Utenos Trikotažas Group earned EUR 20.9 million in the three quarters of 2020
During the first nine months of 2020, Utenos Trikotažas, the Utenos Trikotažas Group owned by SBA sold products and provided services for a total of EUR 20.9 million, i.e. 11.7 % less than a year ago when the Group’s sales revenues totalled EUR 23.7 million. The revenue of the company Utenos Trikotažas amounted to EUR 18.3 million or 11.9 % less than last year.
The sales in the largest segment of Utenos Trikotažas – contract manufacturing – in the three quarters of the year decreased by 21 % totalling EUR 14.3 million. The Group exported 74.5 % of its production.
The sales of own retail brands – UTENOS and ABOUT – of Utenos Trikotažas in nine months amounted to EUR 4.1 million and increased by 45.3 % compared to the same period last year. In this period, the sales of Šatrija, a subsidiary producing functional-technical clothing, shrunk by 10 %.
During the first nine months of 2020, the Utenos Trikotažas Group incurred pre-tax loss in the amount of EUR 446,000. At the end of Q3 2019, the Group’s profit totalled EUR 575,000. The Group’s EBITDA was EUR 744,000, i.e. 37.6% less than in the same period in 2019.
During the first nine months of 2020, the company Utenos Trikotažas incurred pre-tax loss in the amount of EUR 257,000. At the end of Q3 2019, the company earned EUR 1.6 million pre-tax profit. The company’s EBITDA was EUR 331,000, i.e. 62.3 % less than in 2019 when EBITDA was EUR 879,000.
Comment by the management
“In Q3 2020, there was a slightly recovery in contract manufacturing after a stronger downturn in Q2. The customer portfolio of Utenos Trikotažas mainly consists of strong global brands that are gradually adapting to the challenges caused by the pandemic and restoring their self-confidence. We also get new customers from Europe who, due to coronavirus, are cutting down their supply chains looking for partners in manufacturing closer to their headquarters,” Petras Jašinskas, Managing Director of Utenos Trikotažas, said.
According to Jašinskas, the pandemic is not the only reason why manufacturing is turning back to Europe. Labels “made in Europe” not only indicate product origin, but also add value. The majority of customers of Utenos Trikotažas require that all the raw materials and accessories used in production would be of the European origin.
“The recession caused by the pandemic in the textile sector opens up huge opportunities, therefore we are now focusing on flexibility, speed and top quality. We continue to go along the familiar and well-trodden path toward the green economy and to strengthen leadership in the production of innovative materials,” Jašinskas said.
CFO, Utenos Trikotažas AB
Mob.: +370 686 51938