Complex solutions and more efficient processes
„Timely investments in the development of new products in the furniture sector, operational efficiency and automation, as well as the completion of our real estate projects in 2024 and their continued growth, had the greatest impact on SBA's results last year. In 2024, the furniture group's sales grew by almost 7% compared to 2023, while real estate rental income grew by 23%. We are also looking forward to this year with our team – we are planning investments of more than EUR 100 million,“ states Jolanta Grašienė, Vice President of SBA.
Last year, SBA's net profit fell from EUR 10.5 million in 2023 to EUR 9.4 million in 2024.
According to J. Grašienė, the most significant negative impact on profit results was the decrease in asset value resulting from the restructuring and reorganisation processes at the companies of the Utenos Trikotažas group. Additionally, one of SBA's primary strategic investment directions in 2024 was the active development of real estate projects, with returns anticipated between 2025 and 2027.
Investment year
In 2024, the SBA's total investments amounted to EUR 89 million, representing a 53% increase from the previous year. The largest and most significant investments were directed towards projects developed by the real estate development company SBA Urban, including the Urban HUB business parks in Vilnius and Kaunas, the development of the Nemunaičiai quarter, and coastal projects.
„In the furniture sector, last year, we focused most of our attention on the development of the new SBA Home North Carolina factory in the United States, where we plan to start furniture production this autumn. We also focused on automating processes at companies operating in Lithuania and introducing new products. Finally, together with SBA's investment management company Capitalica Asset Management, we completed the first phase of the Verde business centre in 2024,“ says J. Grašienė.
Opportunities for the furniture sector and real estate projects in foreign markets
„Perhaps the biggest and strongest strategic move by SBA this year is the factory expansion project in the US. This presents a significant challenge in terms of both logistics and culture, yet it also opens up a completely new market and offers substantial growth potential. We also view the year in the real estate sector positively – we see growth opportunities not only in other Baltic countries but also in Poland. This is a broad and fairly dynamic market where our team's experience and concepts can be particularly competitive,“ claims the SBA Vice-President.
However, this year is also full of challenges. Inflationary pressure, changes in consumer behaviour and the tense geopolitical situation, which determines raw material prices, as well as uncertainty regarding customs policy, remain essential risk factors that may affect the company's plans.
„Risks are an integral part of business, but we are planning to be particularly active this year in terms of both investments and more effective solutions. The transformation of Klaipėdos Baldai in the United States, the further expansion of the Inno Line factory in the Klaipėda district, the SBA Urban projects in Kaunas and plans abroad allow us to look forward to the year with optimism,“ concludes J. Grašienė.