Carl Hansen & Son has released financial statements showing a rise in revenue for the fifth year running, and is ramping up for continued export growth. Increasing demand on all markets is the reason why Carl Hansen & Son has established a new factory on Funen, Denmark. The company has also set up new showrooms in USA and the UK. These investments have created 45 new jobs in the group.
For the fifth year running, Carl Hansen & Son is showing a solid advance. Revenue has risen by 21% compared to the previous financial statements. This is particularly gratifying given the major investments Carl Hansen & Son made in 2014. Knud Erik Hansen, CEO, Carl Hansen & Son says: "We are still achieving progress on all fronts. The result for 2014 is satisfying, as our ongoing strong growth in revenue is advancing as planned."
Large one-time costs associated with establishing the company's new factory in Gelsted on Funen account for a major proportion of the investments of almost 40m DKK in 2014 – representing an increase of 50% over 2013. To meet the steadily increasing demand, Carl Hansen & Son acquired the first production building in 2013. It has already added another production building in 2014, and now has over 11,000 sq m of facilities in addition to the existing 7,000 sq m at the factory in Aarup, Denmark.
"We began production in Gelsted as planned in August 2014, and we are already reaping the benefits of having prioritized investment in larger production facilities and commissioning machines. Given our huge investments the previous year in line with our growth strategy, earnings before tax of 10.8m DKK are also as expected. The result also adds to equity," notes Knud.
The furniture manufacturer is experiencing steadily increasing demand for its design icons on all export markets. The company's export ratio remains unchanged at 70% of total revenue. The overseas markets in USA and the UK together with the Nordic region have contributed the strongest growth rates. To further strengthen branding in its export markets, Carl Hansen & Son has invested resources in establishing showrooms in Los Angeles and London, in addition to its investment in a flagship store in Tokyo last year. Carl Hansen & Son welcomed 45 new employees in 2014.
Carl Hansen & Son is continuing the positive growth which has characterized the company for the last five years. The product portfolio is renowned for bringing Hans J. Wegner's world famous designs to life, and has been supplemented of late by contemporary recognized designers such as Tadao Ando of Japan, with the sculptural Dream Chair. EOOS also presented Embrace Chair – a new interpretation of the dining chair – at the year's Milan furniture trade fair. The chair unites the design trio's strong sense of modern aesthetics and Carl Hansen & Son's traditions of quality craftsmanship and high comfort.
"We expect continued growth of 20-25% in 2015 and hence revenue of 350m DKK, with an expected 50% increase in EBIT over the year before. This is in line with our general growth strategy, which aims for revenue of DKK 500 million in 2017, and with a focus on increasing earnings," says Knud.
"We continue to have an intense focus on our export markets, where we are constantly strengthening our sales force – in both the private and professional segments. We are in the process of establishing a sales office in Dubai after the summer holiday, as we see great unexploited potential in this region. We will continue to see new employees join the ranks, and have already added 28 employees in H1. This trend will continue in the years ahead."
