DENMARK - Tvilum A/S, a global leader in RTA furniture,  released its annual report for the 2021 fiscal year and presented a pre-tax result (EBT) of DKK 35 million (USD 5,1 million) that compares to DKK 91,6 million (USD 13,4 million) in 2020.

Seen against last year and the company´s budgets results are regarded as less satisfactory, but this has been driven by extremely volatile market conditions and the ongoing disruptions in global supply chains.

The Group was able to reach an organic sales growth of 10%, excluding the contribution from Steens Group, which Tvilum A/S acquired in mid-2021.

Sales in 2021 amounted to DKK 1,58 billion (USD 231,1 million) compared to DKK 1,30 billion (USD 191,4  million)  in 2020 and the Group was able to reach an operating profit of DKK 45 million (USD 6,5 million) down from DKK 106 million (USD 15,5 million)  the year before.

According to Tvilum CEO Torben Porsholdt “Over the past year we have experienced heavily rising raw material costs. This, combined with short notification periods from our suppliers, has led to a situation where transferring the increased costs at the same pace into our sales prices has proven to be difficult.  Our result is affected by this delay due to our contract terms and the longer notice periods we impose on our own customers.”      

At the same time, the instability in the raw material markets has continued from 2020 into 2021, which has been challenging in relation to maintaining a stable flow in production.

“Additionally, one-time, non-recurring transaction and restructuring costs of the acquisition of Steens Group contributed to a negative impact of slightly below 10 million Danish kroner on the Groups bottom line.”

As part of Tvilum’s strategy of targeted expansion of the product range, Steens Group A/S was acquired with effect from 26 May 2021. The acquisition adds a well-developed children’s furniture program, among other things, which Tvilum did not have in its product range. Moreover, the product program from Steens is based on solid wood and MDF, which makes the new, overall program more complete - and the target group for the group’s furniture is thus significantly expanded. The integration of Steens Group was initiated in continuation of the acquisition and is expected to be finalized in 2022.

The beginning of the year 2022 has shown steady demand and Tvilum is expecting this to continue.