Utenos Trikotažas Group earned 30.4 million revenue in 2021
According to the unaudited data of 2021, the SBA textile company group, Utenos Trikotažas, earned EUR 30.4 million revenue, i.e., 9.1% more than in 2020. Meanwhile, the company of Utenos Trikotažas earned EUR 28.1 million, 13.5% more than in 2020.
The largest revenue from contract manufacturing
Product sales related to contract manufacturing, the largest segment of the Utenos Trikotažas Group, increased by 20.8% in 2021 compared to the year before totaling EUR 23.7 million at the end of the year. The Group exported 81.9% of its production in 2021.
With the continued growth of the global demand for exclusive and sustainable textiles, production of high added value for global brands accounts for around 84% of the revenue of Utenos Trikotažas. As a result, future investments and resources of the Group will be directed toward further development of environmentally friendly innovations, strengthening positions in global markets and long-term profitable growth of the company.
Profitability affected by pandemic and dramatic cost increases
Last year’s profits were significantly affected 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 the production capacity and the entire supply chain, compensation of which required additional costs.
In addition to Utenos Trikotažas, the Utenos Trikotažas Group includes companies Aboutwear, Gotija, Šatrija and Mrija (Ukraine). In 2021, the Group incurred losses of EUR 2.9 million before tax (in 2020 losses totaled EUR 336,000 before tax). During the same period, the company Utenos Trikotažas incurred losses of EUR 2.8 million before tax (EUR 224,000 in 2020). The EBITDA indicator of the Utenos Trikotažas Group and of the company Utenos Trikotažas was negative in 2021 and totaled EUR -1.9 million and – EUR -1.3 million respectively.
Aboutwear, a subsidiary of Utenos Trikotažas, discontinues commercial operations
In 2021, sales of UTENOS and ABOUT brands owned by Utenos Trikotažas decreased by 14.2% to EUR 4.5 million. Continuing quarantine in Lithuania and resulting trade obstacles had a considerable impact on the results.
Since Utenos Trikotažas decided to focus on contract manufacturing, which generates largest revenues, and to restructure own brand manufacturing, Aboutwear, a subsidiary developing the innovative and sustainable fashion brand About, will discontinue its commercial operations. The e-commerce platform www.aboutwear.com, which sells the brand’s products, will be operating until 7th March, subsequently, the remaining products will be sold in the online shop www.utenostrikotazas.lt. Aboutwear will also terminate contracts with its trade partners in Lithuania and abroad. The decision to discontinue commercial operations was taken following an intensive search for a new investor, yet the circumstances for it were highly unfavorable.