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2018 October 31

Strong exports almost tripled the pre-tax profit of Utenos trikotazas Group

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Utenos trikotazas AB textile Group sales of products and services reached EUR 23,7 million over first three quarters of 2018, an increase of 28 % compared to last year, when the group sales amounted to EUR 18,5 million.

The Company's alone revenues has grown by almost a third (32,5 %) over the same period last year, reaching EUR 21,2 million year to date.

During nine months of 2018 The Group earned EUR 1,18 million of pre-tax profit, when in 2017 it amounted to EUR 420 thousand. The Group EBITDA reached EUR 1,87 million an increase of 56,2 % as compared to the same period in 2017.

Strong exports growth in main sales regions

Exports accounted for 83,4 % of the Group's revenue. Compared to last year, exports increased by 38,4 % in three quarters 2018 to EUR 19,7 million. The Company's export increase was key to with export sales up by 40,5 % to reach EUR 18,3 million.

Sales in German speaking countries (Germany, Austria and Switzerland) recorded 33,4 % growth, and the amount of orders delivered tо this largest sales region in 2018 for the nine months amounted to EUR 10,6 million. In Scandinavia, Group‘s sales increased even stronger by 42 %.

Growth is recorded in all business segments of Utenos trikotazas Group. Sales of products manufactured on demand jumped 38 % to EUR 18,6 million driven by exports, UTENOS and ABOUT branded sales - grew by 1,5 % to EUR 2,6 million, while the sales of services of functional-technical garments manufacturing  provided by Šatrija AB increased by 0,7% to EUR 2,4 million.

Focus on manufacturing process improvements and employees

„Our strategy towards high quality production combined with socially responsible and environmentally friendly operations addresses well current consumer trends. As a result the company enjoys strong demand from both existing and newly acquired customers. Current sales pipeline and healthy market demand support further growth expectations. The greatest challenge we currently face are coping with increased demand in production and significantly raising wages and salaries. To address these challenges the improvement of manufacturing processes, the implementation of new technologies, and the development of inspiring organizational culture are our top priorities at the moment“, - comments Algirdas Šabūnas, CEO of Utenos trikotazas.