In 2023, Danish small and medium-sized enterprises (SMEs) faced considerable financial challenges, as highlighted by a comprehensive review of 179,630 annual accounts conducted by Beierholm.
The findings revealed a significant 41% decrease in the total net profit of these companies, dropping from approximately DKK 1,184 billion to around DKK 700 billion compared to the previous year.
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These findings have been attributed this decline to a turbulent economic landscape characterised by high inflation and rising interest rates, which led to substantial fluctuations in financial outcomes across various sectors.
The real estate sector was particularly hard hit, posting a total deficit of DKK 4.4 billion in 2023 compared to a profit of DKK 56.1 billion in 2022.
Conversely, Danish manufacturing companies bucked the trend with a notable overall increase of more than 50% in profitability. This improvement was attributed to stabilising raw material prices and successful implementation of price adjustments.
Source: www.wood-supply.dk