For SBA Group company Utenos Trikotažas, 2024 was a year of significant changes. In response to global market challenges, the company initiated a restructuring process last October aimed at reorganizing and optimizing operations, thereby ensuring its long-term viability.
Over the course of 2024, the Utenos Trikotažas Group fulfilled production orders and provided services totaling EUR 17.8 million - 20% less than a year ago, when the group's sales reached EUR 22.2 million. Positive trends were observed in the final quarter of the year: compared to the same period the previous year, revenues grew by 10.8%, and export volumes increased by 31.5%.
"The textile sector in 2024 faced one of the most challenging periods of the past decade - many companies across Europe, including those in traditional textile manufacturing countries such as Turkey and India, were forced to shut down or declare bankruptcy. Despite these challenges, Utenos Trikotažas not only remained operational but also emerged stronger," says Nomeda Kaucikiene, CEO of Utenos Trikotažas.
According to Ms. Kaucikiene, the company's sales have returned to 2023 levels, indicating that the strategic decisions made are proving successful. "We have optimized production and administrative processes and subcontracted part of our production, which has allowed us to reduce operating costs and increase operational efficiency," she adds.
High Value-Added Production Strengthens Competitiveness
Sales in the largest segment of the Utenos Trikotažas Group - contract manufacturing - fell by 24.8% to EUR 12.9 million last year, reflecting the broader market recession. Nevertheless, but most of the clients have been retained. The strongest export region continues to be the German-speaking countries (Germany, Austria, Switzerland), where Utenos Trikotažas recorded more than EUR 9 million in sales. Another key export region is the Nordic countries. Exports account for 83.2% of the company's total revenues.
"Europe's textile sector faces strong competition from low-cost manufacturing countries such as China, Bangladesh, and Pakistan. However, we are seeing renewed demand for high value-added products-clients are seeking innovative materials, sustainable solutions, and advanced production technologies. These trends help maintain a strong market position despite aggressive price competition," notes Ms. Kaucikiene.
Restructuring Plan Underway
At the end of the year, Utenos Trikotažas began implementing its restructuring plan. By selling the brands owned by its subsidiary Utenoswear, the company raised EUR 2 million, most of which was used to cover creditor liabilities.
One of the main strategic goals for 2025 is to strengthen the UTENOS brand developed by the company. Although sales of in-house brands declined by 7.2% over the year, they stabilized in the fourth quarter of 2024 and returned to a growth trajectory of +0.3%.
For Utenos Trikotažas, 2024 was a transitional year in which the company significantly reduced its losses and managed financial challenges. In 2024, the Utenos Trikotažas Group incurred a pre-tax loss of EUR 1.5 million, compared to EUR 2.6 million in 2023. The Group's EBITDA was negative, at EUR -306 thousand.
About Utenos Trikotažas
Utenos Trikotažas is one of the largest and sustainable 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 - Utenos Trikotažas (Lithuania), 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. Utenos Trikotažas is part of the SBA group.
Additional information is available from Aurimas Likus, CFO, tel. No. +370 618 07809.
Nomeda Kaucikiene, CEO of AB Utenos trikotažas
