Carl Hansen & Son has published its annual report announcing increasing revenues for the fourth consecutive year and a continued high level of investment. To meet constantly growing demand in all export markets, the company is investing in increased production capacity and creating new jobs in Denmark.
Danish furniture manufacturer Carl Hansen & Son, the world’s largest producer of furniture designed by Hans J. Wegner, continues to enjoy success following several years of consistent revenue growth. In 2013, revenue increased by 17% and is historically high. The result is driven primarily by growing demand for the company's Danish-designed furniture in all export markets, as well as by Carl Hansen & Son’s compelling legacy. Exports continue to account for 70% of sales.
CEO Knud Erik Hansen says: "It is fantastic to see demand soaring in attractive markets such as the US, China and Japan. The Nordic region and the UK are also reporting high growth rates. In all these markets quality is paramount, and in addition to our strong position based on product quality, our brand also offers a unique story: namely, that our products are made by hand in Denmark. To further support and strengthen our brand, we have, for instance, invested resources in establishing a flagship store in Tokyo, and will open one in London later in the year."
The increasing demand for Carl Hansen & Son's high-quality furniture has naturally stretched existing production capacity in Aarup on Funen, Denmark, requiring expansion of production facilities. To this end, in 2013, the company entered into an agreement to acquire an industrial plot of land in Aarup, and also took over new production premises in the nearby town of Gelsted this year. Carl Hansen & Son also acquired the cabinetmakers Snedkeriet Niels Roth in 2013 as part of its strategy of gathering iconic design classics under one roof. In 2013, these initiatives led to investments of DKK 26.3 million – a 56% increase relative to the previous year. At DKK 10.2 million, the pre-tax profit is on par with previous years, with a continued increase in equity. The results are described as satisfactory overall.
Carl Hansen & Son continues to experience the positive development and growth the company has enjoyed since the start of the financial crisis. Following the concurrent broadening of its product portfolio and capacity expansion, the company is geared to meet the expected demand of the coming years. Carl Hansen & Son expects growth of 20-25% in 2014, and profits that are 25-50% higher than in 2013. The substantial investments and other measures will also mean 40 to 50 new Danish jobs in connection with the establishment of new production facilities on Funen.
Knud Erik Hansen explains: "The investments are necessary for the company to meet increased demand, which we expect to continue in the coming years. So when the opportunity to purchase a 55,000 square meter plot adjacent to our existing factory in Aarup arose, I had no second thoughts. However, we cannot begin production here in the short term, which is why in spring 2014 we acquired the former Velux factory in Gelsted on Funen, where production will begin in August prior to further expansion in January 2015. These measures will generate new local jobs – which aligns perfectly with our brand promise of Danish-made, high-quality furniture classics."
