Danish online furniture retailer SOFACOMPANY has reported a growth in turnover for a 10th consecutive year.
According to its latest results for the financial year 2022, sales reached DKK 768m, while earnings before interests and tax resulted at DKK 41m.
In comparison, the result for the financial year 2021, which only covered an eight-month period due to the change of ownership to Lars Larsen Group in the spring of 2021, reached DKK 505m in turnover and DKK 54m in earnings before interests and tax.
Henrik Andersen, CEO of SOFACOMPANY, commented: “We are quite pleased with the result for what has been a challenging year from start to finish. The fiscal year started with an almost complete lockdown at our production facilities in Vietnam due to covid restrictions, and in January, when we finally got back at full capacity, we were faced with great challenges with global container freight due to limited capacity as well as considerable price increases.
“During 2022, the market has been increasingly affected by inflation, the energy crisis, and the changes in consumer behaviour, which is why all our employees deserve high praise for their strong efforts under these difficult market conditions.”
While SOFACOMPANY has managed to set a record in turnover, earnings before interests and tax have not followed the same pace. This is because the company has invested in maintaining its competitive consumer prices despite significant increases in costs of raw materials, transport, and other expenses caused by general inflation development.
“It is our mission to revolutionise the furniture industry by making beautiful, Danish design of high quality accessible to everyone and we have a unique concept with control of the entire value chain, from design to production and sales. Therefore, we are able to offer products at fixed and fair prices, which are typically 30-40 percent below market price for products of comparable quality and design,” Henrik said.
Aside from maintaining price levels, SOFACOMPANY has invested in the establishment of a stronger offline presence in several European markets as well.
“As part of our plan of making our products accessible to as many people as possible, we have opened new showrooms in the Netherlands, Germany, and Norway this year, which brings us to a total of 23 showrooms across Europe – with more to come, such as a new flagship showroom at H.C. Andersen’s Boulevard in central Copenhagen in the beginning of 2023. Generally, showrooms are a central element in our growth strategy, as many of our customers prefer to experience the furniture in person before making a purchase,” Henrik concludes.
SOFACOMPANY, owned by Lars Larsen Group, is headquartered in Ringsted, Denmark. SOFACOMPANY has 23 physical showrooms in Europa, four of them in Denmark.