Utenos Trikotažas, meanwhile, earned 8.6 million euros in earnings

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Utenos Trikotažas Textile Group (hereinafter referred to as the “Group”) managed by SBA Group realized production orders and provided services for EUR 8.6 million in the first half of 2022. This is 33.8% more than in the same period a year ago, when the group turnover reached 6.4 million euros.

“Utenos Trikotažas is currently working at full capacity. We have orders for the coming year. However, the results of the first quarter of the year were particularly affected by the rising prices of raw materials, energy, especially gas, which significantly reduced the adjusted profitability of the company. Particular attention is currently paid to the risks of price fluctuations. We adjust production prices, identify the sensitivity of each production order to price changes and strive for even closer cooperation with both suppliers and customers,” says Vytautas Vaškys, Managing Director of Utenos Trikotažas.

Separately, the Utenos Trikotažas company generated revenues of EUR 7.9 million in the first three months of the year. Sales increased by EUR 2.1 million compared to the first quarter of 2021, or 35.9%. The company’s export turnover was 84.1 percent.

Focus on higher added value

According to the head of Utenos Trikotažas, the company’s strategic focus remains the largest revenue-generating contract manufacturing activity. In the first quarter of this year, the group exported 84 percent of its production.

“Strategic priorities focus on developing export customers focused on sustainable production. We can offer them the development of environmentally friendly innovations, thanks to which we can strengthen our position in global markets. In the global textile market, the growing demand for functional clothing made of wool and its blends dictates the goal of increasing the share of such orders while reducing the production of simple cotton clothing. We are much further ahead in this area than our competitors in other European textile companies and we will strive to make the most of this competitive advantage,” emphasizes V. Vaškys.

In addition to Utenos Trikotažas, the Utenos Trikotažas group currently includes Aboutwear, Gotija, Šatrija and Mrija (Ukraine). Compared to the first quarter of the previous year, sales in the Group’s largest sales segment, made-to-measure knitting production, increased by 39.3% to EUR 6.9 million. Sales of own brands increased by 29% to EUR 1.1 million. Sales of functional and technical clothing by subsidiary Šatrija fell by 3.5%.

The Effects of War

The subsidiary Mrija, which is active in the Ukrainian market, is based in the west of the country. This company provides sewing services to Utenos Trikotažas and its own external sales are insignificant. Despite the negative impact of the war on the political and business environment of Ukraine, Mriya is now working stably.

In the first three months of 2022, the group suffered a pre-tax loss of 1,264,000 euros. In the first quarter of 2021, the group’s loss before taxes amounted to 640,000 euros. In the same period, the company Utenos Trikotažas suffered pre-tax losses of EUR 942,000, while in the previous year the pre-tax losses were EUR 688,000.

The key figure of the EBITDA group was 841 thousand euros. This is EUR 385,000 less than the same period in 2021. The company’s EBITDA was EUR 700,000, which is EUR 193,000 less than in the first quarter of 2021.

Change in management

It is reported that as of May 3, the CEO of Utenos Trikotažas will change. The Board of Directors has confirmed Nomeda Kaučikienė as the company’s General Manager. Ms. Kaučikienė has been the head of the company’s business development department since last year. Vytautas Vaškys, who temporarily headed Utenos Trikotažas, will continue to head the SBA’s business risk department and serve on the boards of other SBA companies.

More information:

Živilė Jonaitytė
Chief Financial Officer, Utenos Trikotažas AB
Mobile: +370 686 51938
Email: [email protected]

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