"We are finalising the processes in the new factory to ensure smooth and efficient production. Despite the challenges, the team has managed to significantly increase sales in Germany, which now account for 26% of the company's total revenue. Our goal of maximising production growth is currently somewhat constrained by the stagnating demand for furniture in export markets. However, we are negotiating with our long-standing trading partners for larger order volumes, so we expect furniture trade to pick up again in the second half of the year," says Tomas Mauricas, the head of Kauno baldai.
The company's main export markets remain the Scandinavian and Benelux countries and Germany. Sales in Germany grew by more than a third during the year. Thanks to the long-term work and new customers, the export to Scandinavian countries in the first half of this year grew by almost 50%. However, sales in the Benelux countries fell by just over a fifth. According to Mauricas, the team is constantly developing new products, introducing them to potential buyers, and looking for new markets where Kaunas furniture is in demand.
"Recently, we were the only ones from Lithuania to participate in the biggest furniture exhibition in Poland, where we established contacts with potential customers from France and Southern European countries. At the end of the summer, we will present our products in Germany at MOW, the largest furniture fair in Europe. We hope that a wide range of products, smooth teamwork, and increased productivity in the new factory will help to turn business contacts into mutually beneficial contracts and to increase the scale of production in Kaunas, despite the slowdown in the furniture market," says T. Mauricas.
According to the company's CEO, if the recent favourable trends in the raw materials market, where prices are slowly moving downwards, continue, then the company will be able to offer products to its customers on more favourable terms. However, it is difficult to predict at this stage whether the decline in raw material prices will be sustainable and lasting.
Kauno Baldai, which employs over 370 people, completed the construction of a new 28 000 sqm factory last year. The investment, including equipment, amounted to more than EUR 30 million. All the new equipment will be completed in the second half of this year.
