Press Release - 17.10.2024 - 09:55
Actona Group A/S maintains strong position in declining market
Actona Group delivers a revenue of DKK 2.7bn for the financial year 2023/24, reinforcing its strong market position.
In a challenging and unforeseeable macroeconomic environment, Actona Group reported a 6% decline in revenue for the financial year 2023/24; a minor decrease compared to what other players in the furniture industry have experienced. Despite geopolitical risks, economic uncertainty, and supply chain disruptions affecting consumer demand and increasing freight rates and goods costs, Actona Group’s EBITDA landed at 8.4% (DKK 225m) compared to 10.1% (DKK 288m) last financial year. Earnings before interests and tax (EBIT) was realized at 6.7% before amortization of goodwill compared to 8.5% last year.
“Although the furniture industry has faced significant challenges this year, our ability to adapt and maintain focus on our integration of the two recent acquisitions has been crucial. Our commitment to generating value through the consolidation of the European B2B upholstered furniture market remains strong,” says President & CEO of Actona Group, Jimmi Mortensen.
The results this financial year were impacted by Actona Group’s uncompromising effort in the post-merger integration of the upholstery productions with SITS and Flexlux brands in Poland and Lithuania respectively. While Actona Group saw an increasing demand from customers on European produced furniture goods, and hence started to harvest the competitive advantages from the acquisitions, this year also required one-off integration costs which further influenced financial performance.
"Our strategic investments enhance our upstream supply chain flexibility, and with a stronger production footprint in Europe, we are better positioned to mitigate risks from geopolitical conflicts and potential sanctions. By investing in production within Europe, we further align with our partners' growing demand for local production and focus on sustainability, supporting this broader agenda," Jimmi Mortensen adds.
Actona Group reaffirmed its commitment to the Science Based Targets initiative, achieving a 26% reduction in Scope 1 and 2 emissions across the organization going beyond the minimum annual SBTi threshold of 4,2% in absolute emission reductions. For Scope 3 emissions, the company made a key advancement by upgrading its datasets. This involved a full activity-based recalculation of both the baseline year and FY23/24, shifting from financial to activity data, which improved the accuracy and reliability of emissions reporting.
Regaining profitability through integration and cost synergies
While Actona Group expects a continued volatile macroeconomic environment throughout the financial year 2024/25, the Group remains strongly committed to regaining profitability through a focus on integrating acquisitions and leveraging cost synergies. The Group will continue to optimize its supply chain and invest in digital improvements to increase operational efficiency and meet customer demands.
In addition, Actona Group aims to strengthen its market position by launching new product lines and expanding its presence in key markets to maintain its relevance and leadership in an ever-changing market. These strategic initiatives are expected to drive significant efficiencies, streamline operations, and improve operational resilience, positioning the Group for long-term and sustainable growth.
"Actona Group is dedicated to maintaining its strategic vision, aiming for profitable growth year on year through organic growth, alongside ongoing efforts to identify and pursue strategic acquisitions within the European upholstery market," says Jimmi Mortensen and concludes: “We are confident that our disciplined approach to integration and cost management will enable us to deliver value and emerge more resilient and competitive in the coming year.”
