Gelsted Tømmerhandel, part of the XL-Byg chain, has reported its third consecutive year of financial deficit, with a pre-tax loss of almost DKK 1 million for 2024. Equity has fallen to under DKK 5 million, although gross profit has remained relatively stable at DKK 1.4 million. The company employs eight staff members, down from nine the previous year.
© Gelsted Tømmerhandel | XL-Byg (Facebook)
Director Niels Jørgen Madsen, who has led the timber business for three decades, attributes the negative results to intensified price competition and the loss of key customers, including approximately DKK 0.5 million from two Polish craft firms. He also notes that large credit arrangements are no longer available, adding to financial pressures.
Despite these challenges, Madsen remains optimistic, citing a stable customer base and ongoing supply of materials for local and regional projects. The company continues to serve both construction and DIY sectors, aiming to navigate market pressures while maintaining operations.
Gelsted Tømmerhandel's financial difficulties reflect broader pressures on the Danish timber trade, including shrinking margins, increased competition, and supply constraints. Nevertheless, the management emphasises resilience and hopes for a turnaround in the coming years.
Source: www.wood-supply.dk
