Elvstrøm Sails is breaking records
Elvstrøm Sails has finalised its recent financial year (2017/2018), with a significant increase in both turnover and profitability. We are grateful to all our loyal customers, trusting our brand and look forward to continue delivering high-quality products to you.
The earnings before tax has more than tripled to DKK 9.1 million against last year’s DKK 2.8 million. At the same time the turnover has increased considerably and reached an all-time record of the group.
CEO Niels Bjerregaard explains: “In general we have increased our earnings. However, the acquisition in France last autumn is a big part of the improved performance and is influencing the development positively. We have seen significant improvements in the French business, more than we have expected”.
We took over the activities of the sister company, Elvstrøm Sails France, last year in September and has since the merger worked intensely on integrating the 2 companies. Niels Bjerregaard continues: “Besides from access to the world’s biggest market for our products, we have also managed to harvest other benefits from the acquisition in France. And there is more we can achieve in terms of synergies, which will benefit the group in the coming years.
We have recently launched a new global product-segment under the slogan “What is the colour of your dream!”. “One of the tasks we have worked on over the last year has been to create a unified and common product range for the group. With our 6 new and unique product segments, each containing the products that are required for our customers to realise their specific dreams, we have come a long way with our integration”, says Marketing Manager Lise-Lotte Møhring-Larsen.
Niels Bjerregaard stresses: ”Our industry is not experiencing noteworthy growth. Globally we are probably looking at a stagnating development when it comes to the sale of sailboats and equipment for sailboats. We are all very sensitive to the economic cycle and continued political unrest in several parts of the world will influence the demand for sailboats and equipment. The transition we have been through and the size Elvstrøm Sails has today, however, does give us a much stronger foundation than a few years ago. We are very grateful to our loyal customers that support our brand.”
The expectations for the coming year are not at the same level as the financial year that has just ended. Niels Bjerregaard explains: “We still think there is too much capacity in our industry and this, to some degree, can be seen in the continuing price pressure. Therefore, we are a bit cautious when it comes to the coming years. When that is said, our current performance and the size that we now give us the ability to continue the development of our distribution as well as the development of new technology and exciting new products for our customers”, Niels Bjerregaard concludes.
Niels Bjerregaard, CEO
Lise-Lotte Møhring Larsen, Marketing Manager