The SBA Textile Group Utenos Trikotažas has reported a 35.7 per cent year-on-year decrease in its 2023 revenue, amounting to € 22.2 million. Despite this decline, the company’s owned brand, UTENOS, experienced a notable 27.4 per cent sales growth in the final quarter of the year. Renowned as one of the largest and most sustainable knitwear manufacturers in Central and Eastern Europe, Utenos maintains a strong presence in the industry.
Nomeda Kaučikienė, Head of Utenos Trikotažas, attributed the sluggish demand to industry-specific challenges, forecasting a protracted recovery period amid factors such as inflation, escalating interest rates, and geopolitical uncertainties impacting consumer spending. She highlighted the industry-wide trend of declining sales, leading to closures for some established brands.
The company is actively enhancing its UTENOS apparel brand, expanding distribution through its e-commerce platform and six physical stores. Notably, revenue from this segment surged by 27.4 per cent in the final quarter, reaching € 2.5 million by year-end.
Amidst the sales slowdown, Utenos Trikotažas has prioritised operational efficiency and cost optimisation strategies, resulting in a 20 per cent reduction in fixed costs while maintaining production levels comparable to 2022. Kaučikienė emphasised that the production slowdown has facilitated strategic transformations aimed at fortifying the company’s future prospects for when demand rebounds.
Utenos Trikotažas specialises in on-demand ready-to-wear manufacturing and jersey fabric development for prominent international brands, overseeing the entire production cycle from yarn sourcing to finished products.
Operating three factories in Lithuania and Ukraine – Utenos Trikotažas, Šatrija, and OAO Mrija, the company upholds environmental and social responsibility standards throughout its operations. From using organically sourced natural fibres to ensuring fair wages for employees and maintaining transparency in production processes, Utenos Trikotažas remains committed to sustainable practices within the SBA group.
