Beirholms Væverier A/S

Beskrivelse af virksomhedens væsentligste aktiviteter

Principal activity
Beirholms Væverier A/S is engaged in product development and marketing of industrial textiles for the textile service industry, whose end customers are hotels, restaurants, hospitals, nursing homes and cruise liners, primarily in Europe.
We aim deliver the most profitable, viable and sustainable solutions on the market for industrial textiles.

Beskrivelse af udviklingen i virksomhedens aktiviteter og økonomiske forhold

Development in activities and financial matters
We have a growth strategy which is primarily focused on the European markets, whose overall market is expected to grow due to the increase in the leasing level.
The reopening of society after the COVID-19 pandemic laid the foundation for two record-breaking years of activity in 2021/22 and 2022/23. This high activity was further amplified by our customers' above-normal investment in textiles to better support the hotel market's strong demand for textiles—a demand partly driven by recruitment challenges and reduced capacity in both the textile service and hotel industries following the COVID-19 lockdowns. Additionally, these years saw significant fluctuations in supply chains, leading to the buildup of textile inventories at all levels of the supply chain.
This overinvestment in textiles within the hotel and textile service industries has, in 2023/24, led to a reduced demand for textiles, as well as a seasonal normalization. We therefore view 2023/24 as a transitional year, defined by declining market mobility, but also an increased consolidation within the textile service industry.
Despite the decline in activity and financial results, we consider 2023/24 acceptable given the changed market conditions. We therefore believe that we have maintained and further expanded our market share in the European market.
Financial performance
Entering 2023/24, the first quarter was significantly impacted by a reduced demand for textiles in the market and by our customers’ efforts to reduce capital tied up in their textile inventories, further intensified by high and rising financing costs.
Despite lower activity in 2023/24, we maintained a high level of investment in the organization, product development, and our customer and producer partnerships. We remain confident that our high-performance textiles support our customers' goals of even higher productivity combined with lower CO2 emissions, ensuring that we remain the preferred choice.
The year 2023/24 was marked by significant external changes, demanding a high degree of adaptability to support our customers' evolving needs and requests. Logistic challenges, in particular, have had a considerable impact. Overseas transport from Asia has been challenged by longer transit times and rising transportation costs, primarily due to Houthi attacks and interference with international commercial ships sailing through the Red Sea. We continuously strive to adapt to these changing circumstances to reduce time-to-market. This year, we have introduced combined Sea-Air transport while also increasing stock levels again.
According to the annual report 2022/23 revenue and result after tax for 2023/24 was expected in the range of 450-500 mDKK and 20-35 mDKK, respectively. Due to the general decline in demand for textiles, combined with our continued investments in the business, both revenue and result after tax were realized at a lower level than expected. However, given the circumstances, these results remain acceptable.
Outlook
Following an operationally turbulent 2023/24, where inflation in our markets has been brought under control and interest rates are once again trending downward, we expect a more normalized 2024/25. However, it is clear that current global political tensions and conflicts are on the rise and could potentially evolve in unpredictable directions.
With these reservations in mind, we continue to see a world where the population is eager to travel, and where tourism is increasingly being invested in as an important industry. We observe high capacity utilization in the textile service industry, which supports the expectation of increased investments in capacity expansions and automation. Factors that, coupled with our strong and mature position in sustainability, strongly support a growing demand for our high performing textiles and our way of developing strong partnerships.
The budget for the coming year projects a revenue in an expected range of DKK 420-475 million. The major uncertainty in this context is the realization of our expectations related to macro-economic development, but also ricing global political conflicts.
Operating on positive expectations for the future, we persist in investing substantial resources, leading to an anticipated increase in costs for the coming year. Consequently, earnings are projected to be slightly higher than this year, with a net result before tax in the range of DKK 20-35 million expected.

Omtale af betydningsfulde hændelser, som er indtruffet efter regnskabsårets afslutning

No events materially affecting the Company's financial position have occurred after the financial year end.