"Demand for our products is currently down, but the situation is stabilising, and we expect to be able to bounce back from the bottom in the near future. We are successfully using this difficult period to increase production efficiency, helping us compete in global markets for new product orders. We have taken various efficiency measures in the face of rising energy and raw material costs. For example, we are now using 19% less electricity to produce 1 square metre of production than a year ago," says Raimonda Kižienė, the CEO of SBA Home, which unites 4 SBA furniture manufacturing companies in Lithuania.
A significant increase in sales in the first quarter was recorded by Inno Line, one of the most modern factories in the region, which started its operations near Klaipėda last year. It generated EUR 36 million in revenue, 40% more than in the same period in 2022. Other companies managed by SBA Home sold less than a year ago. "Klaipėdos baldai" generated 5% less revenue - a total of EUR 26 million. "Visagino linija" sold €18.4 million worth of furniture, 18% less than the same time last year. Šilutės Baldai's sales fell by one-third to EUR 8.9 million. On the other hand, the revenues of the upholstered furniture producer Kauno Baldai increased by 18% to more than EUR 8 million.
"This difficult period is also a time of opportunity. Together with our corporate teams, we are focusing on innovation and improving processes, products and materials. SBA Home's Product Development Centre is currently working on dozens of projects that we hope will open up new opportunities for productive collaboration with our partners and bring our more sustainable products and new models into mass production," says Ms Kižienė.
The CEO of SBA Home is cautiously optimistic about the future and expects the second half of the year to be more favourable for furniture manufacturers. According to her, if the demand in the largest export markets recovers, the downward trend in raw material prices persists and gains momentum. Logistics costs fall, then customers will return with larger orders.
SBA Group furniture companies delivered €389 million worth of products in 2022, up 8% from €361 million in 2021.
The SBA Group operates in the furniture, textiles, real estate and investment management sectors. It exports its products to 50 countries worldwide, with consolidated group sales of €404.6 million in 2021.