Press Release - 09.11.2023 - 08:00
ScanCom International sees improved operational results in a heavily challenged market
The furniture group, ScanCom International A/S, improves its operational performance for the fiscal year 2022/23 despite being heavily affected by lacking sales and challenging market conditions.
Although facing major market challenges the company has succeeded in improving the operational results for the year with a result for earnings before interest, taxation, devaluations and amortisation (EBITDA) of DKK 10m. This in spite a sudden halt in the global market place for outdoor furniture and increased costs combined with high levels of stock both internally at ScanCom International and at most customers. The turnover for the year landed at DKK 947m, while the EBIT result was DKK -22m. In comparison, last year’s EBITDA result was DKK -6.9m, while the turnover ended at DKK 1,225m with an EBIT result of DKK -40m.
“The serious market challenges have been alleviated slightly through our timely and necessary actions, aimed at mitigating the drop in sales and the increasing material costs and have been completed in alignment with our great responsibility to our global employees,” CEO of the ScanCom International Group, Stig Maasboel, explains and continues:
“It has been a tremendously challenging year, where our focus changed from planned growth and scaling in production, to a reduced activity level in our factories in Vietnam, Brazil, and Indonesia respectively and where improvements to our cashflow became a priority.”
The free cashflow of the company ended at a positive DKK 108m primarily due to a focused effort on reducing the stock from last year’s previously high level of DKK 570m to DKK 384m in the recently closed fiscal year.
“The development in our free cashflow is of course highly welcome and a big appreciation should be shared to all the involved employees and their great commitment, as this result has only been achieved through a strong team effort,” Stig Maasboel states.
In addition, ScanCom International has prioritised investments in own factories and facilities through a 12,000m² extension of the company’s ‘Operational Excellence Centre’ in Vietnam alongside the opening of a new Nordic Head Office and Creative Space in Copenhagen, Denmark. The latter as a key part of getting ever closer to the key customers.
A continuation of prestigious acknowledgements
The continued challenges in the global market and lower sales do not shake ScanCom International’s long-term ambitions and traditions for working with sustainability and innovation and the company repeated last year’s success by adding another prestigious Red Dot Award – in the category “Product Design 2023” – to the collection, alongside another recognition within sustainability through the “Best Sustainable Product 2023” from Solex.
”During challenging times, we must stay true to our values and celebrate the good achievements and successes, and we are very proud of the Red Dot Award for our innovative Mica daybed, as well as the sustainability award for the Onyx plastic chair – which is a design developed using primarily recycled and recyclable materials, leaving a positive social impact,” Stig Maasboel shares.
A view to new challenges
ScanCom International foresees 2023/24 to be another challenging year, as global stock levels remain high. While the manufacturing capacity for ScanCom International remains high, late commitments and information on customer needs will likely reduce the actual seasonal capacity throughout the complete supply chain.
“Even if this happens, it will not make us change the long-term strategy, where responsible manufacturing, innovative design and developments of products and materials, and sustainable solutions in our industry is at the top of the agenda,” Stig Maasboel concludes.
About ScanCom International A/S:
ScanCom International A/S, which is owned 100% by Lars Larsen Group, has in recent years developed into one of the dominant players in the global outdoor furniture market when it comes to design, development, and responsible manufacturing.
The company employs more than 2,600 people globally, with the majority at the company’s own factories in Brazil, Indonesia, and Vietnam respectively. Sales is primarily conducted from own offices and facilities in Europe, the US, and Asia, while there are global showrooms in Denmark, Vietnam, and Spain, where collections are developed in close collaboration with key customers.