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2017 August 17

Utenos Trikotažas Group Profits Amount to EUR 191 000 Before Tax Over the First Six Months of 2017

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The profits of the Utenos Trikotažas, the biggest jersey producer in the Baltic States and the region of Central/Eastern Europe, amounted to EUR 191 000 before tax over the first six months of 2017. Compared to the same period last year, it has grown by 13.7%. The Group's EBITDA over the first half of the 2017 amounted to EUR 682 000, thus remaining largely similar as it was over the same period in 2016. Utenos Trikotažas Group comprises of companies Utenos Trikotažas, Šatrija, Gotija and Mrija (Ukraine), and is part of the SBA Concern.

The consolidated Group sales have continued the strong growth momentum: over the first half of 2017 the sales of the Group experienced a 18.6% growth compared to the same period last year, and stood at EUR 11.5 million. The sales of Utenos Trikotažas alone over the first six months of 2017 have grown by 20.6%.

The main reason behind the growth in sales was the increase of on-demand jersey production. Over the first half of 2017 it grew by 20.8% and amounted to EUR 1.4 million. Sales of the own brands UTENOS and ABOUT increased as well: over the first six months of 2017 a 16.7% growth was experienced compared to the same period last year, and stood at EUR 1.5 million. A 10% increase, which amounts to EUR 1.7 million, was experienced by the producer of functional-technical garments, Šatrija company.

Over the first six months of 2017, the exports of the Utenos Trikotažas Group accounted for 76% of total sales, resulting in a 17.5% growth comparing to the same period last year. Increase in sales was attained in the major sales regions: DACH countries (Germany, Austria and Switzerland) posted a growth by 9.5% and Scandinavia (Sweden, Norway, Denmark, Finland) - a significant growth of 44%. Domestic sales grew by 22% and reached EUR 2.8 million, a result which was driven by, both, the sales of own brands UTENOS and ABOUT, and the contract with the Lithuanian army.

Assessing the results of the second quarter of 2017 alone, Utenos Trikotažas Group recorded a pre-tax loss amounting to EUR 66 000. The Group's EBITDA amounted to EUR 180 000, whereas over the same period last year it stood at EUR 388 000.

"The constant and consistent growth which initiated last year and which we have observed throughout the entirety of the first half of the year 2017, proves that we have chosen an effective business strategy which yields desired results. Even though the profitability in the second quarter and the first half of the year was limited due to increased costs of raw materials and our increased investment in marketing and sales activities of our own brands, we estimate the general trend as positive. We believe that renewed UTENA brand and our new collections will drive our sales in the periods to come," - states Algirdas Šabūnas, CEO at Utenos Trikotažas.

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