Utenos Trikotažas Group Board Proposes Distributing Almost 1 Million Euros in Dividends
The textile producer, Utenos Trikotažas Group operated by SBA, which recorded a turnover of EUR 30.5 million in 2018 and earned EUR 1.2 million in pre-tax profit, plans to pay out EUR 950,300 in dividends, namely, EUR 0.1 per share. This proposal of the Group’s Board of Management will have to be agreed by the ordinary general meeting of shareholders. Shareholders have not been paid a dividend since 2007.
“Significant growth in the past three years has determined the necessity to invest in production and technology as well as in an additional working capital. We have met the challenges activated by this enlargement, and the dynamics of our orders this year enable us to forecast sustainable continued further growth. We are therefore prepared to share the benefit created by the company with its shareholders and pay them dividends,” Algirdas Šabūnas, CEO of Utenos Trikotažas, said.
It will also be proposed to the meeting of shareholders that a reserve of EUR 1 million be developed for buyouts of own shares. Approval of this proposal would allow the company to allocate its free cash to a buyout programme of own shares in the future, and thus increase the liquidity of Utenos Trikotažas shares and its attractiveness to investors.
Last year, all business segments of the Utenos Trikotažas Group grew. The profit Utenos Trikotažas made on its operating activities, namely, indent production of textile, amounted to EUR 23.3 million, which is 22% more than in 2017. Sales of functional and technical clothing production by Šatrija increased by 6.5% last year amounting to EUR 3.4 million. Exports of the Group grew by 22% in 2018 amounting to EUR 24.7 million. This accounts for 81% of all income of the Group.
Volumes of electronic sales of own brands UTENA and ABOUT have more than doubled; the network of physical stores was expanded – at present, there are 17 Utenos Trikotažas shops in Lithuania, most of them are managed on a franchise basis. The sales of own brands increased by 8% in total, thus amounting to EUR 3.8 million.
EBITDA of the Group was EUR 2.03 million in 2018 or 38% higher than in 2017.
Utenos Trikotažas, which is controlled by the SBA Group, is one of the biggest and most modern textile producers in Central and Eastern Europe. Apart from tailor-made production, the company controls two retail brands UTENA and ABOUT. In 2017, Utenos Trikotažas was the first company in Lithuania to join the project of Greenpeace promoting clean fashion, namely, Detox. The Utenos Trikotažas Group also contains Šatrija, Gotija and Mrija (Ukraine) companies.