AB Utenos Trikotazas
February 28, 2022
According to unaudited data for 2021, the SBA group of textile companies, Utenos Trikotažas, achieved a turnover of 30.4 million euros, which is 9.1% more than in 2020. Meanwhile , the company of Utenos Trikotažas achieved a turnover of 28.1 million euros, which is 13.5% more than in 2020. .
Largest Revenue in Contract Manufacturing
Sales of products related to contract manufacturing, the largest segment of the Utenos Trikotažas Group, increased by 20.8% in 2021 compared to the previous year to reach 23.7 million euros at the end of the year. ‘year. The Group exported 81.9% of its production in 2021.
With the continued growth in global demand for exclusive and sustainable textiles, high value-added production for global brands accounts for approximately 84% of Utenos Trikotažas’ turnover. Accordingly, the Group’s future investments and resources will be directed towards the development of environmentally friendly innovations, the strengthening of positions in global markets and the long-term profitable growth of the company.
Profitability affected by pandemic and dramatic cost increases
Last year’s earnings were significantly impacted by an increase in the cost of raw materials, labor and energy, and inevitably reflected the continuing global pandemic. Due to the coronavirus, there were dramatic disruptions in production capacity and the entire supply chain, the compensation of which required additional costs.
In addition to Utenos Trikotažas, the Utenos Trikotažas group includes the companies Aboutwear, Gotija, Šatrija and Mrija (Ukraine). In 2021, the Group recorded losses of €2.9 million before tax (in 2020, losses amounted to €336 thousand before tax). During the same period, the company Utenos Trikotažas incurred losses of 2.8 million euros before tax (loss of 224 thousand euros in 2020). The EBITDA indicator of Utenos Trikotažas Group and Utenos Trikotažas Company was negative in 2021 and amounted to -1.9 million euros and -1.3 million euros respectively.
About clothesa subsidiary of Utenos Trikotazascease its commercial activities
In 2021, sales of the UTENOS and ABOUT brands owned by Utenos Trikotažas decreased by 14.2% to €4.5 million. The continued quarantine in Lithuania and the resulting trade barriers had a significant impact on the results.
Since Utenos Trikotažas has decided to focus on contract manufacturing, which generates the most revenue, and to restructure its own brand manufacturing, Aboutwear, a subsidiary developing the innovative and sustainable fashion brand About, will cease its business activities. The e-commerce platform www.aboutwear.com, which sells the brand’s products, will operate until March 7, after which the remaining products will be sold in the online store www.utenotrikotazas.lt. Aboutwear will also terminate contracts with its business partners in Lithuania and abroad. The decision to halt commercial operations was taken following an intensive search for a new investor, but the circumstances were very unfavourable.
Chief Financial Officer, Utenos Trikotažas AB
Mobile: +370 686 51938
Email: [email protected]
2021 12M_Interim report_FR