2014-11-27

Consolidated operating profit of “Utenos trikotažas” group for the 9 months of 2014 was LTL 4.2 million

Consolidated operating profit of “Utenos trikotažas” group forthe 9 monthsof 2014 was LTL 4.2 million (EUR 1.2 million), while in the same period in 2013 the Group earned LTL 1.1 million (EUR 0.3 million) operating profit. 

AB "Utenos trikotažas" earned LTL 2.3 million (EUR 0.7 million) of operating profit forthe 9 monthsof 2014, while in the same period in 2013 the Company suffered LTL 0.05 million (EUR 0.02 million) operating loss.

“The improving results of the Company’s activity prove that the new strategy of “Utenos trikotažas” to polarise towards the manufacturing of higher added value products is accelerating rapidly. The sales and profitability of woollen products and various modifications with added wool are rising exceptionally. Last week, the first “ABOUT Baltic Underwear” shop was opened in Vilnius; this will help to increase brand awareness and develop the planned business model of the franchise. However, creating innovative materials and finding new clients still remain our top priority”, Gintautas Bareika, the Director General of AB “Utenos trikotažas”, said.

The loss, which was recorded in the financial activity due to depreciation of the Ukrainian currency (UAH) (caused by political situation in the Ukraine), had no significant effect on cash flows of both the Group and the Company. However, it had negative impact upon the consolidated results OF THE Group for the 9 monthsof 2014, which amounted to LTL 6.6 million (EUR 1.9 million), while in the same period in 2013 the fluctuation of exchange rate of the Ukrainian currency (UAH) was negative and equal to LTL 0.6 million (EUR 0.2 million).

Due to the reason above, the AB “Utenos trikotažas” Group incurred LTL 4.3 million (EUR 1.2 million) of pre-tax loss forthe 9 monthsof 2014, while in the same period in 2013 the Group incurred LTL 1.5 million (EUR 0.4 million) loss before taxes.

This result of the translation of foreign currency items is more of a technical aspect and is not pertinent to the normal practice of the Company (Group). However, if included in the profit and loss account, it considerably influences the results. The Company is being advised by independent auditors and is searching for a solution how to appropriately reflect this technical fluctuation of the currency exchange rate in the financial statements of the Company.

AB "Utenos trikotažas" earned LTL 0.4 million (EUR 0.1 million) of pre-tax profit forthe 9 monthsof 2014, while in the same period in 2013 the Company incurred LTL 1.8 million (EUR 0.5 million) loss before taxes. 

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