The recent report by the Management Board of the company, covering the period from April 1 to June 30, 2024, provides a comprehensive overview of the company's operations and financial health. The report highlights several key areas of activity, including furniture production, marketing services, and commercial ventures both domestically and internationally.
The company in question, FORTE operates three primary production plants in Poland, located in Ostrów Mazowiecka, Suwałki, and Hajnówka, with an additional plant in Białystok leased to a subsidiary for upholstered furniture production.
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During the reporting period, significant developments occurred within the FORTE Group. On April 3, 2024, FORTE acquired additional shares in its subsidiary, SPECIFIC Sp. z o.o., increasing its ownership to 51%. On May 23, 2024, the group established a new subsidiary, ATW HOME Ltd., in the UK to focus on online sales in the British market. Furthermore, the group's Indian joint venture, FORTE FURNITURE PRODUCTS INDIA PVT. LTD, saw an increase in capital, although FORTE's shareholding remained unchanged at 50%.
Financially, the Group faced challenges, with a 4.9% decline in sales revenues, amounting to PLN 250.806 million compared to the same period in 2023. Despite the decrease, the company reported a significant increase in the sale of surplus boards, which saw an 80% rise in value and a 171% increase in volume. Furniture sales accounted for the majority of the Group's revenue, with 68.1% of sales coming from exports, primarily to German-speaking countries and Western and Northern Europe.
Looking forward, the Management Board identified several factors that could impact the Group's performance, including the economic situation in Europe, the availability and cost of raw materials, and geopolitical uncertainties. To counteract these challenges, FORTE is focusing on increasing profitability through sales initiatives, including the introduction of new furniture assembly technology and the expansion of online sales channels. The Group is also emphasising energy independence through the use of photovoltaic farms and optimising the use of raw materials in production.
Source: www.biznes.meble.pl
