The Utenos trikotažas group of companies generated EUR 7,7 million in sales in Q1 2019
Utenos trikotazas AB textile Group sales of products and services reached EUR 7,7 million over the first quarter of 2018 and decreased by 3,4 % compared to last year. It is expected that the second-quarter orders currently underway compensate the first quarter's backlog and record the growth in half-year results.
„Last year we had a very successful realization of orders in Q1 that we lagged a bit this year especially in Scandinavia and Other markets. Nevertheless, the dynamics of orders in Q2 that are in production are significantly above last year, especially in our core region DACH. Our own brands UTENOS and ABOUT continue to record double digit growth this year as well. This let’s us believe that we will not only catch up but also return to growth for the first half of the year already”, speaks Algirdas Šabūnas, CEO of AB Utenos trikotažas.
Sales of own brands and functional technical clothes increased
The Company's stand-alone revenues during the first three months earned 6,7 million in sales, which was 5,2 per cent less than during the same period in 2018. Sales of own brands UTENOS and ABOUT in the first quarter have posted an increase of 11,9 per cent up to 0,9 million. Exports accounted for 83,2% of the Company's revenue. First quarter revenue from services for the production functional-technical garments manufacturing provided by Šatrija AB increased by 8,7 per cent.
Changes in profitability were driven by investments in innovation and employees.
During the first three months of 2019 The Group earned EUR 58 thousand of pre-tax profit and Company alone – EUR 22 thousand, when in 2018 it amounted to EUR 420 thousand and EUR 350 thousand respectively.
“Over short period, our profitability is significantly affected by our investments into the acquisition of new customers and development of new fabrics and manufacturing capabilities as well as securing and attracting qualified personnel. During 2018 the average salary in Utenos trikotazas was raised by 15%. We believe that these investments will pay off in the nearest future” – comments Algirdas Šabūnas, CEO of Utenos trikotazas.