BoConcept, the global furniture brand, announced its fiscal year 2023-2024 financial results. Despite a challenging retail environment, the company continued to illustrate its adaptability, successfully navigating the year to maintain its market position and demonstrate resilience in the face of global uncertainties.
Market position maintained despite global volatility
In the fiscal year 23/24, BoConcept reported revenue of 1,273 million DKK, reflecting a decrease of 12 per cent compared to the previous year. Improved product profitability and a stable cost base meant EBITDA remained strong at 16.2 per cent, landing at 205 million DKK in 2023/24 compared to 16.5 per cent (238 million DKK) the previous year, a modest decrease of 0.2 per cent. Despite the revenue decline, BoConcept's ability to hold its market position demonstrates the robustness of its brand in a volatile economic environment.
The fiscal year was characterised by the post Covid-19 normalisation of activity and reduced consumer spending driven by record high inflation and an uncertain economic picture. Global factors, including ongoing conflict in Europe, also played a significant role in shaping the market landscape.
In response to these challenges, BoConcept undertook several strategic initiatives to enhance operational efficiency, alongside its continued focus on investment to ensure future growth. Costreduction measures in production and freight operations, and an improved product offering, enabled the company to maintain satisfactory margins and continue to outperform international competitors. As a result, BoConcept continues to solidify its reputation as a leader in the industry.
Mikael Kruse Jensen, CEO.
Mikael Kruse Jensen, CEO of BoConcept, commented: "We are proud of our performance in 2023/24, which demonstrates our resilience and agility in a challenging market. Our strong reputation, loyal consumer base and dedicated franchise network ensure we continue to grow and deliver value.
"In a year characterised by high inflation, fluctuating demand, and economic instability, we successfully sustained our market position. This resilience reflects our team's adaptability and commitment to keeping consumers at the heart of everything we do."
"Our 'Live Ekstraordinær' ethos embodies the strength of our brand. I want to recognise the extraordinary efforts of our global franchise partners, store teams, production teams and central functions, whose dedication has been crucial in navigating these challenges."
A solid foundation for future growth
Looking ahead, BoConcept expects low single-digit revenue growth in the coming fiscal year, driven by its continued focus on innovation, digitalisation, consumer satisfaction and operational excellence. Following a substantial investment which came to fruition at the close of FY2023/24, the company launched a completely new digital experience which will serve as a critical springboard for enabling future growth. Over the next two years, BoConcept plans to continue these significant investments to further enhance the consumer experience both online and in its concept stores. This digital focus, alongside the current strategy of transforming spaces into extraordinary places, leveraging recent store openings in key markets and expanding in the B2B sector, positions the company well for sustained success.
Source: BoConcept