In Q2 2021, Utenos Trikota\u017eas, part of the SBA Group, saw the turning point after over a year-long stagnation in the global textile market and recorded the first signs of recovery. Compared to the same period last year, the company\u2019s on-demand production sales grew by 8% totaling EUR 10.4 million in H1 2021.<\/p>\n\n\n\n
Investment in higher added value production<\/strong><\/p>\n\n\n\n \u201cThe momentum of on-demand sales dictates new market needs \u2013 innovative clothing brands are moving away from mass collections and actively seeking for sustainable innovations and timeless clothing design. The lockdown has shown very clearly what type of clothes people really need and will always need \u2013 quality, durable and sustainable clothing that can be worn in every season. Our strategic focus is directed towards this sustainable trend, and this is also a direction of our recently refocused brand ABOUT too\u201d <\/p>Petras Ja\u0161inskas, CEO of Utenos Trikota\u017eas said.<\/cite><\/blockquote>\n\n\n\n At the beginning of the year, Utenos Trikota\u017eas set up a modernization plan of its production equipment, which will allow the production of higher added-value products. In H1 2021, the factory obtained two modern knitting machines and the delivery of two more machines is expected in September. By the end of the year, over EUR 0.5 million will be invested in the expansion of the production facilities.<\/p>\n\n\n\n Orientation to e-commerce<\/strong><\/p>\n\n\n\n In May, Utenos Trikota\u017eas established a new subsidiary Aboutwear, which will now take care of the global development of the About brand lines \u2013 ABOUT Baltic Underwear and ABOUT The Sensology of Wear \u2013 with a targeted focus on online commerce.<\/p>\n\n\n\n The pandemic has highlighted the importance of online shopping, with sales volumes significantly dropped after the closure of physical stores. In H1 2021, sales of products of UTENOS and ABOUT brands developed by Utenos Trikota\u017eas stood at EUR 2.0 million or 31% less than a year ago. The sales were also impacted by a sharp decrease in demand for face masks, which in the difficult period of 2020 not only supported the sales dynamics, but also allowed to continue production and to keep jobs.<\/p>\n\n\n\n The company earned EUR 12.5 million revenue in H1 2021<\/strong><\/p>\n\n\n\n In H1 2021, sales of Utenos Trikota\u017eas stood at EUR 12.5 million, the same as in the previous year. The company incurred losses of EUR 0.9 million before tax (EUR 1.1 million in 2020). The EBITDA indicator of Utenos Trikota\u017eas totalled EUR -489 thousand (EUR -709 thousand in 2020).<\/p>\n\n\n\n \u201cThe second quarter of the year is traditionally slower for the textile market and, like most manufacturing companies, we have also faced disruptions in our production processes and supply chain caused by coronavirus. However, the momentum of the population vaccination makes us more optimistic about the next six months. Currently, more than 70% of employees of Utenos Trikota\u017eas are now immunized, and we expect this number to increase by the end of the year. The stabilisation of production and current dynamics of client orders allow us to predict more positive changes before the end of the year\u201d, Ja\u0161inskas said.<\/p>\n\n\n\n In addition to Utenos Trikota\u017eas, the Utenos Trikota\u017eas Group includes companies Aboutwear, Gotija, \u0160atrija and Mrija (Ukraine). In H1 2021, the Group sold products and provided services for EUR 13.4 million, i.e. 6% less than during the same period in 2020. In H1 2021, the Utenos Trikota\u017eas Group incurred losses of EUR 1.1 million before tax (EUR 1.3 million in 2020). The EBITDA indicator of the Utenos Trikota\u017eas Group totalled EUR -658 thousand (EUR -509 thousand in 2020).<\/p>\n","protected":false},"featured_media":1627,"template":"","naujienu_kategorijos":[23,22],"class_list":["post-913","naujienos","type-naujienos","status-publish","has-post-thumbnail","hentry","naujienu_kategorijos-financial-results","naujienu_kategorijos-for-investors"],"acf":[],"yoast_head":"\n