A Denmark family-owned furniture manufacturer, has reported a loss of DKK 7.2 million for the 2023/34 financial year, marking the second consecutive year of significant losses. The company, based in Central Jutland, had anticipated a profit of DKK 6.9 million before tax but fell short, continuing the trend from the previous year when it posted a DKK 5.6 million loss.
Photo: Skovby.
Skovby Møbelfabrik, which has production facilities in Skovby and Galten, attributes the financial difficulties to a variety of factors, including 'large price increases in raw materials and energy,' supply chain challenges, a global economic slowdown, and 'negative fluctuations in exchange rates in primary markets.' These challenges contributed to a decline in demand for quality furniture. However, Skovby reports that the Danish market has continued to develop positively, and the company's product innovations have been well-received in all markets.
Despite the losses, Skovby Møbelfabrik maintains solid equity, valued at DKK 91.7 million, supported by strong profits in earlier years. The company expects to achieve a profit of DKK 4 million before tax for the current financial year.
Skovby Møbelfabrik was founded in 1933 by cabinetmaker Thorvald Rasmussen and remains family-owned, with Preben and Jørgen Rasmussen, the third generation, currently leading the business. The company supplies furniture to major chains like Ilva and other large retailers.
Source: www.wood-supply.dk