A Danish furniture manufacturer based in Funen, reported a pre-tax loss of DKK 2.2 million in 2024, largely due to delayed procurement from public institutions. While the furniture industry has faced general decline.
Farstrup's deficit stemmed specifically from postponed state and regional purchasing agreements, which disrupted orders from hospitals, nursing homes, and other key clients in the health and care sectors.
Operations Director Jan Andersen explained that institutions were hesitant to make purchases without active procurement agreements, stating: 'The state and regional procurement agreements have been postponed a few times, which is why the institutions have not dared to take action.' As Farstrup specialises in functional and customised furniture, it is highly reliant on public sector demand.
Fortunately, the slowdown was temporary. With agreements now in place, the company is once again receiving institutional orders. Management expects the current financial year to show a profit and experience increased activity.
However, the company's annual report highlighted additional pressures, noting that the downturn was also linked to falling sales both domestically and internationally, reflecting a broader slowdown across the furniture industry.
Despite the challenges, Farstrup's leadership remains committed to its direction. The company was acquired by a new ownership group in 2017 and continues to focus on customised furniture solutions, leveraging decades of expertise and craftsmanship. With procurement channels reopening, the firm anticipates a more stable and profitable 2025.
Source: www.wood-supply.dk