Investment in higher added value production
At the beginning of the year, Utenos Trikotažas set up a modernization plan of its production equipment, which will allow production of higher added value products. In H1 2021, the factory obtained two modern knitting machines and the delivery of two more machines is expected in September. By the end of the year, over EUR 0.5 million will be invested in the expansion of the production facilities.
“The momentum of on-demand sales dictates new market needs – innovative clothing brands are moving away from mass collections and actively seeking for sustainable innovations and timeless clothing design. The lockdown has shown very clearly what type of clothes people really need and will always need – quality, durable and sustainable clothing that can be worn in every season. Our strategic focus is directed towards this sustainable trend, and this is also a direction of our recently refocused brand ABOUT too,” Petras Jašinskas, Managing Director of Utenos Trikotažas, said.
Orientation to e-commerce
In May, Utenos Trikotažas established a new subsidiary Aboutwear, which will now take care of the global development of the About brand lines – ABOUT Baltic Underwear and ABOUT The Sensology of Wear – with a targeted focus on online commerce.
The pandemic has highlighted the importance of online shopping, with sales volumes significantly dropped after the closure of physical stores. In H1 2021, sales of products of UTENOS and ABOUT brands developed by Utenos Trikotažas stood at EUR 2.0 million or 31% less than a year ago. The sales were also impacted by a sharp decrease in demand for face masks, which in the difficult period of 2020 not only supported the sales dynamics, but also allowed to continue production and to keep jobs.
The company earned EUR 12.5 million revenue in H1 2021
In H1 2021, sales of Utenos Trikotažas stood at EUR 12.5 million, the same as in the previous year. The company incurred losses of EUR 0.9 million before tax (EUR 1.1 million in 2020). The EBITDA indicator of Utenos Trikotažas totalled EUR -489 thousand (EUR -709 thousand in 2020).
“The second quarter of the year is traditionally slower for the textile market and, like most manufacturing companies, we have also faced disruptions in our production processes and supply chain caused by coronavirus. However, the momentum of the population vaccination makes us more optimistic about the next six months. Currently, more than 70% of employees of Utenos Trikotažas are now immunized, and we expect this number to increase by the end of the year. The stabilisation of production and current dynamics of client orders allow us to predict more positive changes before the end of the year,” Jašinskas said.
In addition to Utenos Trikotažas, the Utenos Trikotažas Group includes companies Aboutwear, Gotija, Šatrija and Mrija (Ukraine). In H1 2021, the Group sold products and provided services for EUR 13.4 million, i.e. 6% less than during the same period in 2020. In H1 2021, the Utenos Trikotažas Group incurred losses of EUR 1.1 million before tax (EUR 1.3 million in 2020). The EBITDA indicator of the Utenos Trikotažas Group totalled EUR -658 thousand (EUR -509 thousand in 2020).
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