Utenos Trikotažas Reports 66% Sales Growth Amid Cost Reductions

Utenos Trikotažas Achieves Significant Sales Growth

Utenos Trikotažas, a leading textile manufacturer under SBA ownership, has marked an impressive sales surge of 66.3% in early 2025. This growth is a strong indicator of recovery and signals an encouraging trend for the year. The company reported sales of €5.2 million in the first quarter, a substantial increase from the previous year’s €3.1 million.

Strategic Focus Drives Performance

The CEO, Nomeda Kau?ikien?, noted that the results are largely attributed to a strategic focus on high value-added products alongside a flexible production model. The integration of new clients within the contract manufacturing sector has also played a crucial role in this growth. By enhancing subcontracting options, Utenos Trikotažas can efficiently manage costs, thereby solidifying its competitive edge in the international market.

Contract Manufacturing Sales Surge

Within the company’s structure, contract manufacturing saw an extraordinary increase of 89.6% year-over-year, totaling €4.1 million. Meanwhile, sales of its own-brand products showed little fluctuation, standing nearly the same at around €550,000. This diversification in revenue streams underscores the company's adaptability and resilience in changing market conditions.

Reducing Losses with Operational Optimization

In addition to skyrocketing sales, Utenos Trikotažas has successfully reduced its pre-tax losses to €440,000, significantly improving from a loss of €1.48 million in the first quarter of the previous year. The company’s EBITDA also revealed positive signs, although it remained negative at €190,000, this figure reflects a €982,000 decrease compared to last year.

Enhancements and Financial Management

The CEO emphasized ongoing efforts to optimize operations, which include lowering fixed costs and efficiently managing production through subcontracting. These actions have empowered the company not only to cut down on losses but also to approach profitability effectively. Furthermore, the proactive management of financial liabilities, with early repayments to creditors, represents a commendable effort towards maintaining financial health.

Future Outlook for Utenos Trikotažas

As the textile industry generally slows down in the first half of the year, Utenos Trikotažas is forecasting a positive sales trend for the upcoming months. The company is already witnessing increased order plans from clients set for the latter part of the year, reflecting confidence in continued growth momentum.

Core Values and Commitment to Sustainability

Established as one of the largest and most sustainable knitwear manufacturers in Central and Eastern Europe, Utenos Trikotažas specializes in on-demand ready-to-wear production and the development of jersey fabrics for prominent international brands. The company operates three factories, ensuring a commitment to environmental and social responsibilities throughout its operational processes, from sourcing organic natural fibers to maintaining transparency in production practices.

Contact Information for Utenos Trikotažas

For additional inquiries about the company’s operations or financial performance, individuals may reach out to Aurimas Likus, CFO, at +370 618 07809.

Frequently Asked Questions

What factors contributed to Utenos Trikotažas' sales increase?

The strong recovery in sales was driven by new clients in contract manufacturing and a rebound in demand from existing clients.

How has Utenos Trikotažas improved its financial performance?

The company has significantly reduced pre-tax losses and improved its EBITDA by optimizing operations and managing fixed costs better.

What steps is Utenos Trikotažas taking for sustainability?

Utenos Trikotažas focuses on sustainability through the use of organic fibers, responsible chemical usage, and fair employee compensation practices.

What products does Utenos Trikotažas specialize in?

The company specializes in on-demand ready-to-wear production and jersey fabric development for major international brands.

Where are the Utenos Trikotažas factories located?

The group operates factories in Lithuania and Ukraine, ensuring a robust production capability across regions.

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