Exports of AB Utenos trikotažas company group increase by nearly 10 per cent
Group financial report for 9 month
AB Utenos trikotažas
31 October 2017
In the first three quarters of 2017 exports of AB Utenos trikotažas, the largest textile company group in Central and Eastern Europe, increased by 9,7 per cent, i.e. to EUR 14,3 million. The Company exported 77,1 per cent of its total output, and the largest demand for its production was recorded in the Scandinavian region.
‘The company consistently follows its Organically Innovative strategy to promote its export volumes by focusing on our environmentally friendly production processes and top quality products. Innovations in production and new in-house designed fabrics enabled us to increase the customer portfolio across all target regions. The most significant increase in exports this year was in the Scandinavian region where the Company managed to achieve a 21,4 per cent increase on a y-o-y basis,’ says Algirdas Šabūnas, CEO of AB Utenos trikotažas.
In the first nine months of 2017 AB Utenos trikotažas’ revenue reached EUR 16 million. Compared with the same period in 2016 the trade volumes increased by EUR 1,6 million, or 11,1 per cent. Sales of the own brands – UTENOS and ABOUT – increased by 24,3 per cent in the first nine months on a year-on-year basis, and by EUR 2,6 million. The sales of functional technical clothing at Šatrija increased by 9,2 per cent in the first nine months reaching EUR 2,4 million.
The performance in Q3 2017 was affected by the disruptions in the supply chain that urged the Company to alter order delivery dates. According to Algirdas Šabūnas orders worth more than EUR 1 million were postponed to October 2017 that will positively contribute to the Group’s results in Q4.
Year to date AB Utenos trikotažas earned EUR 1,26 million in pre-tax profit, the figure for the corresponding period last year was EUR 391. In the first nine months of 2017 the pre-tax profit of Utenos trikotažas company group was EUR 420 thousand, whereas over the same period last year the group earned EUR 820 thousand in profit respectively. This year the Utenos trikotažas company group’s EBITDA was recorded at EUR 1,2 million, 25 per cent below the y-o-y number in 2016.
‘The Q2 and Q3 profit margin was lower than expected as part of the raw material cost increase was not fully priced to the customers. Nevertheless the market have adjusted itself to the higher raw material levels so should our margins recover to usual going forward. We foresee positive market trends and continue building our future plans with attention to the modernisation of technologies and services. This year the Company is celebrating not only its 50th anniversary, but also 20th anniversary since the Company were first quoted on the Nasdaq stock exchange. Our long-standing experience, the quality of our production, the social responsibility of the Company, and our highly innovative production facilities enable us to satisfy the most demanding customers,’ says Šabūnas.
AB Utenos trikotažas is the largest and one of the most modern textile manufacturing companies in Central and Eastern Europe, and in 2017 is celebrating its 50th anniversary. The Utenos trikotažas company group, which also includes the companies Šatrija, Gotija and Mrija (Ukraine), is part of the SBA concern. Utenos trikotažas today manages the retail trade marks of Utena and About. AB Utenos trikotažas joined the Greenpeace project Detox in 2017, the first Lithuanian company to do so. In joining Detox, the Company undertook to eliminate from its production chains all substances that have a negative effect on people and the environment.