Utenos Trikotažas Continues Business Optimization – Reduces Losses by One-Fifth
31 Ottobre 2023 - 7:30AM
Utenos Trikotažas Continues Business Optimization – Reduces Losses
by One-Fifth
Within the first nine months of 2023, the SBA textile group,
Utenos Trikotažas, reported revenues of EUR 17.2 million,
representing a 34.7% decrease compared to the previous year when
the group's sales amounted to 26.3 million euros. Despite the
decline in sales, the pre-tax losses of the Utenos Trikotažas group
after the first nine months of 2023 were 20% lower than the
previous year, totaling 1.3 million euros.
Fixed Costs Reduced by 20%
Utenos Trikotažas continues its pursuit of
optimizing production processes and implementing measures to
enhance operational efficiency. "As a result of the implemented
decisions, we have reduced fixed costs by one-fifth, while still
being able to produce at the level of 2022," remarks Nomeda
Kaučikienė, the Managing Director of Utenos Trikotažas. According
to her, the sales performance in the third quarter of this year was
very similar to the second quarter, as the global economic and
geopolitical situation has led to a slowdown in demand and revenue
growth.
Prepared for the Return of
Demand
“Although we have significantly trimmed our
costs, we are smartly economizing while not reducing operational
expenses and investments directed towards future sales. Our product
development team actively creates modern materials, invests in
advanced material development and printing technologies, and
upholds sustainability standards highly valued by our customers,
despite the substantial resources it entails," asserts Nomeda
Kaučikienė.
According to N. Kaučikienė, disruptions in
demand have affected all industries, and companies across various
sectors have been grappling with similar challenges due to economic
uncertainty and geopolitical tensions. While customer activity at
textile fairs is creating a sense of positive change, tangible
improvements may not materialize until early 2024. Presently, both
production processes and the company's cost structure have been
optimized, and Utenos Trikotažas is well-prepared for the
resurgence of market demand.
For the UTENOS brand, developed by Utenos
Trikotažas, sales over the first nine months amounted to EUR 1.6
million, marking a 45% decrease compared to the same period in
2022. This reduction in sales for this business segment is linked
to strategic decisions made in 2022 aimed at optimizing company
operations and prioritizing the core activity of contract
manufacturing for globally recognized brands.
Sales of functional-technical clothing produced
by Utenos Trikotažas subsidiary, Šatrija, showed little change,
decreasing by 2% to 1.9 million euros.
About
Utenos Trikotažas
Utenos Trikotažas is one of the
largest and modern knitwear manufacturers in Central and
Eastern Europe. Its specialized focus lies in on-demand
ready-to-wear production and jersey fabric development
for leading international brands, covering the entire
production process from yarn to finished products.
Utenos Trikotažas Group operates three factories
– AB „Utenos Trikotažas“ (Lithuania), AB Šatrija (Lithuania) and
OAO Mrija (Ukraine). Environmental and social responsibility
commitments cover all areas of Utenos Trikotažas' production and
operations – from organically farmed natural fibers, the use of
chemicals in production, to fair pay for employees and absolute
transparency in production processes. Together with 29 other
companies, Utenos Trikotažas is part of the SBA group, employing
over 4000 specialists.
- 2023 IIIH Interim report_EN
- Atsakingu_asmenu_pat_ENG
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