Utenos trikotažas Group demonstrated growth in 2022: EUR 34.5 million in revenue

The SBA owned textile group Utenos trikotažas (the Group) generated revenues of EUR 34.5 million in 2022, which is 13.4% more than in 2021, when the Group’s sales reached EUR 30.4 million. Separately, Utenos trikotažas revenue grew by 12.5% year-on-year to EUR 31.6 million. The growth was driven by the active implementation of the strategic transformation and the ambitious decisions taken last year to improve operational efficiency.

Revenue growth was driven by outsource manufacturing

“The 2022 results are positive – despite the challenges in the market due to the sharp increase in raw material and energy prices, we have improved our performance compared to 2021. We made many important strategic decisions – sales revenues were boosted by greater focus on high value-added products, and we managed to reduce our losses by optimizing production processes”, –

says Nomeda Kaučikienė, CEO of Utenos trikotažas.

Compared to the same period last year, sales of the Group’s largest segment, knitwear export, increased by 18.7% to EUR 28.2 million. Sales of own brands amounted to EUR 3.6 million and were 19.1% lower than last year.

High value-added manufacturing has the greatest potential

At the end of last year, Utenos trikotažas began a strategic transformation of the company, focusing its energy and resources on the production of more sophisticated and higher value products, especially from functional wool and its blends.

“Last year’s unprecedented challenges were met with clear strategic direction and rigorous discipline, and we will continue to do so as we strive to further improve operational efficiency”, –

says Nomeda Kaučikienė, CEO of Utenos trikotažas.

In 2022, due to the commencement and continuation of hostilities in Ukraine and the resulting uncertainty in determining the value of the Group’s assets and investments in that country, the Group and the Company made provisions for assets and investments in Ukraine. Nevertheless, the Group company in Ukraine Mrija is operating without considerable disruption both in 2022 and currently.

The Group’s pre-tax result and EBITDA figures for 2022 show a significant improvement. In 2022, the Group’s loss before tax amounted to EUR 1.9 million. Excluding the loss on provisions, the Group had a pre-tax loss of EUR 1.2 million compared to a loss of EUR 2.9 million in 2021. Utenos trikotažas incurred a loss before tax of EUR 2.7 million in the same period. Excluding provisions, the Company’s losses amounted to EUR 0.8 million (EUR 2.8 million in 2021).

The EBITDA of the Utenos trikotažas Group as a whole and of the Company individually was negative at EUR -0.51 million and EUR -0.67 million, respectively, while adjusted EBITDA (excluding impact of provisions for assets in Ukraine), of the Group and the Company was positive at EUR 0.22 million and EUR 0.07 million respectively. Group’s adjusted EBITDA improved by EUR 2.1 million compared to 2021. Utenos Trikotažas adjusted EBITDA was EUR 1.4 million better than in the same period last year at EUR -1.3 million.

In addition to Utenos trikotažas, the Group of companies currently includes Aboutwear, Gotija, Šatrija and Mrija (Ukraine). Sales of functional-technical clothing produced by Šatrija increased by 21.6 %. In 2022, the Group exported 80.9 % of its production.

Utenos trikotažas is the largest and one of the most sustainable knitwear manufacturing companies in Central and Eastern Europe. The main activities of Utenos trikotažas are custom made garment production and development of innovative materials.