After two years of heavy losses, a Danish furniture company has successfully returned to profitability by implementing significant cost-cutting measures. In 2024, the company recorded a profit of 53.3 million DKK, following a combined loss of 177 million DKK in 2022 and 2023.
A key factor in this turnaround was a major reduction in staff. Since 2021, the workforce of Tvilum has been cut nearly in half, from 1,056 employees to 589. Board chairman Peter Bager stated that the company had to "adapt to the level of activity" to ensure financial sustainability.
Despite a decline in revenue from 1.6 billion DKK to 1.1 billion DKK over the same period, the cost-saving strategy proved effective. The company focused on its core competencies, streamlining production and prioritising large-scale furniture manufacturing over smaller, less efficient production runs.
Bager praised the employees for their role in the restructuring, describing it as 'a great gift for them' and highlighting their ability to make the transformation a success. He expressed confidence in the current staffing level but noted that if necessary, the company is "a good place to work" and could recruit additional staff as needed.
The company, which operates production facilities in Kjellerup and Fårvang, remains focused on maintaining financial stability while continuing to refine its business model.
Source: www.wood-supply.dk