Furniture manufacturing companies of the SBA group in 2023. products sold for a third of a billion – 334 million. euros. This year, they will continue investing in strategic projects.
A moderate recovery is forecast
Although last year the income of SBA’s furniture sector was 14 percent. lower than in 2022, sales are expected to increase this year.
“The internationally competitive furniture manufacturing business faced new global challenges last year: a slowdown in demand and the consequent reduction in production volumes, as well as increased interest rates. The main antidote to this is maximum concentration on efficiency, which helps not only to rationally manage processes, but also to preserve leadership. We forecast a positive turn this year, so we expect moderate growth. If we manage to achieve a double-digit revenue growth, we would consider it an appropriate assessment of our efforts”, says SBA Vice President Egidijus Valentinavičius.
According to him, the business expects more significant changes in the second half of the year, but it will also depend on the expected decisions of central banks to reduce interest rates, and the speed of global economic recovery. Important geopolitical events can also be of considerable importance: the war in Ukraine, the escalation of military actions in the Middle East and their impact on logistics chains, the US presidential election.
Continues strategic investments
Despite the challenges, the furniture companies of the SBA group continued their strategic investments last year.
“Even in difficult times, we must be guided by long-term business goals in order to increase our competitive advantage. Therefore, SBA furniture companies in 2023 invested more than 11 million euros in robotics and automation solutions, as well as equipment that increases production efficiency and saves energy. In order to achieve sustainable business growth in the future, we continue to intensively examine the possibilities of new strategic projects”, says Jurgita Radzeviče, head of SBA Home, which unites 4 furniture manufacturing companies.
According to her, even with the decline in global demand, Inno Line, one of the most modern factories in the region, was able to use its competitive advantage to increase sales last year by 8 percent to 133 million. euros. “Klaipėdos baldai” sold its products for 99 million. euros, that’s 17 percent. less than last year. Sales of “Visagina line” amounted to 66.5 million. euros and were a quarter lower than in 2022. “Šilutės baldai” received almost a third less income – 35 million. euros.
The SBA upholstered furniture manufacturer, which does not belong to the “SBA Home” group of companies, the company “Kauno baldai” increased its sales by 10 percent last year, up to 26 million. euros.
According to J. Radzeviče, during the year the prices of raw materials decreased by approximately one tenth and this is already beginning to be reflected in the cost price of products. Therefore, this change also affects the overall sales volume.
SBA is one of the largest business groups with Lithuanian capital in the country, operating in the furniture manufacturing, textile, real estate and investment management sectors. It exports its products to 50 countries around the world.
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– 2024-03-29 22:35:24
