Press Release - 26.10.2023 - 08:00
SOFACOMPANY continues expansion despite adversity
The Danish design brand, SOFACOMPANY, continues its international expansion plan in spite of the challenges in the global retail market.
Today, SOFACOMPANY announced its results for the financial year 2022/23; a turnover of DKK 600m and DKK -73m in earnings before interests and tax (EBIT). In comparison, turnover amounted to DKK 768m in the previous financial year with an EBIT of DKK 41m. The result for the year is not surprising to CEO of SOFACOMPANY, Henrik Andersen.
”Naturally, we are not satisfied with the result which is influenced by many external factors. Our turnover was negatively affected by the war in Ukraine and the following increase in inflation rates which brought consumer confidence and demand to a new low – in Europa as well as in North America,” Henrik Andersen says and continues:
”A large part of our turnover is generated through B2B-wholesale where we produce and sell to large furniture chains in other countries. These have also been affected by the difficult market to a point where some of them have gone bankrupt. This was the case for British MADE.com, which has historically been one of our biggest B2B-customers. Unfortunately, this resulted in a loss on receivables as well as loss in turnover/revenue for the year as it happened at the beginning of the financial year,” Henrik Andersen explains.
On the cost side, SOFACOMPANY, like many other companies, was affected by the boom in prices of container freight but for strategic and competitive reasons the company decided not to pass the extra expenditures to consumers via large price increases.
”It is our mission to make beautiful, Danish design accessible to everyone with our fixed, fair prices,” Henrik Andersen says with reference to the company’s successful concept.
The expansion continues
Even though SOFACOMPANY has been impacted by the pressured market, expansion is still high on the agenda for the company which opened its new flagship store in 2023 at the central H.C. Andersens Boulevard in Copenhagen. And more stores are to come.
”Turnover from our direct sales to end consumers has not decreased and therefore we are undauntedly continuing our expansion with the establishment of more stores around Europe. We expect to open an additional 6-7 stores per year which should bring us to a total of 40 stores by the end of 2025,” Henrik Andersen concludes.
SOFACOMPANY, which is part of Lars Larsen Group, is headquarted in Ringsted near Copenhagen, Denmark and has 28 stores in Europa, hereof 5 in Danmark.
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.