Press Release - 27.10.2022 - 07:50
SOFACOMPANY reports record revenue
Despite challenging market conditions, the Danish design company, SOFACOMPANY, continues its growing journey and delivers growth in turnover for the 10thconsecutive year.
Today, SOFACOMPANY announces a result for the financial year 2022 (covering Sept. 2021 - Aug. 2022) of DKK 768m in revenues and DKK 41m in earnings before interests and tax.
In comparison, the result for the financial year 2021, which only covered an eight-month period due to the change of ownership to Lars Larsen Group in the spring of 2021, reached DKK 505m in turnover and DKK 54m in earnings before interests and tax.
”We are quite pleased with the result for what has been a challenging year from start to finish,” says Henrik Andersen, CEO of SOFACOMPANY, and continues:
”The fiscal year started with an almost complete lockdown at our production facilities in Vietnam due to covid restrictions, and in January, when we finally got back at full capacity, we were faced with great challenges with global container freight due to limited capacity as well as considerable price increases.
During 2022, the market has been increasingly affected by inflation, the energy crisis, and the changes in consumer behaviour, which is why all our employees deserve high praise for their strong efforts under these difficult market conditions,” says Henrik Andersen.
Additional showrooms boost sales
While SOFACOMPANY has managed to set a record in turnover, earnings before interests and tax have not followed the same pace. This is because the company has invested in maintaining its competitive consumer prices despite significant increases in costs of raw materials, transport, and other expenses caused by general inflation development.
”It is our mission to revolutionise the furniture industry by making beautiful, Danish design of high quality accessible to everyone and we have a unique concept with control of the entire value chain, from design to production and sales. Therefore, we are able to offer products at fixed and fair prices, which are typically 30-40 percent below market price for products of comparable quality and design,” Henrik Andersen says.
Aside from maintaining price levels, SOFACOMPANY has invested in the establishment of a stronger offline presence in several European markets as well.
”As part of our plan of making our products accessible to as many people as possible, we have opened new showrooms in the Netherlands, Germany, and Norway this year, which brings us to a total of 23 showrooms across Europe - with more to come, such as a new flagship showroom at H.C. Andersen’s Boulevard in central Copenhagen in the beginning of 2023. Generally, showrooms are a central element in our growth strategy, as many of our customers prefer to experience the furniture in person before making a purchase,” Henrik Andersen concludes.
SOFACOMPANY, owned by Lars Larsen Group, is headquartered in Ringsted, Denmark. Despite being an online retailer, SOFACOMPANY has 23 physical showrooms in Europa, four of them in Denmark.
The products are designed in Denmark and produced at own factories. 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.