After a good year, ILVA delivers a result close to zero, harvesting the fruits of the major changes made over the last two years
After a number of years with significant deficits, ILVA can now present a turnover of DKK 1.5 billion for the financial year 2019/20, while operating profit ended at a loss of DKK 10 million.
With these results the company is following its development plan, which pleases CEO Rami Jensen immensely:
”Anyone who has followed ILVA knows that we have been through some challenging years and had to take some very big decisions. Not least, the tough decision to merge ILVA and IDÉmøbler so that we could focus 100 percent on the ILVA brand. But the development and annual results show that this was the right call," says Rami Jensen.
This despite the need for major investments to change the name of 32 stores and helping many customers get used to their local homeware store changing its name from IDÉmøbler to ILVA.
Marketing has also been changed so that ILVA no longer posts advertising material through the letterboxes of every household, but has switched to a more digital strategy.
”We can see that we have timed this point correctly in relation to customers' wishes, and I am pleased to note that ILVA has become even more relevant for Danes over the past year," says Rami Jensen.
Like many retailers, ILVA experienced sales slow down in 2020 in connection with the onset of the first wave of coronavirus, and then subsequently accelerate over the summer.
”We've had some really good months, which we can't actually see the full impact of yet in the annual accounts. This is because we deliver a lot of custom-made furniture items that, while sold, are not seen in our accounts until the product has been delivered to the customer. This means that we can look forward to a really good start to the current financial year," says Rami Jensen.
The objective is clear:
Rami Jensen has promised the owners of Lars Larsen Group that ILVA will make a profit for the 2020/21 financial year.
”ILVA has been through a long period of losses year after year, and it is clear that this affects all employees in the company. So I'm extremely pleased that we are performing better than planned and that, as long as we follow the curve, we will come out of this financial year with a profit. With Lars Larsen Group, ILVA has a very patient owner. But it's clear that all of ILVA's employees are looking forward to working together to increase profits in Lars Larsen Group rather than reducing them," concludes Rami Jensen.