Press Release - 24.10.2024 - 08:55
SOFACOMPANY increases retail revenue and the number of stores in Europe
The Danish design company, SOFACOMPANY, has increased store and web shop revenue and is now pursuing the goal of 40 European stores in 2025.
Today, SOFACOMPANY announced that the financial year 2023/24 ended with a turnover of DKK 524m and an EBIT result of DKK -41m. In comparison, the turnover reached DKK 600m with an EBIT result of DKK -73m in the previous financial year.
Retail revenue in 2023/24 increased by 8 percent, reflecting the transformation SOFACOMPANY has undergone in recent years.
“Originally, we started as a pure B2B wholesale company, focusing on design, production, and sales to larger international furniture chains, but in recent years, we have gone through a transformation where we primarily focus on direct-to-costumer sales through our own stores and web shops. Therefore, we are also pleased to see that our retail revenue has increased and now constitutes the majority of our turnover,” says CEO of SOFACOMPANY, Henrik Andersen.
While direct sales to costumers have increased, the B2B wholesale business has declined, particularly due to freight challenges caused by the unstable situation in Europe and the Middle East.
“It has been another challenging year for global furniture traders, as consumers remain cautious, and the war in Ukraine has unfortunately been accompanied by an escalating conflict in the Middle East, which has also made container transport significantly more expensive and slower, as many shipping companies stopped sailing via the Red Sea and the Suez Canal back in December 2023,” Henrik Andersen explains.
“We are proud, that despite a decline in turnover and high container freight rates, we have improved our EBIT result by DKK 32m compared to the previous year and have actually achieved a small but positive operating result (EBITDA) of DKK 1.2m,” he adds.
More stores at home and abroad
SOFACOMPANY has opened four new stores in the past financial year, the latest being in Kongens Lyngby – and many more are on the way.
“We are succeeding with direct sales to customers via stores and web shops, which our growth and the many positive reviews on Trustpilot are a testament to. Our concept is highly relevant, even more so in these financially challenging times, where consumers seek maximum value for money without compromising on quality and design. This aligns perfectly with our mission to make beautiful, high-quality Danish design accessible to everyone with our fixed and fair prices,” says Henrik Andersen. He adds:
“We have three store openings in our pipeline. In November, we are opening in Stuttgart, Germany, and The Hague in the Netherlands, and around the turn of the year, we will open a new store centrally located in Aarhus, Denmark. The ambition remains to reach 40 stores by the end of 2025.”
About SOFACOMPANY
SOFACOMPANY, which is part of the Lars Larsen Group, is headquartered in Ringsted and now has 31 stores spread across 8 European countries, including six in Denmark.
The products are designed in Denmark and produced exclusively for SOFACOMPANY. As many of the traditional intermediary links have been cut away, SOFACOMPANY is able to offer highly competitive prices, which has quickly made the company one of the fastest growing Danish furniture design brands.
