Utenos Trikotazas - Interim information

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 for the 9 months of
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 for the 9 months of 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 months of 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 for the 9 months of 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 for the 9 months of 2014, while in the same period in 2013 the Company
incurred LTL 1.8 million (EUR 0.5 million) loss before taxes. 

For more information about the main event please contact Mr. Gintautas Bareika,
the Director General of AB "Utenos trikotažas", tel. 8 389 51445. 

I, the undersigned, confirm that the above information is complete and true.

Gintautas Bareika, Director General of AB “Utenos Trikotažas”

Attachments:

Confirmation of responsible persons.pdf

Interim financial statements.pdf