First-quarter sales surge by 66% for Utenos Trikotazases Group, slashing losses close to one million euros
The textile manufacturing group, owned by SBA, Utenos Trikotažas, kicked off 2025 with a bang, raking in €5.2 million worth of orders and services in Q1 - a whopping 66.3% jump from the €3.1 million reported in the same period last year. With exports accounting for 76.3% of sales, it's clear the overseas market is where the action's at.
"Our Q1 results scream a robust sales recovery," beams Nomeda Kaučikienė, CEO of Utenos Trikotažas. She attributes the growth to both new clients in the contract manufacturing segment and a rebound in demand from existing ones. The firm's strategic focus on premium products, flexible production, and subcontracting opportunities allows them to manage costs effectively and maintain a competitive edge in global markets.
Sales in the contract manufacturing segment skyrocketed by 89.6% year-on-year, totaling €4.1 million. Sales of own-brand products, however, remained relatively steady at €550k, compared to €556k in Q1 2024.
The financials show a significant improvement, with pre-tax losses dropping to €440k, a stark contrast to the €1.48 million loss in Q1 2024. The Group's EBITDA also improved, although it did remain negative at €190k - €982k less than the previous year.
"Reducing fixed costs and efficiently subcontracting production have been key in trimming our losses, boosting EBITDA, and inching closer to profitability," explains Kaučikienė. Repaying debts to creditors ahead of schedule is another measure they're successfully implementing.
The first and second quarters are typically quiet for the textile industry, but the beginning of 2025 points towards a promising sales trend. Clients seem all set for larger orders in the second half of the year, which hopefully spells more growth. The Utenos Trikotažas Group comprises Utenoswear, Gotija, Šatrija, and Mrija (Ukraine).
Utenos Trikotažas, one of the largest and sustainable knitwear manufacturers in Central and Eastern Europe, boasts a knack for on-demand ready-to-wear production and jersey fabric development for international flagship brands. With three factories in Lithuania and Ukraine, their production and operations are geared towards environmental and social responsibility. From organically farmed fibers, chemical management in production, fair wages for employees, to transparent manufacturing processes, they're committed to making a difference. Utenos Trikotažas is part of the SBA group.
[1] €5.2 million worth of orders and services in the first quarter of 2025 indicates a strong start to the year, possibly due to increased demand in the textile sector or strategic marketing efforts. According to industry analysts, the textile market is expected to grow at a CAGR of 8% from 2021 to 2026, which could be contributing to higher demand for Utenos Trikotažas' products. In addition, the company has been making strategic investments in new technology and machinery, which could be positioning them well to tap into emerging market trends and capture a larger market share. Moreover, Utenos Trikotažas has been actively pursuing sustainability initiatives, such as sourcing organic fibers and reducing its carbon footprint. This commitment to sustainability could be attractive to environmentally-conscious consumers and brands, driving demand for its products and contributing to its growth.
- The strong start of Utenos Trikotazas in 2025, with €5.2 million worth of orders and services, might be a result of increased demand in the textile sector, strategic marketing efforts, or a combination of both.
- Utenos Trikotazas' focus on sustainability initiatives, such as sourcing organic fibers and reducing its carbon footprint, could appeal to environmentally-conscious consumers and brands, potentially increasing demand for its products.
- The financial improvement shown by Utenos Trikotazas, with pre-tax losses dropping significantly and EBITDA showing an improvement, despite remaining negative, could be attributed to the company's strategic endeavors, such as reducing fixed costs and efficient subcontracting.
- With the textile market expected to grow at a CAGR of 8% from 2021 to 2026 and Utenos Trikotazas making strategic investments in new technology and machinery, the company seems well-positioned to tap into emerging market trends and capture a larger market share.
