy and resources on the most profitable segment of its business – high value-added outsource manufacturing.
“Although the market is challenging, strategic direction and strong discipline help us to deliver results consistently and purposefully. We continue to successfully increase the number of new clients, bring new products to the market and maintain our high sustainability standards. In March, products of Utenos trikotažas won prizes at Performance Days, the sector’s largest functional materials’ exhibition in Munich, based on the amount of CO2 emissions reduced by their production,”says N. Kaučikienė.
According to the CEO of Utenos trikotažas, “the main focus of the company is on the production of products with higher complexity and higher price level, especially functional wool and its blends.
“We are actively working with world-renowned clients in the textile sector, which strengthens the position of Utenos trikotažas in the global textile market. All these ongoing changes, despite the market situation, are yielding positive results and the company’s profitability is improving,”says N. Kaučikienė.
Utenos trikotažas reduced its losses by more than 70 percent in the first quarter of this year – losses amounted to EUR 264 thousand before taxes, compared to EUR 942 thousand a year ago. EBITDA of Utenos trikotažas remains negative at EUR -42 thousand. Still, profitability had improved significantly despite the fall in sales and was EUR 658 thousand higher than in the same period of 2022, when EBITDA was negative at EUR -700 thousand.
In the first three months of the year, the Group’s loss before tax decreased compared to the same period last year and amounted to EUR 248 thousand (2022: EUR 1,246 thousand). The Group’s EBITDA was positive and amounted to EUR 19 thousand, i.e. EUR 860 thousand more than in the same period in 2022.
In addition to Utenos trikotažas, the Group of companies currently includes Aboutwear, Gotija, Šatrija and Mrija (Ukraine). In the first 3 months of this year, the Group exported 82.3 percent of its production. Sales of functional-technical clothing produced by Šatrija increased by 16 percent.
Utenos trikotažas is the largest and one of the most sustainable jersey manufacturing companies in Central and Eastern Europe. The main activities of “Utenos trikotažas” are custom-made clothing production and the development of innovative materials.